Last week, California legislators agreed to address affordability issues highlighted by the California Chamber of Commerce (CalChamber). This decision comes as part of CalChamber's initiative to make the state more affordable for both business owners and workers. The organization has categorized legislative proposals into "Cost Cutters," which aim to reduce expenses, and "Cost Drivers," which may increase costs.
CalChamber President and CEO Jennifer Barrera commented on the development, saying, "We applaud the efforts of legislators to take a second look at some of the proposals we identified as significant cost drivers to the California economy. We look forward to working with members for the remainder of the legislative session to ensure new laws are carefully crafted with the best needs in mind of hard-working entrepreneurs, workers, and the families who depend on them."
Several bills labeled as "Cost Drivers" have not progressed for 2025. Among them is SB 310 by Senator Wiener, which sought to expand private rights for wage penalties but was placed on hold at his request. Another is SB 318 from Senator Becker, aimed at imposing new air quality mandates but held in Senate Appropriations due to concerns over regulatory uncertainty.
Meanwhile, amendments removed the Cost Driver status from SB 601 regarding water quality permitting requirements and SB 682 related to PFAS usage restrictions. Other stalled bills include SB 755 concerning climate disclosure mandates and AB 914 addressing CARB's regulatory authority expansion.
Conversely, several "Cost Cutter" bills have advanced past their house of origin. These include SB 540 by Senator Becker, which proposes an independent regional energy organization aimed at reducing energy costs. AB 265 from Assemblymember Caloza supports small business recovery after Los Angeles fires through grants.
Further progressing are AB 417 for infrastructure financing improvements and AB 609 proposing CEQA reforms for infill housing projects. Also advancing is AB 1308 by Assemblymember Hoover, designed to expedite housing construction permits. Lastly, AB 1138 and SB 630 aim to increase California's Film Tax Credit significantly.
CalChamber plans continued collaboration with lawmakers throughout this legislative year focusing on cost-conscious strategies benefiting Californians economically.