On October 15, the Temecula Valley Chamber of Commerce brought together business leaders, members, and community stakeholders for its annual Legislative Forum, offering timely insight into the policies and legislative decisions shaping California’s business environment.

With the November 3 General Election approaching and a new legislative year on the horizon, the forum focused on two important questions: 

• What is happening in Sacramento and Washington, D.C., that could affect local businesses?
• What should business owners be watching as we move into 2027?

Featuring Jennings Imel of the U.S. Chamber of Commerce and Adam A. Ruiz of Rincon Strategies, the program provided a practical look at data center development, artificial intelligence, the outcomes of California’s 2026 legislative session, and the policy issues likely to influence businesses in the coming year.

Understanding Data Centers and Their Local Impact

Jennings Imel of the U.S. Chamber of Commerce opened the discussion with an overview of data centers and their growing role in the digital economy. These facilities house the computing systems that support the internet, cloud services, and artificial intelligence, making them an increasingly important part of the nation’s technology and infrastructure landscape.

As demand for AI and digital services continues to grow, data center investment is expanding rapidly. Imel discussed the potential economic benefits, including construction jobs, permanent employment, private investment, and increased local tax revenue. He also explored the infrastructure requirements that communities must consider when evaluating proposed projects.

Energy and water use generated considerable discussion. Imel explained that the impact of data centers on electricity rates depends on local conditions, including existing power capacity, the need for new generation or grid upgrades, and how infrastructure costs are allocated. While additional demand may help distribute certain fixed costs across more customers, new infrastructure can also create additional expenses. Ensuring that developers appropriately fund necessary improvements is an important consideration for communities.

Water consumption, cooling technology, permitting timelines, and community engagement were also addressed. Imel noted that newer facilities increasingly use closed-loop cooling systems, while emphasizing the importance of evaluating resource needs and infrastructure requirements on a project-by-project basis.

The discussion reinforced an important point: data center development requires a fact-based assessment of both its potential benefits and its local impacts. Communities benefit from transparent conversations about electricity and water use, infrastructure costs, employment, tax revenue, and the commitments developers are prepared to make before projects move forward.

For business owners and community leaders, understanding these considerations is increasingly important as artificial intelligence and the digital economy influence future investment and economic development decisions.

Sacramento: What the 2026 Session Means for Business

Adam A. Ruiz, Vice President of Public Affairs at Rincon Strategies, provided an in-depth review of California’s 2026 legislative session and the issues expected to shape the year ahead.

The volume of legislation considered this year underscored the importance of keeping businesses informed. Ruiz reported that

• 1,846 bills were introduced in 2026
• 1,160 reaching the governor’s desk
• Governor Gavin Newsom signed 1,040 bills and vetoed 120

Ruiz also reviewed the work of the Southwest California Legislative Council, which took positions on 70 bills during the session, 35 in support and 35 in opposition. His presentation highlighted how advocacy can help influence legislation, particularly when proposed measures raise concerns about compliance costs, litigation exposure, employment requirements, or the broader operating environment for businesses.

Several proposals affecting employers and commercial property owners were discussed, including:

• Measures involving wage complaints 
• Workers’ compensation 
• Commercial rent restrictions 
• Vacant commercial property
• Energy policy

Ruiz also explained how some proposals were amended or narrowed before becoming law, illustrating the importance of following legislation throughout the process rather than relying solely on initial bill summaries.

The forum also addressed legislation with potential benefits for businesses and local communities. Among the measures discussed were 

• Changes intended to improve nonresidential permitting timelines
• Expedite permitting following wildfire recovery
• Improve traffic-signal coordination in the Western Riverside Council of Governments region

Another notable topic was AB 1776, an antitrust measure that was substantially narrowed during the legislative process. As described during the presentation, the final law exempts businesses with 100 or fewer employees and removes the private right of action, leaving enforcement to the Attorney General or a district attorney.

These examples demonstrated how legislative advocacy can help shape the final form of a proposal and why businesses benefit from understanding not only which bills pass, but also how they change before becoming law.

Artificial Intelligence: A Growing Policy Priority

Artificial intelligence emerged as one of the most significant issues to watch in 2027. As businesses increasingly incorporate AI into their operations, lawmakers are considering questions involving workplace practices, employee supervision, automated decision-making, healthcare, privacy, and surveillance.

Ruiz discussed several AI-related measures that passed after being narrowed, noting that questions about implementation and interpretation may continue into the next legislative session.

For business owners, the takeaway was practical: AI policies should be part of ongoing business planning. Companies can benefit from establishing clear guidelines for approved AI tools, appropriate use of company devices and accounts, and the role of human oversight in decisions affecting employees and customers. Consulting human resources professionals or legal counsel can help businesses understand how evolving requirements apply to their operations.

AI presents opportunities to improve efficiency and support growth, but businesses should also remain attentive to the regulatory and workplace considerations accompanying its adoption.

Looking Ahead: Insurance, Affordability, and the State Budget

Beyond AI, Ruiz identified several issues likely to remain prominent as California moves into 2027.

• Wildfire and insurance: The session did not produce a comprehensive wildfire legislative package, leaving important questions about insurance availability, costs, utility responsibilities, and ratepayer impacts unresolved. Ruiz also discussed the California FAIR Plan and the challenges associated with its growing role as an insurance option of last resort.
• Affordability and energy costs: Fuel prices, energy policy, and the broader cost of doing business remain significant concerns for employers and households. Ruiz noted that regulatory decisions, refinery capacity, and reliance on fuel imports will continue to influence the discussion.
• Permitting and business operations: Improving permitting timelines remains an important issue for businesses seeking to invest, expand, or complete projects. The balance between efficient review processes, regulatory requirements, and local decision-making will continue to be relevant at both the state and local levels.
• The state budget and new leadership: California’s budget will play a central role in determining which proposals advance in 2027. With a new governor expected to take office, the administration’s priorities could influence legislation involving employment, infrastructure, energy, and business regulation.

Ruiz emphasized that the next legislative session will bring new opportunities and challenges. Businesses that stay informed and communicate their concerns early will be better positioned to understand potential changes and participate in the policy discussions that affect their industries.

The Importance of Business Advocacy

A central message throughout the forum was that business advocacy is most effective when it is informed, specific, and proactive.

Ruiz encouraged businesses to communicate directly with elected officials, share real examples of how proposed legislation affects their employees and operations, and offer practical solutions early in the legislative process. Clear, firsthand information from employers can help policymakers better understand the real-world consequences of legislative decisions.

The Temecula Valley Chamber of Commerce remains committed to keeping the business community informed and advocating for a business environment that supports investment, job creation, and economic opportunity throughout the region. As the Chamber continues its legislative work, member input is essential. Business owners are encouraged to share the challenges they are facing, identify emerging policy concerns, and participate in opportunities to engage with local, state, and federal representatives.

Stay Informed as We Move Into 2027

The October 15 Legislative Forum offered attendees a valuable opportunity to look beyond the headlines and better understand the policies shaping California’s business climate. From data center development and AI to employment legislation, energy costs, insurance, and permitting, the discussions highlighted issues with implications for businesses and communities alike.

The Chamber thanks Jennings Imel of the U.S. Chamber of Commerce and Adam A. Ruiz of Rincon Strategies for sharing their expertise and helping attendees navigate a complex and evolving policy landscape.

The Temecula Valley Chamber of Commerce will continue to connect businesses with credible information, meaningful advocacy opportunities, and the resources they need to make informed decisions. Staying engaged today helps our business community prepare for the opportunities and challenges of tomorrow.

To learn more about the Chamber’s legislative advocacy and upcoming programs, visit https://www.temecula.org/ and https://www.southwestca.org/.