BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 509
                                                                  Page  1

          Date of Hearing:   June 10, 2008

                   ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
                                   Mike Eng, Chair
                    SB 509 (Simitian) - As Amended:  June 5, 2008

           SENATE VOTE  :  21-16
           
          SUBJECT  :  Consumer products:  content information.

           SUMMARY  :  Requires a manufacturer to disclose information about  
          designated consumer product ingredients, as specified.   
          Specifically,  this bill  :

          1)Prohibits the manufacture or sale of designated consumer  
            products in California unless the manufacturer or seller of  
            the product discloses each ingredient contained in the product  
            that exceeds one-tenth of 1%.

          2)This disclosure may be fulfilled:

             a)   By affixing a label on the product, or providing an  
               information sheet accompanying the product at the time of  
               sale that lists the product ingredients; or

             b)   By posting the product ingredient information on the  
               manufacturer's Internet Web Site.  

          3)Defines the following:

             a)   "Designated consumer product" as any product included in  
               the following categories:

               i)     "Air care product" means a chemically formulated  
                 consumer product designed to affect indoor air;

               ii)    "Automotive product" means a chemically formulated  
                 consumer product designed to maintain the appearance of a  
                 motor vehicle;

               iii)   "Cleaning product" means a soap, detergent, or other  
                 chemically formulated product designed for personal  
                 hygiene, fabric care, dish or other ware washing, or  
                 surface cleaning; and,









                                                                  SB 509
                                                                  Page  2

               iv)    "Polish or floor maintenance product" means a  
                 chemically formulated consumer product such as polish,  
                 wax, or a restorer, designed to polish, protect, or  
                 maintain furniture, floors, metal, leather, or other  
                 surfaces.

             b)   "Manufacturer" means a person or entity that  
               manufactures a designated consumer product in this state.

          4)Makes legislative findings and declarations.

          5)States that the provisions of this article are severable, and  
            shall only be implemented to the extent permitted by federal  
            law. 

           EXISTING LAW  :

          1)Provides protection of the public against unreasonable risks  
            of injury associated with consumer products, largely by  
            developing uniform safety standards for those products, under  
            the federal Consumer Product Safety Act (15 U.S.C. Section  
            2051 et seq.).

          2)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 (Toxic  
            Substances Control Act (15 U.S.C.A. Sections 2601 to 2692)).

          3)Requires the manufacturer of a cosmetic product to disclose to  
            the Department of Health Services 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.
                                                       
           FISCAL EFFECT  :   Unknown.  This bill is keyed non-fiscal.

           COMMENTS  :  

           Purpose of this bill  :  According to the author's office, "The  
          bill responds to the need by businesses and others to obtain  
          information about the ingredients in consumer products in order  
          to make informed decisions in the marketplace; as recently  
          stated by the Department of Toxic Substances Control, there is a  








                                                                  SB 509
                                                                  Page  3

          need to expand the amount and ease of accessing information on  
          chemicals by encouraging manufacturers of consumer products to  
          communicate information about the ingredients in products."

           Background :  The San Francisco Chronicle published an article in  
          July 2007 revealing that dozens of common household cleaning  
          products contain a toxic chemical, 2-butoxyethanol (EGBE), which  
          is linked to fertility disorders in lab animals.  


          "It's difficult for consumers to know whether their favorite  
          cleaner contains the chemical because manufacturers aren't  
          required to list it on the label.  Neither the state nor the  
          federal government regulates indoor air pollution. 


          "William Nazaroff, [a professor of environmental engineering and  
          chairman of the Energy and Resources Group at UC Berkeley]  
          conducted a study for the California Air Resources Board in 2006  
          on the indoor air chemistry of cleaning agents and toxic air  
          contaminants. He found that people using some common products  
          containing EGBE [a toxic chemical] could be exposed to levels 12  
          times greater than California's one-hour exposure guideline. 



          "[Nazaroff stated,] 'None of these are (legally enforceable)  
          standards for ordinary indoor environments.  We have a blind  
          spot in our regulatory structure for toxic air pollutants,'  
          Nazaroff said.  'It defies logic to think that it's unsafe to be  
          exposed outdoors but it would be safe to be exposed at that  
          level indoors.'" 

          According to the Senate Environmental Quality Committee  
          analysis, of all federal environmental statutes, the Toxic  
          Substances Control Act of 1976 (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.  









                                                                  SB 509
                                                                  Page  4

          The labeling of household cleaning products falls under two  
          federal statutes and one state statue - the Federal Hazardous  
          Substances Act (FHSA), the Fair Packaging and Labeling Act  
          (FPLA), and California's Safe Drinking Water and Toxic  
          Enforcement Act of 1986, better known as Proposition 65.      

          FHSA, administered by the Consumer Product Safety Commission,  
          requires product labeling of hazardous substances sold to  
          households to help consumers safely use those products.  FHSA  
          regulations provide specific guidelines to determine potential  
          risks specific to the entire formulation and package.  The label  
          must communicate specific risks associated with the product and  
          appropriate handling and storage information.  Product risk  
          assessments are the basis for label decisions and precautionary  
          label text to protect consumers and children.  These risks are  
          determined by the manufacturer, however, and often only active  
          ingredients are listed on the product label, leaving many  
          chemical ingredients outside the requirements. 


          Products must also comply with California's Proposition 65.  
          Proposition 65 requires the State to publish a list of chemicals  
          known to cause cancer or birth defects or other reproductive  
          harm, and requires requires businesses to notify Californians  
          about the presence of listed chemicals in the products they  
          purchase, in their homes or workplaces, or that are released  
          into the environment.  This list is not exhaustive, however.  


          California is making attempts to close this consumer safety gap.  
           The California Environmental Protection Agency (CalEPA) created  
          the California Green Chemistry Initiative in April 2007 by  
          requesting that the Department lead a broad public process to  
          generate ideas that could fill information and safety gaps about  
          chemicals, develop overall policy goals, and identify and  
          recommend policy options.  The Green Chemistry Initiative  
          Science Advisory Panel released a report in May 2008 titled,  
          "Green Chemistry Options for the State of California," that  
          recommended mandatory information disclosure.  The report  
          acknowledged that "existing product labeling requirements and  
          material safety data sheets reveal very little about the  
          chemical components of common products, whether in formulations  
          (i.e., chemical mixtures) such as cosmetics or household  
          cleaners, or in finished goods like toys, clothing, and  
          automobiles.  








                                                                  SB 509
                                                                  Page  5




          "California could address this data gap by requiring  
          manufacturers to provide the state with a list of all  
          ingredients in their products?. California's long experience  
          with Proposition 65 provides a precedent for requiring  
          businesses to discover and disclose chemicals in their products  
          or processes.  However, this proposal would go beyond substances  
          on the existing state list of carcinogens and reproductive  
          toxics." 


           Support  :  The East Bay Municipal Utility District writes in  
          support, "SB 509 would provide content information that would  
          assist the Department in establishing a baseline on the use of  
          toxics materials in California and would help to further the  
          advancement of the Green Chemistry Initiative.  In addition, SB  
          509 would provide consumers and business with greater access to  
          content information on the consumer products they use."



           Opposition  :  A number of associations joined together to issue  
          the following statement in opposition:  "Our primary concern is  
          that proprietary and confidential business information (CBI)  
          must be protected.  We are in agreement that meaningful  
          ingredient communication is desirable.  Without the ability to  
          protect CBI, the incentive for companies to get behind the Green  
          Chemistry movement and invest in the research to discover new  
          alternatives will be in jeopardy.  Solving the CBI problem is  
          not only paramount to acceptability of this bill to  
          manufacturers, but also to the Green Chemistry Initiative  
          underway at CalEPA."

           Double-referred  .  This bill is double-referred to Assembly  
          Environmental Safety and Toxic Materials. 

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          American Federation of State, County and Municipal Employees,  
          AFL-CIO
          Breast Cancer Fund








                                                                  SB 509
                                                                  Page  6

          East Bay Municipal Utility District
          Planning and Conservation League
          Sierra Club of California
           
            Opposition 
           
          American Chemistry Council
          California Chamber of Commerce
          California Distributors Association
          California League of Food Processors
          California Manufacturers & Technology Association
          California Retailers Association
          Consumer Specialty Products Association
          Grocery Manufacturers Association
          Industrial Environmental Association
          Western Plant Health Association


           Analysis Prepared by  :    Sarah Huchel / B. & P. / (916) 319-3301