California Enacts Legislation to Strengthen Small Business Competition and Expedite Commercial Permits

Saratoga, California — Governor Gavin Newsom on Wednesday enacted a legislative package designed to reinforce antitrust enforcement against corporate monopolies, streamline commercial building permits, and shield independent operators from predatory commercial financing across California.

Central to the initiative is Assembly Bill 1776, designated the COMPETE Act and authored by Assembly Majority Leader Cecilia Aguiar-Curry. The measure overhauls provisions within the state longstanding Cartwright Act, equipping the California Attorney General and county district attorneys with enhanced statutory tools to investigate and prosecute anti-competitive commercial conduct that restricts open markets or forces smaller competitors out of business.

The regulatory package also targets bureaucratic delays that slow physical commercial openings. Assembly Bill 1679 directs California municipalities to establish designated permits authorizing temporary pop-up businesses to occupy vacant storefronts for durations reaching 120 days. Under Assembly Bill 2418, local governments must provide plan-check schedules and permit qualifying commercial applicants to retain accredited third-party reviewers when municipal plan reviews face substantial delays. A related measure, Assembly Bill 1693, allows commercial retailers completing qualifying tenant improvements to hire certified architects or engineers to verify compliance with life-safety and structural building standards.

Additional components include Assembly Bill 2116 to guard emerging commercial enterprises against abusive financing arrangements, legislation authorizing state-supported technical assistance programs, and a statutory extension allowing licensed bars and eateries to maintain off-sale privileges for to-go beverage service. State economic records indicate California commercial activity encompasses 4.3 million independent enterprises that collectively support roughly 7.6 million payroll jobs.

Supporters said statutory updates were necessary to prevent monopolistic consolidation while lowering start-up obstacles for independent entrepreneurs across the state.

"We’re taking on predatory practices that drive up costs and shut entrepreneurs out — making sure California’s economy works for everyone, not just the biggest and best-connected," said Governor Gavin Newsom.

In Saratoga, home to small specialty boutiques, local service firms, and dining spots throughout the Village commercial district in the Silicon Valley foothills, municipal administrators will implement the streamlined plan-check guidelines and pop-up authorization processes mandated under the statewide statutes.

Sources:

Office of Governor Gavin Newsom (September 2026): https://www.gov.ca.gov/2026/09/30/governor-newsom-signs-historic-law-to-stop-big-business-from-shutting-out-competition-cuts-red-tape-to-speed-up-business-permitting/