Annual list highlights legislation that would increase costs and regulatory burdens on manufacturers
Sacramento, Calif. – Today, the California Manufacturers & Technology Association (CMTA) announced its 2026 list of “Breaker Bills,” a slate of legislative proposals that threaten California’s manufacturing competitiveness by imposing new costs, regulatory burdens, and legal risks on the industry.
Manufacturers employ over 1.2 million Californians and contribute almost $400 billion annually to the state’s economy. But rising energy prices, regulatory complexity, and high taxes have already made California one of the most difficult states in the country to operate.
“Instead of driving jobs and investment out of the state, we should focus on helping manufacturers remain competitive and grow in California,” said Lance Hastings, CMTA President & CEO. “Lawmakers need to take a hard look at the consequences of these bills and how they would harm an industry that significantly drives our economy.”
CMTA’s 2026 Breaker Bills include:
– SB 947 (McNerney) – Restricts use of automated decision systems in the workplace. Adds compliance burdens for manufacturers.
– SB 951 (Reyes) – Imposes new automation reporting and layoff notification requirements. Would require 90 days’ notice before layoffs or contract terminations tied to automation or new technology. Discourages manufacturers’ investment in new technology.
– SB 982 (Wiener) – Authorizes lawsuits over climate-related damages. Would allow the Attorney General to sue companies for contributions to climate disasters, exposing manufacturers to significant liability and costly litigation for global emissions impacts beyond their control.
– SB 1123 (Wiener) – Weakens transparency in regulatory economic impact analyses. Would allow agencies to include “offsetting benefits” when determining whether a regulation exceeds the $50 million economic impact threshold. Makes costly regulations easier to justify.
– AB 1777 (Garcia) – Expands regulation of indirect pollution sources. Would allow the California Air Resources Board (CARB) to impose new statewide emissions rules on facilities that attract truck traffic, increasing costs for manufacturers and distribution centers.
– AB 1790 (Connolly) – Expands taxation of multinational companies. Would prohibit California’s “water’s-edge” election, pulling more foreign income into state tax calculations, resulting in double taxation, and ultimately increasing taxes on manufacturers operating globally.
– AB 1883 (Bryan) – Restricts use of employee monitoring technology. Would ban certain biometric monitoring tools and limit how manufacturers can use technology to ensure workplace safety and compliance, creating operational and oversight challenges.
– AB 1898 (Schultz) – Increases administrative burdens and oversight risks. Would require manufacturers to notify employees about AI tools used in job decisions and maintain detailed records about their use, creating new compliance responsibilities and liability.
“CMTA is actively opposing these proposals and educating policymakers on how to improve California’s challenging business environment, rather than add further burdens,” Hastings added.
View CMTA’s Bill Tracker here.
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About CMTA
The California Manufacturers & Technology Association (CMTA) has advocated for pro-growth laws and regulations before the California legislature and administrative agencies since 1918. The total output from manufacturing in California is $382 billion per year, roughly 10 percent of the total economic output of the state. Manufacturers employ 1.2 million Californians paying wages more than $2,500 higher than other non-farm employers in the state.