The legislative landscape, at both the state and federal levels, continues to evolve, with significant implications for businesses, workers, and residents. At the state level, 2,354 bills have been introduced, increasing to 2,502 when including constitutional amendments and resolutions. As of today, one-third of those are spot bills, serving as placeholders for future amendments. Many of these bills are variations of previous proposals that did not pass in prior sessions, reflecting ongoing legislative efforts to address persistent challenges.
Key policy issues in this legislative session span multiple sectors. The intersection of artificial intelligence and labor is gaining significant attention as lawmakers seek to define regulatory frameworks that balance technological innovation with worker protections. AI’s role in workforce automation, decision-making, and potential bias in hiring practices are areas of concern for both employers and policymakers. Cap-and-trade policies are also under review, with discussions centering on their long-term economic and environmental impact. As California continues its aggressive push for emissions reductions, industries are closely watching potential adjustments to carbon pricing and regulatory compliance requirements.
Housing remains a priority, particularly regarding fire recovery, California Environmental Quality Act (CEQA) reform, and affordability. Wildfires have devastated communities across the state, and lawmakers are working to ensure that rebuilding efforts are efficient and sustainable. At the same time, CEQA reform is being debated to address delays in housing development while maintaining environmental protections. The broader issue of housing affordability continues to drive policy discussions, as the cost of living remains a significant challenge for many Californians.
Antitrust-related bills are surfacing in response to growing concerns over market consolidation, particularly in the technology and healthcare sectors. Legislators are weighing measures that could limit monopolistic practices and increase competition in key industries. Additionally, worker’s compensation and labor laws remain a focal point, with proposals aimed at expanding employee protections, addressing wage disputes, and improving workplace safety regulations.
On the federal front, several significant policy developments are shaping economic conditions. The U.S. Tax Cuts and Jobs Act, which introduced lower tax rates and pro-growth incentives for businesses in 2017, is set to phase out many of its key provisions at the end of 2025. Without legislative intervention, individual tax rates will increase, resulting in higher tax burdens for many households. Several pro-growth tax deductions—including those for capital investments and research and development—will be reduced or eliminated for businesses. The rollback of these provisions raises concerns about future economic expansion, particularly for small and mid-sized businesses that have relied on these tax incentives to drive investment, hiring, and innovation. While discussions about extending or modifying these provisions are ongoing, businesses must prepare for a more complex tax environment that could impact long-term financial planning and operational decisions.
Tariff policies have both benefits and drawbacks for businesses and consumers. On the positive side, they can protect domestic industries by discouraging reliance on foreign goods, potentially boosting local manufacturing and job creation. However, higher tariffs also increase costs for businesses that rely on imported materials, leading to higher consumer prices and reduced purchasing power. While some industries benefit from reduced foreign competition, others face supply chain disruptions and lower profit margins. Organizations such as the U.S. Chamber of Commerce have actively urged an end to tariffs to protect businesses and workers.
Federal and state policies are evolving rapidly, and understanding these changes is crucial for businesses and individuals. Remaining informed and proactive will be key to surviving the legislative landscape.
Adam A. Ruiz
Vice President
Rincon Strategies
