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On September 14, SB
471 (Sher) was passed in the California Senate, and
sent to Governor Davis for signature. The bill
contains several provisions intended to weed out
frivolous lawsuits, by including new requirements for
plaintiffs.
The bill would require a private
plaintiff to certify that there is good cause for a
60-Day Notice, based on consultation with an
appropriate expert who has reviewed the information. The
information supporting the certificate must be attached
to the 60-Day Notice served upon the Attorney General,
and may be determined by the court at the end of the
litigation.
Another provision of the bill is to
require that all settlements be approved by a
court. The parties would be required to provide
notice to the Attorney General, and would allow
participation in settlement hearings by public
prosecutors. The final bill is unclear about whether
court approvals would preclude subsequent suits by
public or private enforcers.
One of the major components of the bill
is to establish criteria for a court to consider when
assessing civil penalties available under the Act.
The way in which these penalties have been assessed in
the past has been criticized, because the existing
penalty provision established a high maximum penalty, no
minimum penalty, and no guidance criteria for their
assessment. Under the new bill, the factors a court must
consider are:
(A) The nature and extent of
the
violation;
(B) The number and severity of the
violations;
(C) The economic effect of the
penalty on the violator;
(D) Good faith measures to
comply taken by the violator, and the time these
measures were taken;
(E) The willfulness of the violator's
misconduct;
(F) The deterrent effect the penalty
would have on the violator and the regulated community
as a whole;
(G) Any other factor that justice may
require.
The reporting requirements of
Proposition 65 that require reporting of all
Proposition 65 actions to the Attorney General would be
expanded to expressly include settlements entered into
without the filing of a complaint, and other types of
complaints alleging violations of Proposition 65, such
as Business & Professions Code 17200 cases. Senator
Sher, and the Attorney General said they would continue
a dialogue on further reform measures in the next
legislative session. |