Bill Talk: More appropriations bills to watch
A weekly update from Cal Cities, sorting through the state bill buzz
By Cal Cities Staff
Last week’s Bill Talk highlighted Cal Cities’ top legislative priorities heading into suspense file — a twice-yearly, lightning-fast vote on bills with a notable fiscal impact. Those measures must pass off suspense by May 15 to advance. But Cal Cities is also heavily engaged on dozens of other suspense file candidates, including ones focused on density bonus law, drunk driving, and e-bikes.
This week also marks Gov. Gavin Newsom’s May budget revision. In January, his office unveiled a $348.9 billion budget. As usual, both the Governor and the independent Legislative Analyst's Office are at odds over how large the state’s multiyear budget deficit is — estimates made before skyrocketing energy costs caused by the war in Iran. Keep an eye out on Thursday for our coverage of the May Revision.
A quick word on our future coverage: After May 15, policy committees are on hold until June 1. We’ll spotlight which bills made it off suspense (and which bills met an anticlimactic end) next week before taking a break until June 1.
-Brian Hendershot, Cal Cities Advocate managing editor
Density bonuses could kick in for majority market-rate projects
Asm. David Alvarez is trying to amend the state’s density bonus law, which lets developers exceed density limits for affordable housing in certain circumstances. AB 2433 requires cities to provide two additional incentives or reductions in standards for a project that provides a single, deed-restricted, for-sale unit for low-income communities. Cities would also have to approve the project if the developer complies with AB 130 (2025).
As written, these incentives would kick in even if much of the project consists of market-rate or luxury rental projects, leaving a smaller percentage available for affordable housing. Cal Cities believes that state incentive programs like the density bonus law must produce affordable housing comparable to the benefits granted.
The bill’s ministerial approval conditions would also allow developers to bypass local objective development standards, the normal practice under permit streamlining laws. Cal Cities has an oppose unless amended position on AB 2433. Cal Cities is asking the author to change the bill so that the additional concessions require a minimum number of affordable units and specify that any project that qualifies for streamlined approval must comply with objective development standards.
- Brady Guertin, legislative advocate
New e-bikes could come with speedometers, lights, and more
Cal Cities is supporting several bills aiming to reshape the state’s e-bike policy. AB 2346 (Wilson) establishes basic equipment standards for class 1 and class 2 e-bikes, including a speedometer and a front and rear light. The measure also requires manufacturers to include a written description of California’s e-bike laws with the bicycle’s consumer-facing packaging or face heavy civil penalties.
- Damon Conklin, legislative advocate
Assembly bill may allow downzoning to occur
AB 1751 (Quirk-Silva) requires cities to automatically approve townhome development projects that are less than three stories in multifamily residential zones and underutilized single-family zones — regardless of local rules and state-certified housing elements. The measure would allow a townhome project to qualify if it achieves at least 75% of the state’s minimum density requirements for lower-income housing, even if the site is planned for higher density in a city’s certified housing element.
The measure may allow downzoning to occur and may create new challenges for cities if a proposed townhome project decreases the amount of planned density in a multifamily zone: Cities would need to find other sites within their housing plans to comply with state law. Cal Cities, which opposes the bill unless amended, has asked the author to limit the bill to multifamily residential zones that comply with local objective development standards, as has historically been the case.
- Brady Guertin, legislative advocate
Nitrous oxide age verification bill faces make-or-break vote
The Assembly Appropriations Committee will vote on AB 2076 (Lowenthal). The measure would add nitrous oxide to the Parent’s Accountability and Child Protection Act, a list of products subject to strict age verification before online sale. It would also increase fines for noncompliance. Recreational nitrous oxide use is a rising issue in California, driven in part by how easily it can be bought online. Retailers like Amazon have sold flavored nitrous oxide and other age-restricted products to minors without any sort of age verification. Cal Cities supports the measure.
- Serena Scott, legislative affairs analyst
Dual DUI bills await appropriation decisions
Two very similar bills, AB 1605 (Ransom) and SB 1156 (Caballero), would allow courts to temporarily prohibit offenders of certain DUI crimes from buying alcohol. These measures are in response to recent reports highlighting California’s DUI crisis. Given their similarity, the Legislature will need to determine which approach prevails or whether the two can work in concert. Cal Cities supports both bills.
- Serena Scott, legislative affairs analyst
Key environmental bills up for consideration
Several environmental bills are up in appropriations, including a measure sponsored by Cal Cities related to forever chemicals and safe drinking water. SB 1313 (McNerney) clarifies that PFAS treatment and infrastructure projects that remove forever chemicals from local water supplies are eligible for funding under the State Revolving Fund programs. A similar bill — also by Sen. Jerry McNerney — died last year.
AB 2569 (Hart) requires agencies to consider how a project impacts people, not just the environment. The bill would drastically increase litigation risk for cities and delay critical housing and infrastructure projects. Cal Cities opposes the measure.
- Melissa Sparks-Kranz, legislative advocate
Two bills could make it easier to plan for housing
Cal Cities is supporting two measures that could make it easier for cities to plan for housing. AB 2002 (Solache) would establish the Regional Early Action Planning fund, which local agencies could use to complete housing elements, establish affordable housing trust funds, and meet other planning requirements. AB 1567 (Ta) would allow senior residential living facilities and congregate housing to count toward state-mandated housing goals. AB 1567 is similar to AB 1131 (Ta), which died in Senate Appropriations last year.
- Brady Guertin, legislative advocate
Job site bill could expose cities to costly litigation
The Assembly Appropriations Committee will take action on AB 1859 (Ortega), which effectively gives representatives of labor groups statutory access rights and legal standing to enter city-owned construction sites to monitor and report alleged prevailing wage violations. This would expose cities to civil penalties for job sites controlled by general contractors, not cities. Cal Cities opposes the measure, as it is an unnecessary and duplicative policy that would turn project sites into flashpoints of costly litigation.
- Damon Conklin, legislative advocate
Cal Cities opposes remote inspection bill
Earlier this year, the Cal Cities Board voted to oppose AB 1738 (Carrillo). The bill requires cities to offer remote virtual inspections for specific types of building permits. Cal Cities believes that this overarching proposal is unnecessary, as local agencies already have the authority to determine how to approve a building permit based on local best practices, community preferences, or geographic and staffing challenges. Indeed, some jurisdictions already use remote inspections — to mixed results. Many have determined that in-person inspections are more effective for ensuring compliance and safety.
- Brady Guertin, 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. To see all tracked bills by issue area or priority, visit the Bill Search page.