California Enacts 2026 Laws: Plastic Bag Ban, Streaming Changes, Chatbot Regulation

California is set to implement a series of significant laws in 2026, focusing on consumer protection, environmental issues, healthcare, education, and technology. These new regulations reflect the state’s commitment to enhancing public welfare and adapting to modern challenges.

Consumer Protection Laws

• Plastic Bag Ban (SB 1053): Starting January 1, 2026, California will ban all plastic bags, requiring consumers to purchase recycled paper bags or use reusable alternatives.
• Food Delivery Platforms (AB 578): Delivery services must provide refunds for undelivered or incorrect orders and offer human customer support.
• Overdraft Fees (SB 1075): Credit unions cannot charge overdraft fees above $14, following a similar law for banks implemented in 2025.
• Streaming Services (SB 576): Beginning in July, streaming platforms can no longer run ads louder than the content being viewed.
• Vehicle Sales (SB 766): Consumers can return a used vehicle within three days of purchase with potential restocking fees.

Healthcare Improvements

• Insulin Cost Cap (SB 40): The out-of-pocket cost for insulin is limited to $35 for a 30-day supply under state-regulated health plans.
• Healthcare and AI (AB 489): Chatbot operators must inform users if they are interacting with artificial intelligence, especially minors.

Food Safety Regulations

• Folic Acid in Tortillas (AB 1053): Corn tortillas must contain folic acid to reduce birth defects, benefiting primarily Latina communities.
• Food Allergen Transparency (SB 68): Restaurants with over 20 locations must clearly list major food allergens on their menus starting in July.

Technological and AI Regulations

• AI Transparency Act (SB 942): Companies must implement detectable watermarks for AI-created content by August 2, 2026.
• Chatbot Regulations (SB 243): Companies must prevent chatbots from discussing sensitive topics like self-harm and file annual reports on such conversations.

Educational Reforms

• Gender-Neutral Bathrooms (SB 760): All K-12 schools must provide at least one all-gender restroom starting in July 2026.
• Identification Cards (AB 727): Middle and high schools must offer student ID cards that include suicide prevention hotline information.

Changes in Labor Laws

• Minimum Wage Increase: California’s minimum wage will rise to $16.90 per hour on January 1, 2026.
• Gig Workers Rights (AB 1340): Uber and Lyft drivers can join unions while remaining independent contractors.

Environmental Regulations

• Greenhouse Gas Emissions Reporting (SB 261): Companies with revenues over $500 million must disclose their greenhouse gas emissions.

These laws represent California’s ongoing efforts to address pressing issues, with significant impacts on consumers, technology users, and various industries. As these changes unfold in 2026, residents can expect enhanced protection and accountability across multiple sectors.