Happy New Year. Welcome to the December 29-January 2 edition of the Main Street Minute from your small-business-advocacy team in Sacramento.

New Laws Taking Effect This Thursday, January 1

There will be nearly 800 new state laws taking effect later this week. “The state laws range from an increase in the minimum wage, low-cost insulin, and protections for consumers, workers and renters,” reports KCRA-TV in Sacramento. “Others impact small businesses and the artificial intelligence industry. Another set of laws aims to speed up the reporting of election results.”

Among media, KCRA did one of the better jobs summarizing the biggest laws taking effect, leading off with categories: ‘Laws that impact workers’ and ‘Laws to benefit business.’ Click here to read KCRA’s report.

Tortillas!

Other media publishing ‘new laws for 2026’ stories included SFGATE, New California laws in 2026 include an additional holiday, changes to tortillas, and ABC7 in Los Angeles, New California laws going into effect in 2026 impact tortillas, streaming services and more.

For a highly partisan look, Assemblyman Carl DeMaio’s Reform California has a Good, Bad and Ugly list of New California Laws Taking Effect for 2026.

Meanwhile, NFIB California will sit back quietly and raise a glass of champagne to the victories we had in killing some supremely bad legislation, especially a potentially new motherlode of lawsuits, Senate Bill 222. Just one glass, 2026 will see more of the same.

Happening Next Week

— January 5, 2026: Legislature reconvenes

— January 5: NFIB State Ballots mailed to the membership

— January 7: NFIB California Leadership Council meets

— January 8: Gov. Gavin Newsom to give State-of-the-State address

There is Still Time

If you haven’t already, let your state senator and state assembly member know: It’s time to repay the state’s unemployment insurance debt now.

California borrowed money from the federal government for its Unemployment Insurance (UI) program during the COVID pandemic and still has an outstanding loan balance of $21 billion.

NFIB members have said the added costs are forcing them to increase costs, reduce employees, forgo a paycheck, and cut spending across the board. Some have said they are considering closing shop or moving to another state. Cost increases will continue to add up as California does nothing to address the UI debt. Your lawmakers need to hear complaints from you.

Click here to send your message directly to your legislator.

Nothing to See Here
— Plus, it’s None of Your Business

From How corrupt is Sacramento? A big state project’s secrecy provides a clue, The Sacramento Bee, Dec. 23, 2025

“Under the Legislature’s direction, the old [State Capitol] annex was demolished in 2022. The new annex was supposed to cost $543 million and be completed by now. Over the years the Legislature has increased potential spending upwards to $1.1 billion. But the latest actual cost estimate is a public mystery.

“Normally any member of the public can apply a little sunshine to government recalcitrance to be transparent by submitting a request for project cost information via the California Public Records Act. But the Legislature has conveniently exempted itself from this act and basically sets its own rules.

“The latest ‘report’ on the project doesn’t have a cost estimate and only a pledge for a future one. The state is getting rid of its project management firm and hiring a new one. It will fall to new management to estimate the cost after taking into account ‘litigation costs, Pandemic-era supply chain issues, inflation, and the cost of delays.’ California’s Legislature has done everything in its power to keep details of this project as secret as humanly possible.

“More than 2,000 people familiar with this project have reportedly signed non-disclosure agreements to prevent details from leaking out.”

From the April 29-May 3, 2024, edition of the NFIB California Main Street Minute

Democracy Dies in Deals

In a more noble time, Assembly Bill 2654 should have sailed out of the Assembly Elections Committee, April 25, on a unanimous vote in favor of passage.

But the power of entrenched interests don’t take kindly to transparency, so the measure calling for an end to non-disclosure agreements in the making of laws was rudely shown the door.

NFIB California State Director John Kabateck comments on the whole sordid affair on the NFIB California web page here.

From the April 21-25, 2025, edition of the NFIB California Main Street Minute

… California did its own transparency dance when it came to light that a legislative and big business deal was cut under the shroud of non-disclosure agreements over the new law giving fast-food workers a big jump in pay.

Rightfully outraged, then-Assemblyman, now Congressman, Vince Fong drafted Assembly Bill 2654, which “… would prohibit lobbyists and certain public officials and employees, as specified, from entering into, or requesting that another party enter into, a nondisclosure agreement relating to the drafting, negotiation, discussion, or creation of legislation.”

Fong’s bill never received a vote in its first committee.

National

— House and Senate not in session.

— The 77th episode of the Small Business Rundown podcast was released Tuesday, December 23. Finding the best ways to market your small business can be a difficult task. In this episode, NFIB member Karen Stanley, small business owner and Marketing Director at Neon Frog agency, provides tips to revamp your marketing strategy, discusses what tactics work, and outlines simple steps for getting started. Listen here!

Next Main Street Minute: January 5. All Main Streets Minutes can be found on the NFIB website here. Pull down the California tab in the upper-right-hand corner.