Pub. 7 2018-2019 Issue 1

Issue 1 2018-2019 19 Considine & Considine is a full service public accounting firm offering professional and personalized services to business and professional practice owners in the areas of audit, taxation, accounting, estate and retirement planning. Phili p Smith, CPA Considine & Considine 1501 5th Av., Suite 400, San Diego, CA 92101 619-231-1977 x103 www.cccpa.com prs@cccpa.com Let us help guide your business development. What Signs Do I Need & Where Do I Order? In general, an average automobile dealership may need 8 signs for various locations. A copy of these signs is attached with guidance for posting. Signs may be ordered through your vendor or through your Reynolds & Reynolds representative. Consumer product warning signs must be obtained from the product manufacturer. What Are the Most Significant Changes to the Proposition 65 Warnings For Consumer Products? Since the original warning requirements took effect in 1988, most Proposition 65 warnings simply stated that a chemical is present that causes cancer or reproductive harm, but they did not identify the chemical or provide specific information about how a person may be exposed or ways to reduce or eliminate exposure to it. New OEHHA regulations, which take effect in August 2018, change the safe harbor warnings which are deemed to comply with the law in several important ways. For example, the newwarnings for consumer products will say the product “can expose you to” a Proposition 65 chemical rather than saying the product “contains” the chemical. They will also include: • The name of at least one listed chemical that prompted the warning • The Internet address for OEHHA’s new Proposition 65 warnings website, www.P65Warnings.ca.gov , which includes additional information on the health effects of listed chemicals and ways to reduce or eliminate exposure to them • A triangular yellow warning symbol “ ” on most warnings What Are Other Highlights of the NewWarnings System? The new warning regulation also: • Adds new “tailored” warnings that providemore specific information for certain kinds of exposures, products, and places. • Provides information for website warnings for products purchased over the Internet. • Provides information for warnings in languages other than English in some cases. • Clarifies the roles and responsibilities of manufacturers and retailers in providing warnings. Why are Proposition 65 Warnings Changing? In 2013, Gov. Edmund G. Brown Jr. proposed reforms to strengthen Proposition 65. The Governor called for changes to “require more useful information to the public on what they are being exposed to and how they can protect themselves.” He added, “This is an effort to improve the law so it can do what it was intended to do – protect Californians from harmful chemicals.” In 2015, UC Davis researchers interviewed more than 1,500 randomly selected Californians and asked them to compare the new specific warnings to the current generic warnings. The results were dramatic – 77 percent said the new warnings would be more helpful than the current system. When Will the Changes Take Effect? In August 2016, the Office of Administrative Law approved the new reg- ulations for improved Proposition 65 warnings. Businesses can currently choose whether to provide the old warning or the new warning as part of the regulation’s two-year phase-in period. Beginning August 30, 2018, the old warning systemwill expire and businesses that want “safe harbor protection” that deems them in compliance with Proposition 65 will use the new warning system. What is the Purpose of the New Proposition 65 Warnings Website? People who read Proposition 65 warnings and want to learnmore can go to the website to find additional information about chemicals and best practices for reducing or eliminating exposures. The website contains fact sheets about Proposition 65 chemicals and specific types of exposure, anything from furniture products to enclosed parking facilities. It also answers frequently asked questions about Proposition 65 and includes a glossary of Proposition 65 terms. Will Businesses Be Required to Provide the New Warnings? Using the safe harbor warnings is an effective way for businesses to pro- tect themselves against Proposition 65 enforcement actions. Businesses that use the safe harbor warnings are deemed compliant with the law’s requirement for clear and reasonable warnings. Businesses have the option to provide different warnings if they believe they comply with the law. Additionally, small businesses with fewer than 10 employees are exempt from Proposition 65’s warning requirements. Continued on page 20