End-of-Session Legislative Wrap-Up (2025)
End-of-Session Legislative Wrap-Up (2025)
By Kate Bell Strategies
It was anticipated that State Senate Pro Tem Elect, Monique Limon (D-Santa Barbara) would be replacing Pro Tem Mike McGuire in January. However, that timeline moved up to November 17th during the final days of the legislative session.
Throughout the year, we were able to stop many problematic bills, some of which were held in policy and fiscal committees, while with others, we were able to stop on the floor of the second house (following the bills’ house of origin). Our successful advocacy efforts were often assisted by various groups in our coalition including apartment association affiliates across California that are members of the California Rental Housing Association and various realtor and YIMBY groups.
Final Floor Fight Wins.
During the final days of this year’s legislative session, we prevented Senate Bill 522 (Wahab), “Just Cause for Rebuilds after Disasters,” from being taken up on the Assembly floor. This was a high priority tenant protection bill that our coalition effectively engaged in over the summer recess. Another highly problematic bill that we were able to successfully stop on the Senate floor was Assembly Bill 1018 (Bauer-Kahan), “Automated Decision Systems,” which would have prohibited the use of algorithmic software, and which was made “inactive” on the Senate Floor. Assembly Bill 1018 would have regulated the development and deployment of automated decision systems, many of which are used in the rental housing space.
Bills Making Their Way to the Governor’s Desk.
One priority bill we opposed made it to the Governor’s desk, Assembly Bill 628 (McKinnor), “Habitability: Stoves and Refrigerators.” This bill imposes a new habitability standard requiring rental units to provide a stove or refrigerator in good working order and capable of safely generating heat for cooking or safely storing food untenantable. We have submitted a veto request and will know by October 13th whether the bill is signed or vetoed by Governor Newsom.
Another bill of interest pending on the Governor’s desk is Assembly Bill 246 (Bryan), the “Social Security Tenant Protection Act of 2025.” This bill authorizes a tenant of residential real property to assert Social Security hardship as an affirmative defense in an unlawful detainer proceeding based on the nonpayment of rent in the event Social Security payments are delayed by the Federal government. Finally, Assembly Bill 1414 (Ransom), allowing for tenants to opt-out of landlord-tenant internet services, is pending at the Governor’s desk, with both the National Apartment Association and the California Rental Housing Association being opposed to the bill in addition to the Apartment Association of Greater Los Angeles.
Bills Opposed and Successfully Stopped.
With regard to proposed bills that were opposed and stopped in their house of origin or in policy committee this year, those include:
- Assembly Bill 1157 (Kalra), “Just Cause and Rent Limits.” This bill would have significantly altered the existing just cause and rent increase limitation provisions established under Assembly Bill 1482, the Tenant Protection Act of 2019 by lowering allowable rent increases to no more than 5% per year or the change in the Consumer Price Index plus 2%, whichever was lower.
- Assembly Bill Bill 1240 (Lee), “Corporate Ownership of Single-Family Dwellings” has become a two-year bill and was stopped in the Senate Judiciary Committee. This bill would have limited corporate ownership of single-family homes to no more than 1,000 properties.
- Assembly Bill 1248 (Haney), “Rental Fees” failed in the Assembly on the floor, where it was then made inactive. This bill would have severely limited the amount and types of fees that a rental property owner could charge in addition to rent and have required those fees to be included in the rent and not charged as a separate fee.
- Senate Bill 436 (Wahab), “Right to Redeem Tenancy,” would have changed the 3-day pay or quit notice requirement to a 14-day pay or quit requirement, and the bill was stopped in the Assembly Judiciary Committee. Although granted reconsideration, the bill was never set for a second hearing.
- Senate Bill 681 (Wahab), “Housing,” was the Senate’s housing reform proposal, which included provisions that limit fees rental property owners may charge tenants. Fortunately, the bill failed to get a hearing in the Assembly Housing Committee and now is a two-year bill.
- Senate Bill 789 (Menjivar), “Vacancy Tax” would have required owners of commercial property to register with the California Department of Tax and Fee Administration (CDTFA) and annually file an information return to report specified vacancy information, and (2) subject late and unfiled returns to a penalty of $100 per commercial property.
Bills Failed or Amended in Appropriations Committee Hearings.
Proposed bills that were opposed by us and that failed in or were favorably amended (“fixed”) in the Appropriations Committee meetings, included:
- Assembly Bill 380 (Gonzalez), which was an anti-price gauging bill that would have significantly increased the penalties for price gauging during a state of emergency.
- Assembly Bill 878 (Kalra) would have imposed additional reasonable accommodation standards in the event a tenant or family member were a victim of domestic violence.
- Senate Bill 36 (Umberg) was another anti-price gauging bill that added a 50-mile geographic radius to areas declared under a state of emergency. We were able to have the bill amended to remove the additional geographic area.
- Senate Bills 52 (Perez) and 384 (Wahab) would have imposed severe restrictions on the use of algorithmic pricing software. Both of these bills are now “dead.”
Negotiated Amendments.
While our advocacy efforts do not always result in stopping bills entirely, there were several prominent bills that we successfully negotiated amendments on, which left these bills far less harmful prior to passage, including:
- Assembly Bill 414 (Pellerin), “Security Deposits,” which would have imposed strict rules on the methods for refunding security deposits. We were able to obtain amendments to allow for mutual written agreements for alternative methods of refunding security deposits, to clarify that the itemized statement can be provided by email or first-class mail upon mutual agreement, and account for managing security deposit returns when multiple adult tenants reside in a unit.
- Assembly Bill 863 (Kalra), “Residential Rental Properties: Language Requirements,” would have imposed a requirement on landlords to have translated certain notices and legal filings. However, instead of requiring a landlord to provide the tenant with notices in one of several languages in addition to English, such as Spanish, Chinese, Tagalog, Vietnamese, or Korean, amendments were accepted to instead impose a requirement on the state’s Judicial Council create a summons translated into these languages and make the documents available on its website.
- Senate Bill 262 (Wahab), “Pro-Housing Local Policies,” adds additional local policies related to housing stability, and homelessness as pro-housing policies that the Department of Housing and Community Development (HCD) can consider in developing a pro-housing designation. We were able to have rent stabilization ordinance, funding for legal services for eviction defense, eviction prevention, and other tenant protections removed from the bill.
All of the above three bills are pending and awaiting signature or veto on the Governor’s desk.
All in all, it was a successful legislative year for the Apartment Association of Greater Los Angeles and its coalition members as we continue to advocate in the State Capitol, build key relationships with legislators and the Governor’s Office, and represent members in Sacramento and at the local government level. The engagement by our members with their own representatives definitely helped drive the success of our advocacy this year.
Kate Bell, the Founder and Chief Executive Officer of Kate Bell Strategies, is a former Partner of Capitol Advocacy, which is ranked among California’s top lobbying firms. Ms. Bell’s firm specializes in lobbying, strategic planning, coalition building, budget advocacy, procurement, and political involvement.