California legislative updates impact small businesses

California legislative updates impact small businesses
Bob Calton Division Manager — Official Website
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The National Federation of Independent Business (NFIB) California has issued its latest Main Street Minute, covering the period from June 23 to June 27. The update highlights several key legislative changes and developments impacting small businesses in the state.

Effective July 1, there will be increases in gas, cannabis, tobacco, and local sales taxes. Additionally, some state and local minimum wage rates will rise. A new mandate requires most health insurance plans to cover infertility diagnoses and treatments, including in vitro fertilization. This mandate applies to both large and small group plans but exempts religious employers.

Health care costs remain a significant concern for NFIB members. The NFIB’s Small Business Problems & Priorities report indicates that health care costs have consistently been a top issue since 1986. However, in California, “Unreasonable Government Regulation” has overtaken health care costs as the primary concern for business owners.

Legislators such as Assemblymember Buffy Wicks and Senator Scott Wiener are taking steps to address over-regulation concerns by sponsoring bills that relax certain environmental regulations. These measures have been incorporated into the state budget effective July 1.

NFIB California is also part of a new coalition called California Businesses for Affordable Health Care (CABAH). The coalition aims to oppose costly health care mandates that threaten businesses’ ability to offer benefits.

The Legislature is approaching its summer recess on July 18. Meanwhile, NFIB has successfully opposed several legislative proposals considered detrimental to small businesses but continues to lobby against others still under consideration.

Some positive developments include four bills beneficial for small businesses that remain active: Assembly Bill 265 (Small Business Recovery Fund Act), Senate Bill 70 (increasing procurement amounts), Senate Bill 84 (allowing time for violation correction), and Senate Bill 690 (personal information processing).

NFIB also expressed opposition to Assembly Bill 649 due to concerns about its complexity and potential encouragement of frivolous lawsuits.

In national news, NFIB celebrated a U.S. Supreme Court decision favoring small businesses’ rights against regulatory overreach. Additionally, NFIB launched an ad campaign urging Congress to protect small business privacy by repealing certain reporting requirements.

The next Main Street Minute is scheduled for June 30.



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