HomeMy WebLinkAbout022525-03.1LEGISLATIVE COMMITTEE MEMORANDUM 3.1
TO: Mayor and Town Council February 25, 2025
SUBJECT: February Legislative Report
BACKGROUND
The State Legislature reconvened on January 6, 2025, to formally start the 2025-2026
Legislative Session. Historically, over 2,000 bills are introduced in the legislature each
year. In prior years, each legislator could introduce 50 bills per two-year session. This
year however, each chamber adopted new rules limiting the number of bill introductions
to 35 per legislator. The last day to introduce bills was Friday, February 21 and signals
the change in legislative action, with the beginning of policy committee hearings to
kickstart the bill consideration process that runs until September 12.
DISCUSSION
Both individually and as part of the Tri-Valley Cities Coalition, the Town’s Legislative
Committee identifies and follows priority legislation. Priority determination is based
upon the Town’s legislative framework which is developed and reviewed annually by
the Danville Town Council (ATTACHMENT A) as well as a separate but related
framework developed by the Tri-Valley Cities Coalition (ATTACHMENT B) and
identifies seven focus areas for the 2025 State Legislative session including:
Transportation and Infrastructure, Climate, Environment, and Health, Public Safety,
Economic Development, Affordable Housing and Homelessness, Mental Health, and
Fiscal Sustainability and General Governance.
The Legislative Committee’s work is essential to ensure that the Town is well positioned
for advocacy work during the 2025 Legislative Session. The bills and positions that are a
priority for the Tri-Valley coalition are discussed in the second half of this report.
The following bills have been identified as having an impact on Danville.
AB 544 (Davies) Electric Bicycles: required equipment.
This bill would require an electric bicycle during all hours to be equipped with a red
reflector or a solid or flashing red light with a built-in reflector on the rear that is visible
from a distance of 500 feet to the rear when directly in front of lawful upper beams of
February Legislative Update 2 February 25, 2025
headlamps on a motor vehicle. By expanding the requirements for equipping an electric
bicycle, the violation of which would be a crime, this bill would expand an existing crime,
thereby imposing a state-mandated local program.
Recommended Position: Support
AB 614 (Lee) Claims against public entities.
Existing law, the Government Claims Act, establishes the liability and immunity of a
public entity for its acts or omissions that cause harm to persons and requires that a claim
against a public entity relating to a cause of action for death or for injury to person,
personal property, or growing crops be presented not later than 6 months after accrual of
the cause of action. Under existing law, claims relating to any other cause of action are
required to be presented no later than one year after the accrual of the cause of action.
This bill would remove the provisions requiring a claim against a public entity relating
to a cause of action for death or for injury to person, personal property, or growing crops
to be presented not later than 6 months after accrual of the cause of action and would
instead require a claim relating to any cause of action to be presented no later than one
year after accrual of the cause of action.
Recommended Position: Oppose
SB 231 (Seyarto) California Environmental Quality Act: guidelines.
The California Environmental Quality Act (CEQA) requires a lead agency to prepare a
mitigated negative declaration for a project that may have a significant effect on the
environment if revisions in the project would avoid or mitigate that effect and there is no
substantial evidence that the project, as revised, would have a significant effect on the
environment. CEQA requires the Office of Land Use and Climate Innovation, formerly
named the Office of Planning and Research, to prepare and develop, and the Secretary of
the Natural Resources Agency to certify and adopt, guidelines for the implementation of
CEQA. CEQA requires the guidelines to specifically include criteria for public agencies
to follow in determining whether or not a proposed project may have a significant effect
on the environment.
This bill would require, on or before July 1, 2027, the Office of Land Use and Climate
Innovation to prepare and develop, and the Secretary of the Natural Resources Agency
to certify and adopt, guidelines in Appendix O of the CEQA guidelines to establish best
practices for public agencies to follow in determining whether or not a proposed project
may have a significant effect on the environment when completing Appendix G of the
CEQA guidelines. The bill would require the best practices to consider, and include
identifiable thresholds of significance based on, specified state and federal environmental
laws. The bill would authorize the office, in developing those guidelines, to consult with
local, regional, state, and federal agencies that have authority and expertise on those
subjects.
Recommended Position: Oppose
February Legislative Update 3 February 25, 2025
Tri-Valley Cities Coalition
The following bill(s) have been identified as legislation to track during the 2025
Legislative Session by the Tri-Valley Cities Coalition.
AB 226 (Calderon) California FAIR Plan Association.
The California FAIR Plan Association is a joint reinsurance association in which all
insurers licensed to write basic property insurance participate in administering a
program for the equitable apportionment of basic property insurance for persons who
are unable to obtain that coverage through normal channels. Existing law requires the
association’s plan of operation and any amendment to the plan to be approved by the
Insurance Commissioner. Existing law establishes the California Infrastructure and
Economic Development Bank and authorizes it to issue bonds to provide funds for the
payment of costs of a project for a participating party or upon request by a state entity.
This bill would authorize the association, if granted prior approval from the
commissioner, to request the California Infrastructure and Economic Development Bank
to issue bonds, and would authorize the bank to issue those bonds to finance the costs of
claims, to increase liquidity and claims-paying capacity of the association, and to refund
bonds previously issued for that purpose. The bill would specify that the association is a
participating party and that financing all or any portion of the costs of claims or to
increase liquidity and the claims-paying capacity of the association is a project for bond
purposes. The bill would authorize the bank to loan the proceeds of issued bonds to the
association and would authorize the association to enter into a loan agreement with the
bank and to enter into a line of credit agreement with an institutional lender or broker-
dealer.
Recommended TVC Position: Support
Additional Advocacy Efforts
The Tri-Valley Cities mayors met on February 3 to discuss future advocacy trips to
Sacramento and Washington DC in April. The purpose of these trips is for Mayors to
meet with Congressional Offices as well as Agency and Department Administrators to
communicate the coalition’s policy priority and continue to foster relationships with key
stakeholders.
The Tri-Valley Cities Council will meet on February 27 and will hear a legislative update
from both the League of California Cities and Townsend Public Affairs.
State Budget
In the beginning of January, Governor Newsom released his budget proposal for the
2025-2026 fiscal year. The Proposed Budget includes a balanced $322.2 billion budget
with no deficit and a modest surplus, backed by $16.9 billion in reserves. The budget
focuses on increasing saving to the state’s reserves while maintaining important
February Legislative Update 4 February 25, 2025
investments in critical priorities such as wildfire prevention, public safety and housing.
The budget process will include comments and feedback from both houses in the form of
committee and sub-committee hearings, followed by the May Revise budget, and coming
to a formal agreement by June 15.
On January 22, the Special Session Budget Committees in each legislative house convened
to address measures comprising of the Los Angeles County wildfire recovery package.
The following day Governor Newson signed legislation allocating $2.5 billion for wildfire
relief efforts. The relief package, along with
Conclusion
It is recommended that the Town Council Legislative Sub-Committee accept this report
and direct any questions and/or direction to Town legislative staff.
Prepared by:
Cat Bravo
Management Analyst
Reviewed by:
Joseph Calabrigo
Town Manager
Attachment A – Danville Legislative Framework
Attachment B – Tri-Valley Cities Legislative Framework
Attachment C – Bill Summaries/Analysis
Town of Danville
Legislative Framework
Town Council Legislative Committee
ATTACHMENT A
2 February 2024
Overview
The Town of Danville is actively engaged in legislative advocacy efforts that are aimed at
protecting and promoting Danville’s best interests at the local, state and federal levels. These
efforts are driven by two primary considerations: 1) continuing to uphold the Town mission of
delivering superior municipal services that make people’s lives better; and 2) an increasing level
of state involvement and regulation in areas that have previously fallen within local control.
The significant increase in bills being introduced in the State Legislature that have the potential
to further impact cities’ local control has prompted the Town to continue to expand advocacy
efforts through various means and channels. Key to these efforts is the development of this
Legislative Framework which outlines the Town’s legislative principles, policies, goals and
strategies. The Framework will be monitored and driven by a Town Council Legislative
Committee.
Legislative Goals
•Advocate the Town’s legislative interests at the federal, state, regional, and county levels
to support our Town’s vision and mission.
•Serve as an active participant with other local governments, the League of California Cities,
regional agencies, and local professional organizations in addressing legislative issues that
are important to the town and our region.
•Participate in the Tri-Valley Cities coalition to work together on legislative issues, projects
and initiatives at the federal, state, regional and county levels.
•Seek grant and funding assistance for Town projects, services, and programs.
•Communicate to the Town’s residents those legislative and agency rule-making matters
which are of potentially general interest or concern.
Legislative Principles
To fulfill the goals identified, the Town supports legislation and policies that favor:
1.Outstanding Quality of Life - provide opportunities to protect and enhance our
residents’ quality of life through active living, a healthy lifestyle and diverse recreational
services.
2.Community Safety - provide access to resources and services for residents, such as
quality police, fire, emergency management, mental health services, emergency medical
services, services for vulnerable populations and community benefit efforts.
3.Local Control over Land Use and Preservation - ensures the Town’s continued
ability and authority to exercise decisions on land use matters and reasonably regulate
new development to ensure consistency with Town design standards. The orderly
growth and development of the Town together with the preservation of open space is a
high priority for the Danville community.
3 February 2024
4.Foster Economic Vitality and Growth - provide funding for initiatives that
promote: economic health and resilience, business development, workforce
development, and small business entrepreneurship training and assistance.
5.Public Infrastructure - enable continued improvement and maintenance of the
Town’s public infrastructure.
6.Transportation - provide funding for planning and implementation of regional
transportation projects.
7.Housing - seek balanced solutions which consider housing, jobs, and transportation
together; does not take a one size fits all approach; provides funding and resources for
infrastructure and allows the Town to exercise local control in developing locally
appropriate plans that meet State objectives in a manner that is compatible with existing
community character.
8.Support Residents Growth and Enrichment - enhance and encourage
recreational programming, exercise, use of parks and services, community engagement,
social and recreational experiences; and performing and visual arts.
9.Sustainability - enable sustainable development, conserve natural resources, provide
resources to enable environmental awareness and health in our community and source
vendors that comply with California environmental requirements that protect public
health and air quality.
10.Fiscal Sustainability - protect existing federal, state, and local funding sources that
provide revenues to the Town of Danville. Oppose Unfunded Mandates and legislation
that seeks to impose any requirement upon the Town that is not fully funded; aid
recovery of Town costs stemming from State and/or Federal mandates.
Town Council Legislative Committee
•The Legislative Committee shall consist of two members of the Town Council to be
appointed annually by the Mayor, supported by appropriate Town staff.
•The committee shall meet as frequently as monthly to review and discuss the Town’s
legislative platform and pending/possible legislation.
•The committee shall develop positions on pending or possible legislation and make
recommendations for consideration by the Town Council. Recommendations will be
based upon a determination of potential legislative impacts upon the Town and its
residents. Potential positions to be considered include:
o Support: Legislation that the Town should support as drafted
o Support if Amended: that the Town should support if the author accepts
amendments proposed or supported by the Town
o Oppose: Legislation that the Town should oppose as drafted
o Oppose unless amended: Legislation the Town should oppose unless amended
o Watch: Town will take no formal position but will watch the Legislation and
consider taking a position as the legislative process progresses
4 February 2024
•Once a determination has been made that a legislative proposal may impact the Town by
the Legislative Committee, a letter outlining the Town’s position will be drafted for the
Mayor’s or Town Manager’s signature.
•Legislative Proposals may sometimes advance or change rapidly. Should the need to
respond to such a proposal arise prior to an opportunity for either the Legislative
Committee or Town Council to meet to consider the matter, then the Town Manager is
authorized to act expeditiously to respond via letter, in a manner that is consistent with
the goals and principles contained in the Framework. All such letters shall be transmitted
to the Town Council, and posted on the Legislative page of the Town website.
•The Committee shall make regular reports to the Town Council at duly noticed public
meetings.
•The Committee shall work collaboratively with Tri-Valley Cities of Dublin, Livermore,
Pleasanton and San Ramon to further the Tri-Valley Legislative Framework.
Strategic Documents
The following documents are available on the Town’s website at www.danville.ca.gov
•Town Vision and Mission Statements
•Town of Danville General Plan 2030
•Town of Danville Adopted Budget and Capital Improvement Program
•Town of Danville Recreation, Arts & Community Services Master Plan
•Town of Danville Climate Action Plan
The Legislative Framework will be reviewed annually by the Town Council. Day to day
oversight of legislative matters is the responsibility of the Town Manager’s Office, consistent
with this Legislative Framework and policy set by the Town Council.
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TRI-VALLEY CITIES
Legislative Framework
2025-26
ATTACHMENT B
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TRI-VALLEY CITIES VALUES STATEMENT
The Tri-Valley Cities of Dublin, Livermore, Pleasanton, San Ramon, and the Town of
Danville value regional leadership, innovation, collaboration, and problem solving to
maintain and improve the quality of life for Tri-Valley residents, provide a vibrant climate for
businesses, and enable continued opportunities for public and private investment within the
region.
Each City and Town provides a unique perspective on how to meet the needs of their
residents and businesses. The Cities and Town agree to respect the individuality of each
community and are committed to open and honest communication with a goal of building
consensus and a united approach to advocacy for solutions that will serve the residents and
businesses of the Tri-Valley.
TRI-VALLEY CITIES LEGISLATIVE FRAMEWORK
The Tri-Valley Cities Legislative Framework seeks to inform all levels of governmental
interaction (e.g., federal, state, regional, local) regarding legislation, policies, and programs
that have a direct impact on the region. The TVC has defined Legislative Focus Areas
which have an overarching objective to retain and promote local control and decision-
making as it relates to the implementation of laws and regulations and to have the ability to
integrate them in a manner that meets the unique needs of each community. The TVC will
advocate together to achieve outcomes benefiting the region in each of these Focus Areas.
Transportation and Infrastructure
Residents of the Tri-Valley region are subject to some of the heaviest commutes in the Bay
Area and are impacted by the heavy flow of traffic along the region’s freeways, which often
spills over onto the local surface streets as commuters pursue alternatives to their commute
through the Tri-Valley. A key objective of the region is to reduce congestion on the region’s
freeways, and to increase mobility of goods and people through the Tri-Valley with
continued financial investment in transportation infrastructure: developing alternative modes
of transportation, modernization of transportation corridors, and creation, modernization,
and expansion of rail systems. The TVC also seeks to partner on other significant non-
transportation infrastructure projects, especially those with regional and multi-regional
benefits.
Climate, Environment, and Health
The TVC seeks to work collaboratively with federal, state, and regional partners to address
the new landscape of year-round wildfires, air quality, public safety power shutoffs, water
quality (including PFAS/PFOS contaminants) and supply issues, as well as waste and
recycling mandates. The TVC will advocate for increasing financial and technical support in
these areas, as well as for investment in key infrastructure at all levels of government.
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Public Safety
The TVC prides itself on providing the highest quality of life for its residents, businesses,
workers, and visitors alike – a critical part of which is ensuring the basic right to safety,
without fear of harm to oneself or one’s property. As such, the coalition will advocate for
reasonable public safety reforms, especially with regard to retail theft, burglary, assault,
insurance availability, and emergency preparedness all while maintaining a lens of equity.
Economic Development
The Tri-Valley region is an innovation hub that spurs job growth, sustains a healthy
economy, and provides a high quality of life for residents and business. Key objectives are
developing a healthy workforce; and supporting innovation, capacity building, economic
stimulus, and growth in the region.
Affordable Housing and Homelessness
The TVC supports balanced solutions which consider housing, jobs, and transportation
together and seeks to support, promote, protect, and increase affordability in the region’s
housing stock. Key objectives are to work with federal, state, and regional partners to
provide funding for affordable housing through a variety of programs and options and to
work to address barriers to building housing at Very Low, Low, and Moderate income
levels. TVC also remains committed to mitigating and eliminating homelessness, including
working with partners at all levels of government to address the root causes of housing
insecurity and homelessness.
Mental Health
The TVC recognizes that social services are vital to supporting residents and providing
crucial safety net services in our region. While the TVC cities do not provide direct delivery
of social services, the Cities seek to work together to support local non-profits and
organizations that do provide these services, and advocate together for these vital
resources and services from all levels of government. Mental health support is a growing
need in our region, and the TVC seeks to advocate for the resources to meet the needs of
all our residents.
Fiscal Sustainability and General Governance
Fiscal sustainability is fundamental to the long-term stability and effectiveness of all levels
of government. TVC is committed to advocating for policies that safeguard local
government revenues, prevent the imposition of unfunded mandates, and uphold financial
sustainability. TVC also champions reforms that enhance fiscal transparency, operational
efficiency, and regulatory accountability. This includes advocating for accessible funding
mechanisms, responsible labor and employee relations policies, and streamlined regulatory
frameworks that reduce unnecessary burdens on local governments. Additionally, TVC
prioritizes strengthening intergovernmental collaboration and governance structures to
promote efficiency, equity, and resilience in public administrati
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2025-26
california legislature—2025–26 regular session
ASSEMBLY BILL No. 544
Introduced by Assembly Member Davies
February 11, 2025
An act to amend Section 21201 of the Vehicle Code, relating to
vehicles.
legislative counsel’s digest
AB 544, as introduced, Davies. Electric bicycles: required equipment.
Existing law requires a bicycle, as defined, operated during darkness
on a highway, sidewalk, or bikeway to be equipped with, among other
things, a red reflector or a solid or flashing red light with a built-in
reflector on the rear that is visible from a distance of 500 feet to the
rear when directly in front of lawful upper beams of headlamps on a
motor vehicle. Existing law defines an electric bicycle as a bicycle
equipped with fully operable pedals and an electric motor that does not
exceed 750 watts of power and categorizes electric bicycles into 3
classes. A violation of the provisions relating to the requirements for
equipping a bicycle or an electric bicycle is punishable as an infraction.
This bill would require an electric bicycle during all hours to be
equipped with a red reflector or a solid or flashing red light with a
built-in reflector on the rear that is visible from a distance of 500 feet
to the rear when directly in front of lawful upper beams of headlamps
on a motor vehicle. By expanding the requirements for equipping an
electric bicycle, the violation of which would be a crime, this bill would
expand an existing crime, thereby imposing a state-mandated local
program.
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ATTACHMENT C
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act
for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 21201 of the Vehicle Code is amended
line 2 to read:
line 3 21201. (a) No person shall A person shall not operate a bicycle
line 4 on a roadway unless it is equipped with a brake that will enable
line 5 the operator to make one braked wheel skid on dry, level, clean
line 6 pavement.
line 7 (b) No person shall A person shall not operate on the highway
line 8 a bicycle equipped with handlebars so raised that the operator must
line 9 elevate his or her their hands above the level of his or her their
line 10 shoulders in order to grasp the normal steering grip area.
line 11 (c) No person shall A person shall not operate upon a highway
line 12 a bicycle that is of a size that prevents the operator from safely
line 13 stopping the bicycle, supporting it in an upright position with at
line 14 least one foot on the ground, and restarting it in a safe manner.
line 15 (d) A bicycle or an electric bicycle operated during darkness
line 16 upon on a highway, a sidewalk where bicycle operation is not
line 17 prohibited by the local jurisdiction, or a bikeway, as defined in
line 18 Section 890.4 of the Streets and Highways Code, shall be equipped
line 19 with all of the following:
line 20 (1) A lamp emitting a white light that, while the bicycle is in
line 21 motion, illuminates the highway, sidewalk, or bikeway in front of
line 22 the bicyclist and is visible from a distance of 300 feet in front and
line 23 from the sides of the bicycle.
line 24 (2) A red reflector or a solid or flashing red light with a built-in
line 25 reflector on the rear that shall be visible from a distance of 500
line 26 feet to the rear when directly in front of lawful upper beams of
line 27 headlamps on a motor vehicle.
line 28 (3) A white or yellow reflector on each pedal, shoe, or ankle
line 29 visible from the front and rear of the bicycle from a distance of
line 30 200 feet.
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— 2 — AB 544
line 1 (4) A white or yellow reflector on each side forward of the
line 2 center of the bicycle, and a white or red reflector on each side to
line 3 the rear of the center of the bicycle, except that bicycles that are
line 4 equipped with reflectorized tires on the front and the rear need not
line 5 be equipped with these side reflectors.
line 6 The reflectors and reflectorized tires shall be of a type meeting
line 7 requirements established by the department.
line 8 (e) A lamp or lamp combination, emitting a white light, attached
line 9 to the operator and visible from a distance of 300 feet in front and
line 10 from the sides of the bicycle, may be used in lieu of the lamp
line 11 required by paragraph (1) of subdivision (d).
line 12 (f) An electric bicycle shall comply with paragraph (2) of
line 13 subdivision (d) during all hours.
line 14 SEC. 2. No reimbursement is required by this act pursuant to
line 15 Section 6 of Article XIIIB of the California Constitution because
line 16 the only costs that may be incurred by a local agency or school
line 17 district will be incurred because this act creates a new crime or
line 18 infraction, eliminates a crime or infraction, or changes the penalty
line 19 for a crime or infraction, within the meaning of Section 17556 of
line 20 the Government Code, or changes the definition of a crime within
line 21 the meaning of Section 6 of Article XIII B of the California
line 22 Constitution.
O
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AB 544 — 3 —
california legislature—2025–26 regular session
ASSEMBLY BILL No. 614
Introduced by Assembly Member Lee
February 13, 2025
An act to amend Section 911.2 of the Government Code, relating to
state government.
legislative counsel’s digest
AB 614, as introduced, Lee. Claims against public entities.
Existing law, the Government Claims Act, establishes the liability
and immunity of a public entity for its acts or omissions that cause harm
to persons and requires that a claim against a public entity relating to
a cause of action for death or for injury to person, personal property,
or growing crops be presented not later than 6 months after accrual of
the cause of action. Under existing law, claims relating to any other
cause of action are required to be presented no later than one year after
the accrual of the cause of action.
This bill would remove the provisions requiring a claim against a
public entity relating to a cause of action for death or for injury to
person, personal property, or growing crops to be presented not later
than 6 months after accrual of the cause of action and would instead
require a claim relating to any cause of action to be presented not later
than one year after accrual of the cause of action.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
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The people of the State of California do enact as follows:
line 1 SECTION 1. Section 911.2 of the Government Code is
line 2 amended to read:
line 3 911.2. (a) A claim relating to a cause of action for death or
line 4 for injury to person or to personal property or growing crops shall
line 5 be presented as provided in Article 2 (commencing with Section
line 6 915) not later than six months after the accrual of the cause of
line 7 action. A claim relating to any other any cause of action shall be
line 8 presented as provided in Article 2 (commencing with Section 915)
line 9 not later than one year after the accrual of the cause of action.
line 10 (b) For purposes of determining whether a claim was
line 11 commenced within the period provided by law, the date the claim
line 12 was presented to the Department of General Services is one of the
line 13 following:
line 14 (1) The date the claim is submitted with a twenty-five dollar
line 15 ($25) filing fee.
line 16 (2) If a fee waiver is granted, the date the claim was submitted
line 17 with the affidavit requesting the fee waiver.
line 18 (3) If a fee waiver is denied, the date the claim was submitted
line 19 with the affidavit requesting the fee waiver, provided the filing
line 20 fee is paid to the department within 10 calendar days of the mailing
line 21 of the notice of the denial of the fee waiver.
O
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— 2 — AB 614
SENATE BILL No. 231
Introduced by Senator Seyarto
(Coauthors: Senators Choi, Niello, Ochoa Bogh, and Valladares)
(Coauthors: Assembly Members Alanis, Chen, and Lackey)
January 28, 2025
An act to add Section 21083.06 to the Public Resources Code, relating
to environmental quality.
legislative counsel’s digest
SB 231, as introduced, Seyarto. California Environmental Quality
Act: guidelines.
The California Environmental Quality Act (CEQA) requires a lead
agency, as defined, to prepare, or cause to be prepared, and certify the
completion of an environmental impact report on a project that it
proposes to carry out or approve that may have a significant effect on
the environment or to adopt a negative declaration if it finds that the
project will not have that effect. CEQA also requires a lead agency to
prepare a mitigated negative declaration for a project that may have a
significant effect on the environment if revisions in the project would
avoid or mitigate that effect and there is no substantial evidence that
the project, as revised, would have a significant effect on the
environment.
CEQA requires the Office of Land Use and Climate Innovation,
formerly named the Office of Planning and Research, to prepare and
develop, and the Secretary of the Natural Resources Agency to certify
and adopt, guidelines for the implementation of CEQA. CEQA requires
the guidelines to specifically include criteria for public agencies to
follow in determining whether or not a proposed project may have a
significant effect on the environment.
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This bill would require, on or before July 1, 2027, the Office of Land
Use and Climate Innovation to prepare and develop, and the Secretary
of the Natural Resources Agency to certify and adopt, guidelines in
Appendix O of the CEQA guidelines to establish best practices for
public agencies to follow in determining whether or not a proposed
project may have a significant effect on the environment when
completing Appendix G of the CEQA guidelines. The bill would require
the best practices to consider, and include identifiable thresholds of
significance based on, specified state and federal environmental laws.
The bill would authorize the office, in developing those guidelines, to
consult with local, regional, state, and federal agencies that have
authority and expertise on those subjects.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 21083.06 is added to the Public Resources
line 2 Code, to read:
line 3 21083.06. (a) On or before July 1, 2027, the Office of Land
line 4 Use and Climate Innovation shall prepare and develop, and the
line 5 Secretary of the Natural Resources Agency shall certify and adopt,
line 6 guidelines in Appendix O of Chapter 3 (commencing with Section
line 7 15000) of Division 6 of Title 14 of the California Code of
line 8 Regulations to establish best practices for public agencies to follow
line 9 in determining whether or not a proposed project may have a
line 10 significant effect on the environment, as described in subdivision
line 11 (b) of Section 21083, when completing Appendix G of Chapter 3
line 12 (commencing with Section 15000) of Division 6 of Title 14 of the
line 13 California Code of Regulations. The best practices shall consider,
line 14 and include identifiable thresholds of significance based on, all of
line 15 the following:
line 16 (1) The California Global Warming Solutions Act of 2006
line 17 (Division 25.5 (commencing with Section 38500) of the Health
line 18 and Safety Code) for greenhouse gas emissions.
line 19 (2) The federal Clean Air Act (42 U.S.C. Sec. 7401 et seq.) for
line 20 vehicle miles traveled.
line 21 (3) The California Noise Control Act of 1973 (Division 28
line 22 (commencing with Section 46000) of the Health and Safety Code)
line 23 for noise pollution.
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— 2 — SB 231
line 1 (b) In developing guidelines pursuant to subdivision (a), the
line 2 Office of Land Use and Climate Innovation may consult with local,
line 3 regional, state, and federal agencies that have authority and
line 4 expertise on those subjects.
O
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SB 231 — 3 —
california legislature—2025–26 regular session
ASSEMBLY BILL No. 226
Introduced by Assembly Members Calderon and Alvarez
(Principal coauthors: Assembly Members Bryan, Harabedian, Irwin,
Schiavo, Schultz, and Zbur)
(Coauthors: Assembly Members Elhawary, Ortega, Pellerin, Ransom,
Sharp-Collins, and Stefani)
January 9, 2025
An act to add Section 63087.5 to, and to add Article 11 (commencing
with Section 63049.75) to Chapter 2 of Division 1 of Title 6.7 of, the
Government Code, and to add Section 10100.3 to the Insurance Code,
relating to insurance, making an appropriation therefor, and declaring
the urgency thereof, to take effect immediately.
legislative counsel’s digest
AB 226, as introduced, Calderon. California FAIR Plan Association.
The California FAIR Plan Association is a joint reinsurance
association in which all insurers licensed to write basic property
insurance participate in administering a program for the equitable
apportionment of basic property insurance for persons who are unable
to obtain that coverage through normal channels. Existing law requires
the association’s plan of operation and any amendment to the plan to
be approved by the Insurance Commissioner. Existing law establishes
the California Infrastructure and Economic Development Bank and
authorizes it to issue bonds to provide funds for the payment of costs
of a project for a participating party or upon request by a state entity.
This bill would authorize the association, if granted prior approval
from the commissioner, to request the California Infrastructure and
Economic Development Bank to issue bonds, and would authorize the
Revised 2-19-25—See last page.99
bank to issue those bonds to finance the costs of claims, to increase
liquidity and claims-paying capacity of the association, and to refund
bonds previously issued for that purpose. The bill would specify that
the association is a participating party and that financing all or any
portion of the costs of claims or to increase liquidity and the
claims-paying capacity of the association is a project for bond purposes.
The bill would authorize the bank to loan the proceeds of issued bonds
to the association, and would authorize the association to enter into a
loan agreement with the bank and to enter into a line of credit agreement
with an institutional lender or broker-dealer.
This bill would require the association, if the above-described bonds,
loan agreements, or lines of credit received the prior approval of the
commissioner, to assess members in the amounts and at the times
necessary to timely pay in full all obligations of the association with
respect to those bonds, loan agreements, or lines of credit and related
agreements, as specified.
Existing law establishes the California Infrastructure and Economic
Development Bank Fund, a continuously appropriated fund, for the
purpose of implementing the objectives of the bank.
To the extent that the bill would result in additional revenues being
deposited into the California Infrastructure and Economic Development
Bank Fund, the bill would make an appropriation.
This bill would declare that it is to take effect immediately as an
urgency statute.
Vote: 2⁄3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
line 1 SECTION 1. Article 11 (commencing with Section 63049.75)
line 2 is added to Chapter 2 of Division 1 of Title 6.7 of the Government
line 3 Code, to read:
line 4
line 5 Article 11. California FAIR Plan Association Financing
line 6
line 7 63049.75. (a) Notwithstanding any other provision of this
line 8 division, pursuant to Section 10100.3 of the Insurance Code and
line 9 upon approval of the bank, a financing of the costs of paid claims
line 10 or to increase liquidity and claims-paying capacity upon the request
line 11 of the California FAIR Plan Association shall be deemed to be in
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line 1 the public interest and eligible for financing by the bank. Article
line 2 3 (commencing with Section 63040), Article 4 (commencing with
line 3 Section 63042), Article 5 (commencing with Section 63043),
line 4 Article 5.5 (commencing with Section 63047.1), Article 6
line 5 (commencing with Section 63048), Article 6.3 (commencing with
line 6 Section 63048.55), Article 6.5 (commencing with Section 63048.6),
line 7 Article 6.7 (commencing with Section 63048.91), Article 7
line 8 (commencing with Section 63049), Article 8 (commencing with
line 9 Section 63049.6), Article 9 (commencing with Section 63049.67),
line 10 and Article 10 (commencing with Section 63049.70) shall not
line 11 apply to that financing provided by the bank.
line 12 (b) Notwithstanding any other provision of this division, the
line 13 bank shall not have authority over any matter that is subject to the
line 14 approval of, or otherwise regulated by, the Insurance Commissioner
line 15 under Part 1 (commencing with Section 1880) of Division 2 of the
line 16 Insurance Code. The bank shall have the right to enforce all
line 17 obligations of the California FAIR Plan Association under the
line 18 agreements relating to bonds issued under this section.
line 19 (c) The bank may issue taxable or tax-exempt bonds pursuant
line 20 to Chapter 5 (commencing with Section 63070) to finance the costs
line 21 of claims or to increase liquidity and claims-paying capacity of
line 22 the California FAIR Plan Association, and to refund bonds
line 23 previously issued for that purpose, and may loan the proceeds
line 24 thereof to the California FAIR Plan Association. Bond proceeds
line 25 may also be used to fund necessary reserves, capitalized interest,
line 26 credit or liquidity enhancement costs, and costs of issuance.
line 27 (d) Bonds issued under this section shall not be deemed to
line 28 constitute a debt or liability of the state or of any political
line 29 subdivision thereof, other than the bank, or a pledge of the faith
line 30 and credit of the state or of any political subdivision, but shall be
line 31 payable solely from the fund and other revenues and assets securing
line 32 the bonds. All bonds issued under this article shall contain on the
line 33 face of the bonds a statement to that effect.
line 34 SEC. 2. Section 63087.5 is added to the Government Code,
line 35 immediately following Section 63087, to read:
line 36 63087.5. For purposes of this chapter:
line 37 (a) “Participating party” includes the California FAIR Plan
line 38 Association.
line 39 (b) “Project” has the same meaning as defined in Section 63010,
line 40 and also includes financing all or any portion of the costs of claims
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AB 226 — 3 —
line 1 or to increase liquidity and the claims-paying capacity of the
line 2 California FAIR Plan Association in an amount, together with
line 3 necessary reserves, capitalized interest, credit or liquidity
line 4 enhancement costs, or costs of issuance, that may be determined
line 5 by the California FAIR Plan Association, with prior approval from
line 6 the Insurance Commissioner, in a request to the bank made
line 7 pursuant to Section 63049.75.
line 8 SEC. 3. Section 10100.3 is added to the Insurance Code, to
line 9 read:
line 10 10100.3. (a) If granted prior approval from the commissioner,
line 11 the association may do all of the following:
line 12 (1) Request the California Infrastructure and Economic
line 13 Development Bank to issue bonds from time to time to finance all
line 14 or any portion of the costs of claims or to increase liquidity and
line 15 claims-paying capacity, pursuant to Section 63049.75 of the
line 16 Government Code.
line 17 (2) Enter into loan agreements with the California Infrastructure
line 18 and Economic Development Bank, pursuant to Section 63049.75
line 19 of the Government Code.
line 20 (3) Enter into line of credit agreements with one or more
line 21 institutional lenders, as defined in Section 22600 of the Financial
line 22 Code, or one or more broker-dealers, as defined in Section 25004
line 23 of the Corporations Code, for the purpose of financing the costs
line 24 of claims or to increase liquidity and claims-paying capacity and
line 25 to refund lines of credit previously incurred for that purpose.
line 26 (4) Secure those loan agreements or line of credit agreements
line 27 by a pledge of, and the grant of a lien and security interest in,
line 28 collateral, including premiums, revenues, and receivables. That
line 29 pledge, lien, and security interest is subject to Division 9
line 30 (commencing with Section 9101) of the Commercial Code.
line 31 (5) Enter into any other agreement or take any other action
line 32 necessary or convenient to the execution and delivery of bonds,
line 33 loan agreements, or line of credit agreements.
line 34 (b) If the bonds, loan agreements, or lines of credit described
line 35 in subdivision (a) have received the prior approval of the
line 36 commissioner as provided in subdivision (a), the association shall
line 37 assess members in the amounts and at the times necessary to timely
line 38 pay in full all obligations of the association with respect to those
line 39 bonds, loan agreements, and lines of credit and all obligations of
line 40 the association under agreements entered into pursuant to paragraph
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line 1 (5) of subdivision (a). Once approved by the commissioner, specific
line 2 repayment terms, including those relating to assessment, shall not
line 3 be altered by subsequent amendment to the plan of operation, and
line 4 amendments to the plan of operation shall not impair the timely
line 5 payment in full of any obligations of the association with respect
line 6 to those bonds, loan agreements, and lines of credit and all
line 7 obligations of the association under agreements entered into
line 8 pursuant to paragraph (5) of subdivision (a).
line 9 SEC. 4. This act is an urgency statute necessary for the
line 10 immediate preservation of the public peace, health, or safety within
line 11 the meaning of Article IV of the California Constitution and shall
line 12 go into immediate effect. The facts constituting the necessity are:
line 13 California is now experiencing a severe property insurance
line 14 availability crisis in the state. This crisis in availability within the
line 15 property insurance market normally provided by admitted insurers
line 16 and licensed surplus line brokers is having the result that needed
line 17 coverage is often unavailable in the normal insurance market,
line 18 forcing consumers to resort to the “nonadmitted” or “secondary
line 19 market,” which are insurance alternatives not overseen by the
line 20 Department of Insurance. Consumers are also having to purchase
line 21 much more insurance through the California FAIR Plan
line 22 Association, and the association has grown to such an extent that
line 23 its financial capacity to pay claims after a catastrophic fire is
line 24 unlikely.
line 25 The Legislature finds that access to basic property insurance
line 26 suitable for protection of all types of habitational risk, including
line 27 personal and commercial lines of insurance, has become
line 28 increasingly unavailable and that, as a result, all Californians may
line 29 suffer because of this unavailability. In order for insurance
line 30 consumers to obtain adequate policy coverage from the California
line 31 FAIR Plan, which is subject to regulation by the commissioner,
line 32 as soon as possible, it is necessary that this act take effect
line 33 immediately.
line 34
line 35
REVISIONS: line 36
Heading—Lines 2, 3, and 4. line 37
line 38
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