LEGISLATION 2026
Affordability Legislative Package
SB 1161 – California Air Resources Board (CARB) Transparency & Accountability
SB 1161 requires CARB to provide a clear and detailed economic impact analysis before implementing new regulations. The bill ensures that policymakers and the public have a clear understanding of the real-world financial implications of major regulatory actions before they take effect.
SB 1144 – Increase the State Dependent Tax Credit
Senate Bill 1144 increases the state dependent tax credit from $475 to $700 per dependent beginning with the 2026 taxable year and sunsets after five years.
SB 1137 – State Medical Expense Deduction
Senate Bill 1137 creates a new above-the-line tax deduction for qualified tax filers who take the standard deduction for unreimbursed medical expenses. The deduction is limited to $5,000 of actual expenses over 4% of their AGI for fliers making up to 300% of the Federal Poverty Level, expanding access to tax relief for families facing high out-of-pocket medical costs, and ensuring financial hardship due to health needs doesn’t go unrecognized.
Public Safety Legislative Package
SB 1022 – Human Trafficking Taskforce
Senate Bill 1022 establishes a statewide human trafficking task force to evaluate and improve collaboration between government agencies and local programs serving human trafficking victims.
SB 1395 – Kayleigh’s Law
Senate Bill 1395 will allow a judge the discretion to issue a 25-year protective order against a defendant at the time of sentencing for felony sex offenses against a minor.
SB 1230 – Cracking Down on Illegal Dumping
Senate Bill 1230 strengthens California’s response to illegal dumping by increasing penalties for repeat offenders. This bill will also designate CalRecycle as the state’s lead resource hub, improving response coordination between state and local agencies.
Economic Opportunity Legislative Package
SB 1174 – Expanding Worker Ownership and Wealth Creation
Senate Bill 1174 expands opportunities for workers to build wealth by facilitating employee ownership in the construction industry by establishing a bid preference for companies competing on Caltrans projects if they operate an Employee Stock Ownership Plan.
SB 1113 – Strengthening Trade and National Competitiveness
Senate Bill 1113 updates California’s tax code to align with the federal tonnage tax system governing international shipping ensuring consistent treatment for qualifying international shipping companies. Any disconformity risks cost increases, discourages investment in American vessels, and undermines national efforts to rebuild the U.S. maritime fleet.