California Governor Gavin Newsom has signed legislation aimed at leveling the playing field for the state's small businesses, cracking down on monopolies, cutting permitting red tape and protecting entrepreneurs from abusive financial practices.
The package includes a major update to California's antitrust and consumer protection laws, creating new authority for the Attorney General and district attorneys to combat monopolistic behavior while also protecting small businesses. Cities will be required to create a new permit allowing pop-up businesses to operate in vacant storefronts for up to 120 days, and qualifying small business tenant-improvement permits will get a plan-check timeline, with approved third-party plan checkers allowed when review is excessively delayed.
"California didn't become the fourth-largest economy in the world by chance. We got here because of the innovators, risk-takers, and entrepreneurs who started small and helped build this state from the ground up," Newsom said. "Today we're leveling the playing field for small businesses by making it easier to open and expand businesses, cutting red tape, and protecting competition."
Assembly Majority Leader Cecilia Aguiar-Curry (D-Winters), who authored the COMPETE Act, said government has a responsibility to step in when a corporation uses its power to crush competitors rather than compete. "Thank you to Governor Newsom for signing the COMPETE Act, and to everyone who helped make it happen," she said.
The laws also let retailers hire qualified architects or engineers to certify that building plans comply with life-safety, health and building code requirements, and allow restaurants and bars to continue offering cocktails to-go. Additional measures protect small businesses from unscrupulous financing companies and fund free or low-cost technical assistance providers.
The bills are AB 2116 by Assemblymember Pilar Schiavo, AB 685 by Assemblymember José Luis Solache, AB 1679 and AB 2418 by Assemblymember Mark González, AB 1693 by Assemblymember Rick Chavez Zbur, AB 1776 by Aguiar-Curry and AB 2663 by Assemblymember Chris Rogers.
Newsom's office said California's annual GDP has grown by more than $1.18 trillion since he took office, reaching $4.25 trillion in 2025, with first-quarter 2026 output at an annualized $4.4 trillion. The state has more than 4.3 million small businesses employing 7.6 million Californians.