SB 27-FLAME RETARDANTS /CHEMICALS CLEARINGHOUSE  4:08:12 PM CHAIR OLSON announced that the final order of business would be CS FOR SENATE BILL NO. 27(HSS), "An Act relating to flame retardants and to the manufacture, sale, and distribution of products containing flame retardants; relating to a multistate chemicals clearinghouse; and providing for an effective date." 4:08:36 PM SAM GOTTSTEIN, Staff, Senator Bill Wielechowski, Alaska State Legislature, stated that SB 27 would help ensure Alaskans live in safe toxic-free homes. This bill would ban polybrominated diphenyl ethers or PBDEs, which are toxic flame retardants from being manufactured, distributed or sold in the state. These toxic chemicals can be found in many household items, including mattresses, upholstered furniture, and plastic covers on electronics. He said that the negative health effects of using these chemical is well-documented. He related that a number of studies on prenatal exposure to PBDEs show decreased mental and physical development, increased thyroid problems, reproductive health problems, and an increased risk of testicular cancer. He pointed out that children are most at risk from exposure to toxic chemicals since exposure to small concentrations of these toxins at a critical stage of development can lead to permanent negative health effects. MR. GOTTSTEIN said Alaskans are particularly vulnerable to toxic flame retardants for three reasons. First, Alaskans tend to spend more time indoors. Second, Alaskans eat a greater quantity of subsistence foods that have high concentrations of the biocumulating chemicals. Third, toxins like PBDEs are carried in the atmosphere through a process known as global distillation. He referred to a news article that came out three days ago that indicates an uncommonly high level of flame retardant chemicals are found in a very remote Arctic location, which made national news. Thus Alaskans are at an increased risk. He related that the sponsor has received numerous letters of support from pediatricians, firefighter associations, the Alaska Mental Health Trust, and Alaska Federation of Natives. MR. GOTTSTEIN asked to make a few points, including that Representative Holmes had introduced a similar bill. He raised issues that have been raised during hearings on the bill. First, SB 27 does not compromise fire safety. The bill does not exempt products from meeting existing fire safety standards so there should be no trade off resulting in legislature being forced to decide between the lesser of two evils. This bill would keep children safe from fires and from harmful health effects from exposure to harmful chemicals. Second, this bill will not increase costs to consumers. Other states have researched this extensively. He held up an extensive study by the State of Illinois - too large for members' packets - that looked for cost effective alternatives. Illinois found that transportation issues resulted in cost issues. He referred to page 2, lines 24-25, which exempts transportation. He pointed out that cheap alternatives are available in the marketplace, especially in large markets such as European Union, Wal-Mart. He noted that 12 other states have banned these chemicals except for a couple of industries, which this bill exempts. Finally, a number of legislators have raised concerns since the Environmental Protection Agency (EPA) is working to address this issue. He offered his belief that over 90,000 chemicals are registered under the Toxic Substance Control Act, and of those only five have ever been banned by the EPA. He pointed out that lead, mercury, and asbestos are substances with negative health effects yet none have been banned. MR. GOTTSTEIN reported that three independent chemical manufacturers have performed a voluntary phase out. He emphasized that the phase out is voluntary and puts American companies at a disadvantage since foreign chemical companies continue to use the chemicals. 4:13:58 PM REPRESENTATIVE JOHNSON related his understanding the federal government will take care of in 2014. He recalled the issue coming up several years. SENATOR BILL WIELECHOWSKI, Alaska State Legislature, answered that the EPA is not banning PBDEs, but is asking companies for voluntary compliance by 2014. 4:15:09 PM MR. GOTTSTEIN related his understanding that in 2013 or 2014, the voluntary ban goes into effect on three manufacturers. He stated that SB 27 would apply to the chemical compounds for penta, octa, and deca BDEs. He offered his belief that the voluntary compliance for penta and octa, but not deca BDEs, which are also very dangerous toxic chemicals. More importantly, the EPA ban does not apply to the importation of these chemicals from outside manufacturers. Essentially, the problem exists in which the U.S. companies are doing right thing yet foreign companies are continuing to import these toxic chemicals. 4:16:46 PM REPRESENTATIVE JOHNSON moved to adopt the proposed committee substitute (CS) for SB 27, labeled 27-LS0300\E, Bannister, 4/9/12, as the working document. [Version E was before the committee.] CHAIR OLSON objected for purpose of discussion. 4:17:39 PM REPRESENTATIVE HOLMES suggested the bill is similar to her prior bill on the same subject. 4:17:47 PM KONRAD JACKSON, Staff, Representative Kurt Olson, Alaska State Legislature, stated that SB 27 is similar to a version the committee reviewed last session. He referred to page 1, line 7 of the original bill, which read, "A person may not manufacturer, sell, or distribute..." He stated that the language in the proposed substitute, (CS), for SB 27, Version E reads, "a person who is a manufacturer or a distributor may not manufacturer, sell, or distribute a product. The intention was to not harm businesses or retailers who may have the products on the shelf. The companies have invested money in the products which will be sold and not replaced as time goes on and could be a pretty unfair burden to businesses. CHAIR OLSON related his understanding this bill would protect Alaska businesses. MR. JACKSON commented that Representative Holmes mentioned this bill looks a lot like a bill she had on the same topic. 4:19:25 PM REPRESENTATIVE MILLER related his understanding that the EPA has moved to phase out the products and the businesses may have several inventory pieces on their shelves. He inquired as to whether the businesses will have any duty to disclose to consumers the PBDEs in the products. REPRESENTATIVE HOLMES said she did not believe so. She stated that the businesses may not know their merchandise contains PBDEs, which is part of why the committee made the change to the original bill. The committee wanted to make sure SB 27 did not apply to the company, but to the manufacturer of the product. 4:20:36 PM REPRESENTATIVE MILLER asked how the three chemicals release toxins. He further asked whether the toxins are airborne, if they leach out, or become worse if exposed to fire, heat, or water. REPRESENTATIVE HOLMES answered yes to all three. She explained that the products are in chairs and mattresses and breakdown. She agreed they are more dangerous in smoke and can bioaccumulate and get into the fish cycle, which is why higher concentrations are found in the Yukon-Kuskokwim (Y-K) Delta. She said, "The answer is all of the above." 4:21:42 PM REPRESENTATIVE MILLER recalled the chemicals are in furniture and mattresses to reduce the coating from burning. He asked if the chemicals are found in clothing or wall coverings. CHAIR OLSON also asked if the chemicals are found in children's clothing. REPRESENTATIVE HOLMES answered that the PBDEs have been found in computers, mattresses, couches, and televisions. She was not sure if the PBDEs are in clothing. 4:22:29 PM REPRESENTATIVE JOHNSON noted changes to bill make it only apply to manufacturer and distribution. He inquired as to whether any manufacturer or distributor distributes these products in Alaska. He further asked whether Costco would be considered a distributor. REPRESENTATIVE HOLMES referred to page 4, to the definitions of manufacturer and distributors. She stated that the changes were put in at the request of the committee and she concurs with the changes. 4:24:09 PM REPRESENTATIVE JOHNSON read that someone may buy cribs at Wal- Mart and resell them to the hotel. He questioned whether the person would be considered a distributor. He said he did not think anyone was manufacturing in the state. REPRESENTATIVE THOMPSON responded that the Mattress Ranch advertises that it makes its own mattresses. He pointed out that if the business affixes its brand name on a mattress, the company is considered the manufacturer. REPRESENTATIVE JOHNSON said he understood the mattresses are manufactured in the Lower 48. He asked whether a company in Alaska is now being singled out. 4:25:08 PM REPRESENTATIVE THOMPSON referred to page 4, line 26, which read "(A) manufacturers a product or whose brand is affixed to the product; or...." 4:25:24 PM REPRESENTATIVE JOHNSON inquired as to whether a person buying mattresses at Mattress Ranch who then sells them to hotels would be considered a distributor. He asked whether the bill will have accomplished anything since there seems to be all sorts of loopholes. He related a scenario in which a person buys hotdogs at Costco and sells them and the hotdogs contain PDBEs if the person would be considered a distributor. He suggested the bill may be too broad. 4:26:15 PM EMILY BREESE, speaking on behalf of herself, stated that she has worked as a volunteer fire fighter. She has become increasingly concerned about breathing PBDEs, which were thought to keep people safe, but are actually harming us. She pointed out that PBDEs are used as flame retardants, but may promote cancer, developmental problems, and thyroid or reproductive problems. She asked the reason to continue to use these chemicals when there are safe, economical alternatives in the marketplace. She expressed concern that her family could be exposed to harmful toxins from sitting on the sofa or using the computer. She said she is especially concerned due to bioaccumulation issues since she is also an Alaskan and a firefighter. She related her understanding that some of the highest concentrations of PBDS are found in fresh water lakes of Denali National Park and Preserve (Denali Park), close to her home. She highlighted that a large amount of PBDEs are found in Alaska. She also stated she is exposed to toxins in a higher amount when she is engaged in firefighting. Furthermore, currently consumers don't have the right to know that PBDEs are found in these products so they can't easily limit their exposure. She concluded that PBDEs need to be banned now so people can better make decisions on what is best for Alaskans well-being and health. She offered her support for SB 27. [SB 27 was held over.]