Bill Talk: Lots of unfinished business

A weekly update from Cal Cities, sorting through the state bill buzz

By Cal Cities Staff

Lawmakers have a lot - and I truly do mean, a lot - left to do and vanishingly few hours left to do it.

First, there are the hundreds of measures that passed off the suspense file, awaiting a full, final vote. Some of those bills underwent substantial changes, leading to a flurry of stakeholder shuffling. A prime example: Politico on Friday reported that the State Building and Construction Trades Council removed its opposition to a heavily altered housing bill, SB 79.

On top of that, legislators need to reauthorize the Cap-and-Trade program and pass changes to last year's problematic warehouse bill - both Gordian Knots in and of themselves - before the weekend. Looming over it all are the specters of a special session (or two), clean-up legislation next year, and additional federal fights.

All of which is to say: Stay tuned for updates.

-Brian Hendershot, Cal Cities Advocate managing editor

Legislature approves sponsored housing bill; SB 79 still awaiting final vote

The Senate passed AB 650 (Papan) this afternoon. Sponsored by Cal Cities, the measure would allow cities to begin the housing element drafts earlier than existing law and provide more clarity in the review process. A final vote count is pending. However, the bill has received zero no votes so far. With minor technical changes made to the measure in the Senate, AB 650 will go back to the Assembly for concurrence this week before heading to the Governor's desk.

The Assembly will vote on SB 79 (Wiener) sometime today or tomorrow. The measure, which would force cities to approve tall, dense residential projects near specific transit stops, scraped out of committee last week after another round of changes. Currently, it would require cities in Los Angeles, Orange, San Francisco, San Diego, Sacramento, Santa Clara, Alameda, and San Mateo counties to approve such projects with limited environmental review and public engagement. All other counties would be exempt. On Friday morning, the State Building and Construction Trades removed their opposition after securing new labor standards on specific projects.

- Brady Guertin, legislative advocate (housing)

Legislature inches closer to a climate bond deal

Thanks to continued advocacy, the Governor and Legislature appear to have landed on a deal over how to spend November's $10 billion climate bond. The agreement avoids using the monies to backfill the state budget and increases the first-year tranche of funding to $3.287 billion.

In May, Gov. Gavin Newsom proposed using over $300 million of a $10 billion climate bond to backfill the state's budget deficit. Cal Cities and dozens of stakeholder groups that supported the bond pushed back, arguing that clawing back Prop. 4 funding went against what voters approved in November.

In response, the Legislature rejected the Governor's proposal, first winnowing it down and then eventually rejecting it entirely. Some highlights in the deal, AB/SB 105, that now sits in front of the Legislature include:

• $1.2 billion for safe drinking water, drought, flood, and water resilience
• $416 million for wildfire and forest resilience
• $279 million for coastal resilience
• $110 million for extreme heat mitigation
• $390 million for biodiversity and nature-based solutions
• $153 million for climate-smart agriculture
• $466 million for park creation and outdoor access
• $275 million for clean air and energy

Cal Cities submitted a support letter to the budget committees today, urging lawmakers to pass the first year of funding before the end of the legislative session.

- Melissa Sparks-Kranz, legislative advocate (environmental quality)

Sponsored short-term rental bill awaiting the Governor's signature

The Legislature sent SB 346 (Durazo) to the Governor's desk. Sponsored by Cal Cities, the measure would require short-term rental platforms, at the request of a city, to provide the address of short-term rentals listed for rent on the platform. It would also give cities audit authority over transient occupancy taxes collected by the platforms.

"For too long, platforms … have profited while local governments struggle to collect the taxes they're owed and enforce the laws their communities have voted for," Durazo told Fox40. "SB 346 gives cities and counties the basic tools they need to do their jobs."

- Ben Triffo, legislative advocate (revenue and taxation)

Improved recovery housing oversight advances to the Governor's desk

For over a decade, Cal Cities has pushed to strengthen the state's oversight of recovery housing. After years of legislative inaction, all that effort is paying off: For the second year in a row, sponsored bills by Asm. Laurie Davies and Avelino Valencia advanced all the way to the Governor's desk.

AB 424 (Davies) would provide more transparency into how the Department of Health Care Services processes complaints against licensed alcohol and drug treatment facilities. The bill would require the department to notify individuals when their complaint has been received, when the investigation concludes, and the outcome of the investigation. Currently, complainants do not receive updates and must file a public records request just to learn the outcome of their complaint.

"AB 424 is a critical step towards fixing California's substance use disorder treatment system," said Davies. "Bad treatment experiences should be investigated and corrected quickly. The public shouldn't be kept in the dark as to whether or not corrective actions are being taken or if the complaint was received."

AB 492 (Valencia) would require the department to notify a city if the department approves a new license in its jurisdiction. No such requirement currently exists, leaving local agencies in the dark about the operation of facilities within their jurisdictions. This lack of communication can make it difficult to address community concerns, maintain public safety, and ensure that recovery and treatment programs are effectively integrated into local communities.

"By providing local agencies with timely information, we can foster greater collaboration, improve public safety, and ensure that these facilities operate in a manner that best serves the needs of our residents," Valencia said, calling the measure a "critical step."

- Caroline Grinder, legislative advocate (community services)

Metal theft bill in Senate; Advance Clean Fleet bill awaiting Governor's signature

Cal Cities' sponsored AB 476 (Gonzalez) advanced to the Senate Floor. The measure would help prevent theft and vandalism to public infrastructure by enhancing reporting and licensing requirements for scrap metal sellers. The measure, which has received bipartisan support so far, will need to go back to the Assembly for concurrence due to changes made in last week's appropriations hearings.

A bill that would make it easier to comply with the Advanced Clean Fleet rule is on Gov. Gavin Newsom's desk. A reintroduction of a vetoed bill from last year, AB 620 (Jackson) would allow cities to rent zero-emission (EV) vehicles instead of buying them. Cal Cities is supporting the measure, due in part to the new landscape surrounding EV manufacturing and sales, as well as actions by the federal government that limit the state's authority.

- Damon Conklin, legislative advocate (infrastructure)

Sponsored sea level rise planning bill heads to the Governor's Desk

AB 996 (Pellerin) made it off the Senate Floor last Thursday on the consent calendar, reinforcing the bipartisan support for the measure. The bill would provide tools for coastal and bay cities to meet sea level rise planning requirements. A coalition of coastal and bay local governments has proved instrumental in advancing this measure. There is still time for your city to engage and request the Governor's signature.

- Melissa Sparks-Kranz, legislative advocate (environmental quality)

Cities encouraged to support PFAS bills as they move to the floor

Another sponsored bill, SB 454 (McNerney), is headed to the Governor's desk. Cities should encourage the Governor to sign the bill, which would create a PFAS Mitigation Fund to help cities and water agencies remove forever chemicals from their water supplies. A second PFAS bill supported by Cal Cities, SB 682 (Allen), is awaiting a vote on the Assembly Floor. That measure would prohibit the distribution or sale of certain products that contain PFAS.

- Melissa Sparks-Kranz, legislative advocate (environmental quality)

Muralist exemption passes out of the Legislature

A bill that would make it easier for cities to commission muralists, SB 456 (Ashby), is headed to the Governor's desk. Co-sponsored by Cal Cities, the measure would provide a narrow exemption from state contractor license requirements for muralists working on public and private art projects.

In 2023, the Contractors State License Board began notifying cities that muralists fall within the definition of a "contractor" and therefore must carry a license for projects exceeding $500, delaying projects throughout the state. Obtaining a license requires years of specialized experience, an examination, and annual fees. City staff who knowingly hire an unlicensed muralist can face fines.

"Murals and public art installations improve public health, drive economic development, and expand community access to arts and culture," said Cal Cities Executive Director and CEO Carolyn Coleman. "Cal Cities is proud to co-sponsor SB 456, much-needed legislation that will make it easier for cities to commission local artists and uplift their communities."

- Caroline Grinder, legislative advocate (community services)

A quick reminder

Bill Talk is a weekly breakdown of the biggest bills, policy committee hearings, and legislative deadlines that city leaders need to know about. To get this list on Monday morning, contact your regional public affairs manager. To access old Bill Talks, visit the archive page. Cal Cities also maintains a live list of all sponsored/hot measures. Lists of all tracked bills are available on individual policy pages.