The six biggest remaining bills for city leaders
By Brian Hendershot, Cal Cities Advocate managing editor. Additional contributions by the Cal Cities Advocacy Team
It’s do-or-die for hundreds of legislative proposals. Gov. Gavin Newsom has until Sept. 30 to sign or veto any new measures into law — including dozens that would affect cities. Here are the top six bills city leaders should prioritize for action.
Problematic warehouse setback bill keeps trucking
Lawmakers proposed and passed major restrictions to new warehouses and warehousing expansions in the final days of the session. AB 98 (Carillo, Juan and Reyes) would force all local governments to update their circulation element by 2026 or 2028, depending on the region, regardless if they are approving new or expanded warehouses. If the circulation element is not updated, the Attorney General could fine them $50,000 every six months.
Cal Cities has vigorously opposed this new unfunded mandate that usurps local land use authority. Crafted in secret, the measure proposes a one-size-fits-all approach that takes local solutions completely off the table. It would create winners and losers based on geography, hamper employment opportunities, and limit future economic growth.
“AB 98 severely limits our job creation efforts, leading our residents to drive one to two hours to find employment in the Inland Empire and LA area,” Victorville Mayor Elizabeth Becerra told reporters today. “Not only do these long commutes negatively impact the quality of life for our residents and their families, but long commutes also increase vehicle miles traveled and harm air quality.”
Business leaders and city officials warned that AB 98 would have unintended impacts on the state and national economies. The Inland Empire warehouse industry and southern California ports support 40% of all goods movement to every congressional district in the nation. Cal Cities and other excluded stakeholders are urging the Governor to veto the measure.
Sponsored bill would make it easier to clear vegetation for wildfire preparedness
One of Cal Cities’ sponsored bills has taken on newfound urgency as wildfires erupt in California, Nevada, Oregon, Idaho, and Montana. An Orange County official said that burn scars have helped slow the fast-moving Airport Fire. But some areas haven’t burned in years. That, combined with recording-breaking heat, created the perfect conditions for fire growth.
Scenarios like these are all too common in California. Local agencies often experience long delays spanning multiple fire seasons when trying to accelerate wildfire preparedness efforts. AB 2330 (Holden) would make it easier for cities to remove vegetation in fire-risk areas next to urban communities by expediting environmental permits. This voluntary process would uphold environmental laws and ensure continued collaboration between local agencies and the state.
Workforce bill misses the mark
Cal Cities is urging the Governor to veto AB 2561 (McKinnor), a measure aimed at reducing vacancy rates. The bill would require all local agencies to hold an annual public hearing on the status of vacancies before their governing board at least once per fiscal year.
The final measure is better than the original proposal. And the intent is sound: The status quo is not sustainable. However, the measure does not address the root causes of low labor force participation rates in California across all sectors. Instead, it would create additional layers of bureaucracy that distract from meaningful efforts to recruit and retain workers.
Cities acting in good faith could get slammed with stiff fines
Gov. Gavin Newsom has indicated that he’ll sign SB 1037 (Wiener), but that shouldn’t deter cities urging him to veto the measure. SB 1037 would allow the Attorney General to seek new legal penalties if a city fails to plan for enough housing — up to $50,000 a month.
Recent amendments to the measure make it clear that after a court rules a city does not have a certified housing element, it will have 120 days to adopt a housing element and get it certified by the Department of Housing and Community Development. If not, a $50,000 monthly fine will commence and continue until the department certifies the housing element.
Crucially, the bill does not provide an opportunity for cities to correct an honest mistake or address a genuine difference in interpreting the law. Even cities acting in good faith could be subject to significant fines and forced to pay the Attorney General for the costs of investigating and prosecuting the action, including expert witness fees and attorney’s fees.
Sponsored recovery home bills face final hurdle
Two recovery housing bills sponsored by Cal Cities are awaiting the Governor’s signature: AB 2081 (Davies) and AB 2574 (Valencia). The two measures would provide much-needed transparency and hold providers accountable for high-quality treatment and care.
AB 2081 would require licensed recovery home operators to disclose to people seeking care that they can check the Department of Health Care Services’ website to confirm a facility’s compliance with state licensing laws. The legislation would enable patients to make informed decisions about their care and connect them to other available licensing and certification resources.
AB 2574 would expand reporting requirements to enhance the Department of Health Care Services’ oversight of sober living homes operating as an integral part of a licensed treatment facility elsewhere. This much-needed transparency would ensure that if a recovery residence is operated as a business with a licensed treatment facility, it is regulated like a business, not a residential home.
What’s next?
For now, lobbyists, lawmakers, aides, and reporters alike can take their foot off the gas pedal. A unusually hectic legislative session is over, and the ball is in Gov. Gavin Newsom’s court.
Still, California's legislative session is notoriously productive, and this is only a momentary respite. Organizations — including Cal Cities — are already busy preparing briefs on the biggest new laws to cross the finish line. For more information about this year’s biggest bills, subscribe to Cal Cities Advocate or contact your regional public affairs manager.