Welcome to the February 16-20 edition of the Main Street Minute from your small-business-advocacy team in Sacramento. This is coming to you post-Presidents’ Day so that we could join with fellow Americans in patriotic remembrance.

NFIB v. CARB

We open with a federal item to draw your attention to NFIB’s joining the scrum against a California Air Resources Board ban on the use of gas-powered leaf blowers, chainsaws, portable generators, and other equipment used to prevent and respond to natural disasters. See more in the ‘National’ section below.

Now, returning to California.

It’s Back!!!

Perhaps it was too much to expect that we might cruise through the year without some attempt to foist a universal health-care scheme on Californians, but Assemblyman Ash Kalra, who has tried twice before, ruined that hope last Thursday (February 12) when he introduced Assembly Bill 1900 a week before the February 20 deadline to introduce legislation for consideration in 2026.

According to AB 1900’s language, “This bill, the California Guaranteed Health Care for All Act, would create the California Guaranteed Health Care for All program, or CalCare, to provide comprehensive universal single-payer health care coverage and a health care cost control system for the benefit of all residents of the state.”

Leaving aside the ability of one state to afford such a program, “Close to 95% of Californians have health care insurance, an all-time high insured rate in 2023, according to an analysis by the California Health Care Foundation,” reports CalMatters.

The cost of providing health insurance has been the No. 1 concern of small business owners for 40 consecutive years, out of the 75 worries NFIB’s Small Business Problems & Priorities ranks. When NFIB’s Research Center looked at issue more closely in 2023, it found “Over half (56%) of small employers reported that they currently offer health insurance to employees. Forty-four percent do not … The most important reason small employers don’t offer health insurance is that it’s too expensive, with 65% reporting this reason. When asked the second most important reason for not offering health insurance, 16% were unsure and 16% did not have a second reason.”

In testimony to the U.S. House Committee on Energy and Commerce in January, Tyler Deaver, NFIB principal for federal government relations, said, “Since the turn of the century, premiums have risen more than 120%, while the number of insurers willing to offer small group coverage has sharply declined. This is not the result of a competitive marketplace failing, but rather the predictable outcome of a highly-regulated system that rewards consolidation and enforces rigid mandates … This has left small businesses with fewer choices, higher prices, and hardly any negotiating power. Nine out of every ten health care dollars now flow through a third-party payer.”

When asked on their 2024 state member ballot, “Should California abolish private insurance plans and replace them with a government-run ‘single-payer’ healthcare system,” 89% of NFIB members voted ‘No,’ 5% said ‘Yes,’ and 6% were undecided. On their 2018 ballot, our members were even more emphatic about instituting a single-payer system, rejecting the idea by 93%.

A formidable legislator, Kalra is genuinely sincere about universal health care and informs his opinions with a wide variety of research. He also took the time to meet with NFIB members at a recent Legislative Day. Opposing AB 1900 will be tough, but NFIB has been through this before here and in other states.

How Big Will the Bill-Introduction Deluge Be?

As mentioned above, this coming Friday (February 20) is the deadline for bill introductions for the 2026 session of the Legislature. NFIB’s bill list of measures we will support, oppose, or monitor swelled to 31 last week. Some more swelling is expected this week.

An example of two of the eight bills we are supporting are (descriptions from the bill text, bolding by the MSM):

Senate Bill 84 (Niello) The bill 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. (See NFIB-Priority Bill Featured in News Story for more information)

Senate Bill 885 (Strickland) This bill would prohibit a state agency from taking final action to adopt a major regulation until … the state agency submits a proposal to the Legislature recommending legislation to authorize the adoption of the major regulation and the Legislature enacts a law expressly authorizing the state agency to adopt that major regulation.

An example of two of the 17 bills, including Kalra’s, we are opposing are (descriptions from the bill text, bolding by the MSM):

Assembly Bill 1421 (Wilson) This bill would require the commission, in consultation with the Transportation Agency, to consolidate and prepare research and recommendations related to a road user charge or a mileage-based fee system.

Senate Bill 555 (Caballero) This bill would additionally require that the above-described limits [on workers’ compensation benefits] be adjusted by the amount equal to the cost-of-living adjustment for federal social security benefits for that year, as specified.

More to come.

Can You Share Your Story?

NFIB California is supporting legislation to limit drive-by ADA and Prop 65 lawsuits, as well as preserve and protect PAGA (Private Attorneys General Act) reforms.

The more voices we can gather to speak out against predatory lawsuits, the more effective we can be at instituting reforms to prevent future attacks on small businesses.

To share your experience, CLICK HERE. 

What Others are Saying

Bolded text added by the Main Street Minute

— From the Legislative Analyst’s Office, The 2026-27 Budget: Framework for Approaching the Natural Resources, Environmental Protection, and Agriculture Budget
“The Governor’s January budget proposal is roughly balanced—yet it is predicated on projections that state revenues will remain on their current trend and does not incorporate the risk of a stock market downturn, which we believe is elevated. Moreover, both the administration and our office project significant and persistent structural deficits undergirding the state’s budget and threatening California’s fiscal stability.”

— From Dan Walters in CalMatters, Two Uber ads during Super Bowl hint at a high-dollar ballot battle in California next fall
“Two ads among the many aired during Sunday’s Super Bowl broadcast didn’t sell beer, cars, fast food or cell phone services; rather they were opening salvos of what could be one of the year’s most expensive ballot measure duels.

“One spot denounced personal injury attorneys who promise justice for victims of accidents and assaults but take big chunks of settlements and judgments. It declared: ‘The billboard lawyers make millions, while Californians are left broke and broken.’

“Rideshare company Uber paid for the ad, which subliminally promotes an Uber-sponsored ballot measure that, if qualified for the November ballot and passed by voters, would sharply limit contingency fees attorneys receive in auto accident lawsuits.

“The other ad, sponsored by personal injury attorneys, cited a series of New York Times articles about sexual assaults of rideshare passengers , focusing on Uber. It sets the stage for at least one of three lawyer-sponsored measures that have been filed which, if successful, would collectively impose new regulations on Uber and other rideshare companies and make it easier to sue them.”

— From The San Francisco Standard, Garry Tan isn’t leaving California. He’s launching a policy nonprofit instead

“While many of Garry Tan’s tech friends are fleeing California for red states with no billionaire taxes on the horizon, the longtime tech investor and executive is staying put and fighting back.

“On Wednesday, the Y Combinator CEO will launch Garry’s List, a statewide nonprofit aimed at voter education and support for what he calls commonsense, pro-growth policies and candidates. Tan described the organization as a ‘Rotary Club for radical centrism.’”

Calendar

— February 16: Presidents’ Day. No legislative session

— February 20: Last day to introduce bills

— March 26-April 6: Legislature on Spring Break

— May 29: Last day for bills to pass their house of origin

— June 2: Primary Election for eight state constitutional offices, four Board of Equalization seats, all 52 congressional seats, all 80 assembly seats, and 20 (even-numbered districts) state senate seats. Governor’s proclamation here.

— June 15: Deadline (by midnight) to pass new state budget

— July 2-August 3: Legislature on Summer Recess

— August 31: Legislature adjourns its 2026 session

September 30: Last day for governor to sign or veto bills sent to him.

National

Highlights from Federal Government Relations Principal Louis Bertolotti’s weekly report

— NFIB led 85 trade associations in sending a letter to Congress advocating for legislation to reduce regulatory burdens for small businesses. Dylan Rosnick, NFIB Principal of Federal Government Relations, said, “Without Congressional action … small businesses will suffer from the regulatory pendulum swings that make long-term planning and investments so difficult.”

— NFIB sent a letter of support for the REPAIR Act in advance of a Commerce, Manufacturing, and Trade Subcommittee markup hearing. The bill was advanced on to the full Energy & Commerce Committee.

— NFIB filed an amicus brief in the case Outdoor Power Equipment Institute v. EPA regarding the EPA’s authorization of a new California law which will ban the use of gas-powered equipment. Small Business Legal Center Vice President and Executive Director Beth Milito said, “It is unconscionable to endanger California citizens further by leaving them with insufficient tools when disaster strikes.”

Next Main Street Minute: February 23. All Main Streets Minutes can be found on the NFIB website here. Pull down the California tab in the upper-right-hand corner.