CaliforniaSB 4992025-2026 Regular SessionSenateWALLET

Fire prevention: home hardening: defensible space: data usage.

Sponsored By: Henry Stern (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 3 costs, 1 mixed.

Earlier fee collection when projects funded

A city, county, or district can require earlier payment if the fees fund a project with an established account, appropriated funds, and an adopted construction schedule or plan. It can also collect earlier to reimburse costs it already paid. This applies to common infrastructure like water, sewer, fire and emergency services (including some park sites), roads and transportation, and approved school facility work when funds are appropriated. These rules can move payments earlier in construction and raise upfront cash needs.

Liens and escrow to collect unpaid fees

When a required fee is not fully paid before a building permit, the agency can require a recorded payment contract. The contract becomes a lien, binds future owners, and can require escrow to send sale proceeds to cover unpaid fees; the agency must post a model form online. If no required bond or letter of credit was posted and fees are unpaid when the first certificate of occupancy (or temporary certificate) is issued, the unpaid amount becomes a lien collected like property taxes, with the same penalties and sale rules.

Affordable projects get fee timing protections

If at least 49% of units are reserved for lower‑income households at affordable rent, earlier‑collection rules do not apply to those units. The agency may still require a performance bond or letter of credit, and the fees become due if the project later fails the 49% or affordability tests. Fully affordable projects (100% of units, with a recorded state regulatory agreement) are exempt from the tax‑style lien collection.

Most development fees due at occupancy

The law delays most local development fees until final inspection or when the certificate of occupancy is issued. For designated housing projects, fees are due at the first certificate of occupancy or temporary certificate. For multi‑unit projects, the agency can bill per unit, after a set share of units, or as a lump sum at the first unit. Deferred amounts do not accrue interest and must match what you would have paid before permits; the agency may withhold the certificate until you pay. Agencies may also let you pay at close of escrow, except for school facility fees under Education Code Chapter 6. These timing rules cover only fees that fund public‑improvement construction, not inspection or code‑enforcement fees; they do not apply if work does not start within five years of the permit. Utility connection fees are not deferred and can be charged at application.

Utility hookup fees due at application

Utilities may charge connection‑related fees when you apply for service. They can only collect up to their actual connection costs.

Sponsors & Cosponsors

Sponsor

  • Henry Stern

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 119 • No: 15

Senate vote 9/10/2025

Item 17 — Senate SFLOOR

Yes: 31 • No: 1

House vote 9/3/2025

Item 152 — Assembly AFLOOR

Yes: 46 • No: 12

legislature vote 7/2/2025

Vote in CX15

Yes: 7 • No: 0

Senate vote 5/28/2025

Item 75 — Senate SFLOOR

Yes: 29 • No: 1

legislature vote 5/7/2025

Vote in CS82

Yes: 6 • No: 1

Actions Timeline

  1. Chaptered by Secretary of State. Chapter 543, Statutes of 2025.

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

    10/10/2025legislature
  3. Enrolled and presented to the Governor at 11 a.m.

    9/22/2025legislature
  4. Assembly amendments concurred in. (Ayes 31. Noes 1. Page 2817.) Ordered to engrossing and enrolling.

    9/10/2025Senate
  5. In Senate. Concurrence in Assembly amendments pending.

    9/3/2025Senate
  6. Read third time. Passed. (Ayes 46. Noes 12. Page 2877.) Ordered to the Senate.

    9/3/2025House
  7. Ordered to third reading.

    8/20/2025House
  8. Read third time and amended.

    8/20/2025House
  9. Read second time. Ordered to third reading.

    7/8/2025House
  10. Read second time and amended. Ordered to second reading.

    7/7/2025House
  11. From committee: Do pass as amended. (Ayes 7. Noes 0.) (July 2).

    7/3/2025House
  12. Referred to Com. on L. GOV.

    6/5/2025House
  13. In Assembly. Read first time. Held at Desk.

    5/28/2025House
  14. Read third time. Passed. (Ayes 29. Noes 1. Page 1270.) Ordered to the Assembly.

    5/28/2025Senate
  15. Read second time and amended. Ordered to third reading.

    5/8/2025Senate
  16. From committee: Do pass as amended. (Ayes 6. Noes 1. Page 1038.) (May 7).

    5/7/2025Senate
  17. From committee with author's amendments. Read second time and amended. Re-referred to Com. on L. GOV.

    4/30/2025Senate
  18. Set for hearing May 7.

    4/8/2025Senate
  19. April 30 hearing postponed by committee.

    4/7/2025Senate
  20. Set for hearing April 30.

    4/4/2025Senate
  21. Re-referred to Com. on L. GOV.

    4/2/2025Senate
  22. Re-referred to Com. on RLS.

    3/27/2025Senate
  23. Withdrawn from committee.

    3/27/2025Senate
  24. April 8 hearing postponed by committee.

    3/27/2025Senate
  25. From committee with author's amendments. Read second time and amended. Re-referred to Com. on N.R. & W.

    3/26/2025Senate

Bill Text

  • Chaptered

    10/10/2025

  • Enrolled

    9/13/2025

  • Amended Assembly

    8/20/2025

  • Amended Assembly

    7/7/2025

  • Amended Senate

    5/8/2025

  • Amended Senate

    4/30/2025

  • Amended Senate

    3/26/2025

  • Introduced

    2/19/2025

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