Cities scored big legislative wins this year
By Cal Cities Staff
Cal Cities notched some major wins in the final days of the session, when state leaders blocked key pension and wildfire liability bills, as well as a notable local revenue diversion. However, many of those same fights will resurface next year under a new set of lawmakers and, of course, a new governor.
That said, the end of session did include some much more durable wins for cities. Gov. Gavin Newsom signed six of Cal Cities’ seven remaining sponsored measures. Among other things, these bills will improve the housing element process, protect local revenues, and reduce the illicit use of nitrous oxide. Cal Cities also helped get a package of e-bike safety bills across the finish line and secured a key Brown Act modification.
As always — but especially this year — member advocacy was key to Cal Cities’ success. To learn which of the hundreds of new laws that take effect soon are the most important for cities, keep reading.
- Brian Hendershot, Cal Cities Advocate managing editor
Governance, Transparency, and Labor Relations
Gov. Gavin Newsom delivered several significant wins for cities, particularly on pension reform, artificial intelligence, public records, and Brown Act implementation. But by far the biggest win was his veto of AB 1383 (McKinnor), a measure that would have rolled back key provisions of the Public Employees’ Pension Reform Act.
Cal Cities organized a fierce, member-informed opposition campaign to AB 1383 with other local government groups, warning it could increase pension costs for cities and taxpayers. In his veto message, Newsom echoed many of those concerns, stating that the bill would significantly increase state and local government costs and risk undoing reforms enacted to address fiscal challenges. By rejecting the measure, the Governor preserved reforms that have helped local governments manage retirement liabilities while protecting municipal budgets.
The Governor also vetoed AB 2656 (Petrie-Norris), a proposal that would have required local agencies to provide unions with advance notice before developing, purchasing, or implementing certain generative AI technologies. Cal Cities and a broad coalition argued the bill would create unnecessary procedural hurdles and slow local agencies’ ability to evaluate tools that could improve efficiency and service delivery.
The Governor also signed two Cal Cities-supported measures aimed at addressing implementation challenges while preserving public access to government. AB 1821 (Pacheco), co-sponsored by Cal Cities, changes Public Records Act response timelines from calendar days to business days. This common-sense clarification will help cities conduct thorough searches as requests grow in volume and complexity. SB 1187 (Durazo) removes new agenda translation and language access requirements for public meetings that proved costly and difficult for many local agencies to administer. The changes provide cities with greater flexibility while preserving their ability to offer those same services.
The debates surrounding pension reform, AI in the workplace, public records administration, and Brown Act implementation are far from settled. These issues will likely remain active topics in the Legislature next year.
- Johnnie Piña, legislative advocate
Environmental Quality
Assembly leadership took a high-profile wildfire liability compromise bill, SB 492 (Becker), off the table after utilities, builders, and electrical workers argued it didn’t fully address the financial liability risks that utilities face when their equipment causes wildfires. In a major win for cities — and thanks to strong member advocacy — SB 492 did not include any limits on public agency recovery. Cal Cities mobilized over 200 local government and public sector stakeholders to oppose the original proposal, which sought to dramatically limit how much money cities can recover from utility companies that cause wildfires.
Unfortunately, all signs point to this issue being a key priority for the Legislature next year. Assembly leadership pledged to hold hearings on the topic this fall, which have yet to be scheduled. Gov. Gavin Newsom, the proposal’s original architect, said he believes this should be a priority for the next Governor, but also that he is “here until January” — raising the specter of a fall special session.
Two key wildfire bills Cal Cities supported were signed by the Governor. AB 1642 (Harabedian) creates science-based standards for wildfire clean-up and re-occupancy at sites contaminated with lead, asbestos, and other hazardous chemicals. SB 1370 (Stern) streamlines the environmental state permitting review and CEQA process for wildfire vegetation management projects, which cities can use to expedite fuel reduction and wildfire prevention projects.
Other priority bills include:
- AB 1577 (Bauer-Kahan): Data centers: reporting
Cal Cities Request: Sign (Status: Signed)
- AB 1761 (Rogers) Electricity: calculation methodology: data disclosure
Cal Cities Request: Sign (Status: Vetoed) - AB 762 (Irwin) Disposable, battery-embedded vapor inhalation device: prohibition
Cal Cities Request: Sign (Status: Signed)
- AB 1881 (Ramos): California Indian Freedom Act of 2026
Cal Cities Request: Veto (Status: Vetoed)
- AB 2218 (Kalra): Water policy: California Native American tribes
Cal Cities Request: Veto (Status: Vetoed)
- AB 2469 (Papan): Data centers: water use disclosures
Cal Cities Request: Veto (Status: Signed)
- AB 2667 (Hadwick) Vape products: household hazardous waste: advertising
Cal Cities Request: Sign (Status: Signed)
- AB 2739 (Soria) Water: affordability and system stabilization
Cal Cities Request: Sign (Status: Vetoed)
- Melissa Sparks-Kranz, legislative advocate
Housing, Community, and Economic Development
As anticipated, the Governor signed almost every housing bill that made it to his desk, continuing the trend of making housing a key focus of his administration. This includes AB 2296 (Papan), a two-year effort by Cal Cities to improve the housing element review process.
The new law requires regional planning entities or councils of government (COGs) to provide local jurisdictions with their final Regional Housing Needs Allocation six months earlier than existing law. The measure gives cities an extra six months to complete their housing elements and get them approved by the Department of Housing and Community Development. Due to implementation issues and at the request of several COGs, cities with a housing element deadline in the 2027, 2028, and 2029 calendar years will not qualify for the extra time until the next housing cycle.
Gov. Newsom also signed AB 1751 (Quirk-Silva), which requires cities to automatically approve townhome development projects that are less than three stories tall in multifamily residential zones and vacant single-family lots. A townhome project could qualify even if the site is planned for higher density in a city’s certified housing element, forcing cities to find new housing sites to maintain compliance with state housing element law. Cal Cities opposed the measure.
Finally, the Governor signed SB 1117 (Cervantes), a measure that dramatically limits the impact fees cities can collect for up to two accessory dwelling units larger than 750 square feet on a residential lot. Cal Cities opposed the bill, as this change will frequently reduce local government funding for infrastructure and public services that support livable, equitable, and thriving communities.
Other priority bills include:
- AB 1621 (Wilson) Planning and Zoning Law: postentitlement phase permits: Housing Accountability Act
Cal Cities Position: Veto (Status: Signed) - AB 1457 (Bryan) General plan: environmental justice element: disadvantaged communities
Cal Cities Position: Veto (Status: Signed) - AB 2166 (Carrillo) Multifamily housing development: offsite housing factories: backstop financing
Cal Cities Position: Sign (Status: Vetoed)
- Brady Guertin, legislative advocate
Transportation, Communications, and Public Works
Cal Cities’ member-informed advocacy helped advance a package of e-bike bills in a year dominated by concerns over unsafe behavior and deceptive marketing. Four Cal Cities-supported measures — SB 1167 (Blakespear), AB 2346 (Wilson), AB 1569 (Davies), and AB 1614 (Dixon) — were signed into law. Together, the measures strengthen e-bike labeling and advertising requirements, clarify classifications, improve consumer disclosures, and help ensure higher-powered vehicles are appropriately regulated. The package reflects Cal Cities’ work to translate city priorities and experience into meaningful statewide reform.
In the final days of session, Cal Cities mobilized support for SB 795 (Archuleta). The bill removes a key barrier to making E15 gasoline, a lower-cost ethanol blend, available in California. This could lower costs for municipal fleets, including public works vehicles and equipment. Cal Cities’ late-session advocacy helped advance the measure to the Governor, who signed it into law.
Cal Cities successfully blocked Gov. Newsom’s proposal to create a Sustainable Aviation Fuel (SAF) tax credit of up to $300 million annually. The proposal, which the administration has pushed since last fall, would have redirected revenues intended for local transportation projects to subsidize SAF production despite uncertain climate benefits. Its exclusion protects critical funding for local streets, roads, and other transportation infrastructure.
Other signed priority bills include:
- SB 222 (Wiener): Permitting HVAC & Water Heaters
Cal Cities Position: Veto (Status: Signed) - SB 342 (Umberg): Contractors Licenses
Cal Cities Position: Veto (Status: Signed) - SB 935 (Choi): DB Delivery Methods
Cal Cities Position: Sign (Status: Signed) - SB 1246 (Cortese): Autonomous Vehicles
Cal Cities Position: Sign (Status: Signed) - AB 1198 (Haney): Public Works Wages
Cal Cities Position: Veto (Status: Signed) - AB 1786 (Harabedian): Best Value contracts
Cal Cities Position: Sign (Status: Signed)
- Damon Conklin, legislative advocate
Public Safety
The Governor signed two public safety measures co-sponsored by Cal Cities. AB 1941 (González, M) adds new penalties for organized metal theft; SB 758 (Umberg) prohibits the sale of nitrous oxide or laughing gas by smoke shops and convenience stores. The two measures address significant public safety issues raised by Cal Cities members.
Gov. Newsom also signed most of the major wildfire mitigation and fire insurance measures supported by Cal Cities. This includes AB 1934 (Bennett), which establishes a certification program for home hardening, and SB 1301 (Allen), which requires insurance companies to provide notice 90 days prior to cancellation.
Other priority bills include:
- AB 1588 (Stefani) Vehicles: Sideshow Accountability and Community Safety Act
Cal Cities Position: Sign (Status: Signed) - AB 2076 (Lowenthal) The Parent’s Accountability and Child Protection Act: online marketplaces: nitrous oxide
Cal Cities Position: Sign (Status: Signed) - AB 2724 (Bauer-Kahan) Insurance: distressed areas
Cal Cities Position: Sign (Status: Signed) - SB 747 (Wiener) Civil rights: deprivation of federal constitutional rights, privileges, and immunities
Cal Cities Position: Veto (Status: Signed) - SB 877 (Pérez) Residential property insurance: loss estimate transparency
Cal Cities Position: Sign (Status: Vetoed) - SB 936 (Blakespear) Nitrous Oxide: sales
Cal Cities Position: Sign (Status: Signed)
- Jolena Voorhis, legislative advocate
Community Services
Cal Cities spent much of the early part of this year advocating for homelessness funding, which resulted in $900 million for the state’s Homeless Housing, Assistance, and Prevention (HHAP) grant program. Cal Cities also sponsored AB 1708 (Solache) to expand access to state homelessness funding for small and mid-sized cities, and opposed SB 866 (Blakespear), which sought to impose extensive new homelessness reporting requirements in city housing elements. Both bills were ultimately held in appropriations.
However, the Cal Cities-sponsored SB 329 (Blakespear) did make it to the Governor’s desk. The measure establishes clear timelines for the Department of Health Care Services (DHCS) to assign and complete investigations into complaints regarding licensed alcohol and drug treatment facilities and requires annual public reporting on investigation timelines and outcomes. SB 329 takes effect on Jan. 1, 2027.
“I thank the Governor for signing SB 329, which ensures the state will investigate complaints about sober living homes methodically and expeditiously,” said Sen. Blakespear in a recent press release. “Prompt investigations of alcohol and drug treatment facilities is essential to safeguard the health and safety of patients and surrounding communities.”
Unfortunately, the Governor vetoed Cal Cities' other sponsored recovery housing bill, SB 490 (Umberg). This measure would have strengthened state enforcement of unlicensed sober living homes by establishing investigation timelines, requiring follow-up site visits, and allowing counties to partner with DHCS to respond to violations.
This was the third time Cal Cities has sponsored a bill with Sen. Umberg that allows the state to leverage local capacity to respond swiftly to violations, and the first time the legislation has made it all the way to the Governor. During the legislative process, DHCS requested amendments that would have removed key components of the proposal. Cal Cities ultimately decided not to accept the changes, which is likely why the measure was vetoed.
The Governor also signed a key homelessness prevention bill supported by Cal Cities. AB 1924 (Gabriel) directs the state to develop California’s first comprehensive homelessness prevention strategy, including model best practices for local agencies. This represents a policy shift from responding to homelessness to preventing it in the first place.
Other priority bills include:
- AB 2007 (Bauer-Kahan) Youth programs: identifying information of youth
Cal Cities Request: Veto (Status: Signed) - AB 1153 (Bonta) Illegal disposal site abatement
Cal Cities Request: Sign (Status: Signed) - SB 692 (Arreguín) Vehicles: homelessness
Cal Cities Request: Sign (Status: Signed) - SB 1077 (Gonzalez) CalFresh: federal government shutdowns
Cal Cities Request: Sign (Status: Vetoed)
- Caroline Grinder, legislative advocate
Revenue and Taxation
The Governor signed all four of Cal Cities’ remaining priority revenue and taxation bills, most notably SB 922 (Laird). Sponsored by Cal Cities, the measure clarifies that cities can continue to recoup, via public service fees, the damage caused to roads by certain heavy-hauling vehicles, such as garbage and waste trucks, when providing those public services.
AB 2640 (Hadwick) will prevent the state from clawing back reimbursement funds from a city while still owing that same city money for other state-mandated costs. This common-sense fix will protect local budgets and give cities more flexibility over how state reimbursement disputes are resolved.
Newsom also approved SB 1005 (Caballero), a measure that provides guidance for local agencies impacted by the end of penny production, and SB 1172 (Hurtado), which places guardrails around consultant compensation in tax-sharing agreements.
- Ben Triffo, legislative advocate
Next steps
Barring an unlikely but still probable special session on wildfire liability, lawmakers are effectively on break for the rest of the year. To learn more about which bills your city needs to prepare for, keep an eye out for Cal Cities’ 2026 Legislative Report — which looks at every new bill that will impact cities — as well as Cal Cities’ new law briefing, tentatively scheduled for early December.