Legislators have been pushing bills all year and Gov. Gavin Newsom has been busy signing a slew of bills into law, many of which will have effects on the business community.

This year’s regular legislative session ended on Aug. 31, with Newsom finishing his signing on Sept. 30. Throw in a special session on gas prices and legislation was still being signed as of Oct. 14.

While 1,200 bills were passed by the legislature this year, The Business Journal is highlighting the new laws that business owners might want to pay attention to.

 

ABx2-1 Energy: transportation fuels: inventories: turnaround and maintenance

Passed in special session, Newsom signed a law Monday aimed at preventing gas prices from spiking, marking the Democrat’s latest move in a battle with the oil industry over energy prices and the impacts of climate change.

The new legislation was inspired by findings from the state’s Division of Petroleum Market Oversight that showed that gas price spikes are largely caused by increases in global crude oil prices and unplanned refinery outages. The law gives energy regulators the authority to require that refineries keep a certain amount of fuel on hand. The goal is to try to keep prices from increasing suddenly when refineries go offline for maintenance. Proponents say it would save Californians billions of dollars at the pump.

Opponents of the law have said it could unintentionally raise overall gas prices and threaten the safety of workers by giving the state more oversight over refinery maintenance schedules. Some argued delaying necessary maintenance could lead to accidents.

Phillips 66 announced Wednesday plans to cease operations at its Los Angeles-area refinery in Q4 2025. About 600 employees and 300 contractors would be affected.

“With the long-term sustainability of our Los Angeles Refinery uncertain and affected by market dynamics, we are working with leading land development firms to evaluate the future use of our unique and strategically located properties near the Port of Los Angeles,” said Mark Lashier, chairman and CEO of Houston-based Phillips 66. “Phillips 66 remains committed to serving California and will continue to take the necessary steps to meet our commercial and customer demands.”

 

SB 1103 Tenancy of commercial real properties: agreements

Authored by Caroline Menjivar (D-Van Nuys), SB 1103 gives mall businesses and nonprofits greater tenant protections. The Commercial Tenant Protection Act of 2024 adds new notice and disclosure requirements for landlords leasing to small businesses. It only applies to microbusinesses with five employees or fewer, restaurants with 10 employees or fewer and nonprofits with 20 employees or fewer, reported the Sacramento Business Journal.

The first protection makes sure a lease is written in a language the business owner understands. Landlords must also provide at least 60-days’ notice before an increase in rent or eviction.

Finally, the law requires more transparency around community area maintenance fees. It requires those fees be allocated proportionally per tenant for maintenance that has occurred in the last 18 months or expected within the next 12 months. It can include expenses for which the landlord is already reimbursed.

 

AB 2017 and SB 1075 Protecting against unfair fees

Introduced by Assemblymember Tim Grayson (D-Concord), AB 2017 prohibits certain banks and credit unions from charging fees on consumers when a transaction is declined due to the consumer having insufficient funds.

Along with AB 2017 being signed, the governor also signed SB 1075, introduced by Sen. Steven Bradford (D-Gardena), which sets limits on the amount a state chartered credit union can charge for overdraft fees.

SB 1075 will require the credit union to provide a customer at least five business days before requiring the payment for an overdraft or nonsufficient fund fees. It would also prohibit state-chartered credit unions from charging more than three such fees a month.

 

SB 549 allowing tribal Governments to sue private card rooms

SB 549, introduce by Josh Newman (D-Fullerton) allows tribal governments to sue private card rooms.

Gaming tribes have claimed that private gambling halls are illegally offering table games such as blackjack and pai gow poker.

The bill prohibits a claim for money damages, penalties, or attorney’s fees.

The law was supported by tribes operating California’s 70 tribal casinos.

The states nearly 80 privately-owned gambling halls, and several cities and employee unions, opposed the bill.

 

SB 969 and AB 1775: Alcoholic beverage sales and Cannabis Cafes

Senator Scott Wiener’s (D-San Francisco) SB 969 would allow cities and counties to create “entertainment zones” that authorize the consumption of one or more types of alcoholic beverage on public streets, sidewalks, or public rights-of-way.

Before any city or county could enact an ordinance for entertainment zones, they would be required to notify local law enforcement and request feedback about specific information, including the proposed boundaries and days and hours of operations.

The California Alcohol Policy Alliance, Alcohol Justice, California Council on Alcohol Problems, were recorded as opponents to SB 969, saying it could harm mixed-use neighborhoods and contribute to rising alcohol mortality rates and drunk driving accidents.

Assemblymember Matt Haney’s AB 1775, (D-San Francisco) will allow local jurisdictions, under specified conditions, to allow for the preparation or sale of noncannabis food or beverage products by licensed retailers or microbusinesses in areas where cannabis consumption is allowed.

The law allows the sale of tickets for live musical or other performances on the premises of licensed retailers or microbusinesses where cannabis consumption is allowed.

The American Heart and Lung Associations and other health organizations oppose AB 1775 due to cannabis containing particulate matter, which and cause cardiovascular disease and lung infections.

They also say that secondhand cannabis smoke can be harmful to workers at cannabis cafes.

 

AB 1830 Folic acid in tortillas

The Central Valley’s own Assemblymember Joaquin Arambula’s (D-Fresno) AB 1830 bill was signed, requiring that manufacturers of corn masa add folic acid to their products starting in 2026 to help support healthier pregnancies.

Corn masa is used to make tortillas, corn chips, and other foods.

The federal government currently requires folic acid in enriched grain products such as cereals, breads, pasta and rice as it’s known to help prevent birth defects.

The bill was amended to make exemptions for small business and restaurants, many of which make their own corn masa and tortillas.

Arambula said this bill will address the disparities in who gets the necessary amount of folic acid, with California public health data showing that Latinas are less likely to consume folic acid in the early weeks of pregnancy.

There was no registered opposition to bill, but it was supported by American College of Obstetricians and Gynecologists, the March of Dimes, and other organizations advocating for children’s health.

 

AB 2347 More time for tenant evictions

AB 2347 from Assemblymember Ash Kalra (D-San Jose) gives tenants 10 business days to respond to an eviction notice, which doubled the former deadline of five business days.

Tenants that don’t respond within the 10 day time frame will automatically lose their eviction case.

Backers of the bill include legal aid organizations representing low-income tenants, affordable housing advocates and the city of San Jose.

Landlords were in opposition, as it can take months to reclaim their property after a notice of eviction is filed.