Bill Talk: Data center debates, a $11 billion housing bond, and more

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

By Cal Cities Staff

Lawmakers have a little under two weeks to get their bills through any non-fiscal policy committee hearings. They also have just three days to send — or remove — ballot measures for the November election.

Early on Monday, Gov. Gavin Newsom and Democratic leaders announced a plan to place an $11.25 billion affordable housing bond on the ballot for voter approval. $1.25 billion would go toward veterans’ housing; roughly half of the bond would go toward the state’s Multifamily Housing Program. In addition to assisting with funding new housing development, the bond provides funding for youth housing, promoting homeownership, and the preservation and rehabilitation of existing affordable housing.

The bond, sponsored by Assembly Speaker Robert Rivas and Senate President pro Tempore Monique Limón, is years in the making, and includes several dozen lawmakers as co-authors.

The last-minute wheeling and dealing has also seen several relatively quiet debates bubble up to the forefront — like data centers, for example. Two data center bills, along with several tribal consultation bills and a new vegetation removal measure, are making their Bill Talk debut this week. Expect to see more “new” bills as lawmakers and lobbyists hash out their differences in the final two weeks before summer recess.

- Brian Hendershot, Cal Cities Advocate managing editor

Sponsored bill would provide greater clarity in housing element reviews

Senate Housing will review AB 2296 (Papan) on June 24. Sponsored by Cal Cities, the measure allows cities to begin the housing element update process six months early and provides greater certainty in the review process. Recent amendments to the bill eliminated the amount of detailed analysis the Department of Housing and Community Development (HCD) would need to include in its finding letters to cities. However, AB 2296 still provides more time for cities to complete their housing elements and work collaboratively with HCD to get housing elements completed and certified on time.

- Brady Guertin, legislative advocate

Homelessness reporting bill could see further changes

Cal Cities remains strongly opposed to SB 866 (Blakespear), a measure that currently requires cities to collect extensive data on homelessness in their housing elements. As drafted, the bill only impacts small and mid-sized cities. SB 866 was originally set for a hearing in the Assembly Housing Committee in June, but that hearing was pushed to July 1.

This will be the bill’s only policy committee hearing before it moves to appropriations and the Assembly Floor. Given this tight timeline, it is critical that amendments addressing city concerns are resolved now. Cal Cities is actively working with the author’s office on possible amendments.

- Caroline Grinder, legislative advocate

Cal Cities weighs in on data center legislation

Data centers have become a hot topic in the Legislature this year, driven in part by public pushback. The Senate Natural Resources and Water Committee passed AB 2469 (Papan) on June 23. The bill prevents cities and counties from approving a data center unless the project meets specific water supply planning requirements. Cal Cities is seeking changes that preserve local land use authority. The Senate Local Government Committee will take the bill up next on July 1.

On June 24, the Senate Energy, Utilities, and Communications Committee will review AB 1577 (Bauer-Kahan), a bill that requires specific reporting requirements related to water and energy consumption for new data centers. This would help cities better plan for and evaluate potential data centers. Cal Cities support AB 1577; a sample letter is available online. 

- Melissa Sparks-Kranz, legislative advocate

Cal Cities bill would help maintain local roads and services

On July 1, the Assembly Local Government Committee will hear SB 922 (Laird). Sponsored by Cal Cities, the bill seeks to clarify that cities may recover the cost of street maintenance and repair caused by public service operations, such as waste hauling, through service-related fees and charges.

A recent court decision created uncertainty over this longstanding and predictable practice. By reaffirming existing practices, SB 922 would restore clarity, reduce unnecessary litigation, and provide greater certainty for local agencies and service providers alike.

- Ben Triffo, legislative advocate

Concerning tribal bills advance in the Senate

Cal Cities is opposed unless amended on three tribal bills advancing in the Senate: AB 2218 (Kalra), SB 1326 (Wahab), and AB 1881 (Ramos). AB 2218 expands the state’s tribal water policy without protecting existing water rights holders. SB 1326 gives tribes a greater role in identifying tribal cultural resources and now requires the adoption of mitigation measures from cities, developers, and others. AB 1881 makes it easier for a tribal member or tribe to file legal action over access to public lands and challenge any state permit or decision.

This week, SB 1326 passed the Assembly Natural Resources Committee; AB 2218 passed the Senate Natural Resources and Water Committee. AB 1881 was referred to the Senate Judiciary Committee for a June 30 hearing.

- Melissa Sparks-Kranz, legislative advocate

Streamlined wildfire vegetation management projects get a second shot

A bill by Sen. Henry Stern, SB 1370, now consolidates the state review of vegetation management projects for wildfire safety through the California Natural Resources Agency and California Environmental Protection Agency. Eligible projects include hazardous/dead vegetation removal, strategic fuel breaks, defensible space, and vegetation removal along ingress and egress roadways and around electrical utility lines.

Last year, Cal Cities sponsored legislation to streamline permits for such wildfire projects through the California Department of Fish and Wildlife. This bill includes the agency in the consolidated review. The bill will be heard by the Assembly Natural Resources Committee on June 29; a support sample letter is available online.

- Melissa Sparks-Kranz, legislative advocate

Sponsored nitrous oxide and metal theft bills move through second house committees

This week is very important for Cal Cities’ public safety bills, including AB 1941 (González, Mark). Sponsored by Cal Cities, the measure increases penalties for repeat and organized offenders who steal or traffic prohibited metal materials. It also establishes a statewide data-sharing tool to allow for increased visibility into organized theft operations. Cal Cities provided lead testimony on June 23 before the Senate Public Safety Committee. The bill passed out of the Senate Public Safety Committee on a 5-0 vote and now heads to Senate Appropriations.

Also up on June 23, in the Assembly Business and Professions Committee, was SB 758 (Umberg), which passed on a 19-0 vote. The Cal Cities-sponsored bill prohibits all licensed cigarette and tobacco retailers (except grocery stores) from selling nitrous oxide. SB 758 is in response to the surge in the recreational use of nitrous oxide across California cities. A city sample letter is available online. SB 758 will be heard next week by the Assembly Public Safety Committee.

- Serena Scott, legislative analyst

Sponsored recovery housing bill set for hearing

The Cal Cities-sponsored SB 490 (Umberg) will go before the Senate Health Committee on June 30. The bill requires the Department of Health Care Services (DHCS) to conduct timely investigations of sober living homes accused of providing treatment services that violate state licensure law. If the department fails to meet these deadlines, counties could work with the department to conduct site visits and enforce licensure laws themselves. SB 490 also requires DHCS to conduct follow-up site visits to ensure unlawful activity has stopped.

SB 490 seeks to implement recommendations from a 2024 State Auditor report that found DHCS did not always conduct site visits when investigating unlicensed facilities and did not always follow up after completing investigations to ensure unlicensed facilities ceased operations.

- Caroline Grinder, legislative advocate

Assembly bill may allow downzoning to occur

In the Senate Housing Committee on June 24, lawmakers will hear AB 1751 (Quirk-Silva), a bill that requires cities to automatically approve townhome development projects that are less than three stories in multifamily residential zones and underutilized single-family zones. A townhome project could qualify even if the site is planned for higher density in a city’s certified housing element.

This could allow downzoning to occur and create new challenges for cities if a proposed townhome project decreases the amount of planned density in a multifamily zone. Cal Cities moved to oppose the bill after it was unable to secure changes requiring developers to follow local development standards.   

- Brady Guertin, legislative advocate

Pedestrian mall approval and HVAC costs in the hot seat

Two infrastructure bills opposed by Cal Cities will have their hearings this week. AB 1976 (Wicks) prohibits cities from holding a community meeting to reconsider or delay a pedestrian mall and exempts new pedestrian malls from the California Environmental Quality Act. Pedestrian malls or “slow streets” convert vehicular areas to pedestrian-only areas. The Senate Local Government Committee approved the measure on June 23, sending it to the Senate Transportation Committee.

Another bill, SB 222 (Wiener), seeks to make energy-efficient HVAC and water heaters more affordable by requiring cities to automate permitting and placing arbitrary caps on related permits. The Assembly Housing and Economic Development Committee will take the bill up on June 24.   

- Damon Conklin, 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.