The California Manufacturers & Technology Association announced its 2026 list of “Breaker Bills” Monday.
Breaker Bills are exactly what the name sounds like – they are a slate of legislative proposals that threaten California’s manufacturing competitiveness by imposing new costs, regulatory burdens, and legal risks on the industry, the CMTA says.
“Maker” Bills strengthen California’s ability to manufacture goods, expand opportunities for innovation and investment, and create good-paying jobs.
“Breaker” Bills would break down California’s competitiveness by imposing new costs, restrictions, or litigation risks on manufacturers, the CMTA explains.
The CMTA says that California 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.”
This is why this list of Breaker Bills matters:
CMTA’s 2026 Breaker Bills include:
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| AB 1018 | (Bauer-Kahan D) Automated decision systems. |
| Current Text: Amended: 9/5/2025 html pdf |
| Introduced: 2/20/2025 |
| Last Amend: 9/5/2025 |
| Status: 9/13/2025-Failed Deadline pursuant to Rule 61(a)(14). (Last location was INACTIVE FILE on 9/13/2025)(May be acted upon Jan 2026) |
| Location: 9/13/2025-S. 2 YEAR |
| Summary: The California Fair Employment and Housing Act establishes the Civil Rights Department within the Business, Consumer Services, and Housing Agency and requires the department to, among other things, bring civil actions to enforce the act. Current law requires, on or before September 1, 2024, the Department of Technology to conduct, in coordination with other interagency bodies as it deems appropriate, a comprehensive inventory of all high-risk automated decision systems that have been proposed for use, development, or procurement by, or are being used, developed, or procured by, any state agency. This bill would generally regulate the development and deployment of an automated decision system (ADS) used to make consequential decisions, as defined. The bill would define “automated decision system” to mean a computational process derived from machine learning, statistical modeling, data analytics, or artificial intelligence that issues simplified output, including a score, classification, or recommendation, that is designed or used to assist or replace human discretionary decisionmaking and materially impacts natural persons. This bill would require a developer of a covered ADS, as defined, to take certain actions, including conduct impact assessments of the covered ADS and provide deployers to whom the developer transfers the covered ADS with certain information, including a high-level summary of the results of those impact assessments. |
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| AB 1331 | (Elhawary D) Workplace surveillance. |
| Current Text: Amended: 9/4/2025 html pdf |
| Introduced: 2/21/2025 |
| Last Amend: 9/4/2025 |
| Status: 9/13/2025-Failed Deadline pursuant to Rule 61(a)(14). (Last location was INACTIVE FILE on 9/13/2025)(May be acted upon Jan 2026) |
| Location: 9/13/2025-S. 2 YEAR |
| Summary: Current law establishes the Division of Labor Standards Enforcement within the Department of Industrial Relations. Current law authorizes the division, which is headed by the Labor Commissioner, to enforce the Labor Code and all labor laws of the state the enforcement of which is not specifically vested in any other officer, board or commission. This bill would limit the use of workplace surveillance tools, as defined, by employers, including by prohibiting an employer from monitoring or surveilling workers in employee-only, employer-designated areas, as specified. The bill would provide workers with the right to leave behind workplace surveillance tools that are on their person or in their possession when entering certain employee-only areas and public bathrooms and during off-duty hours, as specified. The bill would prohibit a worker from removing or physically tampering with any component of a workplace surveillance tool that is part of or embedded in employer equipment or vehicles. |
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| AB 1777 | (Garcia D) Air pollution: indirect sources. |
| Current Text: Introduced: 2/9/2026 html pdf |
| Introduced: 2/9/2026 |
| Status: 3/24/2026-From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 4.) (March 23). Re-referred to Com. on APPR. |
| Location: 3/24/2026-A. APPR. |
| Summary: Current law designates the State Air Resources Board as the state agency with the primary responsibility for the control of vehicular air pollution, and air pollution control districts and air quality management districts with the primary responsibility for the control of air pollution from all sources other than vehicular sources. Current law authorizes air districts to adopt and implement regulations to reduce or mitigate emissions from indirect sources of air pollution. Current law requires the state board to adopt rules and regulations relating to vehicular emissions standards, as specified, that will achieve the ambient air quality standards required by federal law in conjunction with other measures adopted by the state board, air districts, and the United States Environmental Protection Agency. This bill would authorize the state board, if necessary to carry out that duty to achieve those ambient air quality standards, to adopt regulations to reduce or mitigate emissions from indirect sources of pollution. |
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| AB 1790 | (Connolly D) Corporations Tax Law: water’s-edge election: global intangible low-taxed income. |
| Current Text: Introduced: 2/10/2026 html pdf |
| Introduced: 2/10/2026 |
| Status: 2/23/2026-Referred to Com. on REV. & TAX. |
| Location: 2/23/2026-A. REV. & TAX |
| Summary: The Corporation Tax Law imposes on every corporation doing business in the state, as defined, a tax according to or measured by net income and, in the case of a corporation with income derived from or attributable to sources both within and without this state, apportions the income between this state and other states and foreign countries in accordance with a single sales formula based on the sales within and without this state, except that in the case of an apportioning trade or business that derives more than 50% of its gross business receipts from conducting one or more qualified business activities, as defined, business income is apportioned in accordance with a specified 3-factor formula. Current federal law, for purposes of determining a taxpayer’s gross income for federal income tax purposes, requires that a person who is a United States shareholder of any controlled foreign corporation, as defined, to include in their gross income the net CFC tested income, as provided. The Corporation Tax Law, for taxable years beginning on or after January 1, 2003, for purposes of determining income derived from or attributable to sources within this state, allows corporations to make a statutory election as to whether their income is determined on a “water’s-edge” basis or on a worldwide unitary basis. Under current law, the election to report income on a water’s-edge basis remains in effect until terminated, and provides conditions for the termination of the election. This bill, for taxable years beginning on or after January 1, 2026, would require a taxpayer that files on a water’s-edge basis to account for net CFC tested income within the water’s-edge group, as provided. The bill would require a taxpayer that files on a water’s-edge basis to include all income and apportionment factors of any corporation, other than a bank, whose sales factor, instead of the average of 3 factors, in the United States is at least 20%. |
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| AB 1883 | (Bryan D) Workplace surveillance tools. |
| Current Text: Amended: 3/12/2026 html pdf |
| Introduced: 2/12/2026 |
| Last Amend: 3/12/2026 |
| Status: 3/19/2026-From committee: Do pass and re-refer to Com. on P. & C.P. (Ayes 5. Noes 0.) (March 18). Re-referred to Com. on P. & C.P. |
| Location: 3/18/2026-A. P. & C.P. |
| Summary: Existing law establishes the Division of Labor Standards Enforcement within the Department of Industrial Relations. Existing law authorizes the division, which is headed by the Labor Commissioner, to enforce the Labor Code and all labor laws of the state, the enforcement of which is not specifically vested in any other officer, board, or commission. This bill would generally regulate the use of workplace surveillance tools and an employer’s use of worker data. The bill would prohibit an employer from using certain workplace surveillance tools, including a workplace surveillance tool that incorporates facial, gait, or emotion recognition technology, except as specified. The bill would also prohibit an employer from using a workplace surveillance tool to infer specified categories of information about a worker, including, among others, their veteran status, ancestral history, religious beliefs, or disability status. The bill would require the Labor Commissioner to enforce the bill’s provisions, would authorize an employee to bring a civil action for specified remedies for a violation of the bill’s provisions, and would authorize a public prosecutor to enforce the provisions. The bill would subject an employer who violates the bill’s provisions to a civil penalty of $500 for each violation. The bill would define various terms for purposes of its provisions. This bill contains other related provisions. |
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| AB 1898 | (Schultz D) Workplace artificial intelligence tools. |
| Current Text: Amended: 3/20/2026 html pdf |
| Introduced: 2/12/2026 |
| Last Amend: 3/20/2026 |
| Status: 3/25/2026-From committee: Do pass and re-refer to Com. on JUD. (Ayes 10. Noes 3.) (March 25). Re-referred to Com. on JUD. |
| Location: 3/25/2026-A. JUD. |
| Summary: Would require an employer to provide a written notice to a worker that a workplace AI tool, as defined, was used to assist the employer in making employment-related decisions or to surveil workers in the workplace. The bill would require the notice to be given to a worker within a specified time and would require the notice to contain specified information, including the specific employment-related decisions likely to be affected by the use of the workplace AI tool. The bill would require an employer to maintain an updated list of all workplace AI tools currently in use and their impact on jobs, as specified, and to provide the list to workers annually. The bill would provide for enforcement by the Labor Commissioner or a public prosecutor, and alternatively would authorize any worker who has suffered damages, or their exclusive representative, to file a civil action for damages caused by the adverse action. The bill would establish remedies and penalties for violations, including a penalty of up to $500 for each violation. |
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| SB 947 | (McNerney D) Employment: automated decision systems. |
| Current Text: Amended: 3/26/2026 html pdf |
| Introduced: 2/2/2026 |
| Last Amend: 3/26/2026 |
| Status: 3/26/2026-Set for hearing April 8. From committee with author’s amendments. Read second time and amended. Re-referred to Com. on L., P.E. & R. |
| Location: 2/18/2026-S. L., P.E. & R. |
| Summary: Existing law requires the Department of Technology to conduct, in coordination with other interagency bodies as it deems appropriate, a comprehensive inventory of all high-risk automated decision systems (ADS) that have been proposed for use, development, or procurement by, or are being used, developed, or procured by, any state agency. Existing law establishes the Labor and Workforce Development Agency, which is composed of various departments responsible for protecting and promoting the rights and interests of workers in California, including the Division of Labor Standards Enforcement, led by the Labor Commissioner, within the Department of Industrial Relations. This bill would prohibit an employer, as defined, from using an ADS to perform certain functions and would limit the purposes for and way in which an ADS may be used. The bill would authorize a worker to request, and require an employer to provide, a copy of the most recent 12 months of the worker’s own data primarily used by an ADS to make a disciplinary, termination, or deactivation decision, as specified. The bill would require an employer that uses an ADS to assist in making a disciplinary, termination, or deactivation decision to provide the affected worker with a written postuse notice, as specified. This bill would prohibit an employer from discharging, threatening to discharge, demoting, suspending, or in any manner discriminating or retaliating against any worker for taking certain actions asserting their rights under the bill. |
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| SB 951 | (Reyes D) Employment: technological displacement: notice. |
| Current Text: Amended: 3/26/2026 html pdf |
| Introduced: 2/2/2026 |
| Last Amend: 3/26/2026 |
| Status: 3/26/2026-Set for hearing April 8. From committee with author’s amendments. Read second time and amended. Re-referred to Com. on L., P.E. & R. |
| Location: 2/18/2026-S. L., P.E. & R. |
| Summary: Existing law establishes the Labor and Workforce Development Agency, which is composed of various departments responsible for protecting and promoting the rights and interests of workers in California, including the Division of Labor Standards Enforcement, led by the Labor Commissioner, within the Department of Industrial Relations. Existing law establishes the Employment Development Department (EDD), which is administered by the Director of Employment Development. Under existing law, the Director of Employment Development is vested with specified duties, purposes, responsibilities, and jurisdiction related to job creation activity functions, among other things. This bill would establish the California Worker Technological Displacement Act, which would require an employer, as defined, to provide at least a 90-day advanced written notice, as described, before any technological displacement affecting 25 or more workers or 25 percent of the workforce, whichever is less. The bill would require an employer to provide that notice to affected workers, the EDD, and specified state and local entities. |
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| SB 982 | (Wiener D) Climate disasters: civil actions. |
| Current Text: Introduced: 2/4/2026 html pdf |
| Introduced: 2/4/2026 |
| Status: 4/2/2026-Set for hearing April 14. |
| Location: 2/11/2026-S. JUD. |
| Summary: Current law gives a person the right of protection from bodily harm and the right to possess and use property. If a person suffers bodily harm or a loss of their property because of the unlawful act or omission of another, existing law authorizes them to recover compensation from the person at fault, which is known as damages. Current law authorizes the Attorney General to bring various civil actions due to damage or loss. This bill would authorize the Attorney General to bring a civil action against a party responsible for climate-attributable damage to recover losses suffered by the California FAIR Plan Association, funds borrowed from the California Infrastructure and Economic Development Bank, or costs to insurance policyholders arising from a past climate disaster. The bill would make responsible parties strictly liable for any relief granted. |
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| SB 1123 | (Wiener D) Administrative Procedure Act: major regulations. |
| Current Text: Introduced: 2/17/2026 html pdf |
| Introduced: 2/17/2026 |
| Status: 2/26/2026-Referred to Com. on G.O. |
| Location: 2/26/2026-S. G.O. |
| Summary: The Administrative Procedure Act requires a state agency proposing to adopt, amend, or repeal an administrative regulation to assess the potential for adverse economic impact on California business enterprises and individuals and avoid the imposition of unnecessary or unreasonable regulations or reporting, recordkeeping, or compliance requirements. The act requires a state agency proposing to adopt, amend, or repeal a major regulation to satisfy additional requirements, including by requiring the state agency to prepare a standardized regulatory impact analysis in the manner prescribed by the Department of Finance, as specified, and requires the analysis to address certain items, including the creation or elimination of jobs within the state and the competitive advantages or disadvantages for businesses currently doing business within the state. This bill would require an agency, in estimating the economic impact of adopting, amending, or repealing a regulation, to identify and calculate any offsetting benefits, impacts, or savings that might result directly or indirectly from that adoption, amendment, or repeal and factor those benefits, impacts, or savings into its economic impact estimate. |
October 20, 2024
October 27, 2025
