A BILL TO BE ENTITLED
AN ACt to protect children from the health impacts of toxic chemicals in children's products by Prohibiting the manufacture and sale of children's products containing bisphenol A, TRIS, or Phthalates; and by requiring the Department of Environment and natural Resources, in consultation with the Division of Public health of the department of Health and Human Services, to identify and designate Chemicals of high concern and priority chemicals; and by requiring notice and an alternatives assessment  by manufacturers of children's products containing certain priority chemicals.
Whereas, rates of chronic diseases among children, including childhood cancers, autism spectrum disorders, certain birth defects, reproductive disorders, allergies, and developmental disorders are increasing and are associated with children's exposures to environmental agents; and
Whereas, infants and children are sensitive to toxic chemical exposure because their neurological and endocrine systems are not fully developed and their ability to detoxify and eliminate toxic residues is immature; and
Whereas, the Toxic Substances Control Act (TSCA), enacted in 1976, has allowed more than 82,000 chemicals into commerce in the United States with only about 200 of those chemicals subjected to limited health and safety testing; and
Whereas, four other states also have passed legislation regarding chemicals of concern in children's products; and
Whereas, the chemicals known collectively as TRIS are added to plastics, foams, and textiles as flame retardants used in children's products such as car seats, baby changing pads, and baby carriers in order to comply with fire retardant standards in the state of California; and
Whereas, TRIS is used as a replacement for certain PBDE (Polybrominated Diphenyl Ether) flame retardants that have been banned or voluntarily phased out of use; and
Whereas, the U.S. Consumer Product Safety Commission banned TRIS from children's clothing and sleepwear in 1977 because it was determined to cause cancer in test animals; and
Whereas, phthalates are a group of chemical additives used as thickeners, softeners, or controlled release agents in plastics like polyvinyl chloride or PVC and are readily absorbed through the skin; and
Whereas, the U.S. Centers for Disease Control has found that phthalates are ubiquitous in the bodies of Americans, that levels are increasing, and that the highest levels are found in children and women of reproductive age; and
Whereas, in August 2008, U.S. President George W. Bush signed the Consumer Product Safety Improvement Act of 2008 banning three types of phthalates in children's products, and at least three other states have enacted further bans; and
Whereas, several phthalates are listed as "probable" or "possible" human carcinogens by the U.S. Environmental Protection Agency; and 
Whereas, exposure to phthalates has been associated with birth defects, shortened pregnancy, behavioral problems, liver and kidney damage; and
Whereas, industry leaders have already begun removing phthalates from cosmetics and children's products; and
Whereas, Bisphenol A, commonly known as BPA, is an industrial chemical regularly used in the plastics industry for the production of items such as baby bottles, water bottles, food storage containers, and metal can liners; and
Whereas, more than two million pounds of Bisphenol A are produced in the United States each year; and
Whereas, the United States Food and Drug Administration has cited concerns about the potential effects of Bisphenol A on the brain, behavior, and the endocrine glands of infants and children; and
Whereas, hundreds of scientific studies have linked Bisphenol A to health effects such as miscarriage for pregnant women, as well as diabetes, obesity, and cancer; and
Whereas, the United States Centers for Disease Control and Prevention has found that 93% of Americans have detectable levels of Bisphenol A in their bodies; and
Whereas, at least 10 other states have passed legislation to limit the use of Bisphenol A, and additional states have had legislation introduced; and
Whereas, industry leaders have elected to begin phasing out the use of Bisphenol A in the production of baby bottles, sippy cups, and food containers; Now, therefore,
The General Assembly of North Carolina enacts:
SECTION 1.  Chapter 130A of the General Statutes is amended by adding a new Article to read:
"Article 24.
"North Carolina Toxic-Free Kids Act.
"§ 130A‑511.  Definitions.
The following definitions apply in this Article:
(1)	Alternative. – 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.
(2)	Bisphenol A. – The bicyclic phenol more particularly identified as 4,4'‑isopropylidenediphenol and assigned Chemical Abstracts Service Registry Number 80‑05‑7.
(3)	Casual or isolated sale. – A sale made by a person who is not engaged in the business of selling the product involved.
(4)	Chemical. – A substance with a distinct molecular composition or a group of structurally related substances, including the breakdown products of the substance or substances that form through decomposition, degradation, or metabolism.
(5)	Chemical of high concern. – 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 be any of the following:
a.	Harmful to the normal development of a fetus or child or cause other developmental toxicity.
b.	A cause of cancer, genetic damage, or reproductive harm.
c.	Disruptive to the endocrine or hormone system.
d.	Damaging to the nervous system, immune system, or organs, or cause other systemic toxicity.
e.	Persistent, bioaccumulative, and toxic.
f.	Very persistent and very bioaccumulative.
(6)	Child. – A person under 12 years of age.
(7)	Children's product. – A consumer product intended for use by children, such as baby products, toys, car seats, personal care products, or clothing.
(8)	Department. – The Department of Environment and Natural Resources.
(9)	Distributor. – A person who sells consumer products to retail establishments on a wholesale basis.
(10)	Division. – The Division of Public Health of the Department of Health and Human Services.
(11)	Green chemistry. – An approach to designing and manufacturing products that minimizes the use and generation of toxic substances.
(12)	Manufacturer. – 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.
(13)	Phthalates. – Di‑(2‑ethylhexyl) phthalate (DEHP), dibutyl phthalate (DBP), benzyl butyl phthalate (BBP), diisonoyl phthalate (DINP), diisodecyl phthalate (DIDP), or di‑n‑octyl phthalate (DnOP). 
(14)	Priority chemical. – A chemical identified by the Department of Environment and Natural Resources as a chemical of high concern that meets the criteria in G.S. 130A‑513.
(15)	Safer alternative. – An alternative whose potential to harm human health is less than that of the use of a priority chemical that it could replace.
(16)	Secretary. – The Secretary of the Department of Environment and Natural Resources.
(17)	TRIS. – Either or both of the following chemicals:
a.	TDCPP (tris(1,3‑dichloro‑2‑propyl)phosphate), chemical abstracts service registry number 13674‑87‑8, as of the effective date of this section.
b.	TCEP (tris(2‑chloroethyl)phosphate), chemical abstracts service registry number 115‑96‑8, as of the effective date of this section.
(18)	Very bioaccumulative. – Having a bioconcentration factor or bioaccumulation factor greater than or equal to 5,000 or, if neither factor is available, having a log Kow greater than 5.0.
(19)	Very persistent. – One of the following:
a.	A half‑life of greater than 180 days in soil or sediment.
b. 	A half‑life of greater than or equal to 60 days in water or evidence of long‑range transport.
"§ 130A‑512.  Prohibition on the manufacturing and sale of children's products containing Bisphenol A, phthalates, or TRIS.
(a)	Beginning July 1, 2014, no manufacturer, wholesaler, or retailer may manufacture, knowingly sell, offer for sale, distribute for sale, or distribute for use in this State, a children's product containing any of the following:
(1)	Bisphenol A.
(2)	Phthalates, individually or in combination, at more than 0.10 percent by weight (one thousand parts per million).
(3)	TRIS in amounts greater than 50 parts per million in any component.
(b)	The sale or purchase of any previously owned product containing a substance listed in subsection (a) of this section made in casual or isolated sales and sales by nonprofit organizations are exempt from subsection (a) of this section.
"§ 130A‑513.  Identification of chemicals of high concern.
(a)	By October 1, 2012, the Department shall, after consultation with the Division, 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 subdivision (4) of G.S. 130A-511.
(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 Nations World Health Organization, and European Parliament Annex XIV concerning the Registration, Evaluation, Authorization, 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.
"§ 130A‑514.  Identification of priority chemicals.
(a)	The Department, after consultation with the Division, may designate a chemical of high concern as a priority chemical if the department finds that the chemical meets any of the following criteria:
(1)	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.
(2)	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.
(3)	The chemical has been identified as a high‑production volume chemical by the United States Environmental Protection Agency.
(4)	The chemical has been found through monitoring to be present in fish, wildlife, or the natural environment.
(b)	By May 1, 2013, the Department shall publish a list of priority chemicals in the North Carolina Register and on the Department's Internet Web site and shall update the published list whenever a new priority chemical is designated.
"§ 130A‑515.  Notice that a children's product contains a priority chemical.
Beginning November 1, 2013, a manufacturer of a children's product, or a trade organization on behalf of its member manufacturers, shall provide notice to the Department that the manufacturer's product contains a priority chemical. The notice must be filed annually with the department and must include all of the following information:
(1)	The name of the chemical used or produced and its chemical abstracts service registry number.
(2)	A brief description of the product or product component containing the substance.
(3)	A description of the function of the chemical in the product.
(4)	The amount of the chemical used in each unit of the product or product component. The amount may be reported in ranges, rather than the exact amount.
(5)	The name and address of the manufacturer and the name, address, and phone number of a contact person for the manufacturer.
(6)	Any other information the manufacturer deems relevant to the appropriate use of the product.
"§ 130A‑516.  Alternatives assessment required.
(a)	By April 1, 2014, the manufacturer of a children's product whose product contains TRIS shall submit to the Department an alternatives assessment consistent with G.S. 130A‑517.
(b)	After November 30, 2013, the manufacturer of a children's product that has provided notice as required under G.S. 130A‑515 that their product contains formaldehyde must, within one year of providing notice, submit to the Department an alternatives assessment consistent with G.S. 130A‑517.
(c)	After November 30, 2013, the manufacturer of a children's product that has provided notice as required under G.S. 130A‑515 that their product contains antimony or antimony compounds or Bisphenol A must, within one year of providing notice, submit to the Department an alternatives assessment consistent with G.S. 130A‑517.
(d)	Beginning July 1, 2017, the Department may require a manufacturer of children's products containing chemicals of high concern for children to conduct an alternatives assessment consistent with G.S. 130A‑517. The Department shall provide a manufacturer at least one year to submit the alternatives assessment. The Department may require alternatives assessments for no more than two chemicals of high concern for children per fiscal year.
(e)	A manufacturer required to conduct an alternatives assessment under this section may work with a trade association, other manufacturers, or third parties to complete and submit a single alternatives assessment.
(f)	A manufacturer of children's products with annual gross sales, both within and outside of North Carolina, of less than five million dollars ($5,000,000), based on the manufacturer's most recent tax year filing, is exempt from the requirements of this section.
(g)	The Department shall provide technical assistance to any manufacturer required to conduct an alternatives assessment that requests assistance. Technical assistance includes, but is not limited to, providing the following:
(1)	Alternatives assessments previously submitted to the department.
(2)	Existing resources and tools for conducting alternatives assessments.
(3)	Information existing within the Department gathered from literature reviews, manufacturers' surveys, and information from the interstate chemicals clearinghouse.
"§ 130A‑517.  Alternatives assessment; contents.
(a)	An alternatives assessment must identify alternatives for consideration that reduce or eliminate the use of and potential for children's exposure to the chemical of high concern. For the chemical of high concern and each potential alternative, an alternatives assessment must include each of the following elements:
(1)	Chemical names and chemical abstracts service registry numbers.
(2)	An assessment of whether, based on credible scientific evidence, the alternative demonstrates the potential to do one or more of the following:
a.	Harm the normal development of a fetus or child or cause other developmental toxicity.
b.	Cause cancer or genetic damage.
c.	Cause reproductive toxicity.
d.	Disrupt the endocrine system.
e.	Damage the nervous system, immune system, or organs or cause other systemic toxicity.
f.	Cause sensitization and immune system response.
g.	Cause negative ecological impacts.
h.	Be persistent, bioaccumulative, and toxic.
i.	Be very persistent or very bioaccumulative.
(3)	Available information or data, based on credible scientific evidence regarding (i) the degree of toxicity, including dose response studies; and (ii) potential routes of exposure to children through which the chemical or alternative may cause each effect identified in sub‑subdivisions (2)a. through (2)f. of this subsection.
(4)	Information on performance and functionality of the potential alternatives in product and materials addressed in the alternatives assessment.
(5)	Opportunities for product reformulation, chemical substitution, product redesign, or manufacturing process redesign.
(b)	The alternatives assessment shall also include the following:
(1)	A comparison among alternatives and chemicals of high concern for the elements required in subdivisions (2) through (5) of subsection (a) of this section.
(2)	A description of the criteria and assumptions used to compare alternatives, including identification of data gaps.
(3)	An explanation of the findings and conclusions of the supporting data for the alternatives assessment.
(c)	The manufacturer may provide any additional information that assisted in evaluating alternatives or deemed by the manufacturer relevant to the alternatives assessment, such as cost and availability of potential alternatives; purchase price differential between the product containing chemicals of high concern and the alternative; conditions of use; chemical management; and technical feasibility.
"§ 130A‑518.  Adoption of rules.
The Department may adopt rules as necessary for the purpose of implementing, administering, and enforcing this Article."
SECTION 2.(a)  The Department of Environment and Natural Resources in consultation with the Division of Public Health of the Department of Health and Human Services shall report to the General Assembly no later than January 1, 2015, summarizing and evaluating manufacturers' notices on chemicals of high concern and alternatives assessments required under Section 1 of this act.  The report shall include recommendations for legislation to protect children's health and to improve the alternatives assessment process, as well as the following elements:
(1)	A summary of the information provided by manufacturers about the use of chemicals of high concern in children's products.
(2)	Evidence of children's exposure to chemicals of high concern.
(3)	Opportunities for preventing children's exposure to chemicals of high concern.
(4)	Results from completed alternatives assessments, including whether there are safer alternatives to the chemical of high concern.
SECTION 2.(b)  The definitions in G.S. 130A‑511, as enacted by Section 1 of this act, apply throughout this section unless the context clearly requires otherwise.
SECTION 3.  There is appropriated to the Department of Natural Resources the sum of one hundred thousand dollars ($100,000) for the 2012‑2013 fiscal year to fund the Department's duties established by this act.
SECTION 4.  Section 1 of this act becomes effective December 1, 2012. The remainder of this act is effective when it becomes law.