Modest Proposition 65 Reforms Enacted

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Reforming California’s Proposition 65 was a hot button topic in the 2013 Legislative Session.  CLFP has taken a keen interest in this issue given the number of lawsuits filed against food manufacturers in recent history. 

Governor Brown announced in May, 2013 that he wanted to reform Proposition 65 in the 2013 Legislative Session to curb frivolous lawsuits and make warnings more meaningful.  Staff at CLFP was heavily engaged in the Governor’s stakeholder group to help draft legislative language to reform and modernize Proposition 65.  Unfortunately, there was not enough support from any of the stakeholders for the Governor to move ahead with his reform package. 

Despite the disappointing lack of comprehensive reform, one bill was passed by the Legislature and signed by the Governor that provides a modest reform. Assembly Member Gatto (D-Los Angeles) was successful in passing a narrow bill aimed at stopping Proposition 65 "drive-by lawsuits." AB 227, a CLFP supported bill, protects small businesses from shakedown lawsuits related to alleged missing or inadequate Proposition 65-required signage by providing the businesses with a 14-day period to cure a signage violation in certain situations, thereby preventing a private lawsuit.

Many business owners correctly determine that signage is not warranted given the exposure levels of a particular chemical at their business establishment.  However, this does not prevent a bounty hunter attorney from making an allegation in a demand letter in order to pressure businesses into handing over a settlement. Hundreds of businesses are wrongly targeted in these lawsuits each year. AB 227 will help stop this inappropriate use of litigation while ensuring that the public receives Proposition 65 warnings when appropriate.

The bill received unanimous support in both the Assembly and Senate.  As an urgency measure, AB 227 went into effect immediately upon being signed on October 5.

The passage of AB 227 is a small first step.  CLFP will continue to engage the Administration and the Legislature on Proposition 65 issues and remains hopeful that all stakeholders can work collaboratively on comprehensive reforms in the Legislature and through the regulatory process in 2014.

Article written by Trudi Hughes, CLFP Government Affairs Director

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