Bill Text: OR HB3162 | 2013 | Regular Session | Engrossed

---

Bill Title: Relating to high priority chemicals of concern for children's health; appropriating money; declaring an emergency.

Spectrum: Moderate Partisan Bill (Democrat 6-1)

Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB3162 Detail]

Download: Oregon-2013-HB3162-Engrossed.html

---

     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 2592

                           C-Engrossed

                         House Bill 3162
                  Ordered by the Senate July 3
Including House Amendments dated April 18 and June 14 and Senate
                     Amendments dated July 3

Sponsored by Representatives KENY-GUYER, CONGER, Senator STEINER
  HAYWARD; Representatives GOMBERG, HOLVEY, VEGA PEDERSON,
  Senator MONNES ANDERSON

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.

  Requires Oregon Health Authority to maintain list of designated
high priority chemicals of concern for children's health used in
children's products. Requires authority to post list, and
information regarding health impacts associated with exposure to
each chemical, on authority's website. Requires authority to
periodically review and revise list.
  Requires manufacturers of certain children's products to
provide notice to authority regarding chemicals on list.
    { - Provides that, five years after chemical is placed on
list, manufacturer must seek waiver if manufacturer continues to
sell certain children's products containing chemical. Establishes
criteria for granting waivers. - }
  Allows authority to enter into certain data-sharing agreements
with other states. Allows authority to participate in Interstate
Chemicals Clearinghouse.
  Allows authority to establish certain fees by rule. Allows
authority to impose civil penalties. Allows authority to accept
certain funding.
    { - Requires manufacturers to submit certain hazard
assessments to authority. Allows authority to establish
methodology and standards for hazard assessments by rule. - }
  Establishes High Priority Chemicals of Concern for Children's
Health Fund. Continuously appropriates moneys in fund to
authority. Specifies uses of moneys.
  Limits biennial expenditures from fees, moneys or other
revenues, including Miscellaneous Receipts, but excluding lottery
funds and federal funds, collected or received by authority.
  Declares emergency, effective on passage.

                        A BILL FOR AN ACT
Relating to high priority chemicals of concern for children's
  health; appropriating money; limiting expenditures; and
  declaring an emergency.
  Whereas many children's products contain chemicals that may
pose a risk to the health of children; and
  Whereas reducing the exposure of children to harmful chemicals
in children's products contributes to the health of children and
the long-term well-being of children; and
  Whereas providing the public with information regarding the
presence of certain chemicals in children's products helps to
ensure this state's commitment to the health of present and
future generations; now, therefore,
Be It Enacted by the People of the State of Oregon:

                               { +
DEFINITIONS + }

  SECTION 1.  { + As used in sections 1 to 15 of this 2013 Act:
  (1) 'Chemical' means:
  (a) A substance with a distinct molecular composition.
  (b) A group of structurally related substances and the
breakdown products of the substance or substances that form
through decomposition, degradation or metabolism.
  (2)(a) 'Children's cosmetics' means products that are made for,
marketed for use by or marketed to children under 12 years of age
and are intended to be rubbed, poured, sprinkled or sprayed on,
introduced into or otherwise applied to the human body or any
part thereof for cleansing, moisturizing, beautifying, promoting
attractiveness or altering the appearance.
  (b) 'Children's cosmetics' does not mean soap, dietary
supplements or food and drugs approved by the United States Food
and Drug Administration.
  (3)(a) 'Children's product' means:
  (A) A product designed or intended by the manufacturer to help
a child with sucking or teething to facilitate sleep, relaxation
or feeding of a child or to be worn as clothing by a child.
  (B) Car seats for children.
  (C) Children's cosmetics.
  (D) Children's jewelry made for, marketed for use by or
marketed to children under 12 years of age.
  (E) Toys designed, or intended by the manufacturer, to be used
by a child at play.
  (F) Items designed or intended by the manufacturer to
facilitate the feeding of a child under three years of age,
including dishes, cups, food utensils, reusable food storage
containers and other feeding accessories.
  (G) Any component part of a product specified in subparagraphs
(A) to (F) of this paragraph.
  (b) 'Children's product' does not mean:
  (A) Athletic shoes with cleats or spikes.
  (B) Batteries.
  (C) BB guns, pellet guns and air rifles.
  (D) Bicycles and tricycles.
  (E) Chemistry sets.
  (F) Consumer electronic products, including personal computers,
audio and video equipment, calculators, wireless telephones and
game consoles and handheld devices incorporating a video screen
and used to access interactive software and the associated
peripherals.
  (G) Interactive software intended for leisure and
entertainment, such as computer games, and their storage media,
such as compact discs.
  (H) Model rockets.
  (I) Pocketknives and multitools.
  (J) Roller skates.
  (K) Scooters.
  (L) Sets of darts with metallic points.
  (M) Slings and catapults.
  (N) Snow sporting equipment, including skis, poles, boots,
snowboards, sleds and bindings.

  (O) Sporting equipment, including bats, balls, gloves, sticks,
pucks and pads.
  (P) Video toys that can be connected to a video screen and are
operated at a nominal voltage exceeding 24 volts.
  (Q) Food and food packaging regulated by the United States Food
and Drug Administration.
  (4) 'Intentionally added chemical' means a chemical that was
added during the manufacture of a product or product component to
provide a specific characteristic, appearance or quality or to
perform a specific function.
  (5) 'Manufacturer' means:
  (a) Any person that manufactures a final consumer product sold
at retail or whose brand name is affixed to the consumer product.
  (b) The importer or domestic distributor of a consumer product
imported into the United States if the person that manufactured
or assembled the consumer product or whose brand name is affixed
to the consumer product does not have a presence in the United
States.
  (6) 'Trade association' means a membership organization of
persons engaging in a similar or related line of commerce,
organized to promote and improve business conditions in that line
of commerce and not to engage in a regular business of a kind
ordinarily carried on for profit. + }

                               { +
HIGH PRIORITY CHEMICALS OF CONCERN FOR CHILDREN'S + }
                               { +
HEALTH USED IN CHILDREN'S PRODUCTS + }

  SECTION 2.  { + The Oregon Health Authority shall maintain a
list of high priority chemicals of concern for children's health
used in children's products. The authority shall include on the
list chemicals that are listed on both:
  (1) The Department of Environmental Quality's Toxics Focus List
on the effective date of this 2013 Act; and
  (2) The Washington State Department of Ecology's Reporting List
of Chemicals of High Concern to Children on the effective date of
this 2013 Act. + }
  SECTION 3.  { + The Oregon Health Authority shall post the list
of high priority chemicals of concern for children's health used
in children's products established under section 2 of this 2013
Act on its website. For each chemical on the list, the authority
shall post information regarding the known health impacts
associated with exposure to the chemical. + }
  SECTION 4.  { + Section 3 of this 2013 Act becomes operative on
January 1, 2014. + }
  SECTION 5.  { + (1) The Oregon Health Authority shall review
and revise the list of high priority chemicals of concern for
children's health used in children's products established under
section 2 of this 2013 Act every three years.
  (2) In completing the revisions under subsection (1) of this
section, the authority shall consider and take into account the
addition or removal of a chemical that has been added to or
removed from both the Department of Environmental Quality's
Toxics Focus List and the Washington State Department of
Ecology's Reporting List of Chemicals of High Concern to Children
after the effective date of this 2013 Act.
  (3) The authority by rule may remove a chemical from the list
if the authority determines that the chemical is no longer being
used in children's products.
  (4) The authority shall update the list on its website within
one year of the date on which a chemical is added to, or a
chemical is removed from, the list under this section. + }
  SECTION 6.  { + Section 5 of this 2013 Act becomes operative on
January 1, 2016. + }

                               { +
MANUFACTURER DISCLOSURE OF HIGH PRIORITY CHEMICALS + }
                               { +
OF CONCERN FOR CHILDREN'S HEALTH USED IN + }
                               { +
CHILDREN'S PRODUCTS + }

  SECTION 7.  { + (1)(a) A manufacturer of children's products
sold or offered for sale in this state shall provide the notice
described in subsection (2) of this section every two years to
the Oregon Health Authority if:
  (A) A children's product contains an intentionally added
chemical that is included in the list of high priority chemicals
of concern for children's health used in children's products
established under section 2 of this 2013 Act; or
  (B) A children's product contains a chemical at levels above
100 parts per million that is not an intentionally added chemical
but that is a chemical included in the list of high priority
chemicals of concern for children's health used in children's
products.
  (b) In addition to the notice required by paragraph (a) of this
subsection, within one year of the date the authority adds a
chemical to the list under section 5 of this 2013 Act, a
manufacturer of children's products sold or offered for sale in
this state shall provide the notice described in subsection (2)
of this section if:
  (A) A children's product contains an intentionally added
chemical that is added to the list of high priority chemicals of
concern for children's health used in children's products
established under section 2 of this 2013 Act; or
  (B) A children's product contains a chemical at levels above
100 parts per million that is not an intentionally added chemical
but that is a chemical added to the list of high priority
chemicals of concern for children's health used in children's
products.
  (2) The notice required by subsection (1) of this section must
contain:
  (a) The name of the chemical contained in the children's
product and the Chemical Abstracts Service number;
  (b) A brief description of the children's product that contains
the chemical;
  (c) A description of the function of the chemical in the
children's product;
  (d) The amount of the chemical used in each unit of the
children's product reported in ranges rather than exact amounts;
  (e) The name and address of the manufacturer, and the name,
address and telephone number of a contact person for the
manufacturer; and
  (f) Any other information that is relevant to the appropriate
use of the children's product.
  (3)(a) In order for the authority to obtain the information
required in the notice described in subsection (2) of this
section, the authority may enter into reciprocal data-sharing
agreements with other states in which a manufacturer of
children's products is also required to disclose information
related to high priority chemicals of concern for children's
health used in children's products. If the authority has entered
into a data-sharing agreement with another state, and a
manufacturer has reported the information required in the notice
described in subsection (2) of this section to that state, the
manufacturer may request that the other state provide the
authority with the information in lieu of the manufacturer
directly reporting the information to the authority.
  (b) A manufacturer fulfills the notice requirement of
subsection (1) of this section when the authority receives the
information from the other state and the authority determines
that the information received meets the description specified in
subsection (2) of this section.
  (4) In lieu of the manufacturer's providing notice to the
authority under subsection (1) or (3) of this section, the
authority may require that the notice described in subsection (2)
of this section be given to the Interstate Chemicals
Clearinghouse. The authority by rule shall specify procedures for
the provisions of such notice by manufacturers to the Interstate
Chemicals Clearinghouse.
  (5) Manufacturers of children's products with annual worldwide
gross sales of less than $5 million, as reported on the most
recent tax returns filed before the notice required by this
section, are exempt from the requirements of this section.
  (6) A trade association may provide notice on behalf of its
member manufacturers under the provisions of this section.
  (7) When a manufacturer provides notice to the authority under
the provisions of this section, the manufacturer may submit
recommendations to the authority regarding technical, financial
or logistical support deemed necessary for innovation and green
chemistry solutions related to high priority chemicals of concern
for children's health used in children's products. + }

                               { +
OREGON HEALTH AUTHORITY + }

  SECTION 8.  { + (1) The Oregon Health Authority may conduct
testing of children's products sold or offered for sale in this
state in order to determine compliance with section 7 of this
2013 Act.
  (2) The authority may establish by rule a schedule of fees for
manufacturers that are based on the costs of the authority for
administering sections 1 to 15 of this 2013 Act. Fees collected
by the authority under this subsection shall be deposited in the
High Priority Chemicals of Concern for Children's Health Fund
established under section 13 of this 2013 Act. + }
  SECTION 9.  { + (1) Sections 7 and 8 of this 2013 Act become
operative on January 1, 2015.
  (2) The first notice under section 7 of this 2013 Act must be
provided to the Oregon Health Authority not later than July 1,
2015. + }

                               { +
INTERSTATE CHEMICALS CLEARINGHOUSE + }

  SECTION 10.  { + The Oregon Health Authority is authorized to
participate in the Interstate Chemicals Clearinghouse in
cooperation with other states and government entities to assist
the authority in carrying out sections 1 to 15 of this 2013
Act. + }

                               { +
CIVIL PENALTIES + }

  SECTION 11.  { + (1) Except as provided in subsection (5) of
this section, the Oregon Health Authority may impose a civil
penalty on a person for a violation of any provision of sections
1 to 15 of this 2013 Act.
  (2) For purposes of assessing civil penalties under this
section, a violation consists of a single course of conduct with
regard to an entire children's product line that is sold or
offered for sale in this state.
  (3) The authority shall adopt by rule a schedule of civil
penalties for violations of sections 1 to 15 of this 2013 Act. A
civil penalty may not exceed $5,000 for the first violation. A
civil penalty may not exceed $10,000 for the second and each
subsequent violation.
  (4) In imposing a penalty under subsection (1) or (5) of this
section, the authority shall consider the following factors:
  (a) The past history of the person incurring a penalty in
taking all feasible steps or procedures necessary or appropriate
to correct any violation.
  (b) Any prior violations of statutes, rules, orders or permits
pertaining to high priority chemicals of concern for children's
health used in children's products.
  (c) The gravity and magnitude of the violation.
  (d) Whether the violation was a sole event, repeated or
continuous.
  (e) Whether the violation was as a result of an unavoidable
accident, negligence or an intentional act.
  (f) The violator's cooperativeness and efforts to correct the
violation.
  (g) The economic and financial conditions of the person
incurring a penalty.
  (5)(a) If a person violates the notice requirements under
section 7 of this 2013 Act, the authority shall provide the
person with written notice informing the person of the violation
and stating that the person may avoid a civil penalty for the
violation by providing the proper notice required under section 7
of this 2013 Act within 90 days.
  (b) If the person fails to cure the violation within 90 days,
the authority may impose a civil penalty not to exceed $2,500.
For a continuing violation, each 90-day period that the violation
continues after the preceding imposition of a civil penalty is a
separate offense subject to a separate civil penalty not to
exceed $5,000. The authority is not required to provide the
person with an opportunity to cure the continuing violation
before imposing a civil penalty for the continuing violation.
  (6) If the authority has reason to believe that a children's
product that contains a high priority chemical of concern for
children's health used in children's products is being sold or
offered for sale in this state in violation of sections 1 to 15
of this 2013 Act, the authority may request that the manufacturer
provide a statement of compliance on a form provided by the
authority. The manufacturer must submit the statement of
compliance within ten days of receipt of a request. To prove
compliance with sections 1 to 15 of this 2013 Act, the
manufacturer must:
  (a) Show that the children's product does not contain the high
priority chemical of concern for children's health used in
children's products;
  (b) Show that the manufacturer has previously provided the
authority with notice as required by section 7 of this 2013 Act;
or
  (c) Provide the authority with notice as required by section 7
of this 2013 Act.
  (7) Civil penalties described in this section shall be imposed
in the manner provided in ORS 183.745.
  (8) All civil penalties recovered under this section shall be
paid into the High Priority Chemicals of Concern for Children's
Health Fund established under section 13 of this 2013 Act. + }
  SECTION 12.  { + Section 11 of this 2013 Act becomes operative
on January 1, 2015. + }

                               { +
HIGH PRIORITY CHEMICALS OF CONCERN FOR + }
                               { +
CHILDREN'S HEALTH FUND + }

  SECTION 13.  { + (1) The High Priority Chemicals of Concern for
Children's Health Fund is established in the State Treasury,
separate and distinct from the General Fund. Interest earned by
the High Priority Chemicals of Concern for Children's Health Fund
shall be credited to the fund. Moneys in the fund are
continuously appropriated to the Oregon Health Authority to
administer sections 1 to 15 of this 2013 Act.
  (2) The authority may accept gifts, grants or contributions
from any public or private source for the purpose of carrying out
sections 1 to 15 of this 2013 Act.
  (3) The High Priority Chemicals of Concern for Children's
Health Fund shall consist of:
  (a) Moneys accepted by the authority pursuant to subsection (2)
of this section.
  (b) Fees and charges collected under section 8 of this 2013
Act.
  (c) Civil penalties imposed under section 11 of this 2013
Act. + }

                               { +
RULES + }

  SECTION 14.  { + The Oregon Health Authority may adopt rules
necessary to implement the provisions of sections 1 to 15 of this
2013 Act. + }  { +  + }

                               { +
REPORTS TO LEGISLATIVE ASSEMBLY + }

  SECTION 15.  { + The Oregon Health Authority shall provide a
report to the Legislative Assembly once every two years regarding
the implementation of sections 1 to 15 of this 2013 Act,
including:
  (1) Any updates made under section 5 of this 2013 Act to the
list of high priority chemicals of concern for children's health
used in children's products.
  (2) The number of manufacturers in compliance with section 7 of
this 2013 Act and an analysis of the information collected
pursuant to section 7 of this 2013 Act specifying:
  (a) The number and types of children's products sold or offered
for sale in this state that contain high priority chemicals of
concern for children's health used in children's products.
  (b) The range of amounts of high priority chemicals of concern
for children's health used in children's products, and an
analysis of the levels of the high priority chemicals of concern
for children's health used in children's products for various
categories of children's products.
  (c) The potential for exposure to high priority chemicals of
concern for children's health used in children's products based
on the number of children's products sold or offered for sale in
this state, likely exposure routes and the typical use patterns
for the children's products.
  (d) Recommendations to limit, reduce or prevent exposure to
high priority chemicals of concern for children's health used in
children's products based on an analysis of the information
collected.
  (3) Any recommendations submitted to the authority by
manufacturers under section 7 (7) of this 2013 Act. + }
  SECTION 16. { +  Section 15 of this 2013 Act becomes operative
on January 1, 2015. + }

                               { +
MISCELLANEOUS + }

  SECTION 17.  { + Notwithstanding any other law limiting
expenditures, the amount of $57,046 is established for the
biennium beginning July 1, 2013, as the maximum limit for payment
of expenses from fees, moneys or other revenues, including
Miscellaneous Receipts, but excluding lottery funds and federal
funds, collected or received by the Oregon Health Authority for
carrying out the duties of the authority under sections 1 to 15
of this 2013 Act. + }
  SECTION 18.  { + The unit captions used in this 2013 Act are
provided only for the convenience of the reader and do not become
part of the statutory law of this state or express any
legislative intent in the enactment of this 2013 Act. + }

                               { +
EMERGENCY CLAUSE + }

  SECTION 19.  { + This 2013 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2013 Act takes effect on
its passage. + }
                         ----------