Welcome to the June 22-28 edition of the Main Street Minute from your small-business-advocacy team in Sacramento.

New State Budget Almost Done

Lawmakers last week satisfied their constitutional requirement to produce a state budget by midnight, June 15. Now, they have one more step to take.

“With the June 15 deadline satisfied, Newsom and legislative leaders now have two weeks to agree on a more finalized budget so that the 2026-27 fiscal year can begin on July 1 with legal authority to spend specific appropriations,” reports CalMatters’ Dan Walters.

On their way to finalizing the budget, “Legislators approved a redesigned health tax that shifts more cost onto privately insured Californians to help preserve billions in federal Medi-Cal funding,” reported CalMatters last Thursday, June 18.

“A family of four could pay $400 more a year in premiums — but the tax still needs federal approval from the Trump administration to take effect.”

A Big Costly Comment

Speaking of state budget money, “Experts say the Golden State lost out on billions when Musk relocated his multi-trillion business empire, which includes Tesla and X, to Texas,” reports the California Post.

“Now, a six-year-old tweet by the head of California’s labor unions is getting new attention for the effect it had on Musk taking his electric-car company out of the state.

“’F— Elon Musk,’ California Federation of Labor Unions President Lorena Gonzalez Fletcher tweeted in May 2020.

“A day later, Musk replied simply: ‘Message received.’

“He later appeared to confirm that Fletcher’s post convinced him to relocate Tesla to Texas, replying ‘Exactly’ to an article stating that her attack caused him to make the move.

“’This single tweet cost California hundreds of billions of dollars in taxes, revenue, and jobs,’ investment banker John LeFevre wrote on X Friday.”

Weight Loss

“Health insurance plans for California public employees won’t be required to expand coverage for GLP-1 weight loss drugs,” reports CalMatters. “We told you last week about legislation that would have required CalPERS to provide that benefit to its 1.3 million members. But that part of the bill was removed at an Assembly hearing this week after the pension fund and health insurer said it would drive up premiums and cost taxpayers about $187 million a year.”

 November Ballot Update

“Rideshare giant Uber and the Consumer Attorneys of California have agreed to yank competing ballot measures and work together on safety and judicial reform legislation, ending an already expensive fight before it intensified further ahead of the November election,” reports The Sacramento Bee.

The measure proposed by Uber would have placed a 25% cap on the fees attorneys can collect in car crash cases and increases the burden of proof for paying out certain medical costs.

The competing Consumer Attorneys’ initiative would have made ride-hailing companies liable for sexual misconduct during rides.

NFIB California in the News

NFIB California Policy Director Tim Taylor teamed up with Jon Coupal of the Howard Jarvis Taxpayers Association to jointly pen a guest editorial on the Local Taxpayer Protection Act to Save Proposition 13 for the Southern California Newspaper Group. The editorial ran on June 13 in the group’s 11 daily newspapers: Orange County Register, Los Angeles Daily News, Long Beach Press-Telegram, Riverside Press-Enterprise, San Bernardino Sun, Whittier Daily News, Daily Breeze, Pasadena Star-News, Redlands Daily Facts, Inland Valley Daily Bulletin, and San Gabriel Valley Tribune.

From the NFIB California Web Page

— NFIB California Welcomes New Leadership Council Member

— NFIB Joins ‘Stop the Jobs Tax’ Coalition

The Regulatory World

“More than 20 years after legislators first told the California Energy Commission that replacement tires need to be as energy-efficient as original tires, the agency is taking action,” reports the Los Angeles Times.

“The public has until Tuesday [June 16] to weigh in on a proposal that would require replacement tires sold in California be as energy-efficient as the average new care tire by 2031. California would be the first state with such a rule.

“Many members of the public expressed support in a public hearing Wednesday [June 10]. But some said low rolling resistance tires are less safe and don’t last as long. … As for tire manufacturers and dealers, the industry is split. Michelin, Discount Tire and EV-tire maker Enso are on board with the rule, but Goodyear, Yokohama and the California Tire Dealers Association are pushing back, arguing that the efficient tires would cost more than agency estimates.

“A spokesperson for the commission said staff is considering more revisions to the proposal, which could lead to another round of public comment. Once the rule is final, it must be voted on by the commission.”

Clever?

From The Wall Street Journal article McDonald’s Puts The Squeeze on Coke.

“Their handshake deal in 1955 sealed a union between two brands that together went on to become icons of American capitalism, and America itself. ‘Since then, our brands have been attached at the sip …’”

Calendar

— June 25: Deadline for backers of initiatives that have qualified for the November General Election ballot to have them removed

— 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

News Release: NFIB Releases New Ads in California Urging Rep. Young Kim to Permanently Repeal Beneficial Ownership Information Mandate. Radio, digital ads urge Rep. Kim and Congress to protect small business owners’ privacy, repeal unconstitutional BOI mandate.

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

— NFIB sent a letter to the U.S. House of Representatives announcing that opposition to H.R. 5408, the Faster Labor Contracts Act would be considered an NFIB Key Vote for the 119th Congress. Senior Vice President for Advocacy Adam Temple said, “This radical piece of legislation would unnecessarily increase the federal government’s involvement in small business operations, giving Washington bureaucrats the power to determine which firms succeed, and which are forced to shut down.” The bill passed the chamber 230-193.

— NFIB issued a statement in opposition to a federal judge’s preliminary approval of the proposed Visa and Mastercard anti-trust settlement. Director of Federal Government Relations Josh McLeod said, “Small businesses welcome any relief from the excessive swipe fees they have been paying for too long. However, the preliminary approval of this ‘settlement’ does not solve the root problem of these long-term, anti-competitive rate-setting practices.”

— NFIB sent a press release following a recent U.S. Supreme Court decision that concluded the FCC’s enforcement and forfeiture proceedings do not violate the Seventh Amendment of the Constitution. SBLC Vice President and Executive Director Beth Milito said, “Small businesses across the country are at the mercy of the regulatory bodies whose rules and procedures they must obey. Main Street businesses deserve accountability, consistency, and fairness.”

Next Main Street Minute: June 29. All Main Street Minutes can be found on the NFIB website here. Pull down the California tab in the upper-right-hand corner, or go right to it here.