The 2026 Legislative Update: Proposed Bills Up for Floor Votes on May 29th 

The 2026 Legislative Update: Proposed Bills Up for Floor Votes on May 29^th 

Proposed 2026 Bills Have Completed the Fiscal and Policy Committee Review Process…and Merrily We Roll Along…

By Kate Bell Strategies

Legislative Update

Proposed bills for this legislative session have now gone through fiscal and policy committee review. Fortunately, two additional bills that we have been strongly opposing, Assembly Bill 1611 (Haney) that would have eliminated capital gains tax deferral for state tax purposes under 1031 Exchange transactions for owners of 50 or more single-family residences, and Assembly Bill 2609 (Caloza) that would have restricted the amount owners could charge in additional rent and accept as security deposit when allowing common household pets were both held in policy committee and will not be moving forward.

 Other Bills

Other bills that we strongly oppose are being held and not moving forward following fiscal review in the Appropriations Committee:

• Senate Bill 1155 (Smallwood Cuevas) which would have provided an affirmative defense in an unlawful detainer matter to federal employees facing eviction for non-payment of rent during a government shutdown.
• Senate Bill 1246 (Durazo) which would have provided an affirmative defense in an unlawful detainer matter to individuals facing eviction for non-payment of rent if their income was impacted by ICE enforcement actions.
• Assembly Bill 2064 (Sharp-Collins) would have made criminal history a protected category and protected applicants with a criminal history from housing discrimination.

Unfortunately, a bill that we were supporting and that was initiated by the Apartment Association of Greater Los Angeles to eliminate the requirement to provide a resident manager at properties having 16 units or more, Assembly Bill 1771 (Alvarez), was also held in the Appropriations Committee and will not move forward. Passage of this bill would have reduced the cost of providing housing for impacted owners and ultimately resulted in lower rents being charged, but sadly, the California Apartment Association did not support this proposed bill.

Upcoming Legislation

Here is an update of the legislation that we will be working on as they come up for votes in their house of origin (a/k/a, floor votes) before the May 29, 2026, deadline:

• Assembly Bill 2350 (Mc Kinnor) - Consumer Loans - Rent Obligations - This bill would bar finance lenders, brokers, and program administrators from making consumer loans if the purpose of the loan is to pay any obligation under a residential rental agreement (including rent-split loans). The Apartment Association of Greater Los Angeles has taken an opposed position on this bill.
• Senate Bill 1117 (Cervantes) - Lowering ADU Costs - Currently, impact fees cannot be charged on accessory dwelling units (ADUs) with 750 square feet or less livable space. For ADUs larger than 750 square feet, fees must be proportional to the main dwelling's size. The bill proposes that fees for ADUs only apply to the area beyond 750 square feet. This bill would change how local agencies calculate these fees, creating a state-mandated local program, and asserts that these changes are of statewide concern, affecting all cities, including charter cities. The Apartment Association of Greater Los Angeles has taken a support position on this bill.
• Senate Bill 1160 (Durazo) - Eviction Data Reporting - The bill proposes that the Judicial Council collect and publicly share eviction data, reporting it to the Legislature. Additionally, courts would be required to supply monthly information on unlawful detainer cases, aggregated by ZIP Code, to be made available via a public records request. The Apartment Association of Greater Los Angeles has taken an opposed position on this bill.
• Senate Bill 1296 (Durazo) - Pet Mandates in Rental Property Advertisements and Applications - This proposed bill mandates landlords to clearly include their pet policy in advertisements and rental applications. This policy must detail any breed and weight restrictions. Prospective tenants must acknowledge receipt of this policy. Furthermore, if a landlord charges an application fee without first disclosing the pet policy, they must refund the fee to the applicant. The Apartment Association of Greater Los Angeles has taken an opposed position on this bill.

State Budget Update

Governor Newson released his May “Revise” of the state budget on Thursday, May 14^th. In his revised budget message, the Governor noted that the state is experiencing higher than projected revenues, but the May Revise of the budget still must cut general fund spending by $1.8 billion. 

As far as added revenue proposals, the May Revise of the budget includes limits on corporate tax credits to either $5 million or 50% of a company’s tax liability, depending on which represents a higher share of the entity’s tax bill, and new sales taxes on software delivered electronically (e.g., via download) or “prewritten software” also known as “software as a service” or “SAAS.”  In addition, the Governor’s May Revise of the budget proposes some small business savings by cutting first-year LLC taxes from $800 to $400 for tax years 2027 through 2029.

The release of the May Revise state budget generally begins the real negotiations on the state spending plan. The Legislature must pass a budget bill by June 15^th, which means it needs to be in print by June 12^th to meet the 72-hour requirement for voting. A summary to the May Revise state budget can be viewed online at https://ebudget.ca.gov/FullBudgetSummary.pdf.

Legislative Calendar for Remainder of Session

Please find below the deadlines for the remainder of the year.

Kate Bell, the Founder and Chief Executive Officer of Kate Bell Strategies. She 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.