Golden State Today

The small-business advocacy organization NFIB has released its latest update concerning the ongoing legislative developments and economic conditions impacting California's small businesses.

A recent bill, Senate Bill 684, is drawing attention for proposing greater state control over oil refineries. The bill, known as the Polluters Pay Climate Superfund Act of 2025, would establish a fund administered by the California Environmental Protection Agency. This fund would collect payments from fossil fuel companies for their emissions between 1990 and 2024. Senate analysis suggests one possible use of these funds could be for the California government to purchase and operate oil refineries. "If the profitability of fossil fuel infrastructure is essential for its operation by private companies, why not instead operate them—even when unprofitable—as a public good?" The Senate Committee on Environmental Quality passed SB 684 on April 3, and it is now with the Senate Judiciary Committee. NFIB opposes the bill.

In a similar legislative vein, SB 222 authorizes civil actions against parties responsible for climate disasters linked to fossil fuels. The bill is criticized for its vagueness, accusing it of retroactively targeting activities from the 1950s and 1960s. It sets no concrete boundaries for attributing liability. A coalition, including NFIB, voiced this opposition in a letter to the bill's author, Senator Scott Wiener, stating that SB 222 "still blatantly violates the U.S. Constitution." If implemented, this legislation would reportedly drive up fuel and household costs significantly by 2026.

Separately, a study by RAND highlighted California's high construction costs compared to other states. Jason Ward of RAND indicated that local policies significantly drive up California's costs. Among contributing factors are stringent building codes and lengthy approval timelines, causing typical construction projects in California to extend beyond four years.

Lastly, federal engagement includes NFIB's advocacy activities in Washington. NFIB Research presented findings that 40% of small businesses have job openings they cannot fill. NFIB President Brad Close and other leaders have been active in discussing federal legislations' impacts, such as the Corporate Transparency Act, on small businesses.

The next Main Street Minute is set for release on April 14.