Bill Talk: The “final” budget arrives

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

By Cal Cities Staff

It’s budget week (again!). On Monday, lawmakers approved a $355.9 billion state budget. The proposal contains some potential wins for cities, such as another year of state investment in homelessness program. But of course, the devil will be in the details: the budget trailer bills. 

“At a time when cities and the state alike are navigating significant fiscal headwinds, Cal Cities thanks the Assembly and Senate for including investments in homelessness, housing, and public safety, cities’ top priorities, in their agreement,” Cal Executive Director and CEO Carolyn Coleman said in a statement. “As budget negotiations continue, Cal Cities is urging the Legislature and the Governor to course correct on proposed changes to the state’s Cap-and-Invest framework that would scale back future funding for key climate programs."

However, there’s a chance that Gov. Gavin Newsom, who has been unusually quiet about the budget bill, could reduce or eliminate items when he signs the bill. The budget is only final in the sense that lawmakers will get paid. The three parties will continue to iron out the exact contours of the budget through amendments over the next two weeks. 

- Brian Hendershot, Cal Cities Advocate managing editor

165 cities would bear the brunt of SB 866's data mandate

Cal Cities is urging cities to call their assembly members and submit letters opposing SB 866 (Blakespear) to the Assembly Housing Committee via the Legislative portal. The committee will review the bill on June 24.

Cal Cities remains strongly opposed to SB 866. The measure requires select cities to collect extensive homelessness data in their housing element. The author committed to new amendments to pass the bill off the Senate floor. The changes would exempt cities with populations under 50,000 from the data collection requirement.

Gov. Gavin Newsom’s Homeless Housing Assistance Program (HHAP) trailer bill further exacerbates the inequity at the heart of SB 866. The budget trailer bill details how the next round of HHAP will be implemented. The proposal exempts the largest cities, counties, and Continuums of Care — which receive millions of dollars in HHAP funding and represent more than 70% of California’s unhoused population — from the same extensive data collection mandate required for cities between 50,00 to 300,000 in SB 866.

The original intent of including homelessness-related data collection as a requirement to receive HHAP funding was to ensure accountability for jurisdictions that receive direct state funding for homelessness. However, SB 866 applies the data collection outlined in the Governor’s trailer bill to smaller cities that do not receive HHAP funding. Between SB 866 and the HHAP trailer bill, only a random assortment of 165 cities with populations between 50,000 and 300,000 would need to collect extensive homelessness data.

- Caroline Grinder, legislative advocate

Nitrous oxide bill package advances

Legislators heard two measures supported by Cal Cities that address illicit nitrous oxide use, also known as whippets. On June 16, the Senate Judiciary Committee approved AB 2076 (Lowenthal), which adds nitrous oxide to a list of products that require age verification for online purchases. Over in the Assembly on June 17, the Business and Professions Committee passed SB 936 (Blakespear), a bill that increases penalties for the sale of nitrous oxide over a certain amount.

Cal Cities supports both bills — companion measures to the Cal Cities-sponsored SB 758 (Umberg). That bill bans the sale of nitrous oxide by retailers with a tobacco license and must be heard before July 2.

- Jolena Voorhis, legislative advocate

Dangerous substance measure revived

Lawmakers last week significantly amended a two-year bill, AB 1088 (Bains), to address a dangerous substance known as kratom and 7-OH. While kratom can be used to help those addicted to morphine, it can be addictive and dangerous. Some have even dubbed it “gas station heroin” due to its ubiquity and lack of regulatory oversight.

This bill addresses concerns raised during an informational hearing by prohibiting the sale of these products to people under 21 and requiring the producers to register with the California Department of Public Health. Cal Cities is supporting the legislation.

- Jolena Voorhis, 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.