Bill Talk: Cities notch big suspense file wins, despite budget crunch
By Cal Cities Staff
Last Friday's final fiscal slashing of the year contained some big wins for cities — not least of all the survival of several sponsored measures. Out of the 15 introduced this year, eight have made it to the floor for a final vote.
Lawmakers also held several bills that would have created new costs and legal liabilities for cities. Of course, some measures supported by Cal Cities failed to advance, mostly those in the environmental quality portfolio. Those measures tend to command higher price tags, making them prime targets for legislators looking to shore up a shaky state budget.
The Assembly and Senate appropriations committees meet twice a year to review the impact of hundreds of measures on the state’s coffers. The Senate and Assembly this time took the unusual move of declaring that any bill that died in appropriations without being turned into a two-year bill cannot come back next year.
This (somewhat) surprising outcome means that Bill Talk will continue until the end of session. But with around 850 measures left to vote on (and no committee hearings), legislators and city leaders will need to act fast. Lawmakers have until Sept. 12 to pass any remaining measures. The last day for lawmakers to get any changes in print — and thus eligible for consideration — is Sept. 9.
Below is a round-up of the major remaining bills, victories, and losses in each portfolio.
-Brian Hendershot, Cal Cities Advocate managing editor
Environmental Quality
The appropriations committees’ actions last week yielded mixed results for Cal Cities’ environmental quality bills. Most environmental-related measures create additional implementation costs, either at the local or state level, making them challenging to pass in a budget deficit.
Unsurprisingly, each appropriations committee held quite a few bills supported by Cal Cities, including its sponsored AB 846 (Connolly). That measure would have created a voluntary streamlined path for local agencies to consult with the California Fish and Wildlife Department on vegetation management projects in fire-prone areas.
Notably, legislation passed earlier this year as part of the budget clarified that environmental review is waived and consultation with the state is only required for certain types of wildfire prevention projects. (See page four in Cal Cities’ CEQA reform primer for eligible wildfire risk reduction projects). While not the same streamlined pathway envisioned in AB 846, the exemption and environmental consultation can serve as a helpful tool for cities looking to expedite wildfire prevention projects.
On a positive note, two Cal Cities’ sponsored bills survived the appropriations cuts: SB 454 (McNerney) and AB 996 (Pellerin). SB 454 would create a PFAS Mitigation Fund to help cities and water agencies remove forever chemicals from their water supplies. It moved forward to the Assembly Floor, along with a second PFAS bill supported by Cal Cities, SB 682 (Allen). That measure would prohibit the distribution or sale of certain products that contain PFAS.
The other sponsored measure, AB 996, would provide tools for coastal and bay cities to meet sea level rise planning requirements. A coalition of coastal and bay local governments has proved instrumental in advancing this measure.
Other priority bills include:
- AB 261 (Quirk-Silva): Fire safety: fire hazard severity zones: State Fire Marshal
Cal Cities Position: Support (Status: Held)
- AB 300 (Lackey): Fire hazard severity zones: State Fire Marshal
Cal Cities Position: Support (Status: Held)
- AB 986 (Muratsuchi): State of emergency and local emergency: landslides
Cal Cities Position: Support (Status: Passed)
- AB 222 (Bauer-Kahan): Data centers: power usage effectiveness: cost shifts
Cal Cities Position: Support (Status: Held)
- SB 601 (Allen): Water: waste discharge
Cal Cities Position: Oppose Unless Amended (Status: Held as two-year bill) - SB 72 (Caballero): The California Water Plan: long-term supply targets
Cal Cities Position: Support (Status: Passed)
- Melissa Sparks-Kranz, legislative advocate
Community Services
Cal Cities’ recovery housing bill package faced its toughest test yet in appropriations, where three of the four measures were sent to the suspense file. The Department of Health Care Services assigned all three high cost estimates, making it difficult for lawmakers to move them forward. That left two options: Risk the bills dying in appropriations or regroup and try again next year. Sen. Catherine Blakespear chose the latter, designating SB 329 as a two-year bill with plans to return next year.
Fortunately, AB 424 (Davies) advanced off the suspense file. The bill would strengthen communication between the department and cities when processing complaints against licensed alcohol and drug treatment facilities. Unfortunately, SB 35 (Umberg) was held in committee and cannot return next year. The measure would have improved oversight of unlicensed sober living homes.
AB 424 now joins AB 492 (Valencia) on the Senate Floor, awaiting a vote before advancing to the Governor’s desk. AB 492 would require the department to notify cities whenever it issues a new license for an alcohol or drug treatment center within their jurisdiction.
Other priority bills include:
- SB 748 (Richardson) Encampment Resolution Funding program: safe parking sites: reporting
Cal Cities Position: Support (Status: Passed)
- SB 83 (Umberg) State Department of Health Care Services: substance abuse treatment: disclosures
Cal Cities Position: Support (Status: Passed)
- AB 543 (Gonzalez) Medi-Cal: street medicine
Cal Cities Position: Support (Status: Passed)
- Caroline Grinder, legislative advocate
Housing, Community, and Economic Development
Lawmakers approved two closely watched bills, AB 650 (Papan) and SB 79 (Wiener), which had received oddly different costs despite similar requirements for the state. Sponsored by Cal Cities, AB 650 passed with unanimous bipartisan support, as has been the case all year. The measure would improve the housing element review process by allowing cities to begin their housing element drafts earlier than existing law and provide more clarity in the review process.
Also staying on trend, SB 79 passed off the suspense file with several changes and the bare minimum of votes, 8-6. The measure would force cities to approve residential projects near specific transit stops with limited environmental review and public engagement. Both Republicans and Democrats were split, as each party had at least one vote in support of it and one against it. As one of the few bills to receive a roll call vote on Friday, it shows just how divided the Legislature is on the issue.
Significant amendments are forthcoming this week that will likely further narrow the measure. Assembly Appropriations Chair Buffy Wicks already announced that a provision looping in all areas near specific transit stops to follow statewide height and density standards for residential development will be removed. She also said there would be modifications to the bill’s definitions and many clarifying and technical amendments, along with changes to projects inside fire hazard severity zones and historic districts.
Other priority bills include:
- AB 507 (Haney) Adaptive reuse: streamlining: incentives
Cal Cities Position: Oppose (Status: Passed)
- AB 660 (Wilson) Planning and zoning law: postentitlement phase permits: housing accountability act
Cal Cities Position: Oppose (Status: Held)
- AB 670 (Quirk-Silva) Planning and zoning: housing element: converted affordable housing units
Cal Cities Position: Support (Status: Passed)
- AB 726 (Avila Farias) Planning and zoning: annual report: rehabilitated units
Cal Cities Position: Support (Status: Passed) - AB 1131 (Ta) General plan: annual report congregate care for the elderly
Cal Cities Position: Support (Status: Held)
- AB 1445 (Haney) Downtown revitalization and economic recovery financing districts
Cal Cities Position: Support (Status: Passed) - SB 750 (Cortese) California Housing Finance and Credit Act
Cal Cities Position: Support (Status: Held)
- Brady Guertin, legislative advocate
Transportation, Communications, and Public Works
Thanks to strong member engagement, Friday’s appropriations committee actions resulted in a relatively positive outcome for infrastructure-related bills. Cal Cities’ sponsored AB 476 (Gonzalez) advanced out of committee, sans provisions that would have created a new crime for organized and repeated metal theft. The bill still includes reporting and licensing requirements for scrap metal sellers and now advances to the Senate Floor.
After receiving letters from Cal Cities members, the author removed provisions from an outdoor billboard permitting bill, SB 364 (Strickland), that created significant safety concerns. Assembly Appropriations held SB 445 (Wiener), which took several forms this year — all usurping local permitting review and inspection. City letters in both cases strengthened Cal Cities’ efforts to preserve local control.
Notably, legislators also held AB 470 (McKinnor) for the year. The measure would have created an off-ramp for telecommunication providers from carrier of last resort obligations. Cal Cities had voiced concerns about the bill, which has drawn considerable attention.
Other key bills include:
- AB 620 (Jackson): Medium- and Heavy-Duty Zero-Emission Vehicle Fleet Purchasing Assistance Program: rental vehicles
Cal Cities Position: Support (Status: Passed) - SB 431 (Arreguin): Assault and battery: Public works employees
Cal Cities Position: Support (Status: Held)
- SB 283 (Laird): Battery Energy Storage Systems
Cal Cities Position: Support (Status: Held) - SB 74 (Seyarto): Infrastructure Gap Funding
Cal Cities Position: Support (Status: Held)
- SB 78 (Seyarto): Highway System: Safety Enhancements
Cal Cities Position: Support (Passed)
- Damon Conklin, legislative advocate
Public Safety
Most of Cal Cities’ priority policing bills passed off the suspense files with minor amendments. Several Cal Cities-supported bills related to fire insurance and wildfire mitigation also passed out of the Appropriations Committees. But lawmakers did hold a few major bills, such as AB 75 (Calderon). Supported by Cal Cities, the bill would have required insurance companies to provide notice to homeowners before taking aerial footage of their property.
Other priority bills include:
- AB 1 (Connolly) Residential property insurance: wildfire risk
Cal Cities Position: Support (Status: Passed) - AB 888 (Calderon) California Safe Homes grant program
Cal Cities Position: Support (Status: Passed) - AB 8 (Aguiar-Curry) Cannabis: Industrial Hemp
Cal Cities Position: Support (Status: Passed as amended)
- AB 992 (Irwin) Peace Officers
Cal Cities Position: Support (Status: Passed)
- SB 6 (Ashby) Controlled substances: xylazine
Cal Cities Position: Support (Status: Held)
SB 701 (Wahab) Signal Jammers
Cal Cities Position: Support (Status: Passed)SB 759 (Archuleta) Crimes: supervised release
Cal Cities Position: Support (Status: Held)
- Jolena Voorhis, legislative advocate
Governance, Transparency, and Labor Relations
In a win for cities, Senate Appropriations held AB 340 (Ahrens) and AB 1109 (Kalra) on the suspense file. These bills would have effectively created new privileges between employees and unions. In doing so, the bills would have restricted employer investigations and added new costs and liability for cities.
AB 339 (Ortega), however, passed with amendments. This bill, like previous unsuccessful proposals, would undermine local agencies’ ability to contract for public services. The amendments removed the bill’s meet and confer provisions and shortened the notice requirements from 60 days to 45 days. The amendments also expand the exemption for public works projects. Cal Cities remains opposed to the measure.
Other bills include:
- AB 1331 (Elhawary) Workplace Surveillance
Cal Cities Position: Oppose (Status: Passed with amendments)
- SB 707 (Durazo) Open Meetings: Meeting and Teleconference Requirements
Cal Cities Position: Oppose Unless Amended (Status: Passed with amendments)
- SB 827 (Gonzalez) Local Agency Officials: Training
Cal Cities Position: Oppose Unless Amended (Status: Passed with amendments)
- Johnnie Pina, legislative advocate
Revenue and Taxation
There was an odd lack of suspense for the Revenue and Taxation portfolio on Friday, as most of Cal Cities’ tracked bills were already on the floors of the Assembly and Senate. However, legislators did act on some notable bills.
The Senate Appropriations Committee narrowed the scope of AB 265 (Caloza), a measure supported by Cal Cities. It would, upon appropriation of the Legislature, establish a grant program for small businesses and nonprofits impacted by a state of emergency. The Assembly Appropriations Committee made further changes to SB 710 (Blakespear), a bill previously amended to address Cal Cities’ cost concerns. The measure sought to extend property tax exemptions for solar energy systems.
Other priority bills include:
- AB 564 (Haney) Cannabis: excise tax: rate increase repeal
Cal Cities Position: Watch (Status: Passed as amended) - AB 699 (Stefani) Elections: local tax measures
Cal Cities Position: Watch (Status: Passed)
- 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.