CaliforniaAB 12232025-2026 Regular SessionHouseWALLET

Public utilities.

Sponsored By: Maggy Krell (Democratic), Stephanie Nguyen (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 0 costs, 2 mixed.

Tax money must benefit taxed area

Money from a partial-county tax must mainly benefit the area that pays it. Spending inside that area counts as a primary benefit. The Authority must set clear rules to define primary benefit. These funds must add to, not replace, other transportation money for that area.

Voters and local leaders must approve tax

Any partial-county tax and spending plan must get a two-thirds vote of the Authority’s board. It must then be approved by the voters who live in the taxed area. Before adoption, the county board and city councils representing a majority of the included cities and a majority of the included city population must approve. After voter approval, changes or actions to carry it out need two majorities: members for the taxed city or cities, and members appointed by the county supervisors.

Bonds to build toll facilities

The Authority can sell bonds to fund high‑occupancy toll lanes and other toll facilities approved by the state. Bonds can be repaid with tolls or other lawful Authority funds. For CARTA‑run facilities, the Authority must have an agreement and CARTA must approve a spending plan before bonds are issued. A two‑thirds board vote is required. The bonds are not state debt, and interest is capped by state law.

Local sales tax in part of county

The Sacramento Transportation Authority can place a transportation sales tax on only part of the county. Before the vote, the board sets the exact area. Each city must be fully in or fully out, and the unincorporated area must be fully in or fully out. The taxed area must include at least two cities, or one city plus the unincorporated area. State tax code terms do not block a smaller-than-county district if other rules are met.

More funding for infill and transit projects

Local tax funds can pay for infrastructure that supports infill or transit‑oriented development in areas named by local governments and in regional plans that cut greenhouse gases. Infrastructure can include water, stormwater, wastewater, and similar utilities. However, no more than 5% of total tax revenue may go to these utility facilities, and only when paired with allowed transportation projects. These new spending rules do not change measures voters approved before January 1, 2026.

Sponsors & Cosponsors

Sponsors

  • Maggy Krell

    Democratic • House

  • Stephanie Nguyen

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 168 • No: 52

House vote 9/4/2025

Item 414 — Assembly AFLOOR

Yes: 54 • No: 17

Senate vote 9/3/2025

Item 117 — Senate SFLOOR

Yes: 28 • No: 11

legislature vote 7/9/2025

Vote in CS83

Yes: 4 • No: 1

legislature vote 6/24/2025

Vote in CS59

Yes: 11 • No: 3

House vote 5/19/2025

Item 49 — Assembly AFLOOR

Yes: 52 • No: 15

legislature vote 4/28/2025

Vote in CX22

Yes: 12 • No: 4

legislature vote 4/23/2025

Vote in CX15

Yes: 7 • No: 1

Actions Timeline

  1. Chaptered by Secretary of State - Chapter 724, Statutes of 2025.

    10/13/2025Senate
  2. Approved by the Governor.

    10/13/2025legislature
  3. Enrolled and presented to the Governor at 4:30 p.m.

    9/15/2025legislature
  4. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 54. Noes 17. Page 2935.).

    9/4/2025House
  5. In Assembly. Concurrence in Senate amendments pending.

    9/4/2025House
  6. Read third time. Passed. Ordered to the Assembly. (Ayes 28. Noes 11. Page 2445.).

    9/3/2025Senate
  7. Read second time and amended. Ordered to third reading.

    7/15/2025Senate
  8. From committee: Amend, and do pass as amended. (Ayes 4. Noes 1.) (July 9).

    7/14/2025Senate
  9. From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 11. Noes 3.) (June 24). Re-referred to Com. on REV. & TAX.

    6/25/2025Senate
  10. Referred to Coms. on TRANS. and REV. & TAX.

    5/28/2025Senate
  11. In Senate. Read first time. To Com. on RLS. for assignment.

    5/20/2025Senate
  12. Read third time. Passed. Ordered to the Senate. (Ayes 52. Noes 15. Page 1597.)

    5/19/2025House
  13. Read second time. Ordered to third reading.

    5/12/2025House
  14. Ordered to second reading.

    5/8/2025House
  15. Withdrawn from committee.

    5/8/2025House
  16. Re-referred to Com. on APPR.

    5/1/2025House
  17. Read second time and amended.

    4/30/2025House
  18. From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 12. Noes 4.) (April 28).

    4/29/2025House
  19. Re-referred to Com. on TRANS.

    4/28/2025House
  20. Read second time and amended.

    4/24/2025House
  21. From committee: Amend, and do pass as amended and re-refer to Com. on TRANS. (Ayes 7. Noes 1.) (April 23).

    4/23/2025House
  22. Re-referred to Com. on L. GOV.

    4/2/2025House
  23. From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended.

    4/1/2025House
  24. Re-referred to Com. on L. GOV.

    3/11/2025House
  25. From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended.

    3/10/2025House

Bill Text

  • Chaptered

    10/13/2025

  • Enrolled

    9/8/2025

  • Amended Senate

    7/15/2025

  • Amended Assembly

    4/30/2025

  • Amended Assembly

    4/24/2025

  • Amended Assembly

    4/1/2025

  • Amended Assembly

    3/10/2025

  • Introduced

    2/21/2025

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