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California Governor signs Assembly Bill 2155, amending the state's arbitration law to align enforceability standards with federal requirements. The legislation creates a direct link between the Federal Arbitration Act and California Arbitration Act, establishing that agreements unenforceable under federal law will also be unenforceable under state law.
On June 30th, California’s Governor signed Assembly Bill (AB) 2155, which concerns the enforceability of written arbitration agreements in California. The bill amends Code of Civil Procedure Section 1281 and provides that any agreement unenforceable under the Federal Arbitration Act (FAA) is also unenforceable under the California Arbitration Act (CAA).
AB 2155 takes effect January 1, 2027.
The legislation underscores the importance of regularly reviewing arbitration agreements to ensure they reflect current federal and state requirements.
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