Executive Summary

The California Assembly Committee on Appropriations passed AB257 as amended on April 28, 2021. The bill now moves to the full Assembly for consideration.

Analysis

On May 20, 2021, California Assembly Committee on Appropriations passed AB257 with 12 ayes and 4 noes. The bill will now move to the California Assembly for consideration.

Looking Forward

The primary jurisdiction of the California Assembly Committee on Appropriations is fiscal bills. In its analysis of the bill, the committee stated the fiscal effect was “unknown, but likely significant amount …” Unfortunately, that statement was limited to the costs of enforcement without giving any weight to the potential costs to the franchise community. The bill now moves to the floor where there may be more opposition.

This article was originally published on the California Franchise Network.


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Thomas O’Connell – Tom O’Connell is a Shareholder at Buchalter APC, where he serves as Chair of the firm’s Franchise Law Practice and Chair of Litigation for the firm’s San Diego office.


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