The Temecula Valley Chamber of Commerce, in collaboration with the Southwest California Legislative Council (SWCLC), continues to actively monitor legislation moving through Sacramento that carries substantial implications for the business community. While many of these proposals progress quietly through the legislative process, their potential impacts on employers, nonprofits, and local economies can be significant.

As part of our ongoing advocacy efforts, we are currently opposing two bills—AB 1776 and SB 1359—and have submitted formal letters to state legislators outlining our concerns. We will also be traveling to Sacramento in June for our annual legislative advocacy trip, where we will engage directly with policymakers to ensure the voice of our regional business community is clearly represented.

AB 1776 (Aguiar-Curry) – Cartwright Act: Violations

AB 1776 proposes a substantial expansion of California’s antitrust enforcement framework under the Cartwright Act. While existing antitrust laws are intended to prevent large-scale monopolistic behavior that harms competition, this measure would broaden enforcement authority in ways that extend well beyond its traditional scope.

Under the proposal, the California Attorney General would be granted significantly expanded discretion to initiate investigations with limited defined standards. In addition, private parties—including competitors, labor organizations, and community groups—would be permitted to pursue legal action alleging monopolistic behavior, even in cases involving businesses with minimal market share.

This shift introduces broad uncertainty into standard business operations. Common practices such as offering customer incentives, expanding into new locations, or adjusting pricing strategies could be subject to legal challenge under ambiguous criteria. As currently drafted, the bill removes long-standing definitions and established legal guidance, creating an environment in which ordinary competitive activity may be interpreted as anti-competitive conduct.

The potential consequences extend across all sectors of the economy. Businesses may face increased litigation exposure, higher legal costs, and a heightened level of operational uncertainty that could discourage expansion, hiring, and investment. There are also concerns regarding unintended impacts on innovation-driven industries, where collaboration and structured partnerships are essential to growth and advancement.

On May 14, 2026, AB 1776 passed the Assembly Appropriations Committee with an 11–4 vote. The California Chamber of Commerce has identified the measure as a “Cost Driver” on its Affordability Agenda, and a growing coalition of academic experts has raised concerns regarding its departure from established antitrust principles and its potential to expose routine business practices to litigation risk.

The Temecula Valley Chamber of Commerce and SWCLC have both taken formal positions in opposition, and advocacy letters have been submitted to state legislators. We will continue to engage in dialogue with policymakers as this legislation advances.

• SWCLC Letter sent on April 14, 2026
• CalChamber Letter sent on April 20, 2026

SB 1359 (Stern) – Gas Transition Responsibility and Electrification Act

SB 1359 establishes a framework to accelerate the transition away from natural gas infrastructure in favor of electrification-based systems. While the bill is framed within broader statewide climate objectives, it raises important concerns regarding affordability, reliability, and operational feasibility for businesses and residents.

The legislation would limit investment in existing natural gas infrastructure, even where such investments are necessary to maintain safe, reliable service. For many employers—including restaurants, healthcare providers, manufacturers, and small businesses—natural gas remains an essential utility that supports core operational functions. In the Temecula Valley alone, more than 150 manufacturers rely on consistent energy inputs to maintain production processes and competitiveness.

The bill also permits the discontinuation of natural gas service based on policy determinations rather than demonstrated customer need. This approach reduces energy choice and may force premature transitions in facilities where electrification is not yet technically or financially feasible. As a result, businesses could face increased conversion costs, operational disruptions, and constraints on long-term planning.

In addition, SB 1359 may contribute to upward pressure on energy costs. As the natural gas customer base contracts while demand persists, remaining users could experience higher utility rates. These cost shifts would disproportionately affect small businesses, manufacturers, and households already managing tight operating margins.

Another concern is the potential for statutory mandates to override ongoing regulatory review processes conducted by the California Public Utilities Commission. These processes are designed to evaluate safety, affordability, workforce impacts, and infrastructure planning in a comprehensive and evidence-based manner. Legislative action that predetermines outcomes may reduce flexibility and limit balanced decision-making.

On May 14, 2026, SB 1359 passed the Senate Appropriations Committee with a 5–2 vote. The Temecula Valley Chamber of Commerce and SWCLC have formally opposed the measure and have communicated these concerns directly to legislative offices.

• Temecula Chamber Letter sent on April 13, 2026
• SWCLC Letter sent on April 14, 2026
• CalChamber Letter sent on May 11, 2026

Continued Advocacy and Engagement

The Temecula Valley Chamber of Commerce remains committed to ensuring that the perspectives of our regional employers are represented in state policy discussions. Through coordinated advocacy with SWCLC, written communications to legislators, and in-person engagement in Sacramento, we will continue to elevate the real-world implications these proposals may have on job creation, investment, and long-term economic stability.

We encourage members to stay informed as these bills advance and to engage with us as we work to promote a balanced, predictable, and business-friendly regulatory environment in California. Please visit the Southwest California Legislative Council website to stay informed.