BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 928|
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                                 THIRD READING


          Bill No:  SB 928
          Author:   Simitian (D)
          Amended:  3/25/10
          Vote:     21

           
           SENATE ENV. QUALITY COMMITTEE  :  4-1, 4/5/10
          AYES:  Simitian, Corbett, Lowenthal, Pavley
          NOES:  Runner
          NO VOTE RECORDED:  Hancock, Strickland


           SUBJECT  :    Consumer products:  content information

           SOURCE  :     Author


           DIGEST  :    The bill requires a manufacturer or wholesaler  
          of a designated consumer product, as defined, on or before  
          March 31, 2011, to provide a notice that lists all  
          substances, identified by a number or other unique  
          identifier, that are contained in that product, by posting  
          that information on the manufacturer's or wholesaler's  
          Internet Web site.  A manufacturer or wholesaler that does  
          not maintain an Internet Web site would be required by the  
          bill to establish such an Internet Web site.

           ANALYSIS  :    Existing federal law:

          1. Pursuant to the Consumer Product Safety Act, provides  
             protection of the public against unreasonable risks of  
             injury associated with consumer products, largely by  
             developing uniform safety standards for those products.   
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          2. Pursuant to the Toxic Substances Control Act (TSCA),  
             states that adequate data should be developed with  
             respect to the effect of chemical substances and  
             mixtures on health and the environment and that the  
             development of such data should be the responsibility of  
             those who manufacture and those who process such  
             chemical substances and mixtures.

          Existing California law:

          1. Requires the manufacturer of a cosmetic product to  
             disclose to the Department of Public Health a list of  
             any ingredient in their product that is a chemical which  
             has been identified to cause cancer or reproductive  
             damage, pursuant to the California Safe Cosmetics Act of  
             2005.

          2. Requires the Department of Toxic Substances Control  
             (DTSC) to adopt regulations to:  1) establish a process  
             to identify and prioritize chemicals or chemical  
             ingredients in products that may be considered a  
             "chemical of concern;" 2) establish a process for  
             evaluating chemicals of concern in products, and their  
             potential alternatives in order to determine how best to  
             limit exposure or to reduce the level of hazard posed by  
             a chemical of concern, as specified; and establish a  
             process that includes an evaluation of the availability  
             of potential alternatives and potential hazards posed by  
             alternatives, as well as an evaluation of critical  
             exposure pathways.

          3. Requires DTSC to establish a Toxics Information  
             Clearinghouse for the collection, maintenance, and  
             distribution of specific chemical hazard traits and  
             environmental and toxicological end-point data.  Also  
             requires the Office of Environmental Health Hazard  
             Assessment to evaluate and specify the hazard traits and  
             environmental and toxicological end-points and any other  
             relevant data that are to be included in the  
             clearinghouse.

          This bill:







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          1. Makes legislative findings regarding the federal  
             Consumer Product Safety Act and the authority of states  
             to impose stricter requirements if the state standard  
             provides a higher degree of protection than the federal  
             standard.

          2. Defines various terms, including "designated consumer  
             product." 

          3. Requires a manufacturer or wholesaler of a designated  
             consumer product to provide notice of all substances  
             that are contained in their product.

          4. Provides that notice is fulfilled by the posting of  
             required information on a manufacturer's or wholesaler's  
             Web site; manufacturers or wholesalers must establish a  
             Web site for compliance with this bill.

          5. Declares that its provisions are severable and if any  
             provision of the bill is held invalid, that invalidity  
             would not affect other provisions or applications that  
             can be given effect without the invalid provision or  
             application.

           Comments
           
          According to the author's office, there are currently more  
          than 80,000 chemicals approved under federal law for use in  
          the United States.  Each day, a total of 42 billion pounds  
          of chemical substances are produced or imported in the U.S.  
          for commercial and industrial uses.  An additional 1,000  
          new chemicals are introduced into commerce each year.   
          Approximately one new chemical comes to market every 2.6  
          seconds and global chemical production is projected to  
          double every 25 years.  The average U.S. consumer today  
          comes into contact with 100 chemicals per day.  In 2009,  
          the U.S. Centers for Disease Control conducted the  Fourth  
          National Report on Human Exposure to Environmental  
          Chemicals  which measured 212 chemicals in the blood and  
          urine of a representative population of California.   
          California consumers and businesses are becoming  
          increasingly aware and concerned about the abundance of  
          chemicals that they are exposed to in the products that  







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          they use on a day-to-day basis in their homes and in the  
          workplace.  However, they lack the ability to make informed  
          decisions about the chemicals in the products that they  
          purchase because product manufacturers are not required to  
          disclose the chemicals in the products.  Additionally the  
          author's office states that there is a vast gap in data  
          concerning how Californians are being exposed to these  
          chemicals, at what level and frequency they are being  
          exposed and what the impacts are of the individual or  
          synergistic, long or short term, low or high concentration  
          exposures because there is a lack of chemical ingredient  
          disclosure on consumer products.  Given the magnitude of  
          chemical production, use and exposure, it is crucial to  
          construct a better understanding of these exposures.   
          According to the author's office, this bill empowers  
          California consumers and businesses to access basic  
          information about the ingredients in their products and  
          makes informed decisions about the type of products that  
          they purchase and use, and would help construct a clearer  
          picture of where chemicals are used in consumer products  
          and how that impacts exposures.
           
          The TSCA  .  The TSCA of 1976 authorizes the U.S.  
          Environmental Protection Agency (USEPA) to require  
          reporting, record-keeping and testing requirements, and set  
          restrictions relating to chemical substances and/or  
          mixtures.  Certain substances are generally excluded from  
          TSCA, including, among others, food, drugs, cosmetics and  
          pesticides.  TSCA addresses the production, importation,  
          use, and disposal of specific chemicals.  Among its  
          provisions, TSCA requires USEPA to maintain the TSCA  
          inventory which currently contains more than 83,000  
          chemicals.  As new chemicals are commercially manufactured  
          or imported, they are placed on the list. 

          TSCA requires the submission of health and safety studies  
          which are known or available to those who manufacture,  
          process, or distribute in commerce specified chemicals; and  
          allows USEPA to gather information from manufacturers and  
          processors about production/import volumes, chemical uses  
          and methods of disposal, and the extent to which people and  
          the environment are exposed. 

           Extensive deficiencies in the federal regulation of  







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          chemicals  .  Of all federal environmental statutes, the TSCA  
          is the only law that is intended to enable regulation of  
          chemicals both before and after they enter commerce.   
          Numerous academic, legal, and scientific bodies have all  
          concluded that TSCA has not served as an effective vehicle  
          for the public, industry, or government to assess the  
          hazards of chemicals in commerce.  After decades of  
          implementation, TSCA has largely failed to provide the  
          necessary information to assess the health and  
          environmental effects for tens of thousands of chemicals in  
          commerce.

          TSCA's weaknesses have far-reaching effects.  Lacking  
          comprehensive and standardized information on toxicity and  
          eco-toxicity for most chemicals, it is very difficult for  
          businesses and industry to choose safer chemicals or to  
          identify and reduce the use of hazardous chemicals in their  
          supply chains.  Government agencies do not have the  
          information they need to systematically identify and  
          prioritize chemical hazards, nor the legal tools to  
          efficiently mitigate known hazards.

          In 2003, the Senate Environmental Quality Committee and the  
          Assembly committee on Environmental Safety and Toxic  
          Materials commissioned a report from the University of  
          California to investigate the current legal and regulatory  
          structure for chemical substance and report on how a  
          California chemicals policy could address environmental and  
          health concerns about chemical toxicity, build a long-term  
          capacity to improve the design and use of chemicals, and  
          understand the implications of European policy on the  
          California chemical market.

          In 2006, the U.C. Berkeley authors presented the  
          commissioned report,  Green Chemistry in California:  A  
          Framework for Leadership in Chemicals Policy and Innovation   
          and made a connection between weaknesses in federal policy,  
          namely TSCA, and the health and environmental damage  
          happening in California.  The report broadly summarized  
          their findings into what they called the "three gaps".

          1. Data Gap:  There is a lack of information on which  
             chemicals are safe, which are toxic, and what chemicals  
             are in products.  The lack of access to chemical data  







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             creates an unequal marketplace.  California businesses  
             cannot choose and make safer products and respond to  
             consumer demand without ingredient disclosure and safety  
             testing.

          2. Safety Gap:  Government agencies do not have the legal  
             tools or information to prioritize chemical hazards.   
             Under TSCA only 5 chemicals out of 83,000 have been  
             banned since 1976.  The California legislature has  
             frequently addressed this problem by approving  
             individual chemical bans.  Chemical bans come before the  
             legislature because there are very few other mechanisms  
             in place at the federal or state level that can remove  
             harmful chemicals from the marketplace.

          3. Technology Gap:  There is an absence of regulatory  
             incentives, market motivation which stems from the data  
             gap, and educational emphasis on green chemistry  
             methodologies and technologies.  In order to build a  
             substantial green chemistry infrastructure, a coincident  
             investment and commitment must be made to strengthen  
             industrial and academic research and development.

          In 2007, the California Environmental Protection Agency  
          launched California's Green Chemistry Initiative within the  
          DTSC.  The California Green Chemistry Initiative Final  
          Report released in December 2008 included the following six  
          policy recommendations for implementing this comprehensive  
          program in order to foster a new era in the design of a new  
          consumer products economy, inventing, manufacturing and  
          using toxic-free, sustainable products.  

          1. Expand Pollution Prevention and product stewardship  
             programs to more business sectors to focus on prevention  
             rather than simple source reduction or waste controls.

          2. Develop Green Chemistry Workforce Education and  
             Training, Research and Development and Technology  
             Transfer through new and existing educational program  
             and public/private partnerships.

          3. Create an Online Product Ingredient Network to disclose  
             chemical ingredients for products sold in California,  
             while protecting trade secrets.







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          4. Create an Online Toxics Clearinghouse, an online  
             database providing data on chemical, toxicity and hazard  
             traits to the market place and public.

          5. Accelerate the Quest for Safer Products, creating a  
             systematic, science-based process to evaluate chemicals  
             of concern and identify safer alternatives to ensure  
             product safety.

          6. Move Toward a Cradle-to-Cradle Economy to leverage  
             market forces to produce products that are  
             "benign-by-design" in part by establishing a California  
             Green Products Registry to develop green metrics and  
             tools for a range of consumer products and encourage  
             their use by businesses.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No    
          Local:  No

           SUPPORT :   (Verified  4/6/10)

          Breast Cancer Action
          Breast Cancer Fund
          Clean Water Action
          Environment California
          Environmental Working Group
          Sierra Club
          Women's Voices for the Earth

           OPPOSITION  :    (Verified  4/6/10)

          California Chamber of Commerce
          California Manufacturers & Technology Association

           ARGUMENTS IN SUPPORT  :    Supporters state that in the quest  
          for sparkling clean, germ-free homes, today's consumers  
          have a vast array of products at their disposal:  
          detergents, disinfectants, glass cleaners, carpet cleaners,  
          stain removers, air fresheners and all-purpose cleansers.   
          Sales of cleaning products to U.S. consumers reached $7.3  
          billion dollars in 2007.  But many consumers don't know,  
          and the labels won't tell them, that chemicals found in  
          some ordinary household products are known or suspected to  







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          cause cancer, birth defects, asthma, skin sensitivities,  
          allergic reactions and other serious health effects.

          Supporters state that current law does not require  
          manufacturers to disclose the ingredients in cleaning  
          products to consumers.  While some companies are beginning  
          to disclose cleaning product ingredients, many chemicals  
          remain hidden, particularly those 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.

          They add that similarly, institutions like hospitals and  
          schools who serve vulnerable populations are often denied  
          access to ingredient information from manufacturers.  These  
          institutions are then forced to buy products about which  
          they know little or nothing regarding possible health  
          hazards.  Even physicians treating patients who have  
          suffered adverse reactions from exposure to cleaning  
          products cannot get access to ingredient lists.

          The supporters believe that this bill will give consumers  
          the information they need to make educated decisions about  
          their purchases.  

           ARGUMENTS IN OPPOSITION :    Opponents state that, the full  
          ingredient disclosure in this bill is unnecessary, not  
          scientifically sound, likely to cause consumer confusion  
          and is potentially harmful to product innovation.  

          This bill requires redundant layers of compliance by  
          requiring manufacturers, wholesalers and retailers to  
          disclose ingredients in products they sell on their  
          websites, which will add cost to products sold in  
          California.  

          California businesses cannot ultimately compel the  
          manufacturers that they do business with to disclose  
          ingredient information and as such would have to stop  
          selling products in California for which information cannot  
          be obtained.

          Many small businesses do not currently maintain a website  
          because they lack the expertise to do so and the cost of  







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          paying someone to build and maintain a website is cost  
          prohibitive.  The opposition feels that requiring website  
          disclosure is an impediment to small business. 


          TSM:nl  4/7/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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