Sacramento, Calif. – California Manufacturers & Technology Association (CMTA) President and CEO, Lance Hastings, released the following statement on the passage of Assembly Bill 98 (J. Carrillo), the statewide mandate on warehouse operations.

“On Sunday evening, California Governor Gavin Newsom signed AB 98, a bill regulating logistics and warehouse facility development, passed by the Legislature without consulting manufacturers. The provisions of AB 98 were revealed in the last few days of the legislative session, receiving very little review prior to passage.

 

Despite its aim to address environmental concerns, AB 98 imposes strict and ambiguous restrictions on facility locations, posing significant challenges to California’s 30,000 manufacturers, who often operate as temporary warehouses by moving and storing products on-site. Most business organizations opposed the bill due to its broad and detrimental impact on an already costly regulatory landscape. The rigid mandates will adversely affect industries beyond warehousing and may lead to job losses, ultimately harming the economy.

 

In their joint statement, the California Chamber of Commerce, California Retailers Association, California Restaurant Association, and California Apartment Association praised the bill as a sensible compromise. However, this perspective overlooks the reality that AB 98 imposes severe constraints that could stifle economic growth and innovation. The claim that it avoids negative impacts is misguided; the bill will instead exacerbate the challenges faced by our manufacturers.

 

The Governor has now vetoed manufacturing’s top priority (AB 52) and signed manufacturing’s biggest threat (AB 98). The California Manufacturers & Technology Association advocates for a more strategic approach to achieving the state’s environmental goals while supporting economic growth. We will propose legislation next year to minimize the impact of AB 98 on manufacturers across the state. We need leaders who backs manufacturing with more than just words—too much is at stake for California’s economy.”

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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 $300 billion per year, roughly 10 percent of the total economic output of the state. Manufacturers employ 1.3 million Californians paying wages more than $25,000 higher than other non-farm employers in the state. For more information, visit CMTA’s website.