CSDVB Legislative Report

Updated March 27, 2026

Business Regulation & Economic Development

AB 685 (Solache, D) Small Business Resiliency and Innovation Act.
Current Text: 01/12/2026 - Amended HTML PDF
Introduced: 02/14/2025
Last Amended: 01/12/2026
Status: 01/27/2026 - In Senate. Read first time. To Com. on RLS. for assignment.
Location: 01/27/2026 - Senate Rules
Summary: Current law establishes the Office of Small Business Advocate (OSBA) within the Governor’s Office of Business and Economic Development, also known as GO-Biz, to advocate for causes of small business and to provide small businesses with the information they need to survive in the marketplace. Current law establishes the California Small Business Technical Assistance Program (SB-TAP) within OSBA, under the direct authority of the Small Business Advocate, for the purpose of assisting small businesses through free or low-cost one-on-one consulting and low-cost training by entering into grant agreements with one or more small business technical assistance centers. Under current law, OSBA administers the Capital Infusion Program (CIP) pursuant to the SB-TAP, as specified. This bill would establish the Small Business Resiliency and Innovation Act to provide assistance to small businesses. For this purpose, the bill would appropriate $26,000,000 from the General Fund to the Small Business Resiliency and Innovation Fund, which the bill would create in the State Treasury. The bill would require OSBA to administer the fund and to allocate moneys in the fund to both the CIP and the SB-TAP, and to OSBA for administrative purposes, as provided. (Based on 01/12/2026 text)

AB 2116 (Schiavo, D) California Consumer Financial Protection Law: commercial financing.
Current Text: 02/18/2026 - Introduced HTML PDF
Introduced: 02/18/2026
Status: 03/09/2026 - Referred to Com. on B. & F.
Location: 03/09/2026 - Assembly Banking and Finance
Summary: The California Consumer Financial Protection Law (CCFPL) establishes certain consumer protections relating to consumer financial products, practices, and services, including, among others, making it unlawful for covered persons or service providers, as defined, to, among other acts, engage in unlawful, unfair, deceptive, or abusive acts or practices with respect to consumer financial products or services. Current law establishes that the purpose of the CCFPL is to promote consumer welfare, fair competition, and wealth creation in this state by promoting, among other things, nondiscriminatory access to consumer financial products and services that are understandable and not unfair, deceptive, or abusive. Current law authorizes the Department of Financial Protection and Innovation, under the direction of the Commissioner of Financial Protection and Innovation, to prescribe rules regarding registration requirements applicable to a covered person in the business of offering or providing a consumer financial product or service, as defined, and rules requiring the payment of registration fees. This bill would expand the purposes of the CCFPL to include the protection of small businesses from abusive financial practices, as specified. The bill would require the department to prescribe rules regarding registration requirements applicable to covered persons seeking to offer or provide commercial financing products, as defined and specified. The bill would, commencing January 1, 2028, prohibit a person from engaging in the business of offering to provide or providing commercial financing products without first registering with the commissioner, as specified. (Based on 02/18/2026 text)

AB 2583 (Hoover, R) Office of Small Business Advocate: artificial intelligence.
Current Text: 02/20/2026 - Introduced HTML PDF
Introduced: 02/20/2026
Status: 03/09/2026 - Referred to Coms. on E.D., G., & H.I. and P. & C.P.
Location: 03/09/2026 - Assembly Economic Development, Growth, & Household Impact
Summary: Would enact the AI for Main Street Act, which would require the Office of Small Business Advocate to provide assistance to small businesses in evaluating artificial intelligence concerning operations, including by providing information, guidance, and training, developing training materials, and conducting outreach, as specified. (Based on 02/20/2026 text)

SB 781 (Reyes, D) Small business.
Current Text: 07/14/2025 - Amended HTML PDF
Introduced: 02/21/2025
Last Amended: 07/14/2025
Status: 08/29/2025 - Failed Deadline pursuant to Rule 61(a)(11). (Last location was APPR. SUSPENSE FILE on 8/20/2025)(May be acted upon Jan 2026)
Location: 08/28/2025 - Assembly 2 YEAR
Summary: Current law establishes the Office of Small Business Advocate within the Governor’s Office of Business and Economic Development, led by the Small Business Advocate, and sets forth its powers and duties relating to advocacy on behalf of small business and providing small businesses with the information they need to survive in the marketplace. Current law requires the advocate to, among other duties, collaborate with the Office of Small Business and Disabled Veteran Business Enterprise Services in their activities under the Small Business Procurement and Contract Act, including promoting small business certification.
This bill would require the advocate to also collaborate with local agencies on the development and implementation of local strategies to increase small business participation in local procurement opportunities, as specified. In this connection, the bill would authorize a local agency, as defined, to establish a Small Business Utilization Program (SBUP) to increase small businesses’ participation in local agency procurement opportunities. This bill would require an SBUP, to facilitate the participation of small businesses in the provision of goods, information technology, and services to the local agency, to establish a small business certification process. As part of this process, the bill would require the SBUP, to the extent feasible, to include all of specified criteria, including, among other things, a minimum goal of 25% procurement participation for small businesses certification. The bill would authorize a local agency that establishes an SBUP to engage in specified activities to facilitate contract awards to small businesses. This bill would authorize a local agency to submit information on its small business procurement participation to the Office of Small Business Advocate, including progress toward meeting utilization goals. (Based on 07/14/2025 text)

SB 1240 (McNerney, D) Office of Nonprofit Empowerment.
Current Text: 03/25/2026 - Amended HTML PDF
Introduced: 02/19/2026
Last Amended: 03/25/2026
Status: 03/25/2026 - Read second time and amended. Re-referred to Com. on APPR.
Calendar: 04/13/26 S-APPROPRIATIONS 10 a.m. - 1021 O Street, Room 2200 CERVANTES, SABRINA, Chair
Location: 03/24/2026 - Senate Appropriations
Summary: Existing law contains numerous provisions authorizing state agencies to award grants or contracts to nonprofit organizations to carry out various services and programs. Existing law authorizes a state agency that administers a grant program or contract to advance funds to a private nonprofit organization to which it has awarded a grant or contract, subject to certain limitations and requirements, as specified. This bill would create the Office of Nonprofit Empowerment with the primary responsibility of overseeing and coordinating state policy in support of California’s nonprofit organizations. The bill would specify various duties and functions of the office, including providing guidance, resources, and technical assistance to nonprofit organizations on procurement and grantmaking laws, regulations, and best practices. The bill would also require the office to develop and administer training and materials to state entities on advance payment and other strategies to reduce hurdles for nonprofit organizations to access state funding and implement state projects, as specified. The bill would authorize the office to update the State Administrative Manual and State Contracting Manual, as specified. The bill would establish the office within the state government, would place the office under the control of a director who would be appointed by the Governor. (Based on 03/25/2026 text)

Consumer Protection

AB 2034 (Addis, D) Food safety: unsafe additives and ingredient disclosures.
Current Text: 02/17/2026 - Introduced HTML PDF
Introduced: 02/17/2026
Status: 03/26/2026 - Assembly Rule 56 suspended. (Pending re-refer to Com. on E.S. & T.M.)
Calendar: 04/07/26 A-HEALTH 1:30 p.m. - 1021 O Street, Room 1100 BONTA, MIA, Chair
04/14/26 A-ENVIRONMENTAL SAFETY AND TOXIC MATERIALS 1:30 p.m. - State Capitol, Room 444
Location: 03/26/2026 - Assembly Health
Summary: The Sherman Food, Drug, and Cosmetic Law, under the administration and enforcement of the State Department of Public Health (department), provides for the regulation of various subjects relating to the manufacturing, processing, labeling, advertising, and sale of food, drugs, and cosmetics. A violation of the Sherman Food, Drug, and Cosmetic Law is punishable as a misdemeanor. Current law makes it unlawful for any person to adulterate any food or to manufacture, sell, deliver, hold, or offer for sale any food that is adulterated. Current law deems a food as adulterated if it is, bears, or contains any food additive that is unsafe, or if it bears or contains any color additive or added poisonous or deleterious substance that is unsafe. Current law deems, among other things, any food additive, color additive, or an added poisonous or deleterious substance as unsafe for use with respect to any food unless there is in effect a regulation, as specified, that limits the quantity and the use, or intended use, of the substance. This bill would deem a color additive, food additive, or dietary ingredient as unsafe in food intended for humans if it is found to induce cancer, as specified. This bill would deem a food additive or dietary ingredient as unsafe in food intended for humans with respect to its intended use unless the substance and its intended use meet a specified condition, including, among others, that the substance and its intended use were introduced after January 1, 1958, and are used in accordance with the below-described notice, public listing, and licensing requirements. Commencing July 1, 2027, if an individual intends to use a food additive or dietary ingredient in food intended for humans pursuant to these provisions, the bill would require the individual to submit a notice to the department that includes the same information required for a specified federal notice. (Based on 02/17/2026 text)

Government Regulations & Contracts

AB 2272 (Caloza, D) State contracting: subcontractors: prompt payment.
Current Text: 02/19/2026 - Introduced HTML PDF
Introduced: 02/19/2026
Status: 03/09/2026 - Referred to Com. on G.O.
Calendar: 04/08/26 A-GOVERNMENTAL ORGANIZATION 1:30 p.m. - 1021 O Street, Room 1100
Location: 03/09/2026 - Assembly Governmental Organization
Summary: The California Prompt Payment Act requires a state agency that acquires property or services pursuant to a contract with a business to make payment to the person or business on the date required by the contract and as specified, or be subject to a late payment penalty. This bill would recast those provisions to instead require prime contractors to pay, for payments by the state to prime contractors made on or after January 1, 2027, their subcontractors, suppliers, and other vendors within 45 days of receiving payment from the state. For payments made by the state to prime contractors made prior to January 1, 2027, but that have not been remitted to subcontractors, suppliers, and other vendors as of January 1, 2027, the bill would require prime contractors to remit payment by February 15, 2027. (Based on 02/19/2026 text)

SB 981 (Niello, R) Administrative regulations: standardized regulatory impact analysis: Air Resources Board.
Current Text: 03/09/2026 - Amended HTML PDF
Introduced: 02/04/2026
Last Amended: 03/09/2026
Status: 03/18/2026 - March 18 set for first hearing. Failed passage in committee. (Ayes 3. Noes 1.) Reconsideration granted.
Location: 02/11/2026 - Senate Environmental Quality
Summary: The State Air Resources Board is responsible for the preparation of the state implementation plan required by the Clean Air Act, and requires the state board to adopt standards, rules, and regulations that are consistent with the state goal of providing a decent home and suitable living environment for every Californian. The Administrative Procedure Act sets forth the requirements for the adoption, publication, review, and implementation of regulations by state agencies. Existing law requires a state agency proposing to adopt, amend, or repeal a major regulation on or after November 1, 2013, to prepare a standardized regulatory impact analysis, as specified, that addresses, among other things, the competitive advantages or disadvantages for businesses currently doing business within the state and the benefits to health, safety, and welfare of the regulations. This bill would require a standardized regulatory impact analysis prepared by the State Air Resources Board to additionally address cost of living impacts on residents of the state, including, but not limited to, retail gasoline and transportation costs, consumer electric bills, consumer goods and food costs, housing and building construction costs, and costs to businesses. (Based on 03/09/2026 text)

SB 1044 (Reyes, D) Public contracts: Small Business Procurement and Contract Act.
Current Text: 02/11/2026 - Introduced HTML PDF
Introduced: 02/11/2026
Status: 03/24/2026 - From committee: Do pass and re-refer to Com. on APPR. (Ayes 14. Noes 0.) (March 24). Re-referred to Com. on APPR.
Calendar: 04/13/26 S-APPROPRIATIONS 10 a.m. - 1021 O Street, Room 2200 CERVANTES, SABRINA, Chair
Location: 03/24/2026 - Senate Appropriations
Summary: The Small Business Procurement and Contract Act permits a state agency or the California State University to award a contract for goods, services, or information technology with an estimated value between $5,000 and $250,000 to a certified small business, including a microbusiness and a disabled veteran business enterprise, without complying with specified competitive bidding requirements. This bill would increase the maximum estimated value of a contract for goods, services, or information technology awarded pursuant to the act from $250,000 to $350,000. (Based on 02/11/2026 text)

SB 1366 (Rubio, D) State government: California Prompt Payment Act: Public Utilities Commission: State Energy Resources Conservation and Development Commission.
Current Text: 03/23/2026 - Amended HTML PDF
Introduced: 02/20/2026 (Spot bill)
Last Amended: 03/23/2026
Status: 03/23/2026 - From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.
Location: 02/20/2026 - Senate Rules
Summary: The California Prompt Payment Act requires a state agency that awards a grant or that acquires property or services pursuant to a contract to make timely payments pursuant to the grant or contract. If a state agency fails to take certain timely actions and payment is not issued within 45 calendar days from the state agency’s receipt of an undisputed invoice, the act requires the state agency to pay certain penalties. Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including every common carrier, toll bridge corporation, pipeline corporation, gas corporation, electrical corporation, telephone corporation, telegraph corporation, water corporation, sewer system corporation, and heat corporation, as specified. Existing law vests the State Energy Resources Conservation and Development Commission (Energy Commission) with various responsibilities for developing and implementing the state’s energy policies. This bill would require the PUC and the Energy Commission, in administering or approving programs, to comply with the California Prompt Payment Act and to ensure that payment timelines, advance payment structures, and accountability measures required under the act are incorporated into program designs, implementation plans, and cost recovery authorizations. The bill would require the PUC and the Energy Commission to provide a minimum advance payment of 25%, and, if the nonprofit organization has been in good standing with the state for at least 3 years, to provide an advanced payment of 100%, except as provided. (Based on 03/23/2026 text)

Labor & Employment

AB 1898 (Schultz, D) Workplace artificial intelligence tools.
Current Text: 03/20/2026 - Amended HTML PDF
Introduced: 02/12/2026
Last Amended: 03/20/2026
Status: 03/25/2026 - From committee: Do pass and re-refer to Com. on JUD. (Ayes 10. Noes 3.) (March 25). Re-referred to Com. on JUD.
Location: 03/25/2026 - Assembly Judiciary
Summary: Would require an employer to provide a written notice to a worker that a workplace AI tool, as defined, was used to assist the employer in making employment-related decisions or to surveil workers in the workplace. The bill would require the notice to be given to a worker within a specified time and would require the notice to contain specified information, including the specific employment-related decisions likely to be affected by the use of the workplace AI tool. The bill would require an employer to maintain an updated list of all workplace AI tools currently in use and their impact on jobs, as specified, and to provide the list to workers annually. The bill would provide for enforcement by the Labor Commissioner or a public prosecutor, and alternatively would authorize any worker who has suffered damages, or their exclusive representative, to file a civil action for damages caused by the adverse action. The bill would establish remedies and penalties for violations, including a penalty of up to $500 for each violation. (Based on 03/20/2026 text)

AB 2479 (Alanis, R) Personal income tax: employment credit.
Current Text: 02/20/2026 - Introduced HTML PDF
Introduced: 02/20/2026
Status: 02/21/2026 - From printer. May be heard in committee March 23.
Location: 02/20/2026 - Assembly PRINT
Summary: The Personal Income Tax Law allows various credits against the taxes imposed by that law, including, for taxable years beginning on or after January 1, 2014, and before January 1, 2026, a credit for hiring qualified full-time employees within a designated census tract or economic development area, except as specified, in an amount equal to 35% of the qualified wages paid to those employees multiplied by the applicable percentage for that taxable year. This bill would make a nonsubstantive change to this provision. (Based on 02/20/2026 text)