Bill Talk: The suspense file bills we’re watching

May 21, 2025

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

By Cal Cities Staff

With a rather dire May Revision in the rearview mirror, all eyes are now fixed firmly on the end of this week. That's when the appropriations committees will say whether hundreds of bills with large price tags live or die. It's a somewhat controversial process that allows lawmakers to weigh the fiscal impacts of bills holistically with little public debate.

Last week, Cal Cities lobbyists briefed city officials on the biggest measures likely headed to the suspense file. Most are already there — and should sound familiar. This includes:

Legislators will likely send a Cal Cities-sponsored housing element bill, AB 650 (Papan), to the suspense file as well. The committee delayed the hearing last week but expects to take the bill up this week. SB 79 (Wiener) was also re-referred to the Senate Appropriations Committee with changes, where they will likely place it on the suspense file.

Before you dive into a few more suspense file bills, a quick note: Committee meetings are on hold until June 9. Bill Talk will likely resume the week prior, on June 2.

- By Brian Hendershot, Cal Cities Advocate managing editor

Tax exemptions

Cal Cities is working to reduce the fiscal impact of two bills that would have negative impacts on cities’ budgets, SB 86 (McNerney) and SB 710 (Blakespear). Both bills are on the Senate Appropriations Committee suspense file.

SB 86 would permanently extend the California Alternative Energy and Advanced Transportation Authority’s (CAEFTA) sales and use tax exclusion program. Currently, the Legislature must reauthorize the exclusion every few years. The measure would also raise the annual cap of the sales and use tax exclusion from $100 million to $300 million. Cal Cities is seeking changes that would reduce the scope of the exemption back to its existing size.

SB 710, recently passed by the Senate Revenue and Taxation Committee, seeks to indefinitely extend the property tax exemption for installing behind-the-meter solar energy systems. This exemption has been law for years, but was originally envisioned for rooftop residential installations and small businesses. In the bill’s current form, data centers, big box retailers, warehouses, and industrial facilities could claim the exemption. Cal Cities is actively working with the author’s office to address these concerns.

- Ben Triffo, legislative advocate

Sponsored recovery housing legislation

Two of Cal Cities’ sponsored recovery housing bills are on suspense. SB 329 (Blakespear) would require the Department of Health Care Services (DHCS) to complete timely investigations into complaints about alcohol or drug treatment facilities. Complaints would be assigned to investigative analysts within 10 days of receiving them. Analysts would then need to complete investigations within 60 days.

SB 35 (Umberg) would implement recommendations from a state audit urging more timely and thorough investigations of unlicensed facilities accused of violating state licensure law. If DHCS fails to meet these deadlines, counties could conduct site visits and enforce licensure laws. The department has claimed it would cost millions of dollars to “oversee the unlicensed complaint process,” despite existing law already requiring it to investigate illegal activity at unlicensed homes. This high price tag is an attempt to halt the bill from moving forward.

- Caroline Grinder, legislative advocate

Proposition 36 grant bill

SB 38 (Umberg), a bill that would help fund the voter-approved Proposition 36, is on suspense. The measure would allow court programs and behavioral health services under Prop. 36 to receive grant program funding from the Board of State and Community Corrections (BSCC). SB 38 would remove barriers for public entities seeking BSCC grants for treatment services. Eligible programs include drug court programs, collaborative court programs, and proposals for mental or behavioral health services under the Second Chance grant program.

Given the noticeable continued lack of funding for the implementation of Proposition 36 in the Governor’s May Revision, SB 38’s passage off the suspense file will be critical to Prop. 36’s implementation.

- Zack Cefalu, legislative analyst

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.