SB 763 Page 1 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 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 materials are added, to be fire retardant and labeled in a manner specified by Bureau. (BCP 19161) SB 763 Page 2 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) THIS BILL: 1) 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 SB 763 Page 3 federal regulations. 2) 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. 3) 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. 4) 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. 5) 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. 6) 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. 7) 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. 8) 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. 9) 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. 10) Authorizes the Bureau to assess fines between $2,500 to $10,000, depending on specified factors, or for mislabeling a product. 11) Requires the Bureau to adjust all minimum and maximum fines imposed by these provisions for inflation every five years. SB 763 Page 4 12) 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. 13) 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 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 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. SB 763 Page 5 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. 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 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 SB 763 Page 6 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 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 pentaand 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 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 SB 763 Page 7 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 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 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 SB 763 Page 8 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.” 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-tomouth 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 SB 763 Page 9 knowing whether a child’s product contains fire retardant chemicals….Consumers are demanding products without added flame retardants, and currently, they 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 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 SB 763 Page 10 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 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 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 SB 763 Page 11 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. 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 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 SB 763 Page 12 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 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.