For over 25 years, Proposition 65 has plagued businesses in California. The law gives private “bounty hunters” an incentive to find even small violations, resulting in millions of dollars in settlements and a plethora of signs in parking garages, hotels, restaurants, and other businesses. If one of those signs isn’t posted, or falls down, it can cost the business owner a pretty penny.
After hearing complaints from business owners for many years, members of the California legislature, led by Assemblyman Mike Gatto (D-Los Angeles), are poised to enact a modest step toward reforming the law in favor of certain businesses. AB 227 would allow certain businesses such as restaurants, bars, hotels, and parking garages a one-time 14-day grace period to post warning signs after they receive a bounty hunter’s notice of alleged violation. The bill has unanimously passed the California Assembly and two Senate Committees and appears headed for the Governor’s desk before the end of the legislative session this fall. It will take effect immediately once enacted into law.