June. 17 US: California Proposition 65 Reform Clears First Hurdle
This article is brought to you by Martindale.
On Friday, May 24, 2013, the California Assembly unanimously voted (72-0) for bill AB 227, amendingProposition 65 by including a new provision allowing certain small business owners 14 days to fix an alleged violation of Proposition 65’s warning requirements.
AB 227 does not apply to warnings for all products and all situations in which a warning is required. It only deals with certain instances where there is private citizen enforcement of California’s Proposition 65. Proposition 65 contains provisions requiring all business owners and manufacturers to give clear and reasonable warnings about products that contain listed chemicals that are known (to the state of California) to cause cancer or reproductive harm. Right now, this list includes approximately 800 substances. Companies that fail to warn the consumer face fines up to $ 2500 per day per violation. Threatened by enforcement action (Proposition 65 permits private citizens to pursue actions), many businesses settle rather than litigate.
Businesses covered under Bill AB 227 that receive a notice for an alleged violation are allowed 14 days to correct the violation. If the business corrects the alleged violation, meets certain other requirements, and pays a fine of $500, no retroactive fines would apply.
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