1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM PAGE 1 Date: October 6, 2026
To: Alex Khojikian, City Manager
Jennifer Yamaguma, Assistant City Manager
City of San Mateo
From: Dane Hutchings
Founder + CEO
California Public Policy Group
Re: CPPG Legislative Summary: September 2026
LEGISLATIVE UPDATE
Governor’s Final Legislative Actions
September 30 marked the deadline for Governor Gavin Newsom to act on all pending legislation. Of the 2,230 bills introduced in 2026, together with several hundred two-year bills carried over from 2025, 1,160 reached the Governor’s desk. The Governor signed 1,040 of those bills into law and vetoed 120, reflecting a signature rate of approximately 90 percent and a veto rate of approximately 10 percent—considerably lower than his average veto rate of 13.5 percent over the course of his tenure. Notably, the Legislature has not overridden a gubernatorial veto since 1980. All chaptered bills go into effect on January 1, 2027, unless stated otherwise.
On September 30, the Governor signed the final bill of his tenure atop the Golden Gate Bridge and issued an accompanying press release. The bill, SB 895 (Wiener), enacts the California Science and Health Research Bond Act, which, if approved by the voters at the March 7, 2028, election, would authorize the issuance of $7.5 billion in bonds to finance grants and loans for research into a wide range of topics, including wildfire prevention, climate, water, behavioral health, and disease prevention, among others.
Over the course of his eight years in office, the Governor acted on a total of 7,803 bills, exercising his constitutional authority to sign or veto every measure presented to him. In each instance, the bill received a formal decision; none was left without action. Of the 7,803 bills, he signed 6,752 into law, representing 86.5 percent of the total, and vetoed 1,051, representing the remaining 13.5 percent.
The Legislature remains on Final Recess and will next convene on December 7 for a single-day Organizational Session, during which newly elected members will be sworn into office, before recessing until January 4, 2027. With the business of the 2025-26 session effectively concluded, the attention of most legislators has now officially shifted to the November 3 General Election.
Press Release on Artificial Intelligence (AI) Oversight On September 18, Governor Gavin Newsom signed an executive order directing the Government Operations Agency, in consultation with the Governor’s Office of Emergency Services (Cal OES), to deliver recommendations by November 16, 2026, on strengthening the state’s AI safety laws. The recommendations are to address onsite independent verification at frontier AI laboratories, independent review of company safety frameworks and risk assessments, an emergency “kill switch” for frontier models, and expanded definitions of the critical safety incidents that companies 1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM PAGE 2 must report. The order also accelerates implementation of two bills the Governor signed in September: SB 813 (McNerney), which creates a framework for independent verification organizations to assess AI systems’ compliance with state law, and AB 1405 (Bauer-Kahan), which establishes a state registry of AI auditors. Both measures build upon SB 53 (Wiener, 2025), the Transparency in Frontier Artificial Intelligence Act. In the accompanying press release, the Governor stated: “We’re not waiting to act. We’re going to speed up our work on substantial and responsible AI oversight before it’s too late.”
On September 23, the Governor named four national experts to advise on the recommendations:
Jason Goldman, the first White House Chief Digital Officer; Gillian Hadfield of Johns Hopkins University; Alondra Nelson, former Acting Director of the White House Office of Science and Technology Policy; and Rob Reich of Stanford University. Speaking at the United Nations General Assembly in New York the same day, the Governor criticized the Trump Administration for allowing AI to “rip” without guardrails and urged Congress to adopt California’s framework as a national minimum standard (KPBS/AP). Separately, on September 16, the Governor signed SB 1050 (Ashby), which requires advertisements to disclose the use of AI-generated performers.
Additional legislation addressing artificial intelligence is highly likely to be introduced during the next legislative session, continuing the Legislature’s focus on establishing oversight mechanisms and guardrails for the technology.
Data Center Bills
The Legislature closed the session by passing a seven-bill package aimed at California’s fastgrowing data center industry, sending all seven measures to the Governor. Three bills address utility rates and cost allocation: SB 886 (Padilla) and AB 2383 (Zbur), both substantially amended in a latesession compromise, requires the CPUC and investor-owned utilities to establish new tariffs so data centers cover the grid, transmission, and related costs they trigger rather than shifting them to other ratepayers, and SB 1168 (McNerney) directs the CPUC to study those cost shifts and map where facilities can interconnect without costly upgrades.
The remaining four add environmental review and disclosure: SB 887 (Padilla) eliminates categorical CEQA exemptions for data centers while offering a fast-track for projects that meet clean energy and water standards, AB 1577 (Bauer-Kahan) requires monthly energy and water reporting to the Energy Commission, and AB 2469 and AB 2619 (both Papan) add water use disclosures, with AB 2469 conditioning local permit approvals on that information. All seven bills were signed into law by the Governor in September.
Bills of Interest Signed into Law (Chaptered) or Vetoed by the Governor • AB 1383 (McKinnor) Public employees’ retirement benefits. o This bill makes prospective changes to the Public Employees’ Pension Reform Act (PEPRA) of 2013. Specifically, the bill:
▪ Increases the pensionable compensation cap for all PEPRA employees; ▪ Reduces the retirement age for public safety (fire and police) from 57 to 55; ▪ Adds a 4th safety tier that is 3% @ 55, subject to bargaining; ▪ Allows local agencies to adjust their local formula.
o Status: Vetoed
• AB 2346 (Wilson) Vehicles: electric bicycles and speed limits. 1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM PAGE 3 o This bill sets speed limits for e-bikes and bicycle paths, requires certain disclosures when selling an e-bike, and requires some e-bikes to have a speedometer and lights. o Status: Chaptered
• SB 1167 (Blakespear) Vehicles: electric bicycles.
o This bill updates the labeling and disclosure requirements for manufacturers and sellers of these devices, and prohibits noncompliant vehicles from being advertised as e-bikes. The bill also establishes new operational and safety requirements and imposes additional reporting requirements on law enforcement. The bill also extends the definition of “off-highway motor vehicle subject to identification” to include mopeds and off-highway electric motorcycles.
o Status: Chaptered
• AB 1821 (Pacheco) California Public Records Act: agency response time. o This bill extends the deadlines for public agencies to provide an initial response to a California Public Records Act request by converting the current “calendar day” deadlines to a “business day” standard.
o Status: Chaptered
• SB 1159 (Cabaldon) Artificial intelligence: transparency and governance. o This bill clarifies that for the California Public Records Act, the Ralph M. Brown Act, and the California Environmental Quality Act, that the terms “person,” “interested person,” “participant,” and “member of the public” do not include artificial intelligence systems, autonomous agents, robots, or other nonhuman entities, whether physical or digital.
o Status: Chaptered
• SB 1187 (Durazo) Open meetings.
o This bill repeals the language access provisions in SB 707 (Durazo, 2025). o Status: Chaptered
• SB 1164 (Cervantes) Elections.
o This bill prohibits a political subdivision or state agency from implementing, imposing, or enforcing any election policy or practice that results, or is likely to result, in voter suppression. A violation is established when an election policy or practice disproportionately makes it harder for protected classes to vote or participate politically, unless the government can show the policy is necessary and that a less discriminatory alternative is not reasonably available. o Status: Chaptered
• SB 1360 (Cervantes) Elections: translation of election materials. o This bill requires the Secretary of State, on or before December 15, 2031, and on or before December 15 in every year ending in 1 or 7 thereafter, to identify the counties where at least 10,000 voting age citizens, or 5% of voting age citizens, are limited English proficient and either members of a single language minority group or speak a shared language. The bill requires the elections official in an identified political subdivision to provide translated election materials in any language that meets those criteria.
o Status: Chaptered
• SB 922 (Laird) Vehicles: local agency charges: use of streets or highways. o This bill authorizes an existing fee, charge, or surcharge imposed by or for a local agency upon the provider of, or ratepayer for, public services in order to recover the 1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM PAGE 4 costs associated with the use of the agency’s streets, roads, or highways in the provision of those public services.
o Status: Chaptered
• AB 1621 (Wilson) Planning and Zoning Law: postentitlement phase permits: Housing Accountability Act.
o This bill prohibits a local agency or state agency from requiring or requesting more than two plan check and specification reviews in connection with an application for a building permit. The bill authorizes a local agency or state agency to deny an application that is not compliant with the permit standards following two plan check and specification reviews.
o Status: Chaptered
• AB 956 (Quirk-Silva) Accessory dwelling units and junior accessory dwelling units. o This bill requires local agencies to ministerially approve two detached, new construction Accessory Dwelling Units (ADUs) on a lot with an existing or proposed single-family dwelling.
o Status: Chaptered
• SB 1117 (Cervantes) Accessory dwelling units and junior accessory dwelling units. o This bill requires impact fees for ADUs to be calculated only on the portion of the unit exceeding 750 square feet, rather than on its total square footage, for up to two ADUs on a single lot.
o Status: Chaptered
• SB 1014 (Grayson) Development projects: preliminary estimate of required improvements:
onsite and offsite improvements.
o This bill allows development proponents to request and receive additional information on offsite and onsite improvements at the preliminary application phase, and when processing post-entitlement permits.
o Status: Chaptered
• SB 1005 (Caballero) Local agency: payment: rounding amount. o This bill allows local agencies to round payments or refunds made wholly or partly in cash to the nearest five cents if that agency passes a resolution by majority vote. o Status: Chaptered
POSITIONED BILLS
• AB 1383 (McKinnor) Public employees’ retirement benefits. o Location: Assembly Vetoed
o Position: Watch
• AB 1614 (Dixon) Vehicles: bicycles.
o Location: Assembly Chaptered
o Position: Support
• AB 1761 (Rogers) Electricity: calculation methodology: nonbypassable charges: data disclosure.
o Location: Assembly Vetoed
o Position: Support
• AB 1820 (Schiavo) Electric vehicle charging stations: permit fees. o Location: Assembly Chaptered
o Position: Oppose
1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM PAGE 5 • AB 2111 (Papan) Electricity: transmission planning and transmission facilities. o Location: Assembly Chaptered
o Position: Support
• AB 2134 (Addis) City council members: absences without permission. o Location: Assembly Chaptered
o Position: Support
• AB 2346 (Wilson) Vehicles: electric bicycles and speed limits. o Location: Assembly Chaptered
o Position: Support
• AB 2433 (Alvarez) Housing development: density bonus. o Location: Assembly Chaptered
o Position: Watch
• AB 2576 (Harabedian) Transit-oriented development: exclusions: historic sites. o Location: Assembly Chaptered
o Position: Support
• AB 2595 (Papan) San Mateo Electric Bicycle Safety Pilot Program. o Location: Assembly Chaptered
o Position: Support
• SB 922 (Laird) Vehicles: local agency charges: use of streets or highways. o Location: Senate Chaptered
o Position: Support
• SB 968 (Becker) Community colleges: San Mateo County Community College District. o Location: Senate Chaptered
o Position: Support
• SB 1014 (Grayson) Development projects: preliminary estimate of required improvements:
onsite and offsite improvements.
o Location: Senate Chaptered
o Position: Oppose Unless Amended
• SB 1117 (Cervantes) Accessory dwelling units and junior accessory dwelling units. o Location: Senate Chaptered
o Position: Watch
• SB 1159 (Cabaldon) Artificial intelligence: transparency and governance. o Location: Senate Chaptered
o Position: Support
• SB 1167 (Blakespear) Vehicles: electric bicycles.
o Location: Senate Chaptered
o Position: Support
LOOKING FORWARD
• December 7, 2026: Legislature convenes for Organizational Session. • January 1, 2027: All bills signed into law in 2026, unless otherwise stated, go into effect. • January 4, 2027: Legislature convenes for the first year of the 2027-28 legislative session.
GRANT WRITING
CPPG continues to monitor new regional, state, and federal grant opportunities on behalf of the City of San Mateo. On September 8th, Grants Analyst Remi Beck met with Andrea Chow, Sarah Chin, and 1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM PAGE 6 Tina Lee to check-in on the City’s SB1 Sea Level Rise Adaptation Program application. On September 10th, Director of Grant Services Jake Whitaker and CPPG Consultant Rachelle Wilson met with Staff and CalOES to discuss the City’s Hazard Mitigation Grant application. J. Whitaker met with Bincy Koshy on September 15th to discuss the Sustainable Transportation Planning Grant. On September 17th, J. Whitaker and B. Koshy met with Caltrans to discuss the City’s Sustainable Transportation Planning Grant application and project. A follow-up meeting on the Sustainable Transportation Planning Grant was held on September 18th and attended by J. Whitaker, B. Koshy, and Jay Yu. The Monthly Grants Meeting was held on September 28
th. Also on September 28th, Grant Services
Assistant Kylie Sheridan met with Ella Phillips and Mike Kato to discuss the Transportation Demand Management (TDM) Program. On September 29th, J. Whitaker, R. Beck, and K. Sheridan attended a pre-submittal meeting with Staff and SMCTA to discuss the City’s TDM and Bike/Pedestrian applications. J. Whitaker also met with Staff for a check-in meeting regarding the City’s RM3 SR2TBT application on September 29th. Opportunities are being tracked for many of the City’s high priority project areas, including transportation, parks and recreation, police, housing, fire response and wildfire mitigation, flooding and sea level rise, sustainability and electrification, economic development, and library services.
Grant applications in-progress include: Transportation Demand Management Grant, Bike and Pedestrian Program, RM3 SR2TBT Program, and Sustainable Transportation Planning Grant.
Pending applications include:
• Community Impact Grant submitted on March 12, 2025 for $74,700. Funding will be used for the San Mateo Library ESL Program. Application reviews have been paused due to federal action.
• Gary Sinise Foundation First Responders Grant submitted on August 6, 2025 for $30,000.
Funding will be used to acquire 2 jet skis for the SMCFD Water Rescue Team. • Hazard Mitigation Grant Program submitted on September 15, 2025 for $1,121,053.50.
Funding will be used for backup generators at critical city facilities. • Community Project Funding FY27 submitted to Rep. Mullin on March 10, 2026 for $3,500,000. Funding will be used for the 42nd Avenue Pump Station Project. Earmark request has been forwarded for appropriation.
• Congressionally Directed Spending FY27 submitted to Sen. Padilla on March 13, 2026 for $1,050,000. Funding will be used for a Comprehensive Flood Study Project. Earmark request has been forwarded for appropriation.
• Helen Putnam Award submitted on April 9, 2026. An application was submitted for the City’s Age-Friendly Business Certification Program.
• Consolidated Rail Infrastructure & Safety Improvements Grant submitted on June 22, 2026 for $6,720,000. Funding will be used to complete final design and construction of fourquadrant gate systems at two at-grade rail crossings in the downtown area. • Law Enforcement Mental Health and Wellness Act submitted on August 5, 2026 for $249,992. Funding will be used for the SMPD Layered Wellness Program to hire a in-house contractor, implement a post-trauma retreat program, and integrate Sharp Performance’s coaching platform.
• Continuum of Care submitted on September 25, 2026 for $69,245. Funds will be used to provide supportive services through the SMPD’s HOPE Outreach and Access Initiative. 1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM PAGE 7 • SB1 Sea Level Rise Adaptation Grant submitted on September 10, 2026 for $395,548.
Funds will be used for the Subregional Shoreline Adaptation Plan (SSAP).
Additionally, CPPG sent grant alerts on the following upcoming funding opportunities: Promoting Resilient Operations for Transformative, Efficient, and Cost-Saving Transportation (PROTECT), TireDerived Aggregate (TDA) Grant Program, and Youth Community Access (YCA) Grant Program.