Welcome to the May 26-30 edition of the Main Street Minute from your small-business-advocacy team in Sacramento. This is coming to you a day later than usual so that we could join our fellow Americans on Memorial Day in honoring those who made the ultimate sacrifice in service to the nation.

There was some great news for small business on two fronts last week. For that we direction your attention to the ‘National’ section below.

The Legislature

Of the 47 bills NFIB is currently opposing or supporting, eight In particular are either more problematic or beneficial for small businesses. Last week was a busy one for action on them and the June 6 deadline approaches for the Senate and Assembly to pass bills introduced in their chambers.

First, the good news

Assembly Bill 265, creating the Small Business Recovery Fund Act, was given the green light to proceed on its legislative journey. The Act would provide money for recovery and rebuilding efforts to businesses directly affected by a state of emergency proclaimed by the governor.

Assembly Bill 609 and Senate Bill 607, both of which would reform the California Environmental Quality Act (CEQA), so that we can start building the housing the state so badly needs, have been folded into the state budget, which comes up for a vote June 15.

Senate Bill 84, which would allow 120 days to correct an ADA violation, was pulled off the suspense file to continue its legislative journey.

Senate Bill 222, which would have opened the lawsuit floodgates, and Senate Bill 799, which would have expanded use of the False Claims Act, are practically if not technically dead.

Now, for the bad news

Senate Bill 2, which would have voided amendments to the state’s Low Carbon Fuel Standard regulation, is practically dead for the year.

Assembly Bill 446, which would prohibit pricing based on electronic surveillance technology, and Senate Bill 310, which would permit a penalty for wage theft to be recovered through a private right of action, were both allowed to continue their legislative journeys.

State Assembly Wants You Happy and Healthy

Select committees are, by their nature and definition, short-lived. Last year’s Assembly Select Committee on Happiness and Public Policy Outcomes closed up shop after issuing a final report that included the recommendation California become more like the tiny Himalayan nation of Bhutan.

This year, it’s the Assembly Select Committee on Alternative Protein Innovation’s turn to come in for some head-shaking wonderment as to what it aims to do. No first hearing date has been scheduled yet.

Are You Ready for July 1?
Select State and Local Minimum-Wage Rates Increasing

A July 1 reminder of the minimum-wage mess California has created for itself is a month away. Here’s the latest to help NFIB members, especially those in the retail and restaurant industries, prepare

The overall minimum-wage rate in California will remain $16.50 an hour come July 1, but health-care workers, as defined, will see their top minimum-wage rate increase to $24 an hour.

And fast-food employees?

Not sure yet.

Reports Reuters in a story headlined, California council could bump fast-food minimum wage to $20.70, “One year after California introduced a first-of-its-kind $20 minimum wage for fast-food workers, an increase of up to 70 cents is slated for a vote. California’s Fast Food Council, comprised of fast-food workers, restaurant owners and state officials, approved a motion Wednesday to consider a cost-of-living-adjustment at an upcoming meeting. The Council’s next meeting, expected to take place in April or May, will be for further discussion and not see a vote taken on a decision about it.”

No news about those April or May meetings can be found on the Council parent’s website, the California Department of Industrial Relations.

West Hollywood vs. Emeryville

In better-managed states, one minimum-wage rate is set by the Legislature and equally applicable to all. But California is special, and often not in the good sense of the word. We let cities and counties set a higher minimum-wage rate if they want to.

Right now, West Hollywood has the highest local minimum-wage rate in the state at $19.65 an hour … but wait! … on July 1, little Emeryville (next to Oakland) will take the crown at $19.90 … but wait! … on July 1, West Hollywood will take back, if not the entire crown, some of its baubles and gems with a minimum-wage rate of $20.22—but that’s just for hotel employees.

Meanwhile, “As L.A. pushes a $30 minimum wage for hotel workers, eight hotels are withdrawing from the LA28 Olympic room block, citing financial strain,” reports the Los Angeles Daily News.

Is your community slated for a minimum-wage increase on July 1?

UC Berkeley provides this handy list of 40 counties and municipalities with their own minimum wage rates. Check out the ones whose last increase was 7/1/2024 and click the “webpage” hyperlink next to it to see if another increase is coming this July 1.

NFIB California in the News

Golden State Today, one of the 75 publications under the Metric Media umbrella, covered NFIB California’s news release on the state-specific Small Business Deduction interactive map and calculator announced last Thursday (May 22).

Speaking of the Small Business Deduction, last Wednesday (May 21), NFIB’s Jeff Brabant checked in with KNZR to talk about it and other small business issues. More at this web story, Bakersfield Radio Audience Hears from NFIB Vice President.

A web story with a selection of NFIB California media hits for 2025 is now live.

Calendar

— June 6: Last Day for Senate and Assembly to pass bills introduced in their chambers.

— June 15: Budget bill must be passed by midnight.

— July 4: Independence Day. Legislature not in session.

— July 18-August 17 Summer recess.

— August 26, NFIB California’s Leadership Day

— September 12, 2025-January 5, 2026: Interim recess of the 2025-2026 session of the California State Legislature.

— October 15: Last day for governor sign or veto bills passed before September 12.

National

Highlights from NFIB Federal Government Relations Principal Josselin Castillo’s weekly report

— After debating most of the night, the House passed the One Big Beautiful Bill Act in the early morning of May 22, 2025, by a 215–214 vote. Both chambers left town for the Memorial Day recess. The Senate will return on June 2, 2025, and the House on June 3. The next step in the reconciliation process is Senate consideration. The Senate will likely make substantive changes to the House-passed package to appease more moderate Republican senators, and Democrats will likely raise Byrd rule challenges to strike certain provisions.

— The One Big Beautiful Bill Act permanently increases the 20% small business deduction to 23%. The deduction was generously expanded in a huge win for small businesses. However, it is pivotal that the small business community remain engaged, as there are still opportunities for changes in a long process ahead. NFIB’s Key Vote letter can be read here.

— NFIB key voted in favor of a resolution to rescind the federal waiver granted to California to implement more stringent vehicle emissions standards and require that 100% of new passenger vehicle sales be zero-emission by 2035. California’s rule represents a rapid shift towards electrification that is economically unfeasible for many small businesses.

Next Main Street Minute, June 2. All Main Streets Minutes can be found on the NFIB website here. Pull down the California tab in the upper-right-hand corner.