A Rundown on the Newest Laws That Will Impact California Restaurants

Fall has arrived, a seasonal change that accompanies the end of California’s legislative session. This rapid-fire period marks when state lawmakers send their passed laws to Gov. Gavin Newsom’s desk to sign or reject them. This is Newsom’s last time presiding over this process, as his term leading the Golden State ends in January 2027. As the session concluded on September 30, some significant changes are underway for consumers, restaurants, and food businesses throughout California. Most of the laws that passed go into effect on January 1, 2027.

This is not a comprehensive 2026 lawmaker roundup, but it includes several that will impact diners and restaurant operators throughout California.

Assembly Bill 1679: Local pop-up small business program

One of the most talked-about and compelling new laws of the season has been Assembly Bill 1679. In this session, California became the first state to allow pop-up businesses and restaurants to utilize vacant storefronts and commercial spaces for up to 120 days. The law permits limited food operators to operate for three months, with some wiggle room to extend their residency. With so many empty retail spaces peppered throughout city streets, AB 1679 will allow small businesses the opportunity to incubate and test an idea, develop a following, and possibly establish a permanent presence, according to Independent Hospitality Coalition’s Eddie Navarette, whose organization co-sponsored the bill. He explains that AB 1769 is twofold: boosting new businesses and reducing neighborhood blight. “For too long, talented entrepreneurs with bold ideas have watched vacant storefronts sit dark while the cost and complexity of opening a business kept opportunity out of reach,” says Navarette. “This law will help turn empty spaces into places of creativity, employment and connection, bringing new energy to downtowns and neighborhood corridors while helping communities recover from years of economic uncertainty and devastating natural disasters.” 

Assembly Bill 2663: Alcoholic beverages retail

Over the last six years, adjustments surrounding alcohol sales have dominated signing sessions. The existing law expires on New Year’s Eve and extends California’s to-go cocktail privilege to December 31, 2029. Restaurants can continue selling house-sealed cocktails and single-serve wine to go under the same prior conditions. 

Assembly Bill 2418: Local building permits

Assembly Bill 2418 is designed to tighten deadlines for local agencies that review commercial building plans. Over the years, Los Angeles restaurant owners have shared with Eater that delays can take three to six months or more. AB 2418 forces agencies like the Los Angeles Department of Building and Safety to provide timelines for plan check approvals and prevent excessive delays. The law defines excessive delays as more than 30 days for commercial spaces. The law states that a restaurant can hire the following: “A private plan-checking entity if the estimated timeframe would result in an excessive delay or if there is excessive delay by the local agency.” Once receiving the report from the private plan checker, local California agencies will be required to act within 10 business days. This law has the potential to save restaurants thousands of dollars long before they’re earning revenue.

Assembly Bill 2319: Personal income tax law for qualified motion picture post-production

Burbank Democrat assemblyman Nick Schultz authored Assembly Bill 2319, which expands California’s film and television tax credit program by creating a new tax credit to support workers in all areas of post-production. Local productions have dropped considerably since the pandemic and the 2024 SAG-AFTRA writer strikes; in 2023, some restaurant owners told Robb Report they had experienced a 20 percent drop in diners and catering. While the crux of AB 2319 provides a 35 to 50 percent credit on post-production expenses in California, the potential to be a boon for restaurants feels significant. AB 2319 goes into effect on January 1.