CMTA Announces 2026 "Breaker Bills" Threatening California Manufacturing

Annual list highlights legislation that would increase manufacturers' costs and regulatory burdens

SACRAMENTO, Calif., April 7, 2026 /PRNewswire/ -- Today, the California Manufacturers & Technology Association (CMTA) announced its 2026 "Breaker Bills," legislative proposals threatening California manufacturers with new costs, regulatory burdens, and legal risks.

Manufacturers employ 1.2 million Californians and contribute $382 billion annually to the state's economy. But energy prices, regulatory complexity, and high taxes already make California one of the most difficult states to operate.

"Instead of driving jobs and investment out of state, we should help manufacturers remain competitive and grow in California," said Lance Hastings, CMTA President & CEO. "Lawmakers need to take a hard look at the potential consequences and how they would harm an industry that significantly drives our economy."

CMTA's 2026 Breaker Bills:

• SB 947 (McNerney) – Restricts use of automated decision systems in the workplace. Adds compliance burdens for manufacturers.
  
  
• SB 951 (Reyes) – Imposes automation reporting and layoff notifications. Would require 90 days' notice before layoffs or contract terminations tied to new technology. Discourages manufacturers' investment.
  
  
• SB 982 (Wiener) – Authorizes lawsuits over climate-related damages. Would allow the state to sue companies for contributions to climate disasters, exposing manufacturers to 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 economic impact threshold. Makes costly regulations easier to justify.
  
  
• AB 1777 (Garcia) – Expands regulation of indirect pollution sources. Would allow California Air Resources Board to impose statewide emissions rules on facilities attracting truck traffic, increasing costs for manufacturers and distributors.
  
  
• AB 1790 (Connolly) – Expands taxation of multinational companies. Would prohibit California's "water's-edge" election, pulling more foreign income into state tax calculations and increasing taxes on global manufacturers.
  
  
• AB 1883 (Bryan) – Restricts employee monitoring technology. Would ban certain biometric monitoring tools and limit technology use ensuring workplace safety and compliance.
  
  
• AB 1898 (Schultz) – Increases administrative burdens and oversight risks. Would require manufacturers to notify employees about AI tools in job decisions and maintain records about their use, creating compliance liability.

About CMTA
CMTA has advocated for pro-growth laws and regulations since 1918. The total output from California manufacturing is $382 billion per year, roughly 10% of the state's GDP. For more, visit cmta.net.

Contact: Nina Fisher
C: 818-274-4305
[email protected]

SOURCE California Manufacturers & Technology Association