Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Connie Juarez-Diroll, Chief Legislative Officer
Subject: 2026 End of Session State and Federal Legislative Report and Fourth Quarter Legislative Presentation
RECOMMENDATION:
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Accept the 2026 End of Session State and Federal Legislative Report and the fourth quarter legislative presentation.
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BACKGROUND:
On September 1, 2026, the 2026 state legislative session officially concluded after lawmakers extended floor proceedings by one day to finalize action on budget trailer bills and wildfire liability policy discussions. In the weeks and days leading up to the final deadline, however, lawmakers worked long hours to determine the fate of the remaining bills and major policy proposals addressing climate funding, public safety, artificial intelligence (AI), and other key issues.
The Governor’s deadline to sign or veto bills was September 30, 2026. All new statutes, unless otherwise specified, will take effect on January 1, 2027. The Legislature will reconvene on December 7, 2026, to swear in newly elected state legislators and kick off the first year of the 2027-28 regular session. During the new session, members can introduce new legislative vehicles, including measures addressing numerous areas that required additional time for vetting and consideration during the previous session.
At the federal level, President Trump signed a Continuing Resolution (CR), H.R. 6500, into law on September 2, 2026, extending federal government funding at FY 2026 levels through December 11, 2026. The CR also includes several program extensions for surface transportation authorities, the National Flood Insurance Program, and continued funding for housing vouchers and homelessness assistance. Most notably, the CR delays implementation of the Office of Management and Budget’s proposed rule, published on May 29, that would overhaul the Uniform Guidance governing federal grant administration.
Furthermore, both the House and Senate have adjourned for recess and have returned to their respective districts for the November elections. Congress is scheduled to reconvene after the midterm elections, when members are expected to finalize the FY 2027 spending bills.
DISCUSSION:
2026-27 State Legislative Update
On September 30, 2026, Governor Newsom took final action on bills for the 2026 legislative session. The Legislature introduced about 1,850 bills during the past session-1,263 Assembly bills and 583 Senate bills-and more than 900 bills reached the Governor’s desk.
In the final weeks of the session, the legislature focused its attention on the following key policy issues:
Wildfire Liability
Governor Newsom initially proposed broad reforms to ensure long-term stability for California's Wildfire Fund and utility liability. The proposals would have limited certain costs utilities might face after causing wildfires. However, legislators, wildfire survivors, consumer advocates, and insurers strongly opposed the plan, warning it could shift costs from utilities to homeowners, policyholders, local governments, or taxpayers.
Although the Governor and legislative leaders reached a more limited compromise through SB 492 (Becker & Petrie-Norris), the agreement collapsed on the final day of the session when the Assembly declined to consider the bill. The measure would have sped up compensation for wildfire survivors, restricted private equity and hedge-fund involvement in wildfire claims, prohibited certain utility executive bonuses after utility-caused wildfires, and established a statewide community wildfire preparedness strategy to improve wildfire prevention and response. Nonetheless, because the work is unfinished, wildfire liability will remain a priority for the 2027 legislative session, with informational hearings likely during the interim recess.
Artificial Intelligence (AI)
Governor Newsom’s final legislative actions included signing two bills: SB 813 (McNerney), which establishes a framework for independent verification organizations to evaluate AI systems and models for safety risks, and AB 1405 (Bauer-Kahan), which creates a state registry for AI auditors to ensure compliance with state law. Additionally, Governor Newsom issued an executive order to speed up independent oversight and promote the development of an AI 'kill switch' to mitigate potential dangers. The executive order also gathers leading experts to advise California on strengthening its AI safety and security laws.
As data centers expand across California, Governor Newsom signed seven bills to enhance transparency and accountability. These require data centers to report on water, electricity, and land use, helping to prevent cost shifts to low-income residents caused by grid updates.
State Legislation
The Intergovernmental and Public Affairs (IGPA) Unit monitored over 400 bills in this legislative session. In collaboration with this Board, County departments, and various boards and commissions, the IGPA Unit issued more than 60 letters this year on legislative proposals and state budget issues. The attached 2026 Legislative Session State Advocacy Report (Attachment A) summarizes IGPA's actions this session.
The disposition of key legislation acted on by the County in the 2026 state legislative session is noted below:
San Mateo County Supported Bills Signed into Law
• SB 694 (Archuleta): Deceptive Practices: Service Members and Veterans
• SB 417 (Limon): The Affordable Housing Bond Act of 2026
• SB 968 (Becker): Community Colleges: San Mateo County Community College District
• AB 1607 (Gonzalez): Emergency Medical Services
• AB 350 (Bonta): Health Care Coverage: Fluoride Treatments
• SB 949 (Becker): Environmental Protection: Natural Resources Agency: Resource of Statewide Significance: Santa Cruz Mountains
• AB 1838 (Berman): Public Contracts: Local Agencies: Responsive Bidders
• AB 762 (Irwin): Disposable, Battery-Embedded Vapor Inhalation Device: Prohibition and Penalties
• AB 1448 (Hart): Coastal Resources: California Coastal Sanctuary: Tidelands and Submerged Lands: Oil and Gas Development
• AB 1924 (Gabriel): Statewide Homelessness Prevention Strategy
• AB 2348 (Bonta): Medi-Cal: Enhanced Care Management and Community Supports
• AB 2313 (Berman): Gas Corporations: Gas Distribution Service Line Replacements: Alternatives
• SB 905 (Becker): Electricity
• AB 2320 (Ta): Multifamily Housing Program: Homekey: Adaptive Reuse
• SB 1091 (Caballero): Community Anti-Displacement and Preservation Program
• SB 501 (Allen): Responsible Battery Recycling Act of 2022: Covered Batteries
• AB 2531 (Irwin): Public Health: Abortion Services
• AB 2513 (Petrie-Norris): Wildfire: Regional Forest and Fire Capacity Program: Local Assistance Grant Program: Regional Landscape Grants
San Mateo County Opposed Bills Signed into Law
• SB 811 (Caballero): Hazardous Materials: Metal Shredding Facilities
• SB 16 (Blakespear): Mental Health: Involuntary Commitment
San Mateo County Supported Bills Vetoed by Governor
• SB 2465 (Ortega): State Government Benefits
• AB 2081 (Stefani): Medi-Cal: Home and Community-Based Alternatives Waiver
San Mateo County Opposed Bills Vetoed by Governor (no bills identified in this category)
For more details on these bills and all others tracked by the IGPA Unit, please refer to the legislative bill tracker (Attachment B), sorted by department.
State Budget Trailer Bill Activity
Although Governor Newsom signed the 2026-27 state budget on June 29, 2026, several issues remained unresolved and were taken up in an extensive August budget package of 16 trailer bills introduced during the final week of session. Key elements of the package of interest to the County included:
• Proposition 4 bond funds-Allocation of $2.7 billion from the $10 billion climate bond. Water projects get the largest share (about $1.09 billion), and roughly $3.8 billion remains for future years.
• Health programs- Technical and clarifying statutory revisions for various health programs.
• San Mateo County’s VLF Shortfall-AB 184 (Chapter 255, Statutes of 2026) states the Legislature’s intent to work with Alpine, Mono, and San Mateo Counties and their representatives to develop mutually agreeable legislative and fiscal solutions to the VLF shortfalls beginning in fiscal year 2027-28.
What’s Ahead
The Legislature is expected to carry several key priorities into 2027, including affordability and addressing the rising costs of living, wildfire liability, and artificial intelligence, with a focus on automated decision-making, data centers, and consumer protection.
The new session will also bring major turnover in Sacramento. Twenty-one Senators and Assemblymembers will be termed out, and Governor Gavin Newsom will leave office in early January. The County will need to build relationships with incoming officials and adapt its advocacy strategies to keep its priorities aligned with the new state legislative landscape.
To prepare, the IGPA Unit will attend county association conferences and meet with departments and this Board through the end of the year to better understand County priorities. The Unit will also update the County’s legislative program, host a legislative training session for staff, establish a countywide legislative coordination group to track emerging issues and upcoming policies of mutual interest, and conduct delegation visits in early 2027.
Federal Legislative Update
From January through September 2026, the IGPA Unit monitored a rapidly changing federal operating environment affecting the County’s funding, legal exposure, and program delivery. Principal activities included tracking federal appropriations and potential funding disruptions and monitoring legislation, executive actions, regulations, litigation, and changes in agency leadership. The attached 2026 Legislative Session Federal Advocacy Report (Attachment C) provides an overview of this year's actions.
Congressional Activity
Before Congress left Washington, D.C. for the midterm elections, lawmakers advanced several pieces of legislation and other work on topics of interest to the County through the chambers.
Disaster & Emergency Response
• Autonomous Vehicle (AV) Emergency Response Coordination Act (H.R. 20033)-Introduced August 3 by Rep. Kevin Mullin (D-CA); would require the National Highway Traffic Safety Administration (NHTSA) to set national standards for how autonomous vehicle operators coordinate with emergency responders.
• Reducing Red Tape for Rebuilding Act (S. 5276)-Introduced August 6 by Sens. Adam Schiff (D-CA) and Joni Ernst (R-IA); would extend the Federal Emergency Management Agency (FEMA) funding eligibility for wages tied to damage determinations and building code enforcement from 180 days to up to two years after a disaster declaration.
• Doug LaMalfa Disaster Tax Relief Certainty Act (H.R. 566)-Signed into law September 11; lets individuals claim personal casualty losses from federally declared major disasters between December 28, 2019, and January 1, 2027.
• Stopping Political Discrimination in Disaster Assistance Act (H.R. 1342)-Passed the House on September 16; would bar federal officials from considering political affiliation when distributing disaster aid under the Stafford Act.
Immigration
• Fairness to Freedom Act (S. 5324)-Introduced August 6 by Senator Schiff (D-CA); would guarantee government-funded legal counsel for people who cannot afford it in deportation bond, expedited removal, and related immigration proceedings.
Planning & Building
• Bipartisan American Affordability and Jobs Act of 2026 (S. 5653)-Unveiled September 30 by Sens. Shelly Moore Capito (R-WV), Sheldon Whitehouse (D-RI), Mike Lee (R-UT), Heinrich (D-NM); would overhaul federal permitting by setting National Environmental Policy Act (NEPA) deadlines (two years for environmental impact statements, one year for environmental assessments), shortening legal challenge windows, limiting court ordered project halts, and revising Clean Water Act, Endangered Species Act, and historic preservation reviews.
Transportation
• E-bike and e-motorcycle safety letter-Reps. Dave Min (D-CA), Michael Lawler (R-NY), Jared Huffman (D-CA), and Brian Fitzpatrick (R-PA) urged the Consumer Product Safety Commission to set safety standards, including manufacturer labeling of speed, motor power, and age recommendations, plus support for local data collection and public education.
Federal Agency Actions
In recent months, several federal agencies have proposed significant rule changes that have raised concerns for San Mateo County. Public comment letters addressing the issues below are currently in order.
Education
• Head Start Program Performance Standards (HUD)-Proposed August 6; would reduce federal requirements on administrative costs, staffing, service duration, and staff qualifications, and require English-only instruction, affecting dual language learners. County comment letter submitted.
Housing & Homelessness
• Continuum of Care Program incentives (HUD)-Proposed September 10; would add activities eligible for bonuses and incentives, which by law must be research-based and follow public comment. County comment letter in development.
Census 2030
• 2030 Census changes (Commerce/Census Bureau)-Proposed September 10; would count only U.S. citizens and lawful permanent residents for congressional apportionment, prohibit race and ethnicity questions, and seek comment on adding a legal status question. Because census data shapes federal funding, local planning, and services, the impact on counties could be significant. County comment letter in development.
When Congress reconvenes after the midterm elections, it will need to focus on several key issues, including government funding for FY2, the Water Resources Development Act, the Farm Bill, the National Defense Authorization Act, and potential reconciliation legislation. The IGPA Unit will continue to monitor federal activity and outcomes throughout the lame-duck session.