FRAGRANCE NOTES ISSUE 1 2018

DEVELOPMENTS

Federal TSCA

shape the four cosmetics measures pending at the federal level. In the House, Congressman Pete Sessions (R-TX-32) reintroduced The Safe Cosmetics Modernization Act in Quarter 1 2017. This legislation includes references to RIFM’s safety assessments and is narrower than some other measures. Despite regular communication since Quarter 4 2016, Congressmen Frank Pallone (D-NJ-6) and Leonard Lance (R-NJ-7) have not yet introduced their bipartisan cosmetics bill. In the Senate, Senators Feinstein (D-CA) and Collins (R-ME) reintroduced The Personal Care Products Safety Act in Quarter 2 2017. Senator Hatch (R-UT) introduced The FDA Cosmetic Safety and Modernization Act in Quarter 4 2017, which does not specifically address fragrance. Regardless of sponsor or legislation, IFRANA will continue to advocate for cosmetics proposals that include preemption, sound science, and trigger language clarifying when/if FDA would make inquires to fragrance houses. IFRANA will continue to drive all fragrance-specific policy at the federal level. State California SB 258 California Senate Bill 258 (SB 258), The Cleaning Product Right to Know Act, was signed into law by Governor Brown on October 15, 2017. This measure mandates on-label and online disclosure of cleaning product ingredients, including fragrance ingredients. IFRANA and its members—particularly through the Government and Legislative Affairs Executive Committee (GLAEC)—were engaged in the negotiations and drafting revisions. Through active listening and open discussion, stakeholders negotiated legislation that balances consumer interests with meaningful fragrance intellectual property protection. In 2018, IFRANA will educate and assist its members and allied trades as the industry prepares for the implementation of this new fragrance ingredient communication requirement. New York DEC In 2017, the New York State Department of Environmental Conservation (DEC) intended to act on its existing statutory authority to issue a guidance document requiring all manufacturers of household cleaning products to disclose ingredients on manufacturers’ websites. In Quarter 2 2017, NY DEC released its draft of the 2017 Household Cleansing Product Information Disclosure Program Certification Form and Guidance Document.

The Frank R. Lautenberg Chemical Safety for the 21st Century Act , which represents the first significant amendment of TSCA, is the primary chemicals management law in the US. EPA has been implementing these amendments and has issued framework rules, including processes for a reset of the TSCA Inventory, as well as for the prioritization and risk evaluation of chemicals. IFRANA provided feedback to the EPA as the rules were developed and we were pleased to see many of our recommendations accepted by the agency. In the new chemicals space, through board-level engagement with EPA senior staff and productive feedback from IFRANA’s TSCA Task Force, the association is working diligently to bring safer, greener chemicals to market. In Quarter 1 2018, IFRANA submitted comments to the agency regarding its new chemicals and pre-prioritization programs. The fragrance industry’s priority is to ensure that TSCA modernization—in accordance with congressional intent and industry support— promotes safety, innovation, and sound science. Tax Reform IFRANA advocated specifically on key provisions of the Tax Cuts and Jobs Act (HR 1), including the domestic production deduction, R&D credits, and equitable treatment of pass- through entities. On December 22, 2017, President Trump signed HR 1 into law. While the domestic production deduction was eliminated, the R&D credit remained and the corporate tax rate for c-corps was reduced to 21 percent flat rate beginning in 2018. In 2018, IFRANA will continue to monitor tax issues, particularly as amendments and implementation issues occur. NAFTA The Trump Administration has begun the formal process of renegotiating the NorthAmerican FreeTradeAgreement (NAFTA). IFRANA has engaged directly with the Office of the United States Trade Representative, the Department of Commerce, and the Small Business Administration. IFRANA has also joined key task forces through the National Association of Manufacturers and the U.S. Chamber of Commerce. As an industry highly sensitive to trade, IFRANA will make known the priorities of fragrance manufacturers and fragrance material suppliers.

Cosmetics Modernization In coordination with our allied trades, IFRANA is working to

FRAGRANCE NOTES ISSUE 1, 2018

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