Bill Talk: CEQA changes, HHAP overhaul, and more

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

By Cal Cities Staff

The state budget is final. For now. On Tuesday, the lawmakers passed the final set of budget trailer bills, which Gov. Gavin Newsom then promptly signed. As expected, the budget is a bit of a mixed bag for cities, with some priorities (like Proposition 36 and affordable housing) partially funded and others (like homelessness) much less funded.

And of course, the entire budget could become moot if — or maybe when — the federal government slashes spending. Federal funding makes up about a third of the state’s budget, largely in the form of Medi-Cal, CalWORKS, and other safety net programs. Unsurprisingly, state lawmakers deferred some of the thornier questions, like the future of the Cap-and-Trade Program, to later this year.

Perhaps more surprising was a last-minute proposal pushed by Gov. Gavin Newsom that tied major changes to housing law to the state budget. The legislative gambit passed, despite some pushback from environmental groups and others. The verdict is still out on whether these new bills will increase the urban housing supply. (Cal Cities will provide more information about how these changes could impact infill development in the coming weeks.)  

But that's not all that's happening at the Capitol. Legislators are also set to review a late-breaking bill that would upend the Homeless Housing, Assistance, and Prevention program and two measures that would revisit a controversial warehouse standards law from last year.

-Brian Hendershot, Cal Cities Advocate managing editor

Last-minute gut-and-amend upends state homelessness program

Sen. Catherine Blakespear gutted and amended SB 16 last week to impose several significant, new requirements on the state’s flagship Homeless Housing, Assistance, and Prevention (HHAP) grant program. The bill was scheduled for a hearing in the Assembly Housing and Community Development Committee today, but the hearing was postponed. The bill must pass out of the Assembly housing and local government committees by July 18 to move forward this year.

Cal Cities opposes the measure. SB 16 was introduced at the tail end of the legislative session and mandates long-term planning requirements at a time when the state is cutting funding for the HHAP program in half and not fully allocating new funding until the next fiscal year. This is the wrong time to advance legislation that dramatically overhauls HHAP and creates new long-term planning goals without reliable, long-term HHAP money to carry out these plans.

 - Caroline Grinder, legislative advocate

Housing bills AB 650 and SB 79 move forward

Cal Cities-sponsored AB 650 (Papan) cleared Senate Housing on Tuesday. The measure would significantly improve the housing element review process by encouraging local jurisdictions to begin the housing element update process six months early and requiring the state to provide greater clarity in the review process.

SB 79 (Wiener) faced its first of now two committee hearings in Assembly Housing and Community Development on Wednesday. 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.

Cities have advocated strongly on both bills, and their voices will be crucial in the remaining few weeks of session.

-Waleed Hojeij, policy and legislative affairs analyst

Fire hazard zone measure improved; Warehouse clean-up bills set for hearing

Sen. María Durazo accepted changes proposed by Cal Cities to improve SB 629, a fire hazard mapping bill. The measure would have required cities to designate a very high fire hazard severity zone and adopt local ordinances for each wildfire burn area that meet specific state criteria, as well as establish enforcement programs for fire protection standards. Cal Cities expressed concerns about SB 629, as it could take significant resources to make such designations outside of the current mapping process and required enforcement programs.

Cal Cities worked with the author on changes that would require the State Fire Marshal to make this designation, not cities. Cal Cities also secured amendments to broaden the enforcement provision to give cities greater flexibility when implementing the program. The Assembly Emergency Management Committee reviewed SB 629 on Tuesday. The bill now heads to the Assembly Natural Resources Committee.  

Also up soon are two revisions to a controversial warehouse standards law from last session: AB 735 (Carrillo) and SB 415 (Reyes). 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 — no questions asked. AB 735 is advancing to Senate Local Government on July 9, and SB 415 is headed to Assembly Local Government on July 16.

Cal Cities secured important revisions to both bills earlier this session and is urging the authors to adopt additional 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.

- Melissa Sparks-Kranz, legislative advocate

Fire insurance bills to be heard on July 9

The Senate Insurance Committee on July 9 will hear two measures by Asm. Lisa Calderon that would make needed reforms to the state’s fire insurance rules. AB 75 would prohibit insurance companies from canceling policies based on aerial footage taken 180 days prior to sending notice of the decision to homeowners. The bill would also give homeowners an opportunity to dispute the image and remedy the issue. AB 888 would create a grant program for individuals, cities, and counties for home hardening and roof hardening. Funding would be prioritized for areas in high fire severity zones. Cal Cities supports both measures.

- Jolena Voorhis, legislative advocate

Advanced clean fleet, metal theft bills set for hearing in early July

The Senate Environmental Quality Committee took up two Cal Cities-backed bills, AB 911 (Carrillo) and AB 620 (Jackson), today. Both bills would make it easier for cities to navigate the Advance Clean Fleet regulations. AB 911 would exempt critical telecommunications trucks from the mandates so that disaster responses are not compromised. AB 620 would give cities the option to rent zero-emission vehicles. This would be especially helpful for smaller cities or those without the upfront capital to overhaul entire fleets overnight.

The Senate Business, Professions, and Economic Development Committee scheduled AB 476 (Gonzalez) for July 7. The Cal Cities-sponsored bill would strengthen reporting requirements for recyclers, expand the definition of physical public infrastructure, and create an “organized metal theft” provision in statute with enhanced penalties for repeat offenders to deter metal theft.

- Damon Conklin, legislative advocate

Short-term rental bill passed out of Assembly Local Government

Legislators in Assembly Local Government approved SB 346 (Durazo) on Wednesday, 9-0. 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 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.

The bill heads to Assembly Judiciary next. 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

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.