Bill Talk: The (next-to-last) last Bill Talk of 2025?

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

By Cal Cities Staff

Welcome to the last week of committee hearings. This week marks the second and final suspense file of the year — and the impending death of hundreds of bills that lawmakers deem too fiscally hefty for California's less-than-healthy budget. Under normal years, this would mark the beginning of the "slow" season, barring a last-minute voting marathon. But this year could be (and for many, has been) anything but.

Apart from an all-hands-on-deck redistricting gambit, lawmakers have several pending deals they need to sort out. Some of these could leak into a special session later this year. By far the biggest is the $22.3 billion Medi-Cal hole left by federal funding cuts. But legislators must also figure out the future of the Cap-and-Trade Program, which is currently tied up with the state's high-speed rail ambitions and wildfire response. 

But that is a problem for the week after next. For now, all eyes are firmly focused on appropriations. After that, the Legislature has until Sept. 12 to pass bills, giving Gov. Gavin Newsom one month to sign or veto any that make it to his desk.

A quick peek behind the curtain: Bill Talk grew out of the much catchier “Upcoming legislative meetings on bills of interest to cities” and arguably misnamed “State Bills in Brief.” Both series ended when policy committee hearings ended. Bill Talk is scheduled to end on Monday, with a look at the bills that made it out of suspense. However, if most of Cal Cities’ priority bills pass out of suspense, we may continue this series during the last weeks of floor votes.

-Brian Hendershot, Cal Cities Advocate managing editor

Housing bills have suspiciously different price tags

Two priority housing bills will face their final committee hearing this week. Both would require the Department of Housing and Community Development (HCD) to more actively review local housing plans but have strikingly different fiscal projections.

AB 650 (Papan) would allow cities to begin the housing element review process six months earlier than existing law and require HCD to provide additional information to cities. This would make it easier for cities to follow housing element law, something the Newsom Administration has made a top priority. According to the Senate Appropriations Analysis, the Cal Cities-sponsored bill would cost HCD $11.1 million annually and require 52 new staff positions.  

SB 79 (Wiener) would force cities to approve tall, dense residential housing with limited environmental review and no public engagement near specific transit stops. The measure also requires HCD to review new alternative transit-oriented development plans in these areas, should a city want to implement the measure in a way that better fits its community. SB 79 has an estimated cost of $955,000 annually.

This is a striking difference: Under SB 79, HCD would need to review new information in housing elements, review and approve local ordinances, and determine residential capacity on land within one-half mile of qualifying transit stops. Meanwhile, AB 650 merely requires HCD to do something it should arguably already be doing.

Given the current budget deficit, this could spell trouble for AB 650 — which has passed with unanimous bipartisan support all year. SB 79, which Cal Cities opposes, has scraped through the process with the bare minimum number of votes.

Cities should reach out to their legislators and voice their support for AB 650 and opposition to SB 79.

- Brady Guertin, legislative advocate (housing)

Cap-and-Trade reauthorization deal expected soon(ish)

With Cap-and-Trade set to expire in 2030, negotiations are in full swing for a late-session deal. Cal Cities and other local government, transportation, and labor partners have urged state leaders to prioritize climate-safe infrastructure improvements during negotiations.

The Cal Cities-led coalition held a rally in July on the Capitol steps, calling for the Cap-and-Trade Program to invest in:

• Local clean transportation infrastructure
• Climate adaptation programs, such as sea level rise, flood infrastructure, and organic waste infrastructure
• Land use and infill development for affordable housing and sustainable communities
• State and regional clean transit infrastructure
• Wildfire resilience infrastructure at the local level

Cities should take action and send a letter of support to their legislators for the coalition priorities that could bring much-needed climate funding to their communities. Negotiations will continue in these final weeks of the legislative session.

- Melissa Sparks-Kranz, legislative advocate (environmental quality)

Remaining recovery housing bills face an uphill battle in appropriations 

After receiving a high price tag in appropriations, Sen. Catherine Blakespear decided to turn one of Cal Cities’ sponsored recovery housing bills into a two-year bill. Lawmakers had placed the measure on the suspense file — reserved for bills with significant fiscal impacts that require more in-depth review.

SB 329 would have required the Department of Health Care Services to meet its own internal timelines for investigating complaints against licensed treatment facilities. Just to meet their own timelines, the department estimated it would need dozens of new employees, with ongoing costs in the millions.

This left two options: Risk the bill dying in appropriations or take another stab next year. Ultimately, the bill was shelved for the year and will come back next year as something more likely to pass.

Two other sponsored recovery housing bills, SB 35 (Umberg) and AB 424 (Davies), are still on the suspense file. Both would implement recommendations from a recent state audit that found the state health agency has failed to investigate complaints against these facilities consistently and thoroughly, jeopardizing patient and community safety. Lawmakers will determine the fate of the two measures by the end of the week, along with hundreds of others.

The last measure in the bill package, AB 492 (Valencia), is awaiting a vote on the Senate floor. It has not received any no votes so far this year.

- Caroline Grinder, legislative advocate (community services)

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 Tuesday 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.