Banning Combustion Engines and Increase in Litigation Bills Miss Deadline

May 11, 2018 – -Two anti-business bills are dead for the time being after they failed to pass through policy committees last week.  AB 1745 (Ting) would have banned the sale of combustion engine vehicles in the state by prohibiting the registration of a new vehicle in the state after 2040 unless it was a zero-emission vehicle. AB 2527 (Muratsuchi) would have exposed small businesses to more class action litigation by banning arbitration agreements, prohibiting class action waivers, and interfering with contractual negotiations, among other things.

Each measure would have been very costly for businesses not only because of the new equipment and increased litigation, but also in regards to the uncertainty these measures would bring to existing and future contracts. Both bills faced intense opposition from the agriculture community and business groups, including the California Chamber of Commerce who added the bills to their “job-killer” list.