Earlier this week, representatives from the Southwest California Legislative Council (SWCLC) gathered to review proposed state legislation and ballot measures that could significantly impact businesses throughout Southwest Riverside County.

In addition to discussing the recently adopted California State Budget and receiving updates from legislative offices, the Council reviewed several bills currently moving through the Legislature, as well as a number of statewide ballot propositions that voters will consider this November.

Below is a summary of the Council's positions and the reasons behind each recommendation.

State Legislation

SB 690 – SUPPORT

What it does: Clarifies that California's wiretapping laws do not apply to standard website data collection already regulated under the California Consumer Privacy Act (CCPA).

Why the Council supports it: Without this clarification, businesses could face costly lawsuits over routine website technologies such as analytics tools, cookies, and online forms. The bill helps reduce unnecessary litigation while maintaining consumer privacy protections.

SB 947 – OPPOSE

What it does: Restricts employers from using artificial intelligence (AI) or automated decision-making tools in many employment decisions.

Why the Council opposes it: Many businesses already use AI tools for recruiting, research, scheduling, and other everyday operations. The Council believes the bill is overly broad, could create significant legal liability, and would make it more difficult for businesses to responsibly use technology that improves efficiency.

SB 951 – OPPOSE

What it does: Requires employers to provide a 60-day notice before replacing workers with certain technologies or artificial intelligence and creates additional employee protections and penalties.

Why the Council opposes it: While businesses understand the importance of supporting employees during workplace changes, the Council believes this proposal creates excessive regulatory burdens, increases litigation risk, and makes it more difficult for employers to adopt new technologies that help them remain competitive.

November 2026 State Ballot Propositions

The Council reviewed 14 statewide ballot measures and focused on those that directly affect businesses, economic growth, taxation, and California's competitiveness.

Proposition 3 – OPPOSE

• Makes permanent the current high-income tax surcharge for education.
• Council's Reasoning: The Council is concerned that permanently extending higher income taxes could make California less competitive for business investment and economic growth.

Proposition 37 – SUPPORT

• Creates a state-backed second mortgage program to help qualified first-time homebuyers with down payments.
• Council's Reasoning: Increasing homeownership opportunities can help strengthen local communities and improve workforce stability by making housing more attainable.

Proposition 38 – OPPOSE

• Authorizes $8.5 billion in bonds for a new University of California immunology research institute.
• Council's Reasoning: While medical research is important, the Council questioned whether creating a single new institute is the best use of taxpayer dollars and expressed concerns about long-term governance and financial oversight.

Proposition 40 – OPPOSE

• Creates a one-time 5% wealth tax on California billionaires.
• Council's Reasoning: Although the measure targets only the wealthiest Californians, the Council believes it could discourage investment, reduce business growth, and negatively affect California's overall economic competitiveness.

Proposition 42 – SUPPORT

• Prohibits California from creating new taxes on retirement savings, investments, and personal assets.
• Council's Reasoning: The measure provides greater certainty for investors, business owners, and retirees by protecting existing assets from future taxation.

Proposition 44 – OPPOSE

• Requires nonprofit health centers to spend at least 90% of Medi-Cal funding directly on patient care.
• Council's Reasoning: While supporting quality patient care, the Council is concerned the measure could unintentionally reduce important support services that help patients receive comprehensive care.

Proposition 45 – SUPPORT

• Accelerates environmental review for qualifying housing, water, transportation, and infrastructure projects.
• Council's Reasoning: Lengthy permitting and environmental review processes often delay important projects and increase costs. The Council believes streamlining these reviews can help deliver infrastructure improvements, create jobs, and increase housing opportunities while maintaining environmental protections.

Measures Still Under Review

The Council also discussed several additional ballot measures but chose not to take a position at this time. These include proposals involving:

• Expanding California's Rainy Day Fund
• Public financing of political campaigns
• Changes to recall elections
• Local tax voting requirements
• Voter identification requirements
• Additional oversight of citizen-sponsored tax measures

The Council requested additional information before determining whether these measures directly align with its legislative priorities.

Looking Ahead

California's Legislature is currently on its summer recess and will return in early August for the final weeks of the legislative session. During this period, bills can change quickly, making it important for the business community to remain informed.

The Temecula Valley Chamber of Commerce will continue working alongside the Southwest California Legislative Council to monitor legislation, advocate for policies that strengthen our regional economy, and oppose proposals that create unnecessary costs or burdens for employers.

As the voice of nearly 1,000 member businesses representing more than 14,800 employees, the Chamber remains committed to protecting a healthy business climate and ensuring that the interests of Southwest Riverside County businesses are heard at the state level.