California

Businesses Must Determine Before 2025 If They Fall Under California Climate Reporting Law

Published

1 year ago

October 31, 2024

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Businesses Must Determine Before 2025 If They Fall Under California Climate Reporting Law

California State Capitol building with state flag in Sacramento on a windy summer day with clear sky

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In 2023, California approved the Climate Accountability Package, a pair of bills aimed at creating climate reporting requirements. Reporting is set to begin in 2026 for data collected during 2025. Companies need to determine now if they are required to report and establish the processes to collect the data. However, delays in drafting the standards and ambiguous language are making it difficult for businesses to determine if they qualify.

The Rise of Climate Reporting

California’s climate reporting regulation is part of a global movement to require companies to disclose their greenhouse gas emissions, climate policies, and to evaluate climate risks. Driven by the net zero 2050 goal of the Paris Agreement, jurisdictions around the world are looking to reduce GHG emissions.

The European Union has been leading the way with the Corporate Sustainability Reporting Directive. Initially adopted in 2022, the CSRD requires climate and environmental, social, and governance reporting by most companies that operate within the EU. Reporting for large companies began in 2024. Reporting for non-EU companies and small and medium-sized enterprises has been delayed to 2026.

In the U.S., the Securities and Exchange Commission adopted a Climate-Risk Disclosure Rule in early 2024, only to delay implementation while it faced legal challenges. California and other states are moving forward with their own reporting requirements.

California’s Climate Accountability Package established the broad parameters for the reporting standards. The responsibility of drafting specific regulations and implementing the reporting standards was delegated to the California Air Resources Board. CARB was initially given until January 1, 2025 to draft the rules and processes. In September, the Legislature extended the deadline by six months to July 1.

The original legislation states that CARB shall develop and adopt regulations requiring for the reporting entity’s prior fiscal year.” Meaning, while the reporting does not take place until 2026, the data is from 2025. Businesses must determine before January 1, 2025 if they qualify as a reporting entity so they can begin collecting the required information.

Reporting requirements are divided into two categories, based on the total annual revenue of the company. Unlike the SEC, the California reporting requirements apply to both publicly traded and privately held companies. Only U.S. companies will have to report.

Reporting Entities

The highest level of reporting is required of large companies. Senate Bill 253 required companies who do business in California and have an excess of $1 billion in revenue, defined as “reporting entities”, to submit an annual report for Scope 1 and Scope 2 starting in 2026. Scope 3 reporting will begin in 2027.

Generally, Scope 1 GHG emissions are those that come directly from the company. Scope 2 are indirect GHG emissions from the company’s power source. Scope 3 are GHG emissions from the value chain, both from suppliers and consumers.

Scope 3 has been highly debated as it is considered by the business community as being overly burdensome. When the SEC implemented their rule, they chose to not require Scope 3. The EU requires it.

Covered Entities

Senate Bill 261 required companies who do business in California and an excess of $500 million in revenue, defined as “covered entities”, to submit a biennial climate-related financial risk report.

Climate risk is defined as “material risk of harm to immediate and long-term financial outcomes due to physical and transition risks, including, but not limited to, risks to corporate operations, provision of goods and services, supply chains, employee health and safety, capital and financial investments, institutional investments, financial standing of loan recipients and borrowers, shareholder value, consumer demand, and financial markets and economic health.”

This is a much lower requirement as it does not include any level of GHG emission reporting.

What Classifies As “Doing Business in California”?

In the development and interpretation of law, words matter. Codes, ordinances, laws, and regulations typically begin with a list of definitions of key terms. Frequently, those definitions are prefaced with the phrase “for purposes of this section.” This allows lawmakers to define a term for limited use in that section of the law preventing new legislation from negatively impacting established law. Definitions bring clarity, allowing those subjected to the law, regulators, attorneys, and judges to know the exact intent of the lawmakers.

In the Climate Accountability Package, the phrases “covered entity” and “reporting entity” are both defined in their respective sections. The only notable distinction between the definitions is the annual revenue threshold. Both include the phrase “that does business in California.”

While the dollar amount thresholds are clear, there is a question as to what classifies as “doing business” in California. The definition varies by section of the state code and by state agency. The Climate Accountability Package amended the state’s Health and Safety Code, that does not have a definition of doing business.

Presumably, CARB will provide a clear definition when they release the standards in July. However, companies will need to determine by January 1 if they need to collect data. In the interim, there are two key definitions that help provide some guidance.

California Corporations Code

Section 191 (a) of the California Corporations Code gives a definition of “entering into repeated and successive transactions of its business in this state, other than interstate or foreign commerce.” However, that definition is for the phrase “transact intrastate business” and is only for “the purposes of Chapter 21”, requiring registration with the Secretary of State.

Notably, “a foreign corporation shall not be considered to be transacting intrastate business merely because its subsidiary transacts intrastate business.” This leaves raises a question as to if a subsidiary can trigger reporting by the parent company. The 2024 amendment clarified that a subsidiary does not have to file separate from the parent company, but did not address this question.

California Revenue and Taxation Code

Article 1, Section 23101(a) of the California Revenue and Taxation Code gives a definition of “doing business.” The California Franchise Tax Board interprets the definition to mean meeting one of five conditions. The board updates the dollar thresholds annually. A company is considered doing business in California if

The company is “actively engaging in any transaction for the purpose of financial or pecuniary gain or profit”;
The company is “organized or commercially domiciled” in the state;
The company has annual sales in California exceed the lower of $711,538 or 25% of the company’s total sales;
The company has real property or tangible personal property in California exceeds the lower of $71,154 or 25% of the company’s total; or
The company has payroll compensation in California exceeds the lower of $71,154 or 25% of the company’s total payroll.

The Struggle For Businesses

While there will likely be a delay in implementing California’s climate reporting requirements, companies have to decided soon how to respond. The choice comes with a hefty price tag. The SEC estimated compliance with their rule would cost a company approximately $1 million the first year. There is no reason to think California’s will be any different. As a result, companies are faced with a difficult decision – move forward with costly programs or hope for a delay.

There are a lot of unanswered questions while CARB drafts the climate reporting standards. However, given the current timeline, companies need to act now to evaluate if they meet the minimums and get their process in place by January 1.

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California

Rob Reiner and wife found dead in Brentwood, California home

Published

10 hours ago

December 15, 2025

Press Room

Rob Reiner and wife found dead in Brentwood, California home

Celebrated actor, director, producer and activist Rob Reiner, whose work shaped American television and cinema for decades, has died at 78, according to Variety and TMZ. His death, alongside that of his wife, Michele Singer, 68, is under investigation by the Los Angeles Police Department after the couple was found in their home in Brentwood, California.

A dedicated political activist, Reiner was slated to speak on Tuesday, Dec. 16, in Palm Springs, Calif., about his career and his book “A Fine Line Between Stupid and Clever: The Story of Spinal Tap.”

Reiner, born March 6, 1947, in the Bronx, New York, grew up in the entertainment business − his father was comedy legend Carl Reiner and his mother, Estelle, was an actress. He became famous in his own right for his portrayal of Michael “Meathead” Stivic on the groundbreaking sitcom “All in the Family,” winning two Emmy Awards as Archie Bunker’s son-in-law.

Though he had dozens of acting credits to his name, he transitioned to directing and created beloved films including “This Is Spinal Tap,” “Stand by Me,” “The Princess Bride,” “Misery,” “A Few Good Men” and “When Harry Met Sally …” He cast his mother as an extra in the rom-com classic for a scene at a New York deli where Meg Ryan faked an orgasm.

“First couple of times, she didn’t do it full out,” Reiner said of directing Ryan in the scene. “Finally, I sat across from Billy (Crystal). And I acted it for her. … And I’m pounding the table, ‘Yes! Yes! Yes!’ And I’m realizing I’m having an orgasm in front of my mother, you know? There’s my mother over there.” His mother’s line – “I’ll have what she’s having” – became one of the most famous lines in film.

Similarly, his mockumentary “This Is Spinal Tap” was a part of the cultural landscape (and earned a spot in the Library of Congress’ National Film Registry), with memorable songs like “Gimme Some Money.”

Reiner admitted that was the very reason “Spinal Tap II: The End Continues” came to be: “We never got any money from the first movie, really,” Reiner said in an interview with USA TODAY earlier this year about his three stars, Christopher Guest, Michael McKean and Harry Shearer. “Lots of people had the rights, and the four us had 10% each, and while it’s going to sound crazy, we only got like 82 cents apiece over the years, despite all the DVD and foreign sales. Call it creative accounting on steroids. So Harry said, ‘I’m going to sue to get the rights back,’ and though it took him years, he got it done.”

The sequel was largely improvised. “The fun thing for me was falling back with old friends,” he said. “You just start doing your thing with each other, Chris used to call it ‘schneedeling,’ and right away, we were schneedeling as if no time has gone by. You can’t beat that.”

Reiner was a progressive and outspoken voice in the Hollywood community, supporting issues including marriage equality and gun control. He was a vocal critic of President Donald Trump and advocated for social and political change. In 2006, his name was floated as a possible candidate for governor of California, but he decided not to run.

Reiner was slated to speak on Tuesday, Dec. 16 in Palm Springs at the historic Plaza Theatre about his career and his book “A Fine Line Between Stupid and Clever: The Story of Spinal Tap.” Bruce Fessier, who covered entertainment for The Desert Sun in Palm Springs for four decades, was to moderate.

“I was preparing for my Q&A with Rob Reiner … when I heard two people had been murdered at his house in West L.A.,” Fessier said. “I felt like I knew him well.”

He had rewatched both “Spinal Tap” movies that afternoon and had also read his book in preparation.

“I prayed the victims weren’t Rob and his wife, Michele,” he said. When the deaths were confirmed, he cried “Why them? Rob was way more than a great film director and actor. He did so much good as a political activist. He was a renaissance man.”

Rob Reiner was married to actress and director Penny Marshall from 1971 to 1981. During their marriage, Reiner adopted Marshall’s daughter, Tracy, who later became an actress.

In 1989, Reiner married Michele Singer, a photographer. Together they shared three children: Nick, Jake and Romy. Reiner often credited Michele with inspiring the happy ending of “When Harry Met Sally …,” which he was filming when they met.

Kate Franco, executive editor of The Desert Sun, contributed to this report.

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California

De La Salle vs. Santa Margarita: live score, updates, highlights from California’s Open Division state championship bowl | Sporting News

Published

1 day ago

December 14, 2025

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De La Salle vs. Santa Margarita: live score, updates, highlights from California’s Open Division state championship bowl | Sporting News

MISSION VIEJO, California, Dec. 13 — The No. 7/SN No. 15 Santa Margarita [Rancho Santa Margarita, CA] Eagles ended a 14-year state championship drought Saturday night in a 47-13 romp past the No. 15/SN No. 25 De La Salle [Concord, CA] Spartans in California’s CIF Open Division state championship bowl.

While the win ended Santa Margarita’s drought, it prolonged De La Salle’s own dry spell in championship bowl games, extending the Spartan’s losing streak to eight games in these contests.

Santa Margarita is ranked as high as No. 4 in the country by three selectors (High School Football America, MaxPreps, and USA Today’s Super 25). In the High School Football America rankings, they’re ranked ahead of both the No. 1/SN No. 1 Buford [GA] Wolves and the No. 3/SN No. 5 Carrollton [GA] Trojans – two teams that will play for Georgia’s GHSA Class 6A championship on Tuesday night.

Whether the win over De La Salle can get the Eagles – who will finish the season with three losses at 11-3 – a share of the national title remains to be seen.

De La Salle, meanwhile, ends its season at 12-1.

WATCH ON THE NFHS NETWORK: No. 7/SN No. 15 Santa Margarita [Rancho Santa Margarita, CA] Eagles vs. No. 15/SN No. 25 De La Salle [Concord, CA] Spartans

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Refresh for updates

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End of the fourth quarter: Santa Margarita 47, De La Salle 13

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SANTA MARGARITA 47, DE LA SALLE 13

Santa Margarita gets a pick six to put capper on this one.

Siua Holani with finished touches on this one. 43-yard pick 6. Santa Margarita 47, De La Salle 13. 1:36 4Q. pic.twitter.com/VVVEN5bvr6
— Mitch Stephens (@MitchBookLive) December 14, 2025

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SANTA MARGARITA 41, DE LA SALLE 13

Johnson finds Gazzaniga for his second touchdown of the game. The tight end entered the game with two touchdown receptions all year, and he’s got two in the state title game.

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End of the third quarter: Santa Margarita 35, De La Salle 13

The first quarter is in the books, and it’s all Santa Margarita so far.

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SANTA MARGARITA 35, DE LA SALLE 13

De La Salle forces another turnover and converts it to points to give them a glimmer of hope that they can climb out of this deep hole.

Two forced De La Salle turnovers and two Jaden Jefferson touchdowns.
Jefferson is the state record holder in the 100-meter dash 💨
De La Salle cuts the Santa Margarita lead to 35-13 with 4:09 left in the 3rd pic.twitter.com/05dJ7Q9Mmy
— West Coast Preps (@westcoastpreps_) December 14, 2025
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The third quarter is under way, and to make matters worse for De La Salle, Santa Margarita is on offense first.

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End of the second quarter: Santa Margarita 35, De La Salle 7

The first quarter is in the books, and it’s all Santa Margarita so far.

Santa Margarita has been a different team offense since Mosley’s return around midseason. And they’re one half away from a state championship in Carson Palmer’s first year at the helm.

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SANTA MARGARITA 35, DE LA SALLE 7

Just over a minute to play in the first half, Mosley scores again on another short play, and then he adds the 2-point conversion. This feels like it’s over.

Trent Mosley finishes off the half with another touchdown. Also adds run for two-point conversion. 1:07 left. Santa Margarita 35, De La Salle 7. Complete domination. pic.twitter.com/hMsSsI0svB
— eric sondheimer (@latsondheimer) December 14, 2025
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SANTA MARGARITA 27, DE LA SALLE 7

It’s Duce plus a deuce. Santa Margarita marches right back down the field after the Spartans’ touchdown, and Duce Smith carries it in for another touchdown. And even with the score by De La Salle, Santa Margarita still has its biggest lead of the night after converting the 2-point conversion. It’s Johnson to Ryan Clark on the extra two.

Jaion Smith TD. Two-point conversion good. Santa Margarita 27, De La Salle 7 pic.twitter.com/1zpn1ETZyW
— eric sondheimer (@latsondheimer) December 14, 2025
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Santa Margarita into the red zone again.

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SANTA MARGARITA 19, DE LA SALLE 7

Helped along by the turnover and a couple of penalties, De La Salle’s offensive line shows some muscle in the trenches and they power their way down near the goal line where Jaden Jefferson carries it across. That felt like a must-score situation, and they get the touchdown. Now, can they stop Santa Margarita’s offense again?

Jaden Jefferson TD. Santa Margarita 19, De La Salle 7. 6:43 left in second. pic.twitter.com/QzsKMWP58i
— eric sondheimer (@latsondheimer) December 14, 2025

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De La Salle gets its first real break. Mosley fumbles, and the Spartans pounce on it inside the Eagles’ 40. If they want to have any chance of staying in this game, they need to make the most of this short field.

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End of the first quarter: Santa Margarita 19, De La Salle 0

The first quarter is in the books, and it’s all Santa Margarita so far.

42 seconds left in first quarter. Santa Margarita 19, De La Salle. Luke Gazzaniga TD. About the only thing the Eagles need to work on are PATs. 1 for 3. pic.twitter.com/WA6IY0blgI
— eric sondheimer (@latsondheimer) December 14, 2025

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SANTA MARGARITA 19, DE LA SALLE 0

Johnson finds Luke Gazzaniga on a wide-open post against a blown coverage. It’s too easy for the Eagles right now, and with their elite defense, it’s possible they’ve already scored enough to win this game.

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De La Salle with a quick three-and-out on offense, and they punt on a 4th-and-19. Mosley returns it inside De La Salle’s 35. This is already starting to look ugly.

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SANTA MARGARITA 13, DE LA SALLE 0

Trace Johnson finds Mosley with a short swing pass to the right side of the field, and the senior standout does his thing winding and weaving his way 34 yards through traffic before running over the final defender at the goal line. Again, the early feeling watching this is not good for De La Salle.

What a luxury.
Just get it to Trent Mosley and watch.
Santa Margarita 13, De La Salle 0 (missed PAT)pic.twitter.com/3cp3hBbUJ5
— Tarek Fattal (@Tarek_Fattal) December 14, 2025
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Santa Margaria quickly approaching the red zone again.

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De La Salle puts together a good drive to get into position for a short field goal attempt. But it’s blocked by Santa Margarita, ending the scoring threat. If you’re a De La Salle fan, you’re encouraged by the offense being able to move against the Eagles. But combined with the defensive personal fouls on Santa Margarita’s first drive, you also get the feeling early that this could be a really tough night for the Spartans. It’s early, we’ll see how they rebound from the lost scoring opportunity.

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SANTA MARGARITA 7, DE LA SALLE 0

Helped along by a couple of personal foul penalties, Santa Margarita drives quickly on its first possession, scoring on a short run by Trent Mosley out of the Wildcat formation.

Tulane bound Trace Johnson and Griffin Brahm connect get in the red zone.
4⭐️ USC bound Trent Mosley then scores. He’s a freakish talent.
Santa Margarita up 7-0 on De La Salle with 8:00 left in the 1st pic.twitter.com/vpo2yvYp9R
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— West Coast Preps (@westcoastpreps_) December 14, 2025

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Santa Margarita won the toss and deferred to the second half. De La Salle picks up one first down against this stout Eagles’ defense before being forced to punt.

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They’re under way in California! This is the final game of California’s high school football season.

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Coming soon!

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De La Salle vs. Santa Margarita start time

Date: Saturday, Dec. 13
Start time: 11 p.m. EST (8 p.m. PST local)

The game between De La Salle and Santa Margarita is being played at Saddleback College in Mission Viejo, California.

How can I watch De La Salle vs. Santa Margarita today?

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Two girls, 9 and 11, awarded $31.5m after sister’s California torture death

Published

2 days ago

December 13, 2025

Press Room

Two girls, 9 and 11, awarded .5m after sister’s California torture death

A lawsuit over the death of an 11-year-old California girl who was allegedly tortured and starved by her adoptive family reached a settlement on Friday totaling $31.5m from the city and county of San Diego as well as other groups.

The suit was brought on behalf of the two younger sisters of Arabella McCormack, who died in August 2022. The girls were ages six and seven at the time. Their adoptive mother, Leticia McCormack, and McCormack’s parents, Adella and Stanley Tom, are facing charges of murder, conspiracy, child abuse and torture. They pleaded not guilty to all charges, and their criminal case is ongoing.

Arabella McCormack. Photograph: San Diego county sheriff’s office

The lawsuit alleged a systemic failure across the city and several agencies and organizations to not report Arabella McCormack’s abuse.

The settlement includes $10m from the city of San Diego, $10m from San Diego county, $8.5m from the Pacific Coast Academy and $3m from the Rock church, the sisters’ attorney, Craig McClellan, said. The school oversaw Arabella McCormack’s home schooling, and her adoptive mother was an ordained elder at the church.

“The amount is going to be enough to take care of the girls for the rest of the lives,” McClellan said. But it “isn’t going to be enough and never could be enough … to replace their sister, nor is it going to erase the memories of what they went through”.

The lawsuit said county social workers did not properly investigate abuse claims and two teachers at the Pacific Coast Academy failed to report the girl’s condition. It also said a San Diego police officer, a friend of the girl’s adoptive mother, gave the family a wooden paddle that they could use to hit their children.

San Diego sheriff’s deputies responded to a call of a child in distress at the McCormack home 30 August 2022. They found Arabella McCormack severely malnourished with bruises, authorities said. She was taken to a hospital, where she died.

Her sisters are now nine and 11 and living with a foster mother. They are in good health and “doing pretty well considering all things”, McClellan said.

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