BILL NUMBER: AB 1603	CHAPTERED
	BILL TEXT

	CHAPTER   25
	FILED WITH SECRETARY OF STATE   JUNE 12, 1997
	APPROVED BY GOVERNOR   JUNE 12, 1997
	PASSED THE ASSEMBLY   JUNE 4, 1997
	PASSED THE SENATE   JUNE 2, 1997
	AMENDED IN SENATE   MAY 22, 1997
	AMENDED IN ASSEMBLY   APRIL 24, 1997

INTRODUCED BY  Assembly Member Bustamante
   (Principal coauthor:  Assembly Member Villaraigosa)
   (Coauthors:  Assembly Members Aroner, Brown, Cardoza, Escutia,
Honda, Knox, Kuehl, Lempert, Mazzoni, Ortiz, Scott, Shelley, Sweeney,
Washington, and Wayne)

                        MARCH 31, 1997

   An act to amend Section 1714.45 of the Civil Code, relating to
liability, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1603, Bustamante.  Liability:  common consumer products.
   Existing law provides that in a product liability action, a
manufacturer or seller is not liable if the product is a common
consumer product intended for personal consumption, such as, among
other things, tobacco, is inherently unsafe, and is known to be
unsafe by the ordinary consumer, as specified.
   This bill would provide that the above provision does not apply to
an action brought by a public entity to recover the value of
benefits provided to individuals injured by a tobacco-related illness
caused by the tortious conduct of a tobacco company or its successor
in interest.  The bill would also provide that the barring of an
injured individual's claim by the above provision shall not
constitute a defense to an action brought by a public entity.  The
bill would state that it does not constitute a change in, but is
declaratory of, existing law.
  The bill would declare that it is to take effect immediately as an
urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature hereby finds and declares both of the
following:
   (a) That the Attorney General of the State of California has not
joined the 22 other state attorneys general who have filed civil
actions against tobacco companies to recover the tobacco-related
costs incurred by their states because the Attorney General asserts
that a clarification of Section 1714.45 of the Civil Code is
necessary before such a civil action can be filed.
   (b) That, although there is a difference of opinion over whether
any clarification of Section 1714.45 is necessary, the Legislature
recognizes that the filing of such a civil action would be
facilitated by a clarification of the law relating to tobacco
products.
  SEC. 2.  Section 1714.45 of the Civil Code is amended to read:
   1714.45.  (a) In a product liability action, a manufacturer or
seller shall not be liable if:
   (1) The product is inherently unsafe and the product is known to
be unsafe by the ordinary consumer who consumes the product with the
ordinary knowledge common to the community; and
   (2) The product is a common consumer product intended for personal
consumption, such as sugar, castor oil, alcohol, tobacco, and
butter, as identified in comment i to Section 402A of the Restatement
(Second) of Torts.
   (b) For purposes of this section, the term "product liability
action" means any action for injury or death caused by a product,
except that the term does not include an action based on a
manufacturing defect or breach of an express warranty.
   (c) This section is intended to be declarative of and does not
alter or amend existing California law, including Cronin v. J.B.E.
Olson Corp., (1972) 8 Cal. 3d 121, and shall apply to all product
liability actions pending on, or commenced after, January 1, 1988.
   (d) This section does not apply to, and never applied to, an
action brought by a public entity to recover the value of benefits
provided to individuals injured by a tobacco-related illness caused
by the tortious conduct of a tobacco company or its successor in
interest, including, but not limited to, an action brought pursuant
to Section 14124.71 of the Welfare and Institutions Code.  In such an
action brought by a public entity, the fact that the injured
individual's claim against the defendant may be barred by this
section shall not be a defense.  This subdivision does not constitute
a change in, but is declaratory of, existing law relating to tobacco
products.
  SEC. 3.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to ensure that California files a civil action similar to
the civil actions filed by 22 other states and recovers
tobacco-related costs incurred by the state at the earliest possible
time, it is necessary that this act take effect immediately.