The California Legislature is back in Sacramento for the final month of the 2026 session, and CMTA is tracking several bills that could impact California’s manufacturing industry. Learn about three bills in particular with real consequences for manufacturers.
SB 954 — California Environmental Quality Act: Advanced manufacturing facilities: exemption
Senate Bill 954 would impose new regulatory requirements exclusively on advanced manufacturing projects using existing CEQA streamlining, including a new Governor’s Office certification process and labor conditions that don’t currently apply, adding uncertainty for manufacturers considering investment in California.
AB 1776 — Cartwright Act: violations
Assembly Bill 1776 significantly expands California’s antitrust law by lowering the legal threshold for claims involving single-firm conduct. It could lead to increased litigation exposure and compliance costs for businesses across all sectors, ultimately driving up costs for employers.
AB 1883 — Workplace surveillance tools
Assembly Bill 1883 would put broad restrictions on employers’ use of certain AI-enabled workplace technologies, including tools that collect neural data or recognize an individual’s emotional state. It would create operational uncertainty for manufacturers that use AI to improve workplace safety, quality control, equipment reliability, and operational efficiency.
What’s Next
With adjournment set for August 31, CMTA will continue advocating on behalf of California manufacturers through the final weeks of session. Our team will meet with legislative offices, advocate in the Legislature and the media, and keep members updated as these bills move.