Bill Talk: Budget cuts, legislative wins, and late-breaking bills

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

By Cal Cities Staff

Even in a normal year, the last two weeks of policy committee hearings are busy. But this year, lawmakers must also react to the federal tax and spending package signed into law on Friday. The federal budget will cut billions from the state's budget, most notably to Medi-Cal. But the impact could be even greater due to cuts to various federal departments, including the Federal Emergency Management Agency.

So, what's happening at the state Capitol? State lawmakers introduced a late-breaking bill that would yank control away from cities for local infrastructure projects. Cal Cities also scored a victory when Asm. Juan Alanis agreed to park a well-intended but flawed measure that would have required some parks to maintain automated external defibrillators. Several priority bills cleared key committee hurdles - including a human trafficking bill now on the Senate floor.

Also this week, Cal Cities and others held a rally on the steps of the Capitol, urging lawmakers to prioritize climate-safe infrastructure investments at the local level during negotiations over the future of the state's Cap-and-Trade Program.

"Cap-and-Trade funding powers our communities," said Cal Cities Executive Director and CEO Carolyn Coleman. "It helps our cities meet the state's climate goals, strengthens our economy, and accelerates the production of affordable housing."

A quick note: This story was first published on Monday and updated early Wednesday morning. Things may have changed.

-Brian Hendershot, Cal Cities Advocate managing editor

Legislators amend SB 79, send it to its final committee hearing next week

The recently amended SB 79 (Wiener) is set for a hearing in Assembly Local Government on July 16. Opposed by Cal Cities, the bill would force cities to approve by-right tall, dense residential housing near specific transit stops without public engagement, environmental review, or consideration for state-certified housing elements.

The author accepted changes from the Assembly Housing Committee that revise how Density Bonus Law would apply to SB 79 projects and provide clearer affordability requirements for the projects. Other amendments attempt to address displacement concerns highlighted by the committee analysis. Cal Cities will provide more details about these changes once the amendments are in print. The bill cleared the Assembly Housing Committee by 9-2.

- Brady Guertin, legislative advocate

Last-minute gut-and-amend usurps local decision-making for transportation projects

Lawmakers added broad new language to SB 445 (Wiener) that would create a near-total erosion of local control over infrastructure assets cities must maintain and steward. The bill transfers key decision-making authority from local governments to external entities, including transit districts and the state transportation agency.

This shift would effectively sideline cities from planning and delivering infrastructure projects within their own jurisdictions. Additionally, the bill proposes a vast array of complex timeframes that are highly prescriptive and impractical, requiring local agencies to respond within rigid, accelerated windows that will only result in greater legal liability for cities.

SB 445 was referred to the Assembly Committee on Transportation. Cities should contact their assembly members and urge them to oppose the measure.

- Damon Conklin, legislative advocate

Short-term rental bill heads to the Assembly Judiciary Committee

Last week, the Assembly Local Government Committee approved SB 346 (Durazo) by a 9-0 vote. The bill now heads to the Assembly Judiciary Committee, where it will be heard on July 15. 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 also provides cities with audit authority over transient occupancy taxes collected by the platforms.

Short-term rental platforms do not display the addresses of properties on their listings, making it nearly impossible to tell if a unit is legally licensed or to verify whether platforms are collecting and remitting the correct tax amount.

Opponents of the bill have invested heavily in stopping it. Cities should submit a letter of support for the measure and contact their assembly member if they serve on the Assembly Judiciary Committee.

- Ben Triffo, legislative advocate

Warehouse clean-up bills hearings forthcoming

Two bills that would revise the controversial warehouse standards law from last session are set for their final committee hearings. The law creates restrictions on new or expanding warehouses and requires all cities to update their circulation elements to account for these changes - including truck movement. Cities that fail to do so could face $50,000 fines every six months from the Attorney General. AB 735 (Carrillo) is in Senate Local Government today, July 9. SB 415 (Reyes) will be in Assembly Local Government on July 16.

Cal Cities secured important revisions to both bills earlier this session and is urging the authors to adopt further changes. Cal Cities is asking lawmakers to let cities develop a plan or ordinance rather than a circulation element update, which would trigger additional general plan updates under the same timelines. Cal Cities is also urging lawmakers to exempt cities from the circulation element update if they are not approving new or expanded logistics use projects. If that changes, a city would need to update its circulation element according to the law.

Cities should submit letters to both committees in advance of the hearings expressing concerns about the continued need for clean-up legislation.

- Melissa Sparks-Kranz, legislative advocate

Call for support for sponsored environmental bills in appropriations

Three environmental bills sponsored by Cal Cities now await their fate in the appropriations committees. AB 846 (Connolly) would streamline the state permitting process for vegetation management projects in fire-prone areas, reducing the risk of catastrophic wildfires. AB 996 (Pellerin) would help coastal and bay cities meet mandated sea level rise plan requirements. SB 454 (McNerney) would create a PFAS Mitigation Fund for cities and water suppliers to use to help clean up the forever chemicals in local water supplies. Cities should express their support to help these measures make it out of the fiscal committees.

- Melissa Sparks-Kranz, legislative advocate

Human trafficking bill faces final committee hurdle

AB 379 (Schultz) passed the Senate Appropriations Committee on Monday and is now pending on the Senate floor. Supported by Cal Cities, the bill would create a new offense for loitering with the intent to purchase commercial sex, increase penalties for purchasing commercial sex from minors, and require certain businesses to display information on human trafficking.

Cal Cities has asked for similar changes since the enactment of SB 357 (Wiener, 2022), which repealed parts of the state's anti-loitering law. It's surprising that the bill passed out of Senate Appropriations unchanged, since both the committee chair and Sen. Scott Wiener requested amendments. Cities should submit a support letter to secure AB 379's passage.

- Jolena Voorhis, legislative advocate

Sponsored mural bill sails out of committee

On Tuesday, the Assembly Business and Professions Committee voted unanimously to approve SB 456 (Ashby). Co-sponsored by Cal Cities, the bill would make it easier for cities to commission local muralists for public art projects by exempting them from existing licensing requirements. This narrow exemption would allow cities to resume mural projects, which have stalled in recent years due to the onerous licensing requirements and potential fines levied against city employees and unlicensed muralists.

- Caroline Grinder, legislative advocate

Cal Cities to work with author's office on well-intended defibrillator bill

Following sustained advocacy from Cal Cities, Asm. Juan Alanis agreed to park AB 387 (Alanis) for the year. The bill would have required public parks used for youth sports to procure and maintain automated external defibrillators and make them accessible during practices and matches. While Cal Cities supported the intent of this measure, implementation challenges resulted in Cal Cities taking an oppose unless amended position. Cal Cities and other stakeholders will work over the fall to put forward a legislative solution next year.

- Caroline Grinder, legislative advocate

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.