The Sacramento Report

Making Headlines

by Debra Carlton

CAA Forms Workers’ Compensation Task Force
As workers’ compensation rates and classifications continue to challenge the budgets of every rental property owner and management company in the state, CAA has formed a Workers’ Compensation Task Force to examine ways to help owners address concerns with their existing coverage and programs.

The Task Force, headed by Scott Monroe of Sares Regis Group, plans to develop safety programs to help owners decrease their losses and to provide a step-by-step process that members can use to ensure that their premiums are currently at the lowest possible level. The Task Force will also examine the current rate structure, classifications and definitions in order to effect change where possible.

Arsenic Bill Introduced To Protect Children
Senator Gloria Romero (D-Los Angeles) has introduced SB 1393, a bill that prohibits the manufacture and distribution of wood treated with an arsenical wood preservative. The bill also requires any person who owns arsenic-treated wooden playground or recreational equipment, including wood chips, to seal or remove these materials. The inclusion of wood chips in the regulation means that an owner who has arsenic-treated wood chips would have to remove and dispose of them as hazardous waste.

Important note: Notwithstanding this legislation, these playgrounds must be posted with Proposition 65 warning notices, unless you replace the equipment with wood that is free of arsenic-based preservatives.

Proposition 65 Clarification Bill Introduced
With the overwhelming number of Proposition 65 lawsuits filed throughout the state, Senator Sher (D-Palo Alto) has introduced SB 1572—Proposition 65: Reform. Proposition 65 (the Safe Drinking Water and Toxic Enforcement Act of 1986) prohibits any person, in the course of doing business, from knowingly and intentionally exposing any individual to a chemical known to the state to cause cancer or reproductive toxicity without giving a specified warning. The act currently requires any person who files a lawsuit, alleging a violation of Proposition 65, to provide notice to the Attorney General that a case has been filed. The act also requires that same person to submit a form to the Attorney General that includes the results of a settlement or judgment and the final disposition of the case.

SB 1572 requires private enforcers to report to the Attorney General all settlements reached prior to the filing of a complaint. This bill is the continuation of reform efforts begun in last year’s SB 471 to discourage the issuance of frivolous “notices of violation.” The bill closes a gap in the prior reporting legislation and regulations, which only required parties to provide notice of settlements reached after a case is filed. SB 1572 will permit the Attorney General to review and comment on the pre-litigation settlements that are frequently offered by private enforcement groups who issue hundreds of notices with no intent to pursue them in court. Currently pre-court settlements offer no protection to businesses against future litigation for the same alleged violations.

In The News
Sacramento Bee, March 22, 2002—The case of a San Francisco tenant who was killed by another tenant’s dogs has re-opened a hot bed of liability concerns by property owners. A civil case has been filed against the property owner for liability because the owners permitted the tenants to have vicious dogs on the property. The California Apartment Association is developing an “Issue Insight” paper that will provide answers to the many questions posed by owners.

GlobeStreet.com, March 25, 2002—The hotel and motel industry has reached an agreement in an attempt to settle the overwhelming increase of Proposition 65 lawsuits filed against the industry. The agreement will need the approval of the Attorney General and a judge in order to take effect. The agreement limits the court costs and attorneys’ fees for violation of the Proposition 65 warning requirements.

San Diego Tribune, March 27, 2002—The United States Supreme Court ruled that tenants who receive housing subsidies may be evicted for the criminal activity of their guest even if the criminal activity does not take place within the dwelling unit and occurs without the knowledge of the tenants. The Supreme Court’s ruling reaffirms the federal governments “zero tolerance for drugs and violent criminal activity” in publicly assisted housing.

The opinions expressed in this article are those of the author and do not necessarily reflect the viewpoint of the SFAA or the SF Apartment Magazine. Debra L. Carlton is the Vice President of Policy and Research for the California Apartment Association and is CAA’s chief lobbyist. © Copyright 2002.