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Good, Bad and Ugly Bills from the 2025 California Legislature

Good, Bad and Ugly Bills from the 2025 California Legislature

September 26, 2025

The 11 measures most helpful or harmful for small businesses in the state

Good for Small Business Bills

— Assembly Bill 609 (Wicks) “… would exempt from the requirements of CEQA a housing development project, as defined, that meets certain conditions.”
Status: Folded into the 2025-2026 state budget, which was signed into law June 27.

— Assembly Bill 265 (Caloza) “would establish the Small Business Recovery Fund Act and would appropriate ($100,000,000) from the General Fund to the Small Business Recovery Fund, which would be created by the bill … for purposes of a small business recovery grant program.” NFIB’s letter of support can be read here. ‘Request for Signature’ letter here.

— Senate Bill 72 (Caballero) “The bill would require the [Water Resources] department, as part of the 2033 update to the plan, to update the interim planning target for 2050 … The bill would require the target to consider the identified and future water needs for all beneficial uses, including, but not limited to, urban uses, agricultural uses, tribal uses,and the environment, and ensure safe drinking water for all Californians, among other things. Coalition ‘Request for Signature’ letter here. Additional NFIB ‘Request for Signature’ letter here. Status: Signed into law.

Senate Bill 2 (Jones) “… would void specified amendments to the Low-Carbon Fuel Standard regulations adopted by the [California Air Resources Board] on November 8, 2024.” NFIB letter of support here. Status: Failed Passage.

— Senate Bill 84 (Niello) “… would provide that a defendant is not liable for statutory damages, plaintiff’s attorney’s fees, or costs for an alleged violation that is corrected within 120 days of service of a letter alleging the violation.” NFIB and its coalition partners’ letter of support can be read here. Status: Failed Passage.

Bad for Small Business Bills

— Senate Bill 261 (Wahab) concerning wage theft and other labor laws. “This bill would require the commissioner to post a copy of the order, decision, or award on the division’s internet website, as specified, no later than 15 days after the time to appeal from the order, decision, or award has expired and no appeal therefrom is pending.” Business coalition letter of opposition here. Status: Awaiting Governor’s Decision.

— Senate Bill 294 (Reyes) “… would establish the Workplace Know Your Rights Act. The bill would require an employer to annually provide a stand-alone written notice to each current employee, and to each new employee upon hire, of workers’ rights under state and federal law.” NFIB and its coalition partners’ letter of opposition can be read here. Status: Awaiting Governor’s Decision.

— Senate Bill 512 (Perez) “… would authorize the voters of any district that has authority to impose a transactions and use tax for transportation purposes to impose a retail transactions and use tax by an initiative measure.” NFIB and its coalition partners’ letter of opposition can be read here. Status: Awaiting Governor’s Decision.

Ugly for Small Business Bills

— Senate Bill 222 (Wiener) “… would authorize a person to bring a civil action, if specified criteria are met, including damages of $10,000 or more, against a party responsible for a climate disaster or extreme weather or other events attributable to climate change due to the responsible party’s misleading and deceptive practices or the provision of misinformation or disinformation about the connection between its fossil fuel products and climate change and extreme weather or other events attributable to climate change.” NFIB and its coalition partners’ letter of support can be read here. Status: Failed Passage.

— Senate Bill 310 (Wiener) Wage Theft. “This bill also would permit the penalty to be recovered through an independent civil action, as specified.” Status: Failed Passage.

— Senate Bill 799 (Allen) “The bill would allow the Attorney General or prosecuting authority to obtain otherwise confidential records relating to taxes, fees, surcharges, or other obligations under the Revenue and Taxation Code needed to investigate or prosecute the suspected violations …” Status: Awaiting Governor’s Decision.

November 2024, Ballot Initiatives Affecting Small Businesses

Proposition 32, Minimum-Wage Increase, NFIB Position: Oppose. No 50.7% Yes 49.3%

Proposition 36, Retail Theft, NFIB Position: Support. Yes 68.4% No 31.6%

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