California's legislative wins and the road ahead

At Small Business Majority, we celebrate policy gains that impact the small business ecosystem. The California legislature in particular has long been an early adopter of inclusive policies that work to form an equitable economy in our state. As such, our policy team works closely with small business owners and stakeholders to ensure that the small business voice is heard in Sacramento. Read on for an overview of wins for small business and next steps for the California legislature.

In a big win for small business advocates, Governor Gavin Newsom signed into law SB 33, which preserves a cornerstone of California’s small business financing disclosure law that ensures small business owners can make apples-to-apples comparisons when seeking financing. These protections were set to expire in 2024, but SB 33 eliminates the sunset date and guarantees continued transparency for businesses. More than 80 small business owners and advocates signed on to Small Business Majority's letter to Governor Newsom in support of passing this legislation, and we are grateful their voices were heard. Small businesses need protection as they search for capital and often are left vulnerable to predatory lenders when they are denied access to traditional funding avenues.

In another win for the small business ecosystem, the Governor also signed SB 616, which requires employers to provide seven–rather than the current three–paid sick days each year to their employees. These protections are strongly supported by California’s small business owners according to our polling, with 85% of small businesses in support, and will lead to a healthier, more productive workforce. The legislation also levels the playing field for small employers who are already offering paid sick days benefits. Prior to the signing of this legislation, Small Business Majority network member Catherean Mitchell spoke at an event hosted by State Senator Lena Gonzalez (SD-33) about how the bill would support small business employees.

Among other legislation that passed this session, we are thrilled to see SB 666, a bill tackling hidden fees in small business lending products and AB 1092 and AB 4, two bills that address the high cost of healthcare and expanding coverage, signed by Governor Newsom.

Unfortunately, there were a few policies we would have liked to see pass, but we will continue to advocate for these issues in 2024. In the new year, we will encourage the legislature to expand the definition of “family” in the California Paid Family and Medical Leave program and remove the requirement that employees use all their vacation before taking leave. Additionally, we will continue to work to close loopholes in lending laws that allow lenders to exploit small business owners. Lastly, we are keeping an eye on a hospital consolidation bill that will be considered again next year. The bill would give the Attorney General more power to oversee mergers and acquisitions in the healthcare industry that are driving up the cost of healthcare for Californians and small businesses.

Overall, we are pleased to see that the legislature ended the 2023 session by passing critical bills to support the resources small businesses need. We look forward to the legislative body coming back in session in January so we can continue to advocate for small business needs and amplify the voices of the small business community.