Assemblyman Mike Gatto Forms 2014 Small Business Advisory Commission

FOR IMMEDIATE RELEASE                  Contact: Justin Hager (818) 558-3043

December 10, 2013                                                             Mobile: (415) 889-9762

Assemblyman Gatto Seeks More Public Input on Reforms to Improve the State's Business Climate Following the Passage of Historic Legislation Developed by his 2013 Commission

Burbank, CA – Assemblyman Mike Gatto (D-Los Angeles) is seeking applications from local business owners to serve on his 2014 Small Business Advisory Commission.  The Commission will meet several times in the months ahead, with the goal of formulating one or more legislative proposals that will be introduced by Gatto in the upcoming legislative session.

With small businesses employing more than 37% of all workers in the state, Assemblyman Gatto welcomes input from the people working hard to keep our business community strong.   “Small-business owners face the brunt of challenges that affect the economic development of our community.  Incorporating our business members into this dialogue enhances the state’s ability to create a more sensible and less burdensome regulatory environment for our businesses,” said Gatto.

Last year’s Commission voted to ask Gatto to introduce AB 227, momentous legislation which reformed Proposition 65 to protect small businesses from meritless lawsuits.  To the relief of business owners in the 43rd Assembly District and statewide, Governor Brown signed AB 227 into law this year.  The Commission has been an instrumental voice in advising Assemblyman Gatto on challenges facing local small-business owners throughout California.  “Listening to those who have been shortchanged by the law first-hand is an imperative and sacred duty of lawmakers.  I am proud of the historic achievement of last year’s Commission and look forward to working with the 2014 Commission,” said Gatto.

Individuals interested in participating on the Commission should e-mail Assemblyman Gatto at Assemblymember.Gatto@assembly.ca.gov with the subject line 'Business Commission.’

Mike Gatto is the Chairman of the Appropriations Committee in the California State Assembly.  He represents Burbank, Glendale, La Cañada Flintridge, La Crescenta, Montrose, and the Los Angeles neighborhoods of Atwater Village, East Hollywood, Franklin Hills, Hollywood Hills, Los Feliz, and Silver Lake.  www.asm.ca.gov/gatto 

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LISTEN IN: Assemblyman Gatto discusses AB 227 on KFBK News Radio

Assemblyman Mike Gatto called into KFBK News Radio and discussed AB 227, his legislation to limit unfair Prop. 65 lawsuits and protect local small businesses.  

Congratulations to Boo's Philly Cheesesteaks!

Two of my field representatives, Eric Menjivar and Moonyoung Ko, presented a certificate of recognition to Boo's Philly Cheesesteaks in East Hollywood to congratulate them on being named to the menuism.com list of
TOP 10 SANDWICHES IN LA!
Congratulations to this delicious, locally-owned sandwich shop!

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Mike Gatto is the Chairman of the Appropriations Committee in the California State Assembly.  He represents Burbank, Glendale, La Cañada Flintridge, La Crescenta, Montrose, and the Los Angeles neighborhoods of Atwater Village, East Hollywood, Franklin Hills, Hollywood Hills, Los Feliz, and Silver Lake.  www.asm.ca.gov/gatto

LA Times: Brown signs law amending state's anti-toxins law, Proposition 65

California Gov. Jerry Brown, center, signed a law giving businesses that are in violation of Proposition 65 two weeks to post the required notices before they are subject to lawsuits or steep fines. (Rich Pedroncelli, Associated Press / January 24, 2013)

By Melanie Mason - October 5, 2013

SACRAMENTO -- Gov. Jerry Brown on Saturday signed into law changes to Proposition 65, the state's landmark anti-toxins law, that aim to reduce lawsuits and fines for businesses.

The initiative, which voters approved in 1986, requires businesses to post notices about the presence of possibly dangerous chemicals, which include alcohol, carcinogens found in parking garages and byproducts of coffee roasting.

Some business owners, particularly owners of bars and coffee shops, complained the law had spawned a wave of frivolous lawsuits and excessive fines over improper signage.

The measure by Assemblyman Mike Gatto (D-Los Angeles) gives businesses that are in violation of the law two weeks to post the required notices before they are subject to lawsuits or steep fines.

Gatto said he was in a "state of disbelief" that his bill, AB 227, had become law, particularly because making changes to the initiative required two-thirds approval in the Legislature.

"Nobody has been able to do this since 1986," he said...

You can read this article and more by visiting the Los Angeles Times HERE

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Mike Gatto is the Chairman of the Appropriations Committee in the California State Assembly.  He represents Burbank, Glendale, La Cañada Flintridge, La Crescenta, Montrose, and the Los Angeles neighborhoods of Atwater Village, East Hollywood, Franklin Hills, Hollywood Hills, Los Feliz, and Silver Lake.  www.asm.ca.gov/gatto

Protecting Small Businesses from Meritless Lawsuits

by Mike Gatto

Can you imagine being faced with the prospect of having to pay thousands of dollars to put up a $20 sign?

As crazy as it sounds, that’s exactly what happened to a coffee-shop owner from our area when he was threatened with a several hundred-thousand dollar lawsuit for allegedly failing to post a warning sign that beer can cause cancer. In 2012 and 2013, more than three dozen small businesses in Southern California (including several restaurants and cafés in Pasadena, Glendale, Burbank and Los Angeles) were threatened with similar lawsuits—with some paying thousands of dollars in settlements and attorneys’ fees to avoid spending precious time and money defending themselves in court.

These suits are all a result of California’s Proposition 65. Approved by voters in 1986, the act was intended to prevent and warn the public about possible exposure to carcinogens. Regrettably, there are unscrupulous individuals who have taken advantage of certain provisions in Prop. 65 to ensnare small businesses in lawsuits that were never contemplated by the voters when they passed it.

Brett Schoenhals, Owner of the Coffee Table in Eagle Rock
and a member of my Small-Business Advisory Commission
was threatened with litigation under Prop. 65.

To help these people, and all of us who believe in sensible government, I’ve introduced AB 227, which would allow small businesses to correct technical signage violations of Prop. 65 within fourteen days and pay a small civil fine. It essentially creates a “fix-it ticket” for signage violations for the most common, everyday substances covered under Prop. 65. If the business owners comply, they would be safe from legal action — including the crushing $2,500 per-day retroactive fine — plus legal fees, and the stress of battling meritless litigation.

In May, following the exposure I and my Small Business Advisory Commission brought to this issue, Governor Brown announced his support for my AB 227, and said that he was open to additional reforms. I am proud to have brought together so many other individuals and organizations that are normally on opposite sides. It’s not every day that business groups, environmental-justice coalitions, organized labor, and attorneys’ organizations agree on anything, much less how to reform Prop. 65 — a measure that has been substantively amended just once in nearly 30 years.

Threatening a small business with a lawsuit for serving its customers coffee with their breakfast, a burger with their lunch, or a glass of wine with dinner is absurd. Most business owners work hard to follow the law and protect customers so they return. This is especially true with the majority of our local business owners whose customers are neighbors, friends and relatives.

By giving businesses the opportunity to post a sign and fix a simple mistake, AB 227 strikes a balance by helping businesses avoid senseless litigation while preserving the public’s ability to obtain proper warnings about dangerous chemicals. It shouldn’t cost California’s small businesses thousands of dollars because of issues with a $20 sign.

This opinion editorial originally appeared in the Pasadena Star News.  You can read this Op-Ed and more by visiting  http://www.pasadenastarnews.com/20130822/protecting-small-business-from-meritless-lawsuits-mike-gatto

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Mike Gatto chairs the Appropriations Committee in the California Assembly. He represents Burbank, Glendale, La Cañada Flintridge, La Crescenta, Montrose, and the Los Angeles neighborhoods of Atwater Village, East Hollywood, Franklin Hills, Hollywood Hills, Los Feliz, and Silver Lake.

Glendale's Fresh Laundry receives Certificate of Recognition

Two of the staff members in my district office presented a certificate of recognition to Rafael Vardumyan of Fresh Laundry for their dedication and professional service to residents of the City of Glendale.  I wish Fresh Laundry continued success in their future endeavors.

Legal Newsline: Californians call for Prop. 65 reforms

An very well researched article in Legal Newsline about AB 227 and my efforts to prevent Prop. 65 abuse and "shakedown" lawsuits against small businesses.

By AMANDA ROBERT

SACRAMENTO (Legal Newsline) – As California Assemblyman Mike Gatto, D-Los Angeles, learned more about Proposition 65 and its impact on small businesses, he heard several stories that struck him as clear abuses of the law.

Restaurant and bar owners were being sued for failing to warn customers that beer could cause cancer. Coffee shop owners were forced to put up signs about the health risks associated with coffee beans. Another business owner who did display a warning sign was sued anyway because the sign was an inch too small.

“They had to pay a $5,000 settlement,” Gatto said. “It’s things like that, where people were taking the intent of a really terrific law and trying to stretch it to apply in a way that was just improper.”

In recent years, Prop. 65, the Safe Drinking Water and Toxic Enforcement Act, has become one of many controversial topics that surface during debates over California’s litigious environment. Political and community leaders laud the original purpose of the law, enacted by voters in 1986 to protect residents from chemicals known to cause cancer, birth defects and other reproductive harm.

But like Gatto, many of these leaders also recognize the law could further damage California’s economy. The state identifies nearly 800 chemicals that could be harmful and requires business owners to warn consumers about potential exposure to each one of them. Business owners who fail to comply face fines of $2,500 a day.

Prop. 65 also includes a private right of action, meaning that private plaintiffs and their attorneys – whether or not they have been harmed – can sue business owners who don’t display proper warning signs. In many cases, business owners agree to settle these cases rather than deal with costly litigation.

According to the Office of the Attorney General, there were 338 Prop. 65 settlements in California in 2011. Business owners paid $16.29 million to settle these cases. Nearly $11.94 million went to attorney fees and costs.

These statistics represent a significant increase from the previous year. The Office of the Attorney General shows that there were 187 Prop. 65 settlements in California in 2010. Business owners paid out $13.62 million in settlements, with $7.81 million directed to attorney fees and costs.

Prop. 65 alcohol warning sign in Los Angeles.

In Gatto’s talks with small business owners, he learned that since 2012, nearly two dozen more brick-and-mortar businesses in southern California were threatened with Prop. 65 lawsuits for failing to post warning signs, or signs of the right size, for beer, wine or chemicals that result while cooking food.

Gatto introduced AB 227 in February as a way to eliminate what he calls “shake-down” lawsuits. The new bill gives small business owners who receive notice of a signage violation 14 days to reach compliance. It also requires them to pay a smaller $500 civil penalty.

“One of the goals with Prop. 65 was certainly to make sure warnings were put up,” Gatto said. “You could look at my bill as somewhat as a ‘fix-it’ ticket … We want to encourage compliance. We want to make sure that the public is fully informed. This is just an opportunity for businesses to get into compliance without facing very, very expensive lawsuits.”

The Assembly Judiciary Committee passed AB 227 by a bipartisan, 10-vote in late April. The Appropriations Committee, currently chaired by Gatto, will now consider the bill.

Legal reform advocacy groups like Citizens Against Lawsuit Abuse and the Civil Justice Association of California agree that lawyers who file lawsuits for the primary purpose of extracting settlements from small businesses are abusing Prop. 65. They support Gatto’s bill, contending that the state should refocus on its primary goal of protecting the public.

Tom Scott, executive director of CALA, a nonpartisan grassroots organization based in Sacramento, compares Prop. 65 lawsuits to Americans with Disabilities Act lawsuits, which have also plagued California.

“It took a long time for ADA lawsuits to really become an issue,” Scott said. “I think part of it was because businesses didn’t want to come forward and talk about it. They settled the lawsuit, and then, ‘I’m done. I just want to get on with it.’ Prop. 65 is sort of where ADA was eight years ago.”

From Scott’s perspective, AB 227 will be successful since Republicans and Democrats can both appreciate its ability to improve their state’s economy.

“There’s no reason why legal reform can’t be bipartisan,” he said. “The fact that a Democrat from Los Angeles is carrying this bill is great. To amend an initiative, you need a two-thirds vote, so the Democrats have to be players in this legal reform fight.”

The Center for Environmental Health, despite initial opposition, also plans to support AB 227. CEH helped initiate hundreds of Prop. 65 legal agreements with dozens of major companies, including Target, Macy’s and Disney, that forced them to eliminate harmful chemicals from their products.

But now, Charles Margulis, CEH’s communications director, points out that the organization recognizes the importance of protecting both consumers and small business owners.

“We worked together with the Assemblyman to narrow down the concerns, which we share, around protecting small businesses that shouldn’t be burdened by lawsuits that are really intended for major companies that put millions of people at risk,” he said. 

Last week, California Gov. Jerry Brown also answered the call to address problems with Prop. 65. He announced that the California Environmental Protection Agency, legislature and other stakeholders will consider measures that could strengthen and reform the law. These measures will build on current legislative efforts, including Gatto’s proposed AB 227.

“Proposition 65 is a good law that’s helped many people, but it’s being abused by unscrupulous lawyers,” Brown said in his announcement. “This is an effort to improve the law so it can do what it was intended to do – protect Californians from harmful chemicals.”

According to the Office of the Governor, nearly 2,000 complaints were filed in the past six years by “citizen enforcers” who wanted to push businesses into settlements that provided little or no public health or environmental benefits.

Brown has proposed a package of potential Prop. 65 reforms, including capping or limiting attorney fees in Prop. 65 cases, allowing the state to adjust warning levels for certain chemicals and requiring more useful exposure information for consumers.

You can read this article and more at Legal Newsline by clicking the link below http://legalnewsline.com/issues/tort-reform/241570-californians-call-for-prop-65-reforms

Mike Gatto is the Chairman of the Appropriations Committee of the California State Assembly.  He represents the cities of Burbank, Glendale, La Cañada Flintridge, the Los Angeles neighborhoods of Los Feliz, Silver Lake, Atwater Village, and portions of the Hollywood Hills and East Hollywood.  www.asm.ca.gov/gatto 

Brown, Cal EPA back reforms to cut 'shakedown' lawsuits filed under Prop. 65

Article from KPCC - California Public Radio on some new allies in the movement to reform Prop 65 and protect small businesses from frivilous litigation.

Molly Peterson | May 7th, 2013, 1:08pm

A sign posted at a Sacramento apartment complex warns of harmful chemicals on the premises, as required by Prop. 65.

Gov. Jerry Brown has directed the state’s Environmental Protection Agency to work towards reforming Proposition 65, a law passed a quarter-century ago that aims to protect Californians from harmful chemicals.

California EPA Secretary Matt Rodriquez says the reforms will combat “shakedown” lawsuits. Proposition 65 enables private lawyers to bring claims against businesses that knowingly expose the public to toxic chemicals identified under state law.  Lawyers have filed such claims more than 2000 times since 2008; critics say in some cases the suits are motivated by a desire to make a quick buck, rather than address a public health threat. 

According to Rodriquez, the governor might want to impose a cap on lawyer’s fees in such cases. The governor’s office says state officials, lawmakers, and business interests also will discuss requiring more proof from plaintiffs before lawsuits can go forward, as well as limits on how much money businesses found liable would pay into a settlement fund in lieu of penalties.

The governor’s announcement was welcomed by tort reform groups, including the nonpartisan Citizens Against Lawsuit Abuse.

Voters approved Prop. 65 in 1986. Any changes would require the support of two-thirds of the state’s Legislature, and would need to align with the intent of the original proposition to pass legal muster.

Rodriquez says state officials will seek support from likeminded lawmakers, such as state Assemblyman Mike Gatto. Gatto, who represents Burbank, Glendale, La Crescenta, parts of the San Fernando Valley, and Los Feliz, has sponsored a Prop 65 reform bill that would limit a business’s exposure to fines if it corrects problems promptly. Gatto says his interest in the issue was spurred by a constituent, a small business owner troubled by the way the law works now. 

Neither Rodriquez nor the governor has identified lawmakers who support this newly-announced package of reforms. State Senator Ted Lieu tweeted a commendation to the governor for proposing to reform “a great law that has been terribly abused."

This article originally appeared on SCPR.org, the website of Southern California Public Radio.  You can read this article and more at Southern California Public Radio by clicking HERE

Press Enterprise Editorial: End the legal shakedowns over chemical warnings

Legislators should back a bill that would curb abusive lawsuits over warnings about harmful chemicals. Businesses would have the chance to correct violations promptly, and avoid lawsuits and fines.  Photo: The Press Enterprise

THE PRESS-ENTERPRISE - March 14, 2013; 05:47 PM

California should not confuse bounty hunting with consumer protection. Predatory legal shakedowns under Prop. 65 burden businesses while doing nothing to safeguard the public. Legislators should back a bill that would curb abuses while ensuring compliance with the law.

Assemblyman Mike Gatto, D-Los Angeles, has a sensible proposal that would protect the goals of Prop. 65 while combating abusive lawsuits. His AB 227 would give businesses that receive notice of a Prop. 65 violation 14 days to correct the issue — and thus avoid costly lawsuits and fines of up to $2,500 per day.

Prop. 65, approved by voters in 1986, requires businesses to notify customers about harmful chemicals in the products they purchase. The state maintains a list of more than 800 chemicals that compel the warning notices, ranging from well-known health threats such as lead and asbestos to obscure chemicals such as dibromoacetonitrile, a byproduct of drinking water disinfection. Many prescription drugs are on the list, which also includes such commonplace items as diesel exhaust, tobacco smoke and unleaded gasoline.

But the measure allows enforcement through private lawsuits, leading to a thriving practice of threatening unsuspecting businesses with fines and litigation unless they agree to a settlement. Businesses can easily run afoul of Prop. 65, given the broad range of chemicals involved. Some are common ingredients in manufactured products, while others — such as diesel exhaust — are nearly inescapable in populated areas.

The legal threats do little besides earning money for lawyers and adding to the already high cost of doing business in California. The violations usually consist of failure to post proper warnings about hazardous chemicals, rather than any immediate hazard to public health. And Prop. 65 notices are so ubiquitous that most people pay little attention, anyway.

The lack of a proper posted warning, however, can cost big money. The state attorney general’s office reports than in 2011, Prop. 65 lawsuits led to settlements totaling $16.3 million. Nearly three-quarters of that amount, almost $12 million, went to attorneys’ fees — and not fines or corrective actions.

But voters did not approve Prop. 65 with the idea of making attorneys wealthy. Allowing businesses to correct violations instead of saddling them with huge payouts advances the goal of the measure — without also harming the state’s economy.

The Legislature has a ready precedent for this approach: Last year, legislators approved a bill that protected businesses from abusive lawsuits under the Americans with Disabilities Act, by cutting any potential damages if businesses correct violations promptly.

Likewise, AB 227 would refocus Prop. 65 enforcement on compliance, rather than on exploiting trivial violations for monetary gain. That approach serves the public’s interest in both environmental safety and economic progress. Californians’ desire to know about the presence of hazardous chemicals does not justify the bane of excessive, greedy litigation.

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This editorial can be read in its entirety at the Press Enterprise, by clicking HERE

Mike Gatto is the chairman of the Appropriations Committee of the California State Assembly. He represents Burbank, Glendale, La Cañada-Flintridge, La Crescenta, Montrose, and the Los Angeles neighborhoods of Los Feliz, Silver Lake, Atwater Village, and portions of the Hollywood Hills and East Hollywood.   www.asm.ca.gov/gatto

Fox and Hounds: Some Hopeful Signs for Business Under the Capitol Dome

By Joel Fox

Editor of Fox & Hounds and President of the Small Business Action Committee

Thursday, March 14th, 2013

California’s notoriously bad reputation for business seems to be making an impact with the leaders of the state’s government...

...Governor Jerry Brown and Senate president pro tem, Darrell Steinberg, have voiced support for modifying features of the California Environmental Quality Act that is often used as a roadblock to business development...

...Another sign that Sacramento recognizes government imposed burdens on business is Assemblyman Mike Gatto’s AB 227, which would give businesses 14 days to fix any problems related to a violation of Proposition 65’s warning requirements. Businesses would have time to make adjustments and avoid lawsuits.  Note that all the legislators mentioned above attempting to improve the business concerns are Democrats...

You can read this entire article, and more at Fox and Hounds Daily  HERE

Learning to Fight Shakedown Lawsuits

By Mary O’KEEFE

Shakedown lawsuits have been a problem for business owners for years. States, including California, have passed laws to help protect the business owner from these lawsuits while continuing to support and protect the rights of the public. But the lawsuits have continued despite the efforts of legislators.

In response to a discussion with his Small Business Advisory Commission, Assemblymember Mike Gatto has taken action to help prevent these types of frivolous lawsuits.

On Feb. 4, Gatto introduced legislation that allows a business owner who receives notice of a Proposition 65 violation to remedy that violation and achieve compliance within 14 days without facing exorbitant retroactive fines.

In 1986, California voters approved Prop. 65, the Safe Drinking Water and Toxic Enforcement Act, which required the state to publish a list of chemicals known to cause cancer or birth defects. It required business owners to notify customers about these chemicals via a “clear and reasonable” warning as in posting signs in their establishments. In 2004, Prop. 64 was passed which, at the time, was heralded as a solution to stop frivolous lawsuits but, as is with most legislation, there were loopholes.

Gatto’s legislation was inspired by an Eagle Rock restaurant owner who had been sued for thousands of dollars for failing to notify his customers that beer could cause cancer.

Brett Schoenhals owner of The Coffee Table in Eagle Rock

During the commission meeting, the business owner said the lawsuits are difficult to fight because the owner doesn’t know when the person who is suing visited the business and if in fact the sign was not visible at the time. All it takes for a lawsuit, the restaurant owner said, is to be accused.

The law allows for fines of $2,500 per day for each day of the violation. Most larger companies settle out of court; however, small businesses can be driven out of business.

AB 227, the legislation introduced by Gatto, would further the intent of Prop. 65, which is to obtain compliance by displaying warnings of chemicals present on a site. It would allow a business that receives notice of a private action to correct the violation, i.e., post the Prop. 65 warning, within 14 days without being subject to the retroactive $2,500 per day fine, stated Gatto.

Gatto said the intent of the law was to warn the public, not drive out business.

“I had the opportunity to listen to concerns of local business owners on the Small Business Advisory Commission. The severe negative impact of shakedown lawsuits under Prop. 65 was immediately apparent,” stated Gatto.  “Most business owners work hard to protect customers so that the customers return. This is especially true with small business owners whose customers are neighbors, friends and relatives. This common-sense bill will help small businesses avoid costly litigation while ensuring that the public has the proper warnings about potentially dangerous chemicals.”

In addition to the Prop. 65 violations, there are also a growing number of ADA [Americans With Disabilities Act] lawsuits. The so-called drive-by lawsuits or shakedown lawsuits are also financially crushing small businesses...

You can read the rest of this article, and more, at the Crescenta Valley Weekly HERE

Mike Gatto is the Chairman of the Appropriations Committee of the California State Assembly.  He represents Burbank, Glendale, La Canada-Flintridge, La Crescenta, Montrose, and the Los Angeles neighborhoods of Los Feliz, Silver Lake, Atwater Village, and portions of the Hollywood Hills and East Hollywood.   www.asm.ca.gov/gatto

Gatto introduces bill to protect businesses from 'shakedown' lawsuits

Assembly Bill 227 would give businesses 14 days to fix Proposition 65 violations, protecting them from so-called "shakedown" lawsuits, proponents say. Above, Le Comptoir in Glendale. (Tim Berger/Staff photographer / February 6, 2013)

Assemblyman Mike Gatto (D-Silver Lake) introduced a bill Monday to protect businesses from “shakedown” lawsuits that are filed with the intent of extracting settlements to make the litigation go away.

Business owners told Gatto at his Small Business Advisory Commission’s meeting last month that Proposition 65 – which allows the public to sue businesses for up to $2,500 for each day signs aren’t posted about the dangers of chemicals known to cause cancer or birth defects -- is easily abused by lawyers who file claims with the sole purpose of extracting settlements...

...Gatto’s bill, AB 227, would allow a business owner who receives notice of a Prop. 65 violation to avoid retrospective fines by fixing the violation within 14 days, according to a statement released on Tuesday.

“The voters passed Prop. 65 to be protected from chemicals that would hurt them,” Gatto said in his statement. “They did not intend to create a situation where shakedowns of California’s small-business owners would cause them to want to close their doors.”

-- Daniel Siegal, Times Community News

Follow Daniel Siegal on Google+ and on Twitter: @Daniel_Siegal

You can read this entire article and more at the Glendale News Press HERE

Mike Gatto is the Chairman of the Appropriations Committee of the California State Assembly.  He represents the cities of Burbank, Glendale, La Canada-Flintridge, La Crescenta, Montrose, the Los Angeles neighborhoods of Los Feliz, Silver Lake, Atwater Village, and portions of the Hollywood Hills and East Hollywood.   www.asm.ca.gov/gatto

Gatto Establishes New Small Business Commission

Photo Courtesy of  freedigitalphotos.net

Last Saturday I met with eight local small business owners from throughout the 43rd Assembly District as part of the first Small Business Advisory Commission meeting.  Highlights from Mary O'Keefe's article about the meeting for the Crescenta Valley Weekly are below:

...On Saturday, small business owners sat down with Assemblymember Mike Gatto to discuss how Sacramento can help entrepreneurs navigate the business waters, either by creating new laws, or guidelines, or in some cases leaving them alone to do their job. 

The members are part of Gatto’s Small Business Advisory Commission and were present at the request of the assemblymember. 

The commission is comprised of business owners from a variety of business segments, from real estate to medical care, and from the film industry to construction. All members had one thing in common: they own a small business and are concerned about how to stay afloat in this economy. 

Gatto said he wants the commission to make proposals and share concerns that he can then take to Sacramento. He feels this will be a positive step in strengthening small businesses in the state. 

“As lawmakers, we have a sacred duty to listen to the needs and concerns of those who help our communities thrive, and to do what we can to support them,” Gatto said.... 

...“This is the first time we have done this,” Gatto said of the commission. “I wanted to make sure I got input from people who are on the front line.” 

During the meeting, nine new legislative proposals were suggested as well as some laws that should be reexamined and perhaps repealed...

You can read the entire article and more at the Crescenta Valley Weekly HERE

Mike Gatto is the Chairman of the Appropriations Committee of the California State Assembly.  He represents the cities of Burbank, Glendale, La Canada-Flintridge, La Crescenta, Montrose, the Los Angeles neighborhoods of Los Feliz, Silver Lake, Atwater Village, and portions of the Hollywood Hills and East Hollywood.   www.asm.ca.gov/gatto  

Small businesses bend Assemblyman Gatto's ear on industry challenges

Highlights from Daniel Siegal's coverage for the Glendale News-Press, of the first meeting of my newly created small-business advisory council:

...Speaking at Assemblyman Mike Gatto’s (D-Silver Lake) first Small Business Advisory Commission meeting at Woodbury University on Saturday, Mark Dornfeld, owner of Custom Film Effects in Burbank, said the situation was becoming untenable for the countless independent businesses in the industry as tax breaks and cash incentives draw production out of state...

...Gatto told the business owners that the primary purpose of the advisory commission meeting was to assist him in developing legislation based on the actual needs of constituents in time for introduction to the Assembly by the Feb. 22 deadline.

“Most bills these days are being conceived by and championed by special interests,” he said...

...Also discussed was Proposition 65, which requires businesses that serve alcohol to display cautionary signage. A provision in the law allows the public to sue businesses for up to $2,500 for each day the signage isn’t properly displayed.

Business owners complained that the law is easily abused by some people who file claims with the sole purpose of extracting settlements....

...On a separate track, Gatto said he hopes to pursue initiative reform while also seeking a way to prevent unscrupulous profiteering...

--

Follow Daniel Siegal on Google+ and on Twitter: @Daniel_Siegal.

You can read this entire article and more at the Glendale News-Press HERE

Mike Gatto is the Chairman of the Appropriations Committee of the California State Assembly.  He represents the cities of Burbank, Glendale, La Canada-Flintridge, La Crescenta, Montrose, the Los Angeles neighborhoods of Los Feliz, Silver Lake, Atwater Village, and portions of the Hollywood Hills and East Hollywood.   www.asm.ca.gov/gatto  

Leadership Opportunity: Are You a Local Business Owner?

Assemblyman Mike Gatto (D-Los Angeles) encourages local business owners to serve on his District 43 Business Advisory Commission. 

By Nicole Charky - December 11, 2012


There is an important invitation for business owners in Montrose, La Crescenta, Glendale, Burbank, La Canada Flintridge and Los Angeles neighborhoods of Los Feliz, Silver Lake, Atwater Village and portions of the Hollywood Hills and East Hollywood.

Assemblyman Mike Gatto (D-Los Angeles) urges merchants to join the District 43 Business Advisory Commission.

The group will meet several times in the upcoming months to form one or more legislative proposals that Assemblyman Mike Gatto (D-Los Angeles) will introduce in 2013, according to a news release the representative.

Gatto is seeking applications from local business owners in his district, which includes Burbank, Glendale, La Canada-Flintridge, La Crescenta, Montrose, the Los Angeles neighborhoods of Los Feliz, Silver Lake, Atwater Village, and portions of the Hollywood Hills and East Hollywood.

Gatto, Chairman of the Appropriations Committee of the California State Assembly, wants feedback from business leaders.

"We hear often that our business climate could be improved. I'm interested in hearing any proposal that would make the regulatory and statutory environment more sensible and less burdensome for local business owners," he said.

Last year, Assemblyman Gatto authored or co-authored several bills to support small businesses including AB 1616 (The California Homemade Food Act) and AB 2026 (The Film Industry Tax Credit).

“As lawmakers, we have a sacred duty to listen to the needs and concerns of those who help our communities thrive, and to do what we can to support them,” said Gatto.

Anyone interested in participating on the commission can email the assemblyman at Assemblymember.Gatto@assembly.ca.gov with the subject line 'Business Commission.’

Mike Gatto is the Chairman of the Appropriations Committee of the California State Assembly.  He represents the cities of Burbank, Glendale, La Canada-Flintridge, La Crescenta, Montrose, the Los Angeles neighborhoods of Los Feliz, Silver Lake, Atwater Village, and portions of the Hollywood Hills and East Hollywood.   www.asm.ca.gov/gatto  

You can read this article and more at the Montrose-La Crescenta Patch HERE

Governor Brown Signs California Homemade Food Act Into Effect

By Jenn Garbee Fri., Sep. 21 2012 at 2:51 PM - Breaking homemade brownie news: Governor Jerry Brown signed the California Homemade Food Act (AB 1616) into effect today. If you've been following the bill, backed by local Assemblyman Mike Gatto, it allows the "limited" sale of "non-potentially hazardous foods."


According to a statement from the Governor's office, the bill aims to "help small and fledgling businesses produce and sell food made out of their homes under a more streamlined regulatory structure." Get more after the jump.

There are caps on the amount of bread you can literally make. In 2013, gross sales are limited to $35,000; in two years, that amount increases to $50,000. "Limited sale" means primarily directly to another consumer, with a few smaller retail exceptions. In general, selling Blenheim apricot jam to your boss is now perfectly fine (we recommend you charge him/her a hefty premium), but going after Whole Foods shelf space is not (you'll still need a commercial kitchen for that). And yes, the health department will still be involved in your new home baking venture.

More pressing: What do government regulators consider non-hazardous? Breads, dried fruit and nuts, jam, nut butters, granola, popcorn, teas and homemade cookies and pies are among the products that are fair game -- as long as they don't contain dairy or meat fillings. In other words, your homemade blue ribbon cherry pie is perfectly safe, your favorite Aunt Irma's coconut cream version is potentially hazardous. Good to know.

Get more details on the cottage food law at the Sustainable Economics Law Center. 

Read this article and more at LA Weekly by clicking HERE

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Mike Gatto is the Chairman of the Appropriations Committee of the California State Assembly.  He represents the cities of Burbank, Glendale, and the Los Angeles neighborhoods of Los Feliz and Silver Lake.  E-mail Mike at: assemblymember.gatto@assembly.ca.gov, or call (818) 558-3043.

Website of Assemblyman Mike Gatto: www.asm.ca.gov/gatto

FOR IMMEDIATE RELEASE: Assemblyman Mike Gatto’s Closely Watched California Homemade Food Act Signed into Law

FOR IMMEDIATE RELEASE                                        Contact:          John Ferrera (916) 319-2043

September 21, 2012                                                                           after hours:  (916) 402-8900                                             

Assemblyman Mike Gatto’s Closely Watched California Homemade Food Act Signed into Law

Sacramento, CA – Assemblyman Mike Gatto’s (D-Los Angeles) Assembly Bill (AB) 1616, the California Homemade Food Act, was signed into law today. The California Homemade Food Act legalizes the sale of homemade, “non-potentially hazardous” foods by creating a two-tier system of “cottage food operations” based upon the point of sale. Having captured the imagination of food lovers in California and beyond, AB 1616 was among the most anticipated bills to be considered by the Governor this year.

The Assemblyman made a commitment to helping aspiring micro-entrepreneurs start their businesses by improving access to locally produced, artisan foods after his constituent, Mark Stambler, was shut down by the Los Angeles Department of Environmental Health for selling his homemade, brick-oven breads to a neighborhood cheese shop. “I am proud to have delivered this victory to my constituents and to aspiring business owners throughout the state that are looking for ways to develop their businesses and purchase healthier, more locally produced foods for their families.”

Prior to the California Homemade Food Act, outdated statutes and local ordinances strictly prohibited everyone from home-based, artisanal bread bakers to small-scale, jam and preserve vendors from selling their products. Now, cottage food producers will be permitted to produce and sell every-day foods such as breads, tortillas, dry roasted nuts and legumes, cookies, granola, churros, jams, jellies and other fruit preserves to their communities. Producers choosing to sell directly to consumers will register with the local health department, and those choosing to sell to local retail shops, such as the neighborhood coffee shop or corner store, will be subject to initial inspection and permitting by the local health department. All producers will also be required to complete a food processor course, verify that the home kitchen meets specific standards, and disclose on the product label that the product was made in a home kitchen.

“Providing people with the opportunity to make and sell these foods directly to their neighbors at the local farmer’s market or through the specialty shop up around the corner is a matter of access to opportunity,” said Gatto. “I am happy that the Governor has joined me in my efforts to restore economic activity to our neighborhood economies and to the state of California by allowing people to produce and healthy, nutritious or culturally relevant foods in their homes.”

The California Homemade Food Act is consistent with similar laws of at least 33 other states, none of which have reported a food-borne illness from non-potentially hazardous foods. The legislation contains numerous provisions that will ensure cottage food operations remain small-scale, neighborhood-based activities that respect the importance of public health. More than 6,000 people throughout the state, as well as small and large business, non-profit, and interest organizations such as the Lost Angeles Bread Bakers, the Sustainable Economies Law Center, Whole Foods Market Northern California, the California State Grange and the City of Los Angeles, expressed support to the Governor.

“This is a huge win for food for food makers like Mark, stay-at-home parents, culinary enthusiasts, job seekers and all those who want to know where their foods come,” commented Gatto. “I am proud to have created a legal structure for the safe, in-home production of particular foods that respects the importance of public health but that will spark more economic activity in our local economies and in California.”

Get “Behind the Bill” and hear the story of the California Homemade Food Act in this Assembly Access Video: http://www.youtube.com/watch?v=dnS_gqTIdAE&feature=youtu.be

Mike Gatto represents the cities of Burbank, Glendale, and parts of Los Angeles, including Los Feliz, Silver Lake, and Atwater Village.  He is the Chairman of the Assembly Appropriations Committee.  www.asm.ca.gov/gatto

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Local Inspires Cottage Food Bill on Governor Brown's Desk

The Homemade Food Act would allow folks like Mark Stambler to sell certain locally produced foods in their communities.

From Echo Park / Silver Lake Patch - August 31, 2012 - By Anthea Raymond

AB1616

Silver Lake resident Mark Stambler, whose experience trying to make and sell home-baked bread in local specialty shops inspired the Homemade Food Act, now awaiting Governor Brown's signature.Credit Office of Mike Gatto

"Write the Governor a letter," says Mark Stambler, whose experience trying to sell home-baked bread in two stores inspired the Homemade Food Act.

The act, otherwise known as Assembly Bill 1616, is now on Governor Brown's desk after approval in both the California Senate and Assembly on Thursday.

The bill would permit breads, tortillas, cookies, preserves, nuts and other small-batch items produced in the home to be sold directly to consumers and in stores.

Certain public health protections would have to be met first, however.

Silver Lake resident Stambler became a poster child for micro-entrepreneurs trying to market their own products.

The health department refused to allow him to sell home-baked bread in two local stores.

Assemblyman Mike Gatto, who also lives in Silver Lake, took up his case and sponsored AB1616. (Watch the video below for more on the bill.)

“Creating a legal structure for the safe, in-home production of certain foods that respects the importance of public health is a sensible approach that will spark more economic activity in our local economies and in California,” Gatto said in a statement.

Governor Brown has until the end of the month to sign the bill.

Cities and counties around the state have gone on the record opposing AB1616, fearing the risks they say it may create for them.

Supporters, like Stambler, say the governor's signature is not certain, and he urged anyone who supports the bill to send a letter to Sacramento.

See a five minute video of the story behind AB 1616 and learn more about Assemblyman Mike Gatto's support for Mark Stambler and other Cottage Food businesses by clicking HERE

See this story and more at the Echo Park / Silver Lake Patch HERE

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Mike Gatto is the Chairman of the Appropriations Committee of the California State Assembly.  He represents the cities of Burbank, Glendale, and Los Feliz and Silver Lake neighborhoods of Los Angeles.  E-mail Mike at: assemblymember.gatto@assembly.ca.gov, or call (818) 558-3043.

Website of Assemblyman Mike Gatto: www.asm.ca.gov/gatto

Cottage Foods Bill Passes Legislature, Awaiting Governor's Signature to Allow Sale of Home Goods

The new bill would make is possible for independent food crafters like Roma Chocolates, pictured, to sell their goods in storefronts.

(Photo by Krista Simmons/LAist)

August 31, 2012 - Bill AB 1616, also known as the Cottage Foods Bill, passed the legislature today, and is currently awaiting signature by the state's Governor.

The bill was written in response to the incident where the Los Angeles County Health Department ordered Mark Stambler to stop selling the bread he baked each week in his backyard oven in Los Feliz. At the time, the 59 year-old had hoped baking could become his full-time business.

If signed by the Governor, the bill would still come with regulations. Permits would still be required, foods would have to be labeled as homemade, ingredients could not include meat or cream and would have to be listed, and gross yearly sales could not exceed $35,000, although that would rise to $50,000 by 2015. Anyone selling directly to consumers would also have to register with local health departments and take courses in food handling.

According to Gatto, the courses would be slightly more stringent than the food safety certifications that can currently be obtained online for food professionals in California.
“This final step is substantial for food makers like Mark, stay-at-home parents, culinary enthusiasts, job seekers and all those who want to know where their foods come,” said Gatto in a release today. “I hope that the Governor will join me and the thousands of people statewide that are looking to develop their businesses and purchase healthier, more locally produced foods for their families.”

There are hopes that the bill will provide job opportunities for folks amidst the flailing economy. According to Patt Morisson on KPCC, "Home cooked food is a huge industry in the more than 30 others states that already have ‘Bakers Bills’ on their books - to the tune of annual sales of $100 million in West Virginia alone. In trying economic times, the ability for people to sell their home-cooked foods directly to consumers has provided a much needed source of extra income for people who know their way around a cookie sheet or bread oven."

So if everyone really likes your pies this Labor Day weekend, keep in mind that it could maybe actually become a career.

See a five minute video of the story behind AB 1616 and learn more about Assemblyman Mike Gatto's support for Mark Stambler and other Cottage Food businesses by clicking HERE

Read this article and more at the LAist HERE

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Mike Gatto is the Chairman of the Appropriations Committee of the California State Assembly.  He represents the cities of Burbank, Glendale, and Los Feliz and Silver Lake neighborhoods of Los Angeles.  E-mail Mike at: assemblymember.gatto@assembly.ca.gov, or call (818) 558-3043.

Website of Assemblyman Mike Gatto: www.asm.ca.gov/gatto