Ninth Circuit Court Pauses Enforcement of Senate Bill 261

This week, the Ninth Circuit Court of Appeals decided to pause enforcement of Senate Bill 261, a climate disclosure law, while a lawsuit filed by the California Chamber of Commerce and a coalition of business groups remains on appeal.

In response to the court’s November 18 ruling, CalChamber issued the following statement:

“We are pleased the court realized the importance of blocking enforcement of Senate Bill 261 while our appeal is pending. California businesses were facing a January 1 date to comply with a law that we believe infringes on their First Amendment rights. Had the court not taken today’s action, companies would have been forced to engage in speech that can’t be undone.

“We look forward to making our case in the new year, as we believe this law and another related new law (SB 253) present untenable mandates and a dangerous precedent.”

CalChamber joined the U.S. Chamber of Commerce and other business groups in a lawsuit in 2024 challenging the two state laws.

The lawsuit asserts that both SB 253 and SB 261 unconstitutionally compel speech in violation of the First Amendment and conflict with existing federal law and the Constitution’s delegation to Congress of the power to regulate interstate commerce.