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By Kristen Brown, Executive Director, Santa Cruz Area Chamber of Commerce As 2026 begins, California’s legislative calendar is already in motion, and a number of new laws took effect on January 1st that may impact local businesses, employers, property owners, and community organizations. Understanding both the timing of legislative activity and the substance of new laws can help business leaders plan ahead and remain compliant. Key Dates in the 2026 State Legislative Calendar The early weeks of the year are particularly active in Sacramento: > January 1st – New statutes adopted during the prior legislative session take effect. > January 5th – The Legislature reconvenes. > January 10th – The Governor submits the proposed state budget, outlining fiscal priorities. > January 16th – Deadline for policy committees to hear and report fiscal bills introduced in their house. > January 23rd – Last day for committees to hear and report bills to the floor in their house of origin. > January 31st – Final day for each house to pass bills introduced in that house. Because many deadlines fall in January, this is a critical time for businesses and community leaders to monitor legislation and engage in advocacy. New California Laws Effective January 1, 2026 Several laws that took effect at the start of the year are especially relevant to employers, housing providers, restaurateurs, technology users, and consumer-facing businesses Streamlining College Admissions and Transfers (SB 640 – Cabaldon) This law establishes a direct admissions process within the California State University system, notifying eligible high school students of automatic admission to participating CSU campuses. It also requires California Community Colleges to develop stronger transfer-support programs, helping create smoother pathways from education to the workforce. Transit-Oriented Housing and Long-Term Planning (SB 79 – Wiener) Cities and counties must adopt comprehensive, long-term general plans that include a housing element covering their jurisdictions and certain surrounding areas. The goal is to better align housing development with transportation, infrastructure, and long-term growth planning. Expedited Permitting for Restaurant Improvements (AB 671 – Wicks) This new law streamlines the permitting process for certain restaurant tenant improvements. Licensed architects or engineers may certify code compliance, triggering faster local review timelines. This can reduce delays for entrepreneurs opening new restaurants or operators renovating existing spaces. Expanded Equal Pay Rules (SB 642 – Limón) California has significantly enhanced its equal pay framework. Employers must now clearly disclose pay and benefits to new hires at the time of hiring. The law broadens the definition of “sex” to include gender identity, extends the statute of limitations, and allows recovery of lost wages for a longer period. Employers may want to review compensation, hiring practices, and recordkeeping to ensure compliance. Extension of Right-to-Rehire Requirements (AB 858) Originally enacted under SB 93, right-to-rehire requirements for certain hospitality employers laid off during the COVID-19 pandemic have been extended. The new sunset date is January 1, 2027, meaning covered employers must continue prioritizing eligible former employees when filling open positions. Limits on AI Misrepresentation (AB 489 – Bonta) Artificial intelligence chatbots are now prohibited from presenting themselves as licensed professionals such as doctors, nurses, or other credentialed roles. The law is intended to increase transparency and prevent consumer confusion as AI tools become more widely used. Food Delivery Platform Consumer and Worker Protections (AB 578 – Bauer-Kahan) Food delivery platforms must provide itemized pay information to delivery workers, ensure tips are not used to offset base pay, offer access to a real customer-service representative when automated systems cannot resolve an issue, and guarantee refunds for undelivered or incorrect orders. These changes may affect restaurants that rely on third-party delivery services. Updated Plastic Bag Regulations (SB 1053 – Blakespear) This law strengthens California’s plastic bag ban by eliminating plastic film checkout bags previously labeled as “reusable.” Retailers must now provide higher-durability reusable bags or paper bags that meet recycled-content requirements, further reducing plastic waste and improving recycling outcomes. For a full overview of California laws taking effect in 2026, click here. The Chamber will continue to share legislative updates and resources to support our local business community throughout the year.
By Kristen Brown, Executive Director, Santa Cruz Area Chamber of Commerce
As 2026 begins, California’s legislative calendar is already in motion, and a number of new laws took effect on January 1st that may impact local businesses, employers, property owners, and community organizations. Understanding both the timing of legislative activity and the substance of new laws can help business leaders plan ahead and remain compliant.
Key Dates in the 2026 State Legislative Calendar
The early weeks of the year are particularly active in Sacramento:
> January 1st – New statutes adopted during the prior legislative session take effect.
> January 5th – The Legislature reconvenes.
> January 10th – The Governor submits the proposed state budget, outlining fiscal priorities.
> January 16th – Deadline for policy committees to hear and report fiscal bills introduced in their house.
> January 23rd – Last day for committees to hear and report bills to the floor in their house of origin.
> January 31st – Final day for each house to pass bills introduced in that house.
Because many deadlines fall in January, this is a critical time for businesses and community leaders to monitor legislation and engage in advocacy.
New California Laws Effective January 1, 2026
Several laws that took effect at the start of the year are especially relevant to employers, housing providers, restaurateurs, technology users, and consumer-facing businesses
Streamlining College Admissions and Transfers (SB 640 – Cabaldon) This law establishes a direct admissions process within the California State University system, notifying eligible high school students of automatic admission to participating CSU campuses. It also requires California Community Colleges to develop stronger transfer-support programs, helping create smoother pathways from education to the workforce.
Transit-Oriented Housing and Long-Term Planning (SB 79 – Wiener) Cities and counties must adopt comprehensive, long-term general plans that include a housing element covering their jurisdictions and certain surrounding areas. The goal is to better align housing development with transportation, infrastructure, and long-term growth planning.
Expedited Permitting for Restaurant Improvements (AB 671 – Wicks) This new law streamlines the permitting process for certain restaurant tenant improvements. Licensed architects or engineers may certify code compliance, triggering faster local review timelines. This can reduce delays for entrepreneurs opening new restaurants or operators renovating existing spaces.
Expanded Equal Pay Rules (SB 642 – Limón) California has significantly enhanced its equal pay framework. Employers must now clearly disclose pay and benefits to new hires at the time of hiring. The law broadens the definition of “sex” to include gender identity, extends the statute of limitations, and allows recovery of lost wages for a longer period. Employers may want to review compensation, hiring practices, and recordkeeping to ensure compliance.
Extension of Right-to-Rehire Requirements (AB 858) Originally enacted under SB 93, right-to-rehire requirements for certain hospitality employers laid off during the COVID-19 pandemic have been extended. The new sunset date is January 1, 2027, meaning covered employers must continue prioritizing eligible former employees when filling open positions.
Limits on AI Misrepresentation (AB 489 – Bonta) Artificial intelligence chatbots are now prohibited from presenting themselves as licensed professionals such as doctors, nurses, or other credentialed roles. The law is intended to increase transparency and prevent consumer confusion as AI tools become more widely used.
Food Delivery Platform Consumer and Worker Protections (AB 578 – Bauer-Kahan) Food delivery platforms must provide itemized pay information to delivery workers, ensure tips are not used to offset base pay, offer access to a real customer-service representative when automated systems cannot resolve an issue, and guarantee refunds for undelivered or incorrect orders. These changes may affect restaurants that rely on third-party delivery services.
Updated Plastic Bag Regulations (SB 1053 – Blakespear) This law strengthens California’s plastic bag ban by eliminating plastic film checkout bags previously labeled as “reusable.” Retailers must now provide higher-durability reusable bags or paper bags that meet recycled-content requirements, further reducing plastic waste and improving recycling outcomes.
For a full overview of California laws taking effect in 2026, click here.
The Chamber will continue to share legislative updates and resources to support our local business community throughout the year.