KEY GENERAL LEGISLATIVE UPDATES 2025

by Betsy Martyn on December 31, 2024

Co-author: Jillian Martins,

posted in Administrative Regulations, Code Enforcement, Employment Law, Public Records Act, Public Utilities, Public Works, Uncategorised,

All bills are effective January 1, 2025 unless otherwise provided.

PUBLIC RECORDS ACT

Voluntary Disclosure of a Police Officer Termination – SB 400: Amends Penal Code 832.7 by adding (b)(13) which provides for voluntary disclosure by a public agency of the reason for termination for cause for the type of incident which must be disclosed.

13) Notwithstanding subdivision (a) or any other law, an agency that formerly employed a peace officer or custodial officer may, without receiving a request for disclosure, disclose to the public the termination for cause of that officer by that agency for any disclosable incident, including those described in subparagraphs (A) to (E), inclusive, of paragraph (1) Any such disclosure shall be at the discretion of the agency and shall not include any information otherwise prohibited from disclosure. This paragraph is declaratory of existing law.

Extension of Time to Respond to a PRA request during a declared emergency – SB 1034: Adds (c)(5) to Govt. Code Section 7922.535 (part of the Public Records Act) which defines unusual circumstance under which initial response time may be extended to a state of emergency proclaimed by the Governor leading to staffing shortages or closure of facilities; it does not apply to records created during the state of emergency.

Public agencies should integrate SB 1034’s expansion of “unusual circumstances” into their policies and practices for responding to Public Records Act requests, while being aware of the limitations of invoking a 14-day extension for the initial determination, even during declared states of emergency.

PUBLIC WORKS

Payment of claims by contractors – AB 1625: Makes a non-substantive change to a provision of the Public Contract Code that applies to cities and is included here as a reminder. Section 20104.6 of the Public Contract Code is amended to read:

(a) A local agency shall not fail to pay money as to any portion of a claim that is undisputed except as otherwise provided in the contract.

(b) In any suit filed under Section 20104.4, the city shall pay interest at the legal rate on any arbitration award or judgment. The interest shall begin to accrue on the date the suit is filed in a court of law.

FEES

Local Government – Property related water and sewer fees and assessments

When a city complies with the following exhaustion of remedies procedures for a fee or assessment under Prop 218, then the person or entity that does not submit a written objection to that city in a timely manner is prohibited from bringing an action alleging failure to comply with Prop. 28, and, if they do, the review is limited to a record of the proceedings.

Utility fee posting Senate Bill 1210 (“SB 1210”) will require public utilities with 4000 or more connections providing electrical, gas, water or sewer service to publicly post on their internet websites the schedule of estimated fees for typical service connections for various housing development types and the estimated timeframes for completing typical service connections needed for each housing development type.

On or before January 1, 2026, each utility shall publicly post on its internet website for new housing construction the following:

Schedule of estimated fees for typical service connections for each housing development type (i.e., ADUs, mixed-used, residential developments), except utilities that post a schedule of their fees with this information pursuant to Gov. Code § 65940.1.
Estimated timeframes for completing typical service connections needed for each housing development type.

Exempt utilities with fewer than 4,000 service connections that do not establish or maintain an internet website due to hardship are exempt. Utilities can establish hardship by annually adopting a resolution with detailed findings which may include inadequate access high-speed internet access, significant financial resources, or insufficient staff resources.

AB 1827 adds Govt. Code Section 537506 (below) which confirms that property-related water rates may include higher costs for that service due to factors such as high water usage or other factor, which may be allocated using any method the reasonable assesses the cost of providing the parcels served which provides as follows:

Section 537506:

(a) The fees or charges for property-related water service imposed or increased pursuant to Section 6 of Article XIII D of the California Constitution may include the incrementally higher costs of water service due to any of the following:

(1) The higher water usage demand of parcels.

(2) The maximum potential water use.

(3) Projected peak water usage.

(4) Any combination of paragraphs (1) to (3), inclusive.

(b) (1) The incrementally higher costs of water service associated with higher water usage demands, the maximum potential water use, or projected peak water usage may be allocated using any method that reasonably assesses the water service provider’s cost of serving those parcels that are increasing potential water usage demand, maximum potential water use, or projected peak water usage.

(b) (2) In addition to any other method consistent with Section 6 of Article XIII D of the California Constitution, the incrementally higher costs of water service associated with higher water usage demand, maximum potential water use, or projected peak water usage may be allocated among customer classes, within customer classes, or both, based on meter size or peaking factors, as those methods reasonably assess the water service provider’s cost of serving parcels that increase water usage demand, maximum potential water use, or projected peak water usage.

Land Dedication for Road Widening (Assembly Bill 3177) – Mandatory

“Housing development” means a development project with common ownership and financing consisting of residential use or mixed use where not less than 50 percent of the floorspace is for residential use. Assembly Bill 3177 (“AB 3177”) modifies existing requirements under the Mitigation Fee Act for setting traffic impact fees for housing projects near transit and restricts certain land dedication requirements.

Key Provisions of AB 3177:

Modifications to Mitigation Fee Act: Local agencies may impose fees on housing developments to offset traffic impacts under the Mitigation Fee Act. AB 3177 requires that, for developments close to transit, these fees must reflect a reduced rate of vehicle trip generation, provided the project is within a Transit Priority Area (which includes planned transit stops) rather than simply within ½ mile of a transit station. This new area designation supports development where transit stations are either operational or planned to be completed within one year of the housing project’s completion.
Restrictions on Land Dedication for Road Widening prohibits local agencies from requiring land dedications specifically to widen roads for mitigating traffic impacts, meeting traffic service levels, or achieving desired roadway widths.
Land dedication may still be required if the project is:
- Outside a designated Transit Priority Area
- Features a linear street frontage of 500 feet or more

Impact Fee Deferral (Senate Bill 937) –

SB 937 takes effect on January 1, 2025 and amends Govt. Code Section 66007 (part of the Mitigation Fee Act) to change the timing for payment of fees for certain residential development projects as well as connection fees for water and sewer connections.

Fees for utility connection:

– Utility service fees for connections may be collected when an application for utility service is received, provided that those fees do not exceed the costs incurred by the utility provider resulting from the connection activities. Essentially, this limits (if not prohibits) the collection of overall connection fees.

– Local agencies cannot charge interest (or impose other additional charges) on any deferred fees.

Development impact fees (excluding Quimby or processing fees, code enforcement or inspection fees):

1. Collection at final inspection or date of occupancy:

– These fees no longer may be collected upon building permit issuance except as provided below; instead they can be collected only on or after the date of final inspection or certificate of occupancy, whichever occurs first. However, the City may withhold a certificate of occupancy (including a temporary certificate of occupancy) until payment of the relevant fees or charges are received.

– If the residential development contains more than one dwelling, and if other exemptions below do not apply, the local agency may determine whether the fees or charges shall be paid on a pro rata basis for each dwelling when it receives its final inspection or certificate of occupancy, whichever occurs first; on a pro rata basis when a certain percentage of the dwellings have received their final inspection or certificate of occupancy, whichever occurs first; or on a lump-sum basis when the first dwelling in the development receives its final inspection or certificate of occupancy, whichever occurs first.

2. Collection at building permit issuance:

– The fees and charges may be collected sooner, (i.e. upon issuance of a building permit) only as follows:

When there is a formal account established to fund the construction of the public improvements and the funds have been appropriated, and the improvements are for water, sewer, wastewater, fire, public safety or emergency services, or roads, sidewalks or other transportation facilities including real estate acquisition; or for school facilities; or

2. When improvements already have been constructed and the payment reimburses the City.

If the fees have not been paid by the time of issuance of a building permit, the property owner must execute a contract to pay the fee, which then is recorded against the property. The form of contract must be posted on the website. The contract may require the property owner to give notice of any escrow so that the fee can be collected.

The exception to payment timing does not apply to certain lower income development or to “designated residential development” which means a residential development of 10 or fewer units; or one where all of the units (except the manager’s unit) are lower income units; a low barrier navigation center (a form of shelter); residential units in a commercial zone as described in 65912.111); residential development that are mixed use development along a commercial corridor, or to certain kinds of multifamily development or specific housing construction by institutions of higher education or religious groups.

Fee Estimate Tool (Assembly Bill 3012) –

When approving development projects, counties and cities can require the applicants to mitigate the project’s effects by paying fees—known as mitigation fees, impact fees, or developer fees. Assembly Bill 3012 (“AB 3012”) requires cities and counties with websites to provide an online tool for the public to estimate fees for proposed housing projects with the following requirements:

Local governments may choose the format of the tool.
It must calculate an estimate of fees for a proposed housing development.
The calculation must include, but limited to, mitigation fees, in-lieu fees for affordability requirements, construction excise tax, and in-lieu fees for dedications.

The estimate is merely an estimate and may include a disclaimer regarding its accuracy. Cities or counties with a population of more than 500,000 must meet these requirements by July 1, 2031, and those with a population of 500,000 or less by July 1, 2032.

Development Applicant – Fees and Exactions (Assembly Bill 1820) –

Assembly Bill 1820 (“AB 1820”) would authorize a development proponent that submits a preliminary application for a housing development project to request a preliminary fee and exaction estimate:

A City or county must provide a good faith fee estimate of all fees and exactions (excluding CEQA charges) within 30 business days of submitting the preliminary application if a development proponent requests (Gov. Code § 65941.1).
The bill specifies that the preliminary fee and exaction estimate is for informational purposes only and does not affect the scope, amount, or time of payment of any fee or exaction, as specified (Gov. Code § 65941.1).
The city or county must provide, upon final approval of a housing development project, the development proponent with an itemized list and a good faith estimate of the total sum amount of all fees and exactions that will apply to the project within 30 business days of the determination of completeness transmitted to the applicant (Gov. Code § 65943.1).

Long-term Affordable Housing Monitoring Fees (Assembly Bill 2430) – Mandatory

Assembly Bill 2430 (“AB 2430”) amends the existing Density Bonus Law for low and moderate-income units under specific conditions.

Key Provisions of AB 2430:

Prohibition on Monitoring Fees: Local governments cannot charge a monitoring fee on qualifying housing projects eligible under the Density Bonus Law. The prohibition applies if specific conditions are met, such as the housing development contains 100% lower-income units (up to 20% allowed for moderate-income households).
Effective Date and Retroactive Application: Starting January 1, 2025, any affordable housing development already in service that qualifies under these terms will no longer be subject to monitoring fees.

AB 2430 (State-Mandated Local Program) imposes new duties on local governments to comply with this monitoring fee prohibition for eligible housing developments.

Inclusionary Housing Fee Reports (Assembly Bill 2663) – Mandatory – January 1, 2026

Assembly Bill 2663 (“AB 2663”) requires cities to publicly report on the collection and expenditure of inclusionary housing in-lieu fees. The bill defines inclusionary housing in-lieu fees as payments made by developers as an alternative to fulfilling inclusionary housing requirements (i.e., providing affordable housing units within a development).

The Mitigation Fee Act governs the collection and use of fees imposed by local agencies as conditions of approval for development projects. This act requires local agencies to:

Specify the purpose of the fees.
Deposit, invest, and account for these funds.
Make findings every five years regarding unexpended fees, ensuring a reasonable relationship between the fee and its intended purpose.

Additionally, the Planning and Zoning Law enables local agencies to mandate inclusionary housing ordinances, which require developers of residential rental units to include a percentage of affordable units for low- and moderate-income households. The Department of Housing and Community Development reviews these ordinances according to specific procedures.

Key Provisions of AB 2663:

Annual Reporting of In-Lieu Fees (Effective January 1, 2026): Local agencies that collect inclusionary housing in-lieu fees and have an internet website must post the following annually:

The amount of in-lieu fees collected in the previous year;
Whether these fees are intended for a specific housing project;
Every five years, starting in 2026, local agencies must also post on their website;
The total amount of in-lieu fees collected over the past five years;
The specific projects to which those fees were allocated;
Inclusionary Housing In-Lieu Fees.

PLANNING AND ZONING

Entertainment zones – SB 969:

Prior law allowed such a zone within San Francisco; this bill now amends various provisions of the Business & Professions Code to provide that a city may establish such a zone where licensed beer and wine distributors may provide alcoholic beverages in public areas. (See, for example, Business & Professions Code Section 25690 et seq.)

Electrified Security Fences – AB 2371:

AB 2371 is urgency legislation (which took effect September 16, 2024) and covers the installation of an electrified security fence (defined by the bill, including a requirement for solar power) used to protect vehicles, vessels, equipment, materials, freight, or utility infrastructure within an outdoor lot not in a residential zone. The city may require an administrative permit for approval if it is within a residential zone or next to residential property or is within 300 feet of a park, childcare facility, school or community center (See Civil Code Section 835). The legislation is replaced by a similar provision on January 1, 2028.

CEQA Exemptions: Senate Bill (SB) 1361, which provides an exemption for review required by the California Environmental Quality Act (“CEQA”) to local agencies who are contracting to provide services to people experiencing homelessness. (See Public Resources Code Section 21080.10).

AB 3057 amends Public Resources Code Section 21080.17 to add to the exemption for ADU’s that CEQA does not apply to the adoption of an ordinance regarding Junior ADU’s.

EMPLOYMENT

Recall, that a recent California Supreme Court ruling confirms that FLSA provisions regarding breaks and meal times do not apply to public agencies. (See Stone v. Alameda Health System (2024) 16 Cal. 5^th 1040).

Employee Paid Leave based upon Violence – AB 2499

AB 2499 adds Govt. Code Section 12945.8 to the Government Code and applies to any public employer. The added section creates a number of new rights that apply when an employee or an employee’s family member is a of “qualifying act of violence.” A qualifying act of violence is one of the following, regardless of whether anyone is arrested for, prosecuted for, or convicted of committing any crime: domestic violence, sexual assault, stalking, or an act causing bodily injury or death.

These rights include the following: notice of the new rights to current and new employees as well as annually, and any time an employee informs the employer that the employee or a family member is the victim of the qualifying act of violence, ability to use paid sick leave, restrictions discharging or in any manner discriminating or retaliating against an employee who is a victim or who has a family member who is a victim for taking time off work for purposes relating to a qualifying act of violence. The California Office of Civil Rights is supposed to provide a form by July 1, 2025.

The employer may limit the total leave taken pursuant to these provisions, and require that the leave taken by an employee pursuant to these provisions run concurrently with leave taken pursuant to the federal Family and Medical Leave Act of 1993 and the California Family Rights Act if the employee would have been eligible for that leave. Leave otherwise is capped at 12 weeks.

AB 2561 adds Govt. Code Section 3502.3 requires that during a public hearing on the annual budget, the city must summarize its vacancies and recruitment efforts. Any union is entitled to comment. If the number of vacancies within a single unit is 20% or more of total positions, the city must provide more specific information if requested by the union.

SB 399 adds Sections 1137 et seq to the Labor Code. Those new sections prohibit an employer (including a public agency) from discharging, disciplining or taking adverse action against an employee who declines to attend an employer-sponsored meeting or to participate in communications regarding the employer’s opinion of religious or political matters. “Political matters” means matters relating to elections for political office, political parties, legislation, regulation, and the decision to join or support any political party or political or labor organization. “Religious matters” means matters relating to religious affiliation and practice and the decision to join or support any religious organization or association.(Obviously, a public employer should not be having such meeting anyway).

AB 2455 amends Govt. Code Section 53087.6 to confirm current whistleblower protections or reporting to a city auditor controller and expanding whistleblower protection for those reporting improper governmental activity, defined as “fraud, waste, or abuse by local government employees” as well as contractors and subcontractors. The city auditor controller may set up a hotline to receive such report and may conduct an investigation. The identify of any reporting party is protected.

Conflicts of Interest – Fair Political Practices Commission

All Form 700’s to be filed electronically. AB 1170 repeals and revises Govt. Code Section 87500 to required that as of January 1, 2025, all FPPC forms filed electronically with the FPPC. The information will be available on the FPPC website with specific redactions, such as personal address and family member information.

Changes to the Levine Act (Govt Code Section 84308) pursuant to SB 1243:

The Levin Act does not apply if the public entity does not have the authority to make a decision. In addition to existing exemption, the requirements for disclosure do not apply to:

– Periodic review or renewal of development agreements unless there is a material modification or amendment;

– Review or renewal of competitively bid contracts unless there are revisions valued at more than 10% of the value of the contract or $50,000, whichever is less;

– Modification to contracts that are not competitively bid that are otherwise exempt;

– A decision that is a change in membership dues;

– Contracts between government agencies;

– Contracts where neither party receives financial compensation;

– Contracts under $50,000.

The Levine Acct does not apply to city attorney who is providing advice and who does not have the authority to make a final decision.

The time to return a contribution is extended to 30 days after the elected official makes the decision to which the Act would apply.

The amount of a contribution to be disclosed changes to $500.

In addition, there are a variety of changes to regulations regarding when a person is an agent, i.e. the contributions of the agent are not aggregated with those of a party, and the agent cannot make a contribution to the elected official during the proceeding and for 12 months after that decision.

Remote Interest: Effective January 1, 2026 – SB 1111 amends Govt. Code Section 1091 (readopted in its entirety) to provide that a remote interest includes the situation where the child of the elected official is an officer or director of the entity involved or has a 10% or more ownership interest in a party to a contract entered into by the body or board and the public official has that information.

GENERAL GOVERNMENTAL

AB 1825 adds Section 19800 to the Education Code to provide that public libraries receiving state funding must adopt a written collection development policy by January 1, 2026. The State Librarian will have samples of such a policy. That policy cannot prohibit the circulation of any materials because of the topic addressed or views, ideas or opinions expressed.

AB 1785 adds Govt. Code Section 7928.205 which states that no state or local agency shall publicly post the home address, telephone number, or both the name and assessor parcel number associated with the home address of any elected or appointed official on the internet without first obtaining the written permission of that individual.

AB 2346 amends Public Resources Code Section 42652.5 which allows a city to satisfy its annual procurement target of recovered organic waste products as determined by the local waste characterization study, by procuring certain compost.

AB 2582 (City Clerk) adds Elections Code Section 10226 et seq. which sets out the text for uniform candidacy forms.

tags: New laws, Public Records Act,

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