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We've been closely following the litigation brought by the U.S. and California Chambers of Commerce, the American Farm Bureau Federation, the Los Angeles County Business Federation, the Central Valley Business Federation, and the Western Growers Association. The plaintiffs are challenging California's two climate disclosure laws, Senate Bill 253 (the Climate Corporate Data Accountability Act) and Senate Bill 261 (the Climate-Related Financial Risk Act), on constitutional grounds including the First Amendment. As last reported, the District Court denied the plaintiffs' motion to enjoin the laws pending their appeal of the court's August 20 denial of their motion for preliminary injunction.
The plaintiffs have now asked the Ninth Circuit to enjoin the laws pending their appeal of the lower court's refusal to block the laws. They've requested a ruling by November 3rd. If successful, companies may have a reprieve from complying with California's climate disclosure laws. However, we will not know the outcome until shortly before the January 1, 2026, compliance deadline for Senate Bill 261. For now, prudent companies should expect that they will have to comply with the laws and plan accordingly.
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