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Warning for the New California Adult Use Marijuana Industry: Doing Business in California Can Expose You to Proposition 65 Enforcement Actions

With the legalization of adult use cannabis in California, entities in the cannabis supply chain need to be aware that they may become attractive targets of Proposition 65 enforcement actions. As the new Proposition 65 warning regulations become effective later this year, Proposition 65 compliance and litigation risk management may become as challenging as the new marijuana regulatory structure now in place. These businesses should inform themselves of Proposition 65’s requirements and take steps to minimize their litigation risk. The cannabis industry has expended, and continues to expend, substantial resources in complying with the Medicinal and Adult-Use Cannabis Regulation and…

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Proposition 65 Settlement May Establish New Industry Standard for Lead and Cadmium in Chocolate

Nine chocolate manufacturers have entered into a comprehensive settlement resolving Proposition 65 claims that they allegedly exposed individuals to lead and cadmium in chocolate products without clear and reasonable Proposition 65 warnings. The settlement, intended to inject some scientific discipline into the required compliance measures while establishing a new industry standard, is set to be reviewed by the San Francisco Superior Court for approval on February 14, 2018. The Proposition 65 claims were brought by As You Sow, which issued 60-day Notices of Violation against several manufacturers and retailers of chocolate products beginning in 2014. As You Sow followed up…

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Governor Brown Vetoes Butane Bill

by Jennifer Karpinski Singh California Governor Jerry Brown has vetoed Assembly Bill 1120, which would have amended Section 11107 of the Health and Safety Code to add butane as a controlled substance. This proposed amendment, triggered by concerns arising from illegal butane hash oil production, was intended to restrict the sale of butane products and create a database of butane purchasers maintained by the Department of Justice. In Governor Brown’s veto message, he noted that the bill was too “expansive” and placed an undue burden on an industry that has numerous “legitimate uses.”  Governor Brown’s full statement was as follows:…

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Should Your Proposition 65 Consent Judgment Be Modified?

By Ann Grimaldi and Jennifer Karpinski Singh If your business is currently using Proposition 65 warnings pursuant to a consent judgment, take heed: You may need to modify the judgment to address business, not legal, pressure to use the new warnings recently established under the new safe harbor warning regulations that go into effect August 30, 2018. California law has long required businesses to provide clear and reasonable warnings prior to exposing individuals to chemicals placed on the Proposition 65 list. However, recent shake-ups in what defines “clear and reasonable” are changing the liability landscape for businesses selling products in,…

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AB 1583 Passes Senate and Assembly – But Will It Promote Transparency in Proposition 65 Private Enforcement?

On September 14, 2017, the California Senate and Assembly passed AB 1583, and Governor Brown is expected to sign it into law. This bill is intended to promote transparency in Proposition 65 private enforcement.  To be sure, private enforcement is in dire need of increased transparency. However, whether this bill will be robust enough to achieve that goal -- that is uncertain. The bill contains three main components: It will make the basis for the Certificate of Merit discoverable to the public, subject to legal privileges. It will require the Attorney General to formally communicate to the private enforcer and…

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