SF 716

as introduced - 90th Legislature (2017 - 2018) Posted on 02/07/2017 09:04am

A bill for an act
relating to environment; regulating chemicals of high concern in children's products;
amending Minnesota Statutes 2016, sections 13.7411, subdivision 8; 116.9401;
116.9402; 116.9403; 116.9405; 116.9406; proposing coding for new law in
Minnesota Statutes, chapter 116.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 13.7411, subdivision 8, is amended to read:

Subd. 8.

Pollution Control Agency.

new text begin (a) Hazardous waste generators. new text end Information
provided by hazardous waste generators under section 473.151 and for which confidentiality
is claimed is governed by section 116.075, subdivision 2.

new text begin (b) Priority chemicals. Trade secret information and other information submitted to
the Pollution Control Agency related to priority chemicals in children's products are classified
under sections 116.9403 to 116.9411.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2016, section 116.9401, is amended to read:

116.9401 DEFINITIONS.

(a) For the purposes of sections 116.9401 to deleted text begin 116.9407 deleted text end new text begin 116.9411 new text end , the following terms
have the meanings given them.

(b) "Agency" means the Pollution Control Agency.

(c) "Alternative" means a substitute process, product, material, chemical, strategy, or
combination of these that is technically feasible and serves a functionally equivalent purpose
to a chemical in a children's product.

(d) "Chemical" means a substance with a distinct molecular composition or a group of
structurally related substances and includes the breakdown products of the substance or
substances that form through decomposition, degradation, or metabolism.

(e) "Chemical of high concern" means a chemical identified on the basis of credible
scientific evidence by a state, federal, or international agency as being known or suspected
with a high degree of probability to:

(1) harm the normal development of a fetus or child or cause other developmental
toxicity;

(2) cause cancer, genetic damage, or reproductive harm;

(3) disrupt the endocrine or hormone system;

(4) damage the nervous system, immune system, or organs, or cause other systemic
toxicity;

(5) be persistent, bioaccumulative, and toxic; or

(6) be very persistent and very bioaccumulative.

(f) "Child" means a person under 12 years of age.

(g) "Children's product" means a consumer product intended for use by children, such
as baby products, toys, car seats, personal care products, and clothing.

(h) "Commissioner" means the commissioner of the Pollution Control Agency.

(i) new text begin "Contaminant" means a trace amount of a chemical that is incidental to manufacturing
and serves no intended function in the product component. Contaminant includes, but is
not limited to, unintended by-products of chemical reactions that occur during the
manufacture of the product component, trace impurities in feedstock, incompletely reacted
chemical mixtures, and degradation products.
new text end

new text begin (j) new text end "Department" means the Department of Health.

deleted text begin (j) deleted text end new text begin (k) new text end "Distributor" means a person who sells consumer products to retail establishments
on a wholesale basis.

deleted text begin (k) deleted text end new text begin (l) new text end "Green chemistry" means an approach to designing and manufacturing products
that minimizes the use and generation of toxic substances.

deleted text begin (l) deleted text end new text begin (m) new text end "Manufacturer" means any person who manufactures a final consumer product
sold at retail or whose brand name is affixed to the consumer product. In the case of a
consumer product imported into the United States, manufacturer includes the importer or
domestic distributor of the consumer product if the person who 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.

new text begin (n) "Practical quantification limit" means the lowest concentration of a chemical that
can be reliably measured within specified limits of precision, accuracy, representativeness,
completeness, and comparability under routine laboratory operating conditions, the value
of which:
new text end

new text begin (1) is based on scientifically defensible, standard analytical methods;
new text end

new text begin (2) may vary depending on the matrix and analytical method used; and
new text end

new text begin (3) will be determined jointly by the agency and the department, taking into consideration
practical quantification limits established by federal or state agencies.
new text end

deleted text begin (m) deleted text end new text begin (o) new text end "Priority chemical" means a chemical identified by the Department of Health as
a chemical of high concern that meets the criteria in section 116.9403.

deleted text begin (n) deleted text end new text begin (p) "Product category" means the brick level of the GS1 Global Product Classification
(GPC) standard, which identifies products that serve a common purpose, are of a similar
form and material, and share the same set of category attributes.
new text end

new text begin (q) new text end "Safer alternative" means an alternative whose potential to harm human health is
less than that of the use of a priority chemical that it could replace.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2016, section 116.9402, is amended to read:

116.9402 IDENTIFICATION OF CHEMICALS OF HIGH CONCERN.

(a) By July 1, 2010, the department shall, after consultation with the agency, generate
a list of chemicals of high concern.

(b) The department must periodically review and revise the list of chemicals of high
concern at least every three years. The department may add chemicals to the list if the
chemical meets one or more of the criteria in section 116.9401, paragraph (e). new text begin Any changes
to the list of chemicals of high concern must be published on the department's Web site and
in the State Register when a change is made.
new text end

(c) The department shall consider chemicals listed as a suspected carcinogen, reproductive
or developmental toxicant, or as being persistent, bioaccumulative, and toxic, or very
persistent and very bioaccumulative by a state, federal, or international agency. These
agencies may include, but are not limited to, the California Environmental Protection Agency,
the Washington Department of Ecology, the United States Department of Health, the United
States Environmental Protection Agency, the United Nation's World Health Organization,
and European Parliament Annex XIV concerning the Registration, Evaluation, Authorisation,
and Restriction of Chemicals.

(d) The department may consider chemicals listed by another state as harmful to human
health or the environment for possible inclusion in the list of chemicals of high concern.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2016, section 116.9403, is amended to read:

116.9403 IDENTIFICATION OF PRIORITY CHEMICALS.

(a) The department, after consultation with the agency, may designate a chemical of
high concern as a priority chemical if the department finds that the chemical:

(1) has been identified as a high-production volume chemical by the United States
Environmental Protection Agency; and

(2) meets any of the following criteria:

(i) the chemical has been found through biomonitoring to be present in human blood,
including umbilical cord blood, breast milk, urine, or other bodily tissues or fluids;

(ii) the chemical has been found through sampling and analysis to be present in household
dust, indoor air, drinking water, or elsewhere in the home environment; or

(iii) the chemical has been found through monitoring to be present in fish, wildlife, or
the natural environment.

(b) By February 1, 2011, the department shall publish a list of priority chemicals in the
State Register and on the department's Internet Web site and shall update the published list
whenever a new priority chemical is designated. new text begin Any proposed changes to the list of priority
chemicals must be published on the department's Web site and in the State Register and is
subject to a minimum 60-day public comment period. After the department's review and
consideration of public comments, a final list of changes to the list of priority chemicals
must be published on the department's Web site and in the State Register.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2016, section 116.9405, is amended to read:

116.9405 APPLICABILITY.

The requirements of sections 116.9401 to deleted text begin 116.9407 deleted text end new text begin 116.9411 new text end do not apply to:

(1) chemicals in used children's products;

(2) priority chemicals used in the manufacturing process, but that are not present in the
final product;

(3) priority chemicals used in agricultural production;

(4) motor vehicles as defined in chapter 168 or watercraft as defined in chapter 86B or
their component parts, except that the use of priority chemicals in detachable car seats is
not exempt;

(5) priority chemicals generated solely as combustion by-products or that are present in
combustible fuels;

(6) retailers;

(7) pharmaceutical products or biologics;

(8) a medical device as defined in the federal Food, Drug, and Cosmetic Act, United
States Code, title 21, section 321(h);

(9) deleted text begin food and food or beverage packaging, except a container containing baby food or
infant formula;
deleted text end

deleted text begin (10) deleted text end consumer electronics products and electronic components, including but not limited
to personal computers; audio and video equipment; calculators; digital displays; wireless
phones; cameras; game consoles; printers; and handheld electronic and electrical devices
used to access interactive software or their associated peripherals; or products that comply
with the provisions of directive 2002/95/EC of the European Union, adopted by the European
Parliament and Council of the European Union now or hereafter in effect; deleted text begin or
deleted text end

deleted text begin (11) deleted text end new text begin (10) new text end outdoor sport equipment, including snowmobiles as defined in section 84.81,
subdivision 3; all-terrain vehicles as defined in section 84.92, subdivision 8; personal
watercraft as defined in section 86B.005, subdivision 14a; watercraft as defined in section
86B.005, subdivision 18; and off-highway motorcycles, as defined in section 84.787,
subdivision 7, and all attachments and repair parts for all of this equipment new text begin ;
new text end

new text begin (11) a manufacturer or distributor of a children's product whose annual aggregate gross
sales, both within and outside this state, as reported in the manufacturer's or distributor's
most recently filed federal tax return, is below $100,000; or
new text end

new text begin (12) a children's product if the annual production of the children's product is less than
3,000 units new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2016, section 116.9406, is amended to read:

116.9406 DONATIONS TO THE STATE.

The commissioner may accept donations, grants, and other funds to carry out the purposes
of sections 116.9401 to deleted text begin 116.9407 deleted text end new text begin 116.9411 new text end . All donations, grants, and other funds must be
accepted without preconditions regarding the outcomes of the regulatory oversight processes
set forth in sections 116.9401 to deleted text begin 116.9407 deleted text end new text begin 116.9411 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

new text begin [116.9408] CHILDREN'S PRODUCTS; REPORTING INFORMATION ON
PRIORITY CHEMICALS.
new text end

new text begin Subdivision 1. new text end

new text begin Reporting; content. new text end

new text begin A manufacturer or distributor of a children's product
offered for sale in this state that contains one or more priority chemicals designated under
section 116.9403 must, unless the children's product is exempt under section 116.9405,
provide the following information to the agency, on a form developed by the agency, for
each priority chemical that is intentionally added to the children's product and present at or
above the practical quantification limit or that is a contaminant present in a component of
the children's product at a concentration above 100 parts per million:
new text end

new text begin (1) the name of the priority chemical;
new text end

new text begin (2) the Chemical Abstracts Service Registry number of the priority chemical;
new text end

new text begin (3) the concentration of each priority chemical contained in a children's product, a
description of how the concentration was determined, and an evaluation of the accuracy of
the determination. Concentrations at or above the practical quantification limit must be
reported, but may be reported in the following ranges:
new text end

new text begin (i) greater than or equal to the practical quantification limit but less than 100 parts per
million (ppm);
new text end

new text begin (ii) greater than or equal to 100 ppm but less than 500 ppm;
new text end

new text begin (iii) greater than or equal to 500 ppm but less than 1,000 ppm;
new text end

new text begin (iv) greater than or equal to 1,000 ppm but less than 5,000 ppm;
new text end

new text begin (v) greater than or equal to 5,000 ppm but less than 10,000 ppm; and
new text end

new text begin (vi) greater than or equal to 10,000 ppm;
new text end

new text begin (4) the product category of the children's product;
new text end

new text begin (5) the number of units of the children's product sold in Minnesota or nationally in the
most recently completed calendar year;
new text end

new text begin (6) information that the agency determines is necessary to determine the extent to which
a child is likely to be exposed to the priority chemical through normal use of the product;
new text end

new text begin (7) any assessment conducted by the manufacturer or distributor of the children's product
or others regarding the use of safer alternatives to the priority chemical contained in the
children's product; and
new text end

new text begin (8) any additional information requested by the agency.
new text end

new text begin Subd. 2. new text end

new text begin Report timing. new text end

new text begin (a) A manufacturer or distributor subject to this section must
report the information required under this section to the agency no later than one year after
a priority chemical has been designated under section 116.9403 or, for a priority chemical
designated under section 116.9403 before July 1, 2011, on the following schedule based on
the manufacturer's or distributor's annual aggregate gross sales, both within and outside the
state, as reported in the manufacturer's or distributor's most recently filed federal tax return:
new text end

new text begin (1) for a manufacturer or distributor with gross sales exceeding $1,000,000,000, by July
1, 2018;
new text end

new text begin (2) for a manufacturer or distributor with gross sales exceeding $250,000,000 but less
than or equal to $1,000,000,000, by January 1, 2019;
new text end

new text begin (3) for a manufacturer or distributor with gross sales exceeding $100,000,000 but less
than or equal to $250,000,000, by July 1, 2019;
new text end

new text begin (4) for a manufacturer or distributor with gross sales exceeding $5,000,000 but less than
or equal to $100,000,000, by July 1, 2020; and
new text end

new text begin (5) for a manufacturer or distributor with gross sales exceeding $100,000 but less than
or equal to $5,000,000, by July 1, 2021.
new text end

new text begin (b) Two years after submitting an initial report to the agency under this section, a
manufacturer or distributor of a children's product offered for sale in this state that continues
to contain one or more priority chemicals must submit an updated report containing the
information required under subdivision 1 and the 12-digit Universal Product Code for the
children's product. If the children's product continues to be offered for sale in this state and
to contain the priority chemical, the information required under this paragraph must be
submitted to the agency every two years.
new text end

new text begin Subd. 3. new text end

new text begin Public data. new text end

new text begin Notwithstanding section 13.37, subdivision 2, the presence and
concentration of a priority chemical in a specific children's product reported to the agency
under subdivision 1 are classified as public data.
new text end

new text begin Subd. 4. new text end

new text begin Not misappropriation of trade secret. new text end

new text begin Notwithstanding section 325C.01,
subdivision 3, publication by the agency of the presence and concentration of a priority
chemical in a specific children's product reported to the agency under subdivision 1 is not
misappropriation of a trade secret.
new text end

new text begin Subd. 5. new text end

new text begin Removal of priority chemical; reporting. new text end

new text begin A manufacturer or distributor who
removes a priority chemical from a children's product reported under this section must notify
the agency of the removal at the earliest possible date. If the priority chemical removed is
replaced by a safer alternative, the manufacturer or distributor must provide, on a form
developed by the agency, the name of the safer alternative and its Chemical Abstracts Service
Registry number or, if not replaced by a chemical alternative, a description of the techniques
or design changes implemented. The safer alternative or nonchemical techniques or design
changes may be designated as trade secrets. Upon verification that all priority chemicals in
the product have been replaced by safer alternatives, the commissioner must promptly
remove from state agency Web sites any reference to the relevant children's product of the
manufacturer, and the manufacturer will no longer report or pay fees on that children's
product.
new text end

new text begin Subd. 6. new text end

new text begin Failure to report. new text end

new text begin If the information required in subdivision 1 is not submitted
in a timely fashion or is incomplete or otherwise unacceptable as determined by the agency,
the agency may contract with an independent third party of the agency's choice to provide
the information and may assess a fee on the manufacturer or distributor to pay the costs
specified under section 116.9409.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

new text begin [116.9409] FEES.
new text end

new text begin (a) The agency shall collect a fee of $1,000 for each priority chemical initially reported
under section 116.9408. The fee doubles for each report subsequently filed with the agency
under section 116.9408 for the same chemical contained in the same children's product.
new text end

new text begin (b) The agency shall collect a fee equal to the costs billed by the independent contractor
plus the agency's actual incurred costs to bid and administer the contract for each contract
issued under section 116.9408, subdivision 6.
new text end

new text begin (c) The commissioner shall deposit all fees received under this section in an account in
the special revenue fund.
new text end

new text begin (d) Fees collected under this section are exempt from section 16A.1285.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9.

new text begin [116.9410] ENFORCEMENT.
new text end

new text begin The agency shall enforce sections 116.9401 to 116.9409 in the manner provided by
section 115.071, subdivisions 1, 3, 4, 5, and 6. Section 115.071, subdivision 2, does not
apply to violations of sections 116.9401 to 116.9409.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10.

new text begin [116.9411] STATE AGENCY DUTIES.
new text end

new text begin Subdivision 1. new text end

new text begin Safer alternative grants. new text end

new text begin If there is fee revenue collected under section
116.9409, paragraph (a), in excess of program implementation costs, the commissioner, in
consultation with the commissioners of commerce and health, may use that fee revenue to
offer grants awarded competitively to manufacturers or other researchers to develop safer
alternatives to priority chemicals in children's products, to establish alternatives as safer
alternatives, or to accelerate the commercialization of safer alternatives.
new text end

new text begin Subd. 2. new text end

new text begin Education and outreach. new text end

new text begin The commissioners of health and commerce shall
develop and implement an education and outreach effort regarding priority chemicals in
children's products.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin By January 15, 2019, and every three years thereafter, the
commissioners of the Pollution Control Agency, health, and commerce shall report to the
legislative committees with jurisdiction over environment and natural resources, commerce,
and public health on the implementation of sections 116.9401 to 116.9411.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end