Busy Week Ahead Before Legislative Summer Break

News ClipCalChamber·CA·6/26/2026

California legislators are considering several key bills before their summer break, many of which could significantly impact businesses. Among these are two bills specifically targeting data centers: AB 1577, proposing a new, intrusive reporting regime, and AB 2469, which introduces unprecedented water mandates and permitting prohibitions. These bills are scheduled for hearings in various Senate and Assembly committees.

governmentwater

Gov: California Legislature, Senate Judiciary Committee, Senate Privacy, Digital Technologies, and Consumer Protection Committee, Assembly Privacy and Consumer Protection Committee, Senate Health Committee, Senate Public Safety Committee, Assembly Public Safety Committee, Senate Local Government Committee, Senate Environmental Quality Committee, Senate Energy, Utilities and Communications Committee, Assembly Environmental Safety and Toxic Materials Committee, Senate Natural Resources and Water Committee, California Department of Water Resources, California Attorney General, California District Attorneys, City Attorneys, Department of Homeland Security, Immigrations and Customs Enforcement, Customs and Border Patrol

The California Chamber of Commerce highlighted key legislation for consideration by state lawmakers in the final week before their summer recess, with many bills potentially impacting the state's business environment. Many of these, labeled "Cost Drivers" by CalChamber, are opposed due to their potential negative economic implications.

Two specific bills directly target data centers. Assembly Bill 1577, authored by Assemblymember Bauer-Kahan (D-Orinda), proposes a "high-frequency, highly intrusive reporting regime" for data centers. CalChamber argues this would create significant compliance burdens, expose sensitive operational information, and pose security risks without clear policy benefits. This bill is slated for a June 30 hearing in the Senate Judiciary Committee.

Additionally, Assembly Bill 2469, introduced by Assemblymember Papan (D-San Mateo), would impose "Unprecedented Water Mandates on Data Centers." This bill is criticized for singling out data centers with permitting prohibitions and an "unconstitutional infrastructure cost mandate" that no other commercial, industrial, or institutional sector faces. CalChamber contends it would discourage digital infrastructure investment without meaningfully improving water supply management. This bill is scheduled for a July 1 hearing in the Senate Local Government Committee. The legislative calendar includes a range of other bills impacting sectors from antitrust law expansion and AI regulation to healthcare and environmental policy.