Climate Change Regulatory Tug-of-War
https://www.jdsupra.com/legalnews/occ-challenges-california-s-climate-8080040/
In October 2023, California enacted two landmark climate change laws applicable to all types of entities (public and private) “doing business in California” (as defined in California’s state tax), that also met certain global annual revenue thresholds. The laws are the Climate Corporate Data Accountability Act (SB 253), and the Greenhouse Gases: Climate-Related Financial Risk Act (SB 261). Known as the Climate Accountability package, the laws have generated considerable controversy both with respect to the state’s authority to enact them, and in terms of the cost and complexity of compliance. A further factor is the federal regulatory rollback, including SEC climate related financial disclosure reporting requirements applicable to public companies.
On October 29, 2026, The Office of the Comptroller of the Currency (OCC) submitted a letter to the California Air Resource Board (CARB) addressing what it considers serious legal and policy issues the regulations raise. The OCC claims the disclosure laws would be inconsistent with OCC regulation and safety and soundness; impose undue burden, particularly on smaller banks; harm California customers and disrupt customer relationships; and raise constitutional concerns, including under the Supremacy Clause.
Depending on how CARB responds, the OCC could proceed to file suit to secure preemption for entities it regulates.
Why It Matters:
“The letter is important not only because of its implications for federally chartered institutions doing business in California, but also because it reflects the OCC’s broader willingness under Comptroller Gould to challenge state laws that the agency believes interfere with the exercise of federally authorized banking powers.” – Ballard Spahr
Regulation of Business Chatbots: California Law Goes into Force January 1, 2027
Starting Jan. 1, 2027, a California customer who asks a large company for a human must get one, or at least a real attempt at one. Gov. Gavin Newsom signed AB 1609, the Right to Human Customer Service Act, on Sept. 28. The law requires companies with more than $500 million in annual revenue to connect a customer with a person within 15 minutes of the request, or to book a specific call-back time within one business day.
Chatbots can still answer first. They cannot pretend to be people, and they cannot be the only option.
The law also requires a clear talk-to-a-person option on every service channel during business hours and a disclosure when a chatbot could pass for a human. Hold times are capped at 15 minutes per hold and one hour in total.
Why It Matters:
California can be a harbinger, and service organizations, including financial services, are seeing pushback on AI-fueled customer experiences. Considering recent political shifts, reining in post-human experiences could be seen as low-hanging fruit for national politicians seeking quick wins on improving Americans’ day-to-day interactions.
Regulation of Digital Assets Under Uniform Commercial Code (UCC)
Link: https://www.jdsupra.com/legalnews/2022-ucc-amendments-take-effect-in-new-5547627/
The Uniform Law Commission (ULC)—also known as the National Conference of Commissioners on Uniform State Laws—is a non-partisan, state-supported organization that researches, drafts, and proposes model state legislation in the United States. Its most widely embraced set of model laws is the Uniform Commercial Code (UCC), which is a comprehensive set of laws designed to harmonize and standardize state laws governing commercial transactions.
“New York and Ohio have joined the growing number of states adopting the 2022 amendments to the Uniform Commercial Code (UCC), bringing significant changes to the legal framework governing secured transactions involving digital assets and other forms of electronic commerce. New York’s amendments took effect June 3, 2026, while Ohio’s amendments take effect October 7, 2026. Together, these developments reflect the continued nationwide shift toward a more consistent commercial law framework for transactions involving emerging technologies.”
Why It Matters:
“New York’s adoption is particularly significant because New York law is frequently chosen as the governing law for major financing transactions, securities offerings, and commercial agreements. Market participants have long expressed concern that New York’s failure to adopt the 2022 amendments could create inconsistencies with other jurisdictions and complicate transactions involving digital assets. By enacting the amendments, New York is among thirty-six other states (including the District of Columbia) that have adopted the updated framework, helping to promote greater uniformity across U.S. commercial law.”
