NEW LAWS
2025 Senate Health Care Laws ..............................59 2025 Assembly Housing and Real Estate Laws ..62 2025 Senate Housing and Real Estate Laws ........67 2025 Assembly Insurance Laws ............................71 2025 Senate Insurance Laws ..................................73 2025 Assembly Labor Laws ....................................73 2025 Senate Labor Laws .........................................75 2025 Assembly Military and Veterans Laws .......78 2025 Senate Military and Veterans Laws .............78 2025 Assembly Penal Laws ....................................70 2025 Senate Penal Laws...........................................82 2025 Assembly Public Resources Laws ...............84 2025 Senate Public Resources Laws .....................88 2025 Assembly Taxation Laws ...............................90 2025 Senate Taxation Laws ....................................91 2025 Assembly Transportation and Vehicles Laws ....................................................94 2025 Senate Transportation and Vehicles Laws ....................................................96 2025 Assembly Tribal Laws ....................................97 2025 Senate Tribal Laws .........................................98 2025 Assembly Welfare and Juvenile Laws .........98 2025 Senate Welfare and Juvenile Laws .............102
2025 Assembly Agriculture Laws ...........................3 2025 Senate Agriculture Laws .................................7 2025 Assembly Attorney and State Bar Laws .......7 2025 Senate Attorney and State Bar Laws .............8 2025 Assembly Business and Professions Laws ...8 2025 Senate Business and Professions Laws ......13 2025 Assembly Civil Laws ......................................18 2025 Senate Civil Laws ...........................................20 2025 Assembly Courts and Judiciary Laws .........21 2025 Senate Courts and Judiciary Laws ..............22 2025 Assembly Education Laws ............................22 2025 Senate Education Laws .................................28 2025 Assembly Elections Laws ..............................30 2025 Senate Elections Laws ...................................33 2025 Assembly Energy & Utilities Laws ..............34 2025 Senate Energy and Utilities Laws ................36 2025 Assembly Family and Probate Laws ...........37 2025 Senate Family and Probate Laws .................37 2025 Assembly Government Laws ........................39 2025 Senate Government Laws .............................44 2025 Assembly Health and Safety Laws ..............49 2025 Senate Health and Safety Laws.....................54 2025 Assembly Health Care Laws .........................55
PERSPECTIVE
AB 931: Regulating litigation funding and fee-sharing .......................................................................4 SB 37: California’s new attorney advertising and solicitation rules explained ...........................................6 SB 53: Balancing AI innovation with public safety..12 SB 243: New safety rules for AI companion chatbots ................................................14 AB 325 and SB 763: Amending the Cartwright Act to address algorithmic price fixing.....................15 AB 250: More time for sexual assault survivors ......17 Assembly Bill 621: Strengthening protections against deepfake pornography..................................................19 AB 1155: Ending the choice between pay and credit in law school ........................................27 SB 848: California expands child abuse prevention and hiring duties for private schools .....31 AB 565: Comprehensive virtual representation for trust matters ............................................................38 AB 339: A new procedural layer for contracting out public services in California ........................................41 SB 464: More rules, same gaps in California pay equity.....................................................47 AB 56: Social media health risk warning for minors .......................................................51
AB 130: CEQA exemption accelerates urban infill housing and cuts development costs.................63 SB 79: Boosting transit-oriented housing access ..............................................................66 AB 1050: Expanding opportunity to remove restrictive covenants that block housing ..................68 Rebuilding California insurance law after the Palisades and Eaton fires......................................72 AB 692: Redefines employee contracts and raises new legal questions............................................74 SB 294: California’s ‘Workplace Know Your Rights Act’ demands employer action ....................................77 SB 642: Raises the bar on pay equity and employer accountability .......................................79 SB 131: CEQA exemptions expand for housing, infrastructure, water and clean energy projects......87 SB 376: Confirming non-application of Section 17082 to charitable remainder trusts ..........93 California takes aim at monopolies with proposed antitrust law reform.......................................................99 SB 940: Expanding third party discovery in California arbitration..............................................104
MALCOLM MACLACHLAN STAFF WRITER DIANA BOSETTI LEGAL EDITOR ELIZABETH WALLACE DESIGNER
PAUL INGEGNERI GENERAL MANAGER
STEVEN MYHILL-JONES CHAIRMAN OF THE BOARD / CEO CHARLES T. MUNGER BOARD MEMBER / CHAIRMAN OF THE BOARD (1977-2022)
DAVID HOUSTON EDITOR-IN-CHIEF ARIN MIKAILIAN SPECIAL PROJECTS EDITOR
For reprints: Jeremy Ellis | 213-229-5424 jeremy_ellis@dailyjournal.com
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New California Laws 2026
2025 Assembly Agriculture Laws AB 258, Connolly. Fairs: allocation of revenues: gross receipts for sales and use tax. This bill increas- es, from 0.75% to 2%, the amount of segregated gross receipts from fair sales that the Governor must pro- pose to distribute to the California Department of Food and Agriculture (CDFA) for allocation to fairs in the annual Governor’s Proposed Budget. An act to amend Section 3203 of the Food and Ag- ricultural Code, relating to fairs. AB 411, Papan. Livestock carcasses: disposal: com- posting. Establishes the Caring About the Terrain, Livestock, and Ecosystems (CATTLE) Act, which permits livestock carcasses resulting from a routine livestock mortality event or on-farm processing to be composted under specified circumstances. An act to add Section 19348.2 to the Food and Ag- ricultural Code, relating to livestock. AB 482, Solache. California Table Grape Commis- sion. This bill would update and revise many pro- visions in the California Table Grape Commission (CTGC) by, changing the membership of CTGC from 21 to 18 grape producers and a public member. Require the CTGC to annually compile and maintain a list of eligible producers who are qualified to vote in an election, expand the activities, powers, and duties of the commission to also include accepting and matching contributions of funds and making contributions of commission funds to other persons or agencies, and administering any program related to the table grape industry. Increases the maximum amount of the assessment to $0.02 per pound, and would make numerous changes that technical, con- forming and/or outdated. An act to amend Sections 65500, 65524, 65527, 65528, 65532, 65533, 65550, 65552, 65553, 65555, 65556, 65559.5, 65562, 65563, 65566, 65569, 65570, 65572, 65573, 65574, 65575, 65575.2, 65600, 65601, 65603, 65650.5, 65661, 65662, 65663, 65673, and 65675 of, to add Sections 65530 and 65651.5 to, to repeal Sections 65554, 65558, 65560, 65561, 65565, and 65670 of, and to repeal and add Sections 65559, 65575.1, 65652, and 65660 of, the Food and Agri- cultural Code, relating to food and agriculture, and making an appropriation therefor. AB 525, Lackey. Basic Inspection of Terminals program: agricultural vehicles. This bill extends the exclusion of agricultural vehicles from being subject to the Basic Inspection of Terminals (BIT) program from January 1, 2026 to January 1, 2031. An act to amend Sections 34500.6 and 34501.12 of the Vehicle Code, relating to vehicles. AB 732, Macedo. Agriculture: neglected or aban- doned crops: public nuisances: pests. This bill would define pest as an infectious, transmissible, or conta- gious disease of a plant, or a disorder of a plant that manifests symptoms or behaviors characteristic of an infectious, transmissible, or contagious disease that is, or is liable to be, dangerous or detrimental to the agricultural industry of the state and would au- thorize a county agricultural commissioner (CAC) to levy a civil penalty against a person who maintains a public nuisance.
An act to add and repeal Article 5 (commencing with Section 5646) of Chapter 7 of Part 1 of Division 4 of the Food and Agricultural Code, relating to ag- riculture. AB 845, Arambula. Employment: complaints: agricultural employees. Requires, upon intake of a complaint from an agricultural employee by any en- tity within the Labor and Workforce Development Agency (LWDA), the appropriate entities to collab- orate with each other and take all reasonable efforts to transmit the complaint to the appropriate entity for processing and investigation. Specifies that the bill is contingent upon appropriation from the Legislature. An act to add Section 57.2 to the Labor Code, relat- ing to employment. AB 947, Connolly. Agriculture: Cannella Environ- mental Farming Act of 1995. This bill (1) requires the California Department of Food and Agriculture (CDFA) to oversee a sustainable agriculture pro- gram to provide research, technical assistance, and incentive grants to promote agricultural practices that support climate resilience for farms and ranches and the well-being of ecosystems, air quality, and bio- diversity. This bill (2) renames the Scientific Adviso- ry Panel on Environmental Farming to the Scientific Advisory Panel on Resilient and Sustainable Agri- culture (Panel) for the purpose of providing advice to the secretary on the implementation of research, incentive, and technical assistance grant programs for sustainable agriculture. This bill (3) expands the panel from nine members to eleven members to add members of the public that represent scientific expertise in sustainable agriculture and members of state agencies that represent expertise in programs and policies related to agriculture. An act to amend Sections 564, 566, 568, 569, and 570 of the Food and Agricultural Code, relating to agriculture, and making an appropriation therefor. AB 1142, Hoover. Horses: horse shows, compe- titions, and sales. This bill increases specified fee thresholds, for an entry fee to a public equine event, by the California Department of Food and Agricul- ture (CDFA) from $4.99 to $15.00 and from $19.99 to $60.00 if other fees are involved and specifies the secretary may, in consultation with the Equine Medication Monitoring Program (EMMP) Advisory Committee, increase these amounts. An act to amend Section 24001 of the Food and Ag- ricultural Code, relating to horses. AB 1322, Committee on Agriculture. Agricultural commissions and reports. This bill makes various changes to the California Grape Rootstock Improve- ment Commission (CGRIC), the California Avocado Commission, the California Apple Commission, the Olive Oil Commission of California (OOCC), and Grape Crunch annual report dates. An act to amend Sections 6047.10, 6761, 55601.5, 55601.6, 67052, 67052.5, 67054, 67057, 67059.5, 67062, 67082, 67091, 67101, 67133, 75601, 79818, and 79821 of, and to add Sections 67026 and 79824 to, the Food and Agricultural Code, relating to agriculture. AB 1362, Kalra. Foreign labor contractor registra- tion: agricultural workers. Applies, on and after July
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New California Laws 2026
AB 931: Regulating litigation funding and fee-sharing
By Brian S. Kabateck A B 931, signed as Chapter 565, Statutes of 2025, establishes California’s first compre- hensive regulatory framework for consumer legal funding while prohibiting fee-sharing with out- of-state alternative business structures. Effective Jan. 1, 2026, the law reshapes two fast-evolving areas of practice that have long operated in regulatory gray zones. Consumer legal funding—where companies pur- chase plaintiffs’ contingent rights to settlement pro- ceeds—has provided financial support to injured parties awaiting case resolution. For plaintiffs unable to work due to injuries or facing mounting medical bills, these advances offer essential relief during lengthy litigation. However, the industry has operat- ed without meaningful oversight, creating opportu- nities for exploitation. AB 931 now requires funding contracts in writing with plain-language disclosures including total amounts, itemized charges, repay- ment schedules and explicit statements that funders cannot influence settlement decisions. Consum- ers gain five-business-day cancellation rights, and charges are capped at 36 months from the funding date, preventing the compounding spirals that have plagued some arrangements. Critically, funding companies cannot pay attorney referral fees, eliminating conflicts where attorneys profit from steering clients toward expensive fund- ing regardless of whether it serves clients’ best inter- ests. Attorneys must certify they received no refer- ral fees and will ensure contract terms are fulfilled, creating professional accountability and preventing funders from operating without legal oversight. The bill’s second component addresses alternative business structures. Until Jan. 1, 2030, California at- torneys cannot share fees with out-of-state entities allowing non-lawyer ownership or decision-making authority—so-called “alternative business struc- tures”—except in court-approved multidistrict lit- igation. Violations carry penalties of $10,000 per violation or three times actual damages, whichever is greater, plus attorneys’ fees. This sunset provision provides time to evaluate whether California should follow Arizona and Utah’s regulatory experiments permitting such structures. Supporters emphasize protection from predato- ry practices. Unregulated funding companies have trapped consumers in agreements with excessive interest rates and terms permitting undue influence
over litigation strategy. Without statutory protec- tions, desperate plaintiffs facing mounting bills have had little choice but to accept unfavorable terms. The alternative business structure prohibition rein- forces ABA Model Rule 5.4, shielding attorney-client relationships from commercial pressures that could compromise professional judgment. Critics argue the alternative business structure ban ignores successful experiments in other juris- dictions. Arizona and Utah data suggests non-lawyer ownership has expanded access to justice without compromising ethics or attorney independence. The blanket prohibition may prevent beneficial part- nerships offering specialized expertise, advanced technology platforms or innovative service delivery models that improve client outcomes. The 36-month charge cap, while consumer-protective, might re- strict capital access for complex cases requiring lon- ger resolution timelines, potentially driving funders from California’s market and reducing options for plaintiffs who need financial support during litiga- tion. In November 2025, California lawyers and af- filiated parties filed a federal lawsuit challenging the alternative business structure ban as unconstitution- al, arguing it unlawfully discriminates against out-of- state firms. Practitioners must ensure litigation funding con- tracts comply with disclosure requirements and review all out-of-state co-counsel arrangements to confirm they don’t involve prohibited fee-sharing. The sunset provision suggests California may revisit alternative business structures, but for now, immedi- ate compliance is mandatory.
Brian S. Kabateck is founding partner at Kabateck LLP.
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New California Laws 2026
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5
New California Laws 2026
SB 37: California’s new attorney advertising and solicitation rules explained
By Shant A. Karnikian S B 37, signed as Chapter 645, Statutes of 2025, represents California’s most comprehensive reform of attorney advertising regulations in re- cent history. Effective Jan. 1, 2026, the law enhances existing prohibitions on misleading advertisements while introducing a powerful new enforcement tool: private rights of action that allow consumers and competitors to bring civil lawsuits for violations. The legislation targets three primary areas. First, it prohibits advertisements containing misleading, deceptive or false statements regarding a lawyer’s skills, experience or record, and restricts award ref- erences unless merit-based and free of charge. This directly addresses the proliferation of pay-to-play “Top Attorney” badges and questionable recognition seals that have saturated legal advertising, particu- larly in online search results and social media plat- forms where consumers struggle to distinguish legit- imate credentials from purchased honors. Second, advertisements must conspicuously dis- play at least one bona fide office location or State Bar address, preventing attorneys from falsely appearing to maintain local offices across multiple jurisdictions when they actually operate remotely from a single distant location. Third, lawyers may no longer market using past case results unless those results are objectively ver- ifiable and not misleading through omission—clos- ing the loophole where attorneys could highlight extraordinary multi-million-dollar verdicts without disclosing that most similar cases settle for substan- tially less or that verdicts were later reduced on ap- peal. Violations of these new rules are subject to a pri- vate right of action with statutory damages ranging from $5,000 to $100,000 per violation. This rep- resents a significant enforcement shift, supplement- ing State Bar oversight by empowering consumers and competitors to police false advertising through civil litigation. The law also establishes a State Bar complaint process, allowing advertisers to withdraw problematic content before facing litigation—a grad- uated enforcement approach designed to balance consumer protection with fairness to attorneys who may have inadvertently violated the new require- ments.
Proponents emphasize consumer protection as the law’s primary justification. Federal Trade Commis- sion research demonstrates that consumers struggle to assess legal advertising credibility, particularly re- garding the significance of awards and recognition. The private enforcement mechanism becomes crit- ical given current State Bar budgetary constraints that have limited regulatory oversight. Advocates argue the law levels the playing field for ethical prac- titioners who compete against firms using deceptive marketing tactics to gain unfair competitive advan- tages. It would be wise for practitioners to immediately audit all communications or publications that can be construed as advertising materials—websites, social media profiles, directory listings and third-party ad- vertisements—and consider removing questionable award badges, verify all factual claims are objectively supportable and ensure location information is prom- inently displayed. Early enforcement actions will es- tablish critical precedent about the law’s scope and damages calculations. The stakes are substantial: Non-compliance could result in six-figure statutory damages plus attorneys’ fees, creating significant fi- nancial and reputational risks.
Shant A. Karnikian is managing partner at Kabateck LLP.
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New California Laws 2026
Continued from page 3
an appropriation therefor. 2025 Senate Agriculture Laws
1, 2027, the foreign labor contractor registration re- quirements to farm labor contractors of agricultural workers under the federal H-2A visa program. Re- quires the Department of Industrial Relations (DIR) to submit to the Legislature, by January 1, 2028, a study on how to extend foreign labor contractor reg- istration requirements to those foreign labor con- tractors recruiting or soliciting workers authorized to work in the United States under visa programs not covered by the bill or existing law. An act to amend Sections 9998.1, 9998.1.5, 9998.8, and 9998.10 of, to add and repeal Section 9998.12 of, and to repeal and add Section 9998 of, the Business and Professions Code, relating to foreign labor con- tractors. AB 1505, Committee on Agriculture. Food and agriculture: omnibus bill. This bill extends the Ver- tebrate Pest Control Research (VPCR) program to 2035. The VPCRs current repeal date is January 1, 2026. Additionally, this bill would clarify current law to specify that a medically important antimicrobial drug only be administered to livestock when it is or- dered by a licensed veterinarian and meets the re- quirements of federal and state law, along with the already established Business Professions Code Sec- tion 4826.6 requirements. Finally, this bill would add enforcement to the certified mobile farmers’ market to mirror enforcement provisions of “static” certified farmers’ markets. An act to amend Sections 6029 and 14401 of, and to add Section 47007.5 to, the Food and Agricultural Code, relating to food and agriculture, and making
SB 312, Umberg. Dog importation: health certifi- cates. This bill revises and recasts the requirements for the submission of health certificates (HC) for dogs imported into California; requires additional information be included on a HC and that it be sub- mitted to the California Department of Food and Agriculture (CDFA) instead of the county in which the dog is imported into, requires the CDFA to retain the HC for five years; requires the HC to be submit- ted electronically; and, makes a HC received by the CDFA a public record, as specified. An act to add Chapter 4.5 (commencing with Sec- tion 31000) to Division 14 of the Food and Agricul- tural Code, and to repeal Chapter 1.5 (commencing with Section 121720) of Part 6 of Division 105 of the Health and Safety Code, relating to dogs. SB 846, McNerney. Liens: harvested crops. Re- moves the reference to “limited partnership” in the existing crop lien statute so that the lien is no longer limited to situations in which the harvested crops or farm products were owned, grown, or produced by a limited partnership. An act to amend Section 3061.5 of the Civil Code, relating to civil law. 2025 Assembly Attorney and State Bar Laws AB 484, Dixon. California bar examination. Re- quires the Committee of Bar Examiners State Bar of
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New California Laws 2026
2025 Assembly Business and Professions Laws AB 8, Aguiar-Curry. Cannabis: cannabinoids: in- dustrial hemp. Beginning January 1, 2028, requires products containing concentrated cannabinoids oth- er than cannabidiol (CBD) isolate that are derived from industrial hemp to comply with provisions of the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA); establishes a framework for industrial hemp to enter the licensed cannabis market; revises various definitions for purposes of MAUCRSA and other state cannabis laws; prohibits the sale of synthetic cannabis products and inhalable cannabis products containing cannabinoids derived from hemp; places restrictions on the incorporation of industrial hemp raw extract into food and bever- age products; and expands the authority for state and local enforcement agencies to inspect, seize, and de- stroy unlawful cannabis products. An act to amend Sections 26001, 26002, 26015, 26031.6, 26036, 26038, 26039.4, 26039.6, 26051.5, 26060, 26067, 26068, 26069, 26070, 26070.2, 26080, 26100, 26110, 26152, and 26200 of, and to add Sections 22980.6 and 26000.5 to, the Business and Professions Code, to amend Sections 11006.5, 11018, 11018.1, 11018.5, 11357.5, 11361, 110611, 111691, 111920, 111921, 111921.5, 111921.6, 111922.3, 111923.3, 111925, 111925.2, 111926, 111926.2, 111926.3, 111927.2, and 113091 of, to amend and repeal Section 111923.9 of, to add Sections 111921.1 and 111921.8 to, to add and repeal Section 111929.5 of, and to re- peal Article 10 (commencing with Section 111929) of Chapter 9 of Part 5 of Division 104 of, the Health and Safety Code, and to amend Sections 34010, 34013, 34014, and 34016 of, and to add Section 34015.3 to, the Revenue and Taxation Code, relating to cannabi- noids, and making an appropriation therefor. AB 233, Gipson. Alcoholic beverages: licensees. This bill authorizes a licensed beer manufacturer or a licensed beer wholesaler to sell beer from “trailers” operated by them to licensees authorized to sell beer, as specified. An act to amend Section 23388 of the Business and Professions Code, relating to alcoholic beverages. AB 325, Aguiar-Curry. Cartwright Act: violations. Prohibits the use or distribution of a common pric- ing algorithm 1) as part of a contract, combination in the form of a trust, or conspiracy to restrain trade or commerce or 2) if the person coerces another person to set or adopt a recommended price or commercial term recommended by the common pricing algo- rithm for the same or similar products or services in the jurisdiction of this state. An act to add Sections 16729 and 16756.1 to the Business and Professions Code, relating to business regulations. AB 344, Valencia. Alcoholic beverages: beer price posting and marketing regulations: definitions. This bill modifies the definition of “successor beer man- ufacturer” in the Alcoholic Beverage Control Act to specify that a successor beer manufacturer is a beer manufacturer or any person, whether licensed or unlicensed, who acquires the rights to manufacture, import, or distribute a product.
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California to provide a report to the Supreme Court and Legislature regarding whether adopting a uni- form bar examination would be more efficient to ad- minister and lower the cost of administration for the State Bar and examinees. An act to add and repeal Section 6046.2 of the Busi- ness and Professions Code, relating to attorneys. AB 931, Kalra. State Bar Act: consumer legal fund- ing. Adopts a regulatory framework for providing protections to consumers seeking to obtain a loan via a legal funding agreement. An act to amend, renumber, add, and repeal Sec- tion 6156 of, and to add Article 17 (commencing with Section 6250) to Chapter 4 of Division 3 of, the Busi- ness and Professions Code, relating to attorneys. AB 1525, Committee on Judiciary. Attorneys: dis- cipline: sensitive services. Clarifies the disciplinary rules for attorneys providing advice related to sensi- tive services, and provides that a California attorney cannot be disciplined for providing accurate legal advice about the provision of sensitive services in California. An act to add Section 6106.4 to the Business and Professions Code, relating to attorneys. 2025 Senate Attorney and State Bar Laws SB 37, Umberg. Attorneys: unlawful solicitations and advertisements. This bill enhances existing prohibitions on misleading attorney advertisements, attorney solicitations, and the use of referral services by, among other things, providing private rights of action to enforce violations of these provisions, and prohibits advertisements by attorneys from contain- ing or referring to certain additional statements or information. An act to amend Sections 6153, 6155, 6157, 6157.2, 6158.4, 6158.5, and 6158.7 of, and to add Section 6156.5 to, the Business and Professions Code, relat- ing to attorneys. SB 47, Umberg. February 2025 bar exam: audit. This bill requires the California State Auditor to con- duct an audit of the February 2025 bar exam to evalu- ate its administration and how the problems with the exam occurred, as specified. An act to amend Section 6145 of the Business and Professions Code, relating to the State Bar, and de- claring the urgency thereof, to take effect immedi- ately. SB 253, Umberg. State Bar of California. This bill requires the Board of Trustees (Board) of the Cali- fornia State Bar (State Bar) to fix the annual license fee for active licensees for 2026 at a sum not exceed- ing an unspecified amount and makes other changes to the State Bar Act. An act to amend Sections 6006, 6013.1, 6026.7, 6046.6, 6086.5, 6106.9, 6126.7, 6140, 6141, 6141.3, and 6173 of the Business and Professions Code, relating to attorneys.
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New California Laws 2026
An act to amend Section 25000.2 of the Business and Professions Code, relating to alcoholic beverag- es. AB 445, Aguiar-Curry. Alcoholic beverages. This bill would authorize the Department of Alcoholic Beverage Control (ABC) to issue no more than 10 new original on-sale general licenses for bona fide public eating places in the County of Colusa, as spec- ified. The bill would also extend a sunset (January 1, 2029), currently set to expire on January 1, 2026, that allows beer manufacturers to provide free branded glassware to on-sale retailers, as specified. An act to amend Section 25600.05 of, and to add Section 23826.21 to, the Business and Professions Code, relating to alcoholic beverages. AB 483, Irwin. Fixed term installment contracts: early termination fees. This bill prohibits early termi- nation fees unless the relevant fixed term installment contract includes a clear explanation of the total cost of the termination fee or the formula used to calcu- late the fee, except as provided. This bill caps the ter- mination fee at 30% of the total cost of the installment contract. An act to add Chapter 4 (commencing with Section 17800) to Part 3 of Division 7 of the Business and Pro- fessions Code, relating to contracts. AB 498, Michelle Rodriguez. Self-service stor- age facilities: lien notices: email. This bill permits a self-storage facility to deliver specified notices of delinquent rent payments and a lien sale to a renter by email if there is evidence demonstrating that the
renter downloaded, printed, viewed, opened, or oth- erwise acknowledged receipt of the notice. An act to amend Section 21712 of the Business and Professions Code, relating to self-service storage fa- cilities. AB 509, Flora. Alcoholic beverages: minors. This bill would provide that the use of “active age verifica- tion software or an age verification device” that fails to identify a false identification card be considered evidence in related legal proceedings against a per- son or licensee that provides alcohol to a person un- der 21 years of age, as specified. An act to amend Section 25660 of the Business and Professions Code, relating to alcoholic beverages. AB 516, Kalra. Registered veterinary technicians and veterinary assistants: scope of practice. Autho- rizes registered veterinary technicians (RVTs) and veterinary assistants to perform animal health care services not otherwise prohibited by law or regula- tion, including on animals housed in public or private animal shelters, humane societies, or societies for the prevention of cruelty to animals. An act to amend Section 4840 of the Business and Professions Code, relating to healing arts. AB 521, Carrillo. Contractors State License Board: bond deposits: liability for legal fees and costs. This bill specifies that the CSLB shall not be responsible for any legal fees or costs accrued by a claimant in a civil action against a deposit in lieu of bond (deposit) while a court determines whether payment should Continued on page 10
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New California Laws 2026
California Consumer Financial Protection Law. An act to amend Section 90018 of the Financial Code, relating to financial institutions. AB 671, Wicks. Accelerated restaurant building plan approval: California Retail Food Code: tenant improvements. Requires a local building department or permitting department to allow a qualified profes- sional certifier to certify compliance with applicable building, health, and safety codes for a tenant im- provement relating to a restaurant. An act to amend Section 6775 of, and to add Sec- tion 5586.5 to, the Business and Professions Code, to add Chapter 14 (commencing with Section 66345) to Division 1 of Title 7 of the Government Code, and to amend Section 114380 of the Health and Safety Code, relating to restaurants. AB 720, Rogers. Beverages: alcohol permits: con- tainer labeling. This bill delays the requirements for labeling as part of the Beverage Container Recycling Program (Bottle Bill) for beverage containers includ- ing wine and distilled spirits, which were added to the Bottle Bill program by January 1, 2024. This bill also clarifies that the storage of wine or topping of wine barrels does not constitute offsite production or man- ufacturing by a licensed winegrower or brandy man- ufacturer. Additionally, this bill authorizes a licensed winegrower to apply for, and for the Department of Alcoholic Beverage Control (ABC) to issue an estate tasting event permit (Type 93) that would allow the licensee to exercise its tasting room privileges at ei- ther a property adjacent to the licensed premises or a nonadjacent vineyard that is owned by the licensee, as specified. Finally, the bill clarifies that the holder of a winegrower’s license and a brandy manufactur- er’s license for the same premises, where one license is a master license and the other is a branch license, to store, age, conduct brandy tastings, and engage in sales for off-premises consumption, as specified. An act to amend Sections 23320 and 23390 of, and to add Section 23399.03 to, the Business and Profes- sions Code, and to amend Section 14561 of the Public Resources Code, relating to beverages. AB 759, Valencia. Architects: architects-in-train- ing. Authorizes individuals pursuing an architect license to use the title “architect-in-training” if they meet specified criteria and pay a fee to be determined by the California Architects Board (CAB). An act to add and repeal Sections 5500.2, 5587, and 5587.5 of the Business and Professions Code, relat- ing to professions and vocations, and making an ap- propriation therefor. AB 770, Mark González. Advertising displays: City of Los Angeles: exemption: ordinance. This bill would authorize an ordinance adopted by the City of Los Angeles pertaining to outdoor advertising dis- plays to provide a framework of allowable signage placement, sizing, and sequencing, as specified that is also consistent with provisions of existing outdoor advertising exemptions for Los Angeles. The bill would also authorize the City to adopt implementing ordinances that sequence or phase the authorization of advertising displays over time, as specified. An act to amend Section 5272.2 of the Business
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be made against the deposit, regardless of when the deposit was filed with the CSLB Registrar. An act to amend Section 7071.4 of the Business and Professions Code, relating to professions and vocations. AB 573, Rogers. Cigarette and tobacco products: licensing and enforcement. Requires a tobacco re- tailer to pay a fee to cover the reasonable regulatory costs of the California Department of Tax and Fee Administration (CDTFA), not to exceed $600, for the issuance or renewal of a license to sell those tobacco products. Requires the Legislative Analyst (LAO), on or before December 1, 2027, and again on or before December 1, 2029, in collaboration with specified agencies, to prepare and submit reports to the Leg- islature on the adequacy of funding for the tobacco retailer licensing program and the rate of inspection of retailers. Repeals those reporting requirements on January 1, 2034. An act to amend Sections 22971, 22971.7, 22973, 22973.3, 22978.3, and 22980.2 of, to add and repeal Section 22973.4 of, and to repeal Section 22974.1 of, the Business and Professions Code, relating to tobac- co. AB 578, Bauer-Kahan. Food delivery platforms: customer service. Food delivery platforms must im- plement a refund mechanism to address issues such as missed, partially delivered, or incorrect orders. They must also provide a clear way for consumers to contact a live customer service representative. Additionally, platforms are required to uphold fair payment practices for delivery personnel and ensure greater transparency regarding their earnings. An act to amend Section 22599.1 of, and to add Sec- tion 22599.2 to, the Business and Professions Code, relating to business practices. AB 592, Gabriel. Business: retail food. This bill, among other things, extends until January 1, 2029, the authority of the Department of Alcoholic Bever- age Control (ABC) to permit licensees to exercise license privileges in an expanded license area autho- rized pursuant to a COVID-19 Temporary Catering Authorization (COVID-19 TCA) approved in accor- dance with the Fourth Notice of Regulatory Relief issued by the department on May 15, 2020. Addition- ally, this bill authorizes a food facility to operate us- ing windows, folding doors, or non-fixed store fronts during hours of operation if the restaurant develops, and submits to the enforcement agency for approval, an integrated pest management and food safety risk mitigation plan and meets certain requirements, as specified. An act to amend and repeal Section 25750.5 of the Business and Professions Code, to amend Sec- tion 65907 of the Government Code, and to amend Sections 114067 and 114266 of the Health and Safety Code, relating to business. AB 665, Chen. Commissioner of Financial Protec- tion and Innovation: report: Office of the Ombuds. This bill requires the Department of Financial Pro- tection and Innovation to report annually on the ac- tivities of the Office of the Ombuds pursuant to the
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New California Laws 2026
fessions Code, relating to professions and vocations. AB 1008, Addis. Alcoholic beverages: licenses: County of San Luis Obispo. The bill would allow au- thorize the Department of Alcoholic Beverage Con- trol (ABC) to issue, in the County of San Luis Obispo, a total of 10 additional new original on-sale general li- censes for bona fide public eating places, but no more than five licenses per year, as specified. An act to add Section 23826.23 to the Business and Professions Code, relating to alcoholic beverages. AB 1175, Irwin. Accountants. This bill revises the education and experience requirements for an appli- cant for a certified public accountant (CPA) license and revises the practice privilege requirements to allow an out-of-state licensed CPA with a current and active to practice in California without a need to de- termine substantial equivalency, as specified. An act to amend Sections 5081, 5082.3, 5082.4, 5082.5, 5087, 5088, 5090, 5094, 5095, 5096, 5096.1, 5096.4, 5096.12, 5096.20, 5096.21, and 5096.22 of, to amend and repeal Sections 5093, 5093.5, 5094.3, and 5094.6 of, to add Sections 5035.4, 5093.2, and 5093.3 to, and to repeal Sections 5086 and 5092 of, the Busi- ness and Professions Code, relating to professions and vocations. AB 1246, Hoover. Alcoholic beverages: distilled spirits. This bill allows, until January 1, 2027, a li- censed craft distiller, or a qualifying out-of-state dis- tiller to directly ship distilled spirits manufactured by the licensee to a consumers in California, as spec- ified. Additionally, this bill allows California’s craft distillers to increase the number of liters that can be sold at their tasting rooms from 2.25 to 4.5 liters per day per consumer. Finally, this bill authorizes a craft distiller to transport brandy to the premises of a licensed winegrower for the purpose of storing the brandy to age on the winegrower’s premises. An act to amend Sections 23358, 23502, 23504, and 23504.5 of the Business and Professions Code, relat- ing to alcoholic beverages. AB 1502, Berman. Veterinary medicine: California Veterinary Medical Board. Extends the sunset date for the California Veterinary Medical Board (CVMB) until January 1, 2030, increases fee authority for the CVMB, recasts and revises requirements related to continuing education, and makes various other technical changes, statutory improvements, and pol- icy reforms in response to issues raised during the CVMB’s sunset review oversight process. An act to amend Sections 4800, 4804.5, 4809.7, 4809.8, 4826.5, 4826.6, 4827, 4839, 4841.1, 4841.4, 4841.5, 4842, 4846, 4848.1, 4855, 4856, 4875, 4875.1, 4875.2, 4883, 4885, 4886, 4887, 4901.2, and 4905 of, to add Sections 4855.1, 4875.7, and 4882 to, to add Article 3.1 (commencing with Section 4858) to Chap- ter 11 of Division 2 of, to repeal Sections 4837, 4838, 4842.1, 4843, 4845.5, 4846.5, 4876, and 4881 of, and to repeal and add Sections 4836.2 and 4902 of, the Business and Professions Code, relating to veteri- nary medicine. AB 1507, Committee on Banking and Finance. Fi- nancial institutions. This bill makes non-substantive Continued on page 13
and Professions Code, relating to outdoor advertis- ing, and declaring the urgency thereof, to take effect immediately. AB 828, Mark González. Alcoholic beverage con- trol: neighborhood-restricted special on-sale general licenses. This bill would authorize the Department of Alcoholic Beverage Control (ABC) to issue no more than 12 new original neighborhood-restricted special on-sale general licenses per year to bona fide public eating places located in specified United State Census Bureau census tracts (2020 Census) in the County of Los Angeles, until a total of 40 new licens- es have been issued, as specified. An act to add Section 23826.24 to the Business and Professions Code, relating to alcoholic beverages. AB 831, Valencia. Gambling: operation of a contest or sweepstakes. This bill would prohibit an online sweepstakes game (game, contest, or promotion), as described, that simulates or mimics casino-style gambling or a gambling-themed games, as defined, by utiliz- ing a dual-currency system of payment that allows a person to play or participate with direct or indirect consideration, and for which the person playing or participating may become eligible for a prize, award, cash, or cash equivalents or a chance to win a prize, award, cash, or cash equivalents. This bill would make it unlawful for any person or entity to operate, conduct, or offer an online sweepstakes game, as de- fined, in this state. An act to amend Section 17539.1 of the Business and Professions Code, and to add Section 337o to the Penal Code, relating to gambling. AB 853, Wicks. California AI Transparency Act. The bill requires large online platforms to develop a way for users to easily access provenance data of up- loaded content. The bill would also require capture device manufacturers to include features on their products that enable users to include provenance data in the content that they capture. These require- ments, coupled with SB 942, would create a compre- hensive disclosure and detection framework that would enable the large-scale classification of content as either authentic or artificial. An act to amend Sections 22757.1, 22757.4, and 22757.6 of, and to add Sections 22757.3.1, 22757.3.2, and 22757.3.3 to, the Business and Professions Code, relating to artificial intelligence. AB 867, Lee. Veterinary medicine: cat declawing. Prohibits a person from performing a declawing or similar procedures on any cat unless the person is licensed as a veterinarian in California and the veter- inarian is performing the declawing for a therapeutic purpose, as defined. An act to amend Sections 4826, 4827, and 4883 of, and to add Section 4826.8 to, the Business and Pro- fessions Code, relating to healing arts. AB 1002, Gabriel. Contractors: failure to pay wag- es: discipline. Authorizes the Attorney General (AG) to bring a civil action to impose discipline upon, to deny an application for, or to deny continued mainte- nance of, a contractor license, as specified. An act to add Section 7036 to the Business and Pro-
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New California Laws 2026
SB 53: Balancing AI innovation with public safety
By Allison Melendez S B 53, or the Transparency in Frontier Artificial Intelligence Act, was signed into law on Sept. 29 by Gov. Gavin Newsom. SB 53 marks the first time a U.S. state has passed a law specifically regu- lating the development of AI. California is known as the birthplace of tech, and the AI industry continues to thrive in the state. This law places a set of requirements, protections and structures aimed at balancing AI innovation while protecting public safety. The law seeks to preserve and boost innovation while simultaneously guarding against risks of mis- use. Additionally, it aims to build trust and account- ability around “frontier” AI development. Because California is home to many of the world’s largest AI companies and a large portion of AI-related talent and investment, SB 53 could set the precedent and provide a framework for other states and/or federal policy shaping how AI is governed nationwide. SB 53 only applies to “frontier” models, or those that are developed by large AI developers meeting certain thresholds. It is meant to create mandatory, standardized and objective reporting by frontier de- velopers to provide the government and public with timely and accurate information. The law focuses on catastrophic risks such as misuse of bioweapons, loss of control, large-scale cybersecurity threats or other existential-scale harms. It doesn’t directly address issues such as misinformation, bias or privacy abuse. The framework is meant to document technical and organizational protocols to manage, assesses and mitigate catastrophic risks. Again, this applies to large developers or anyone who has trained or initiat- ed the training of a frontier model. A frontier model is defined as a model using a quantity of computing power greater than 10^26 integer. Some of the pro- visions apply to all frontier developers, but the bulk apply solely to large developers, which are defined as developers that, collectively with their affiliates, had annual gross revenue of $500 million. Large frontier developers will be required to write, implement and comply with, and clearly publish on its website an “AI framework” that describes its ap- proach to a variety of topics including, but not lim- ited to: catastrophic risks, mitigation, internal gov- ernance, etc. Large frontier developers must update their framework at least once per year. These large developers are also required to submit a summary of any assessments regarding catastrophic risk to
the Office of Emergency Services. Developers who do not comply may face civil penalties enforceable by the state attorney general. While SB 53 aims to create standards to increase public trust, it falls short in that it focuses primarily on very large AI developers. It is certainly one step forward in building safeguards with the growing use of AI. However, there is a potential concern that state- by-state regulation could lead to patchwork of laws which could make compliance more complex for AI companies operating in multiple jurisdictions. SB 53 is certainly a starting point, but there will need to be more clarity as to what these frameworks require.
Allison Melendez is an attorney at KENT | PINCIN.
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New California Laws 2026
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An act to amend, renumber, and add Section 22806 of, to add Section 22807 to, and to repeal Section 22805 of, the Financial Code, relating to commercial financing. SB 364, Strickland. Outdoor advertising displays: permits: new alignments. This bill makes changes to the Department of Transportation’s (Caltrans) re- view process when considering a permit application for a new outdoor advertising display (billboards) along a freeway or highway, as specified. An act to add Section 5367 to the Business and Pro- fessions Code, relating to outdoor advertising. SB 378, Wiener. Online marketplaces: illicit canna- bis: reporting and liability. This bill places obligations on online marketplaces where advertising or sales of illicit cannabis or hemp products occur, including required disclosures, reporting mechanisms, and warnings. This bill prohibits “unlawful paid online advertising,” as defined, related to unlicensed sellers of cannabis or cannabis products, intoxicating hemp products, or unregistered hemp products. An act to add Chapter 31.3 (commencing with Section 22943) and Chapter 31.4 (commencing with Section 22944) to Division 8 of the Business and Pro- fessions Code, and to add Section 1714.47 to the Civil Code, relating to cannabis. SB 395, Wiener. Alcoholic beverages: additional licenses: hospitality zone. This bill authorizes the Department of Alcoholic Beverage Control (ABC) to issue up to 20 additional new original on-sale gener- al licenses for bona fide public eating places located within a designated hospitality zone, as specified, in the City and County of San Francisco. An act to add Section 23826.22 to the Business and Professions Code, relating to alcoholic beverages. SB 451, Archuleta. Gambling. This bill clarifies the Department of Justice’s (DOJ) authority to investigate suspected violations of illegal gambling activities con- ducted outside of licensed cardrooms, irrespective of whether the suspected violation involves licensees. Additionally, this bill amends existing law to autho- rize an eligible organization to conduct a major league sports 50/50 raffle at a championship game, provided the game is held at the designated venue where the affiliated sports team plays its home game. An act to amend Sections 19826 and 19827 of the Business and Professions Code, and to amend Sec- tion 320.6 of the Penal Code, relating to gambling. SB 456, Ashby. Contractors: exemptions: mural- ists. This bill exempts an artist who creates, restores, or preserves a mural from licensure under the Con- tractors State License Law. An act to add Section 7050 to the Business and Pro- fessions Code, relating to professions and vocations. SB 517, Niello. Home improvement contract re- quirements: subcontractors. This bill requires con- tractors who enter into a home improvement contract (HIC) with a consumer to indicate whether a subcon- tractor/subcontractors will be used to complete the contract, including any change orders. Requires the prime contractor to provide specified disclosures regarding the subcontractor. This bill clarifies that the prime or direct contractor is responsible for com- Continued on page 16
changes to two sections of the Financial Code. An act to amend Section 2105 of, and to repeal Sec- tion 23057 of, the Financial Code, relating to financial institutions. 2025 Senate Business and Professions Laws SB 50, Ashby. Connected devices: device protec- tion requests. This bill requires account managers of connected devices to provide a process for survivors or their representatives to terminate or disable per- petrators’ access to such devices through a “device protection request” with specified documentation from survivors of “covered acts,” as defined. An act to add Chapter 35.5 (commencing with Section 22948.30) to Division 8 of the Business and Professions Code, and to amend Section 6320 of the Family Code, relating to connected devices. SB 53, Wiener. Artificial intelligence models: large developers. This bill requires large artificial intelligence (AI) developers, as defined, to publish safety frameworks, disclose specified transparency reports, and report critical safety incidents to the Of- fice of Emergency Services (OES), as specified. Ad- ditionally, this bill creates enhanced whistleblower protections for employees reporting AI safety viola- tions and establishes a consortium to design a frame- work for “CalCompute,” a public cloud platform to expand safe and equitable AI research, as specified. An act to add Chapter 25.1 (commencing with Section 22757.10) to Division 8 of the Business and Professions Code, to add Section 11546.8 to the Gov- ernment Code, and to add Chapter 5.1 (commencing with Section 1107) to Part 3 of Division 2 of the Labor Code, relating to artificial intelligence. SB 243, Padilla. Companion chatbots. This bill imposes a number of obligations on operators of “companion chatbot platforms” in order to safeguard users. An act to add Chapter 22.6 (commencing with Sec- tion 22601) to Division 8 of the Business and Profes- sions Code, relating to artificial intelligence. SB 291, Grayson. Contractors: workers’ compensa- tion insurance. This bill (1) requires the Contractors State License Board (CSLB) to report statistical data on violations of workers’ compensation coverage re- quirements; (2) increases the civil penalty amount for violating workers’ compensation coverage require- ments; and, (3) requires the CSLB to provide a pro- cess to verify exemption eligibility for workers’ com- pensation coverage by January 1, 2027, as specified. An act to amend Sections 7017.3, 7099.2, 7125.4, and 7125.7 of the Business and Professions Code, re- lating to contractors. SB 362, Grayson. Commercial financing: disclo- sures. This bill regulates the use of “interest” and “rate” as terms to describe charges related to a commercial financing transaction and clarifies the enforcement authority provided to the Department of Financial Protection and Innovation (DFPI) for vi- olations of commercial financing disclosure require- ments.
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