Bill Talk: Sacramento in suspense

May 14, 2025

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

By Cal Cities Staff

Lawmakers have until May 16 to get their bills through their first set of policy committee hearings. But all eyes were on today, when Gov. Gavin Newsom dropped his revised budget. Early reporting suggested it was not going to be a pretty one. Per Politico on Monday, the state is looking at a $10 to $20 billion budget haircut due to federal tariff policies, a Medi-Cal shortfall, and delayed tax filings.

That’s not counting any federal spending cuts that will arrive long after the Legislature approves the final budget. “We’re going to be trying to pass a shell of a budget,” one anonymous lawmaker told the outlet. “They’re just fake numbers, because we just don’t know.”

Those predictions proved to be true, as Cal Cities lobbyists noted in their analysis of the May Revision. (The budget accounts for a $12 billion shortfall.)

All signs point to next week being equally bloody. That’s when the powerful appropriations committees will meet to determine the fate of hundreds of bills on the suspense file. Those deemed too fiscally hefty will fail to advance. In fact, many of the measures in this week’s Bill Talk are likely candidates for the suspense file. Strong city advocacy will be critical to getting many of these measures off the suspense file and onto their next legislative milestone.

Legislators need to cull a lot of bills this year. The only question is, will they do it themselves — or will they let the second house do it later this year?

- By Brian Hendershot, Cal Cities Advocate managing editor

Encampment measure, sponsored recovery housing legislation set for hearings

Cal Cities is urging the Senate Appropriations Committee to revise a measure that would create additional reporting mandates for all but 14 cities. SB 16 (Blakespear) would require cities that do not receive HHAP funding to provide new data on homelessness in their housing elements. Cal Cities opposes the measure unless amended and is requesting changes that would include smaller cities in an existing regional planning process. This would accomplish the same goal — allowing transparency on the same system metrics that SB 16 includes — but through the same regional process already used by California’s largest cities.

The committee placed SB 16 on the suspense file, along with SB 35 (Umberg). The bill would implement recommendations from a recent state audit urging more timely and thorough investigations of unlicensed facilities accused of violating state licensure law. If the Department of Health Care Services (DHCS) fails to meet these deadlines, counties could conduct site visits and enforce licensure laws.

The Senate Appropriations Committee also approved AB 424 (Davies) today. The bill would require DHCS 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 to learn the outcome of their complaint. By improving communication, AB 424 would help cities stay informed and support a more transparent oversight process.

- Caroline Grinder, legislative advocate

Calderon’s wildfire bills make strides towards the Senate

The Assembly Appropriations Committee reviewed two wildfire bills by Asm. Lisa Calderon on May 14 — including the Cal Cities-sponsored AB 888 (Calderon). The bill, now on the suspense file, would create a grant program to fund wildfire prevention efforts, such as roof replacements or defensible space, by establishing an account within the state Insurance Fund. The Legislature would make the funds available upon appropriation, and the Department of Insurance would need to provide biennial performance reports to lawmakers starting in 2027.

AB 75 (Calderon) would require insurers to notify residential property policyholders that aerial images will be taken of their property. The measure prohibits insurers from cancelling policies based on images of the property that are older than 45 days before sending notice to the policyholder. The policyholder must also receive these images and have an opportunity to remedy any issues.

- Zach Cefalu, legislative analyst

Sea level planning bill up for consideration

A bill sponsored by Cal Cities that would make it easier for cities to develop mandated sea level rise plans was reviewed in the Assembly Appropriations Committee on Wednesday. AB 996 (Pellerin) would create a fund in the state treasury to support the development of sea level rise plans. Additionally, AB 966 would allow cities to engage the California Coastal Commission early about new or amended local coastal plans to ensure a complete and timely formal review. The bill also clarifies that existing sea level rise information or plans may meet one or all the components of the mandated sea level rise plans.

Coastal and bay cities are encouraged to weigh in with support. Sample letters are available on Cal Cities’ bill webpage. The bill is currently on the Assembly Appropriation Committee's suspense file.

- Melissa Sparks-Kranz, legislative advocate

Towing ban back again, metal theft bill set for hearing

The Assembly Appropriations heard several key bills on May 14, including AB 476 (González, Mark). The Cal Cities-sponsored measure would deter stealing metal used in public utility infrastructure by increasing the criminal fines that may be imposed for the unlawful sale or possession of stolen public agency materials. The bill is currently on the Assembly Appropriation Committee's suspense file.

Legislators also reviewed AB 1022 (Kalra). Previous iterations have been stopped by Cal Cities in appropriations before. This bill would prohibit the towing or immobilizing of vehicles that have accrued five or more unpaid parking citations. Specifically, AB 1022 would:

Eliminate the option for parking enforcement to immobilize or tow an out-of-state vehicle.
Remove the ability for agencies to rightfully obtain a warrant to perform a tow.
Reward bad behavior for those who purposely ignore tickets without any repercussions, regardless of income levels.

By severely limiting cities’ ability to enforce parking regulations, this legislation would cause a cascade of fiscal damage: lost revenue, increased administrative costs, clogged courtrooms, decreased compliance, harm to local businesses, public safety risks, and overall reduced effectiveness of municipal government operations.

-Damon Conklin, legislative advocate

Costly public employees’ retirement benefits legislation heads to its first fiscal committee

The Assembly Appropriations Committee heard AB 1383 (McKinnor) on May 14, where legislators moved it to the committee’s suspense file. The bill would make several changes to public employee retirement benefits that would undo pension reform and lead to cost increases for cities. Specifically, it would:

Increase the pensionable compensation cap for certain employees.
Reduce the retirement age for public safety from 57 to 55 prospectively.
Add a fourth safety tier that is 3% at 55 years old, prospective and subject to bargaining.
Allow local agencies to adjust their local formula in a prospective manner.
Permit unions to bargain with the employer over the employee share of payment for the normal cost.

While the intent of the bill is laudable — to strengthen first responder recruitment — pension costs already threaten basic public services, compromise general fund budgets, and pose a long-term fiscal challenge to the state itself. Lawmakers passed the Public Employees’ Pension Reform Act to address a wide range of issues involving public employee pensions. This was a major step in helping local agencies better manage future pension costs and prevent CalPERS from sliding into insolvency.

These proposed changes to the act would send public agencies and their pension funds in the wrong direction. Cal Cities is urging lawmakers to vote no on the measure.

- Johnnie Pina, 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 a few days early, 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.