The new year will sweep in hundreds of California laws and means changes to existing laws. The state minimum wage will increase, an end to medical debt showing up on credit reports will go into effect, more measures aimed at combatting theft are coming and selling food and drinks at cannabis lounges will now have a legal pathway.

Here’s a quick look at some of the more impactful — and curious — laws that will change on Jan. 1.

Medical debt won’t tank credit

A law will go into effect that prohibits credit agencies from using medical debt in credit reports — potentially alleviating part of the financial burden of the U.S. healthcare system for millions.

The California Health Care Foundation estimates one in three Californians have medical debt, which previously could saddle credit scores. SB 1061 will make it so people’s scores won’t be tanked by medical bills, by prohibiting health care providers and debt collectors from reporting medical debt to credit agencies.

Wages

The minimum wage rate for all hourly employees in California will increase to $16.50 an hour on Jan. 1, regardless of company size.

This follows two groups getting wage boosts this year. In April 2024, the wages of fast food workers in California were increased to a minimum of $20 an hour. In October, California health care workers also saw a jump, depending on the type of facility and work.

The wage increase will boost paychecks for thousands of Humboldt County residents, though the high cost of living in California and a period inflation means people won’t be rolling in cash. According to Humboldt County’s economic profile, Humboldt County’s per capita income was about $50,000 in 2020 — it had been increasing slightly above national rates — but was still behind both state and national averages.

Cannabis cafes, drinking on the street

AB 1775 creates a legal pathway for people to make “cannabis cafes.”

Modeled after cannabis consumption lounges in Amsterdam, the policy change explicitly allows for food and beverages to be prepared and/or sold in the same place that cannabis is consumed. The bill also creates a pathway to sell tickets for live musical performances on the premises of a licensed retailer where consumption of cannabis is allowed.

SB 969 allows a city or county to draft an ordinance allowing consumption of alcohol on public streets, sidewalks, or public rights-of-way, called an “entertainment zone.” The bill requires notification and the request for feedback from local law enforcement.

A similar law was passed specifically for San Francisco previously.

Theft

Retail theft is among the most spoken-about issues in this election cycle in California, and with Proposition 36 passing overwhelmingly (which increased penalties for theft and repeated drug possession convictions and overturning many parts of a previous decriminalization proposition), the majority of California appears to be in support of cracking down on stealing property.

New laws will go into effect in January over stealing, especially for retail theft.

Gov. Gavin Newsom’s office called it “the most significant bipartisan effort to crack down on property and retail crime in modern California history,” in a press release.

For example, one will allow police to arrest retail theft suspects with probable cause, even if they didn’t witness a crime in progress.

SB 1416 will create sentencing enhancements for those who sell stolen goods for money, AB 1779 allows district attorneys to consolidate theft charges across counties and AB 3209 creates something called a “retail crime restraining order” banning someone from a specific store.

One law will also expand the definition of “vehicle theft crimes” to include the theft of vehicle parts — like the highly sought-after catalytic converter.

Consumer and worker protections

• Employers won’t be able to force workers to attend anti-union meetings by adding a few protections for workers surrounding ‘captive audience’ meetings.

• AB 2863 requires companies offering automatic renewals and continuous services to provide consumers a means to cancel the subscription using the same medium they used to sign up.

• The laws that force car sellers to buy back cars with initially hidden, significant mechanical issues were switched up this legislative session, and consumer advocates told CalMatters the present state of affairs makes consumers worse off than before with a confusing tangle of laws.

• Farmworkers can use paid sick days during natural disasters — fires, extreme heat and flooding.

Sage Alexander can be reached at 707-441-0504.