California lawmakers have returned to Sacramento following a month-long summer recess, with the legislative session set to continue until September 12 before an interim break that will last until January 5, 2026. The National Federation of Independent Business (NFIB) California is monitoring the progress of several bills that could impact small businesses in the state.
Out of 57 bills being tracked by NFIB for opposition, support, or monitoring, 25 remain active. Among these are four bills considered favorable for small businesses: Assembly Bill 265 (Caloza), which would establish the Small Business Recovery Fund Act; Assembly Bill 671 (Wicks), aimed at streamlining restaurant approval processes; Senate Bill 72 (Caballero) concerning future water needs; and Senate Bill 690 (Caballero), which seeks to protect employers from lawsuits related to online advertising.
Two measures supported by NFIB—Assembly Bill 609 and Senate Bill 607—addressing environmental delays in housing construction, have been incorporated into the state budget and enacted into law.
NFIB is also voicing strong opposition to three particular bills it views as harmful to small businesses. Assembly Bill 446 targets artificial intelligence surveillance pricing but is opposed by NFIB due to concerns over its proposed remedies. Senate Bill 512 addresses local tax measure voting thresholds and could undermine Proposition 13’s two-thirds vote requirement for special taxes. Senate Bill 261 would require public posting of all Labor Commissioner orders unless under appeal, a move NFIB says could unfairly target employers resolving disputes in good faith.
During this period leading up to September’s adjournment, NFIB may issue Action Alerts to its members urging prompt responses on key issues. According to the organization, “The Power of the Small Business Voice is unmatched by any other group and California’s senators and assemblymembers know this.”
Looking ahead to next year’s ballot initiatives, campaign firm Swing Strategies notes a slower pace compared to previous cycles: “At this point during the last election cycle, roughly 20 measures had been filed with the Attorney General. Thus far, only 12 have been filed,” according to their report. They anticipate increased activity as deadlines approach for initiative filings required for signature gathering.
Proposition 13 remains a focal point in California politics. Swing Strategies reports ongoing interest in revisiting property tax structures after prior efforts failed: “Split Roll Reboot: After the defeat of Prop 15 in 2020…the same coalition is rumored to be considering another attempt at a ‘split roll’ tax structure.” Additionally, three versions of The Local Taxpayer Protection Act have been filed by the Howard Jarvis Taxpayers Association aiming to safeguard Proposition 13.
Key upcoming dates include August 26 for NFIB California’s Leadership Day at the Capitol and October 15 as the deadline for gubernatorial action on legislation passed before September’s recess.
Nationally, Louis Bertolotti from Federal Government Relations highlighted recent developments including NFIB’s statement on Corner Post, Inc. v. Board of Governors regarding debit card swipe fees—a position reported by Small Business Trends—and findings from July’s Small Business Economic Trends survey showing optimism among owners slightly above historical averages. Chief Economist Bill Dunkelberg stated: “Optimism rose slightly in July with owners reporting more positive expectations on business conditions and expansion opportunities. While uncertainty is still high, the next six months will hopefully offer business owners more clarity… labor quality has become the top issue on Main Street.”
The next edition of Main Street Minute will be released August 25.
