Thursday, October 10, 2013

Made in California/Proposition 65 Lawsuits

Lori Kammerer our Government Affairs sent me this report on legislation Small Business California has sponsored or supporter. Definitely good news for small business. The Governor has until October 13th to sign or veto bills

Sponsored by Small Business California, Senate Bill 12 (Corbett) was signed Oct 4 by Governor Brown to establish the “Made in California” program that will allow California manufacturers to capitalize on the state’s global and national reputation and better market their products in an increasingly competitive economic environment.  The statewide marketing strategy created in Senate Bill 12 will operate within the Governor’s Office of Business and Economic Development (GO-Biz) so that consumers are better able to recognize the high quality products developed in California.  Products that meet program criteria will be eligible to use the state-sanctioned “Made in California” label.  SB 12 will enable California’s small businesses to maintain a competitive edge against businesses that decide to manufacture out of state or out of the country.  The ‘Made in California’ marketing effort will help California’s small businesses remain on the cutting edge of work and product excellence by supporting local business owners, workers and their families in California.  SB Cal will work closely with the Governor’s Office of GO-Biz in implementing SB 12.

 Assembly Bill 227 (Gatto), strongly supported by SB Cal, was recently signed in to law by the Governor.  AB 227 will help to curb an area of abusive Proposition 65 lawsuits.  When Proposition 65 was passed, its intention was to keep California's drinking water clean and to inform consumers about certain toxic chemicals in consumer products. Unfortunately, a number of unscrupulous trial lawyers have abused the law to shake down small businesses who don't post the required warning signs.  Many of these lawyers file multiple lawsuits against small businesses, all for the same claim. Even though no one is hurt or gets sick, lawsuits are filed due to the lack of a warning sign.  Because of the way Proposition 65 is written, failure to post the required signs can lead to thousands of dollars in legal fees and fines.  AB 227 will allow small businesses to have 14 days to put up a notice (for certain types of exposures) before they could be sued. This law revision should stop some of the worst examples of abusive Proposition 65 lawsuits.


I've picked up Too Funny To Be President by Morris K. Udall for the 6th time. I've come across a quote from former Arizona Senator, Henry Fountain Ashurst that you all might enjoy, "when I have to choose between voting for the people or special interests, I always stick with the special interests. They remember. The people forget."


Scott Hauge
Small Business California
2311 Taraval Street
San Francisco, CA  94116

1 comment:

Joey Constanza said...

I think that it is important for us as consumers to know what sort of chemicals are in the products that we buy. You wouldn't buy something from the store if you didn't know what sort of things it contained. It's a good thing that there are warning labels on the products that clearly show what kind of chemicals are in it. One of the things that I like is how small businesses are treated. It's good that they have a grace period to get the labels on their products, given the fact that some might not have the resources to do so right away.