Executive Summary
After briefly being placed on the suspense file, the California Senate Appropriations Committee passed AB257. The bill now moves to the full Senate for consideration.
Analysis
On August 11, 2022, the Senate Appropriations voted to pass AB257 by a vote of 5 ayes and 2 noes. The bill passed the Senate Judiciary Committee after it was placed on the suspense file on August 1, 2022. The bill now moves to the full Senate for vote where it is expected to pass.
Looking Forward
AB257 has now made it through all committees and appears destined for passage. While lobbying efforts to amend the bill will not stop until the Governor signs it, it is becoming increasingly more likely that the franchise community will need to seek a referendum and/or file suit to stop it from taking effect.
As always, our team stands ready to assist your business with all of its franchising needs. If you have questions or need assistance, please contact the authors listed below.
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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