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By: @Kyle Packham

Following opposition from CSDA and coalition partners, the authors of AB 874 and SB 430 respectively have pulled their bills from consideration this week. AB 874 (Ávila-Farías) would have required local agencies to adopt a fee deferral loan program for affordable housing projects. Meanwhile, SB 430 (Cabaldon) would have regulated the use of automated decision systems (ADS).

AB 874 and SB 430, which were “two-year” bills, had been set for hearing on Wednesday, January 13 in their respective first-house policy committees. Both measures would have restricted local control and strained budgets for essential services at a time where special districts are confronting the affordability challenges we collectively must overcome. This legislation is now considered “dead” for the 2025-2026 biennial State Legislative Session. 

AB 874 would have amended the Mitigation Fee Act, which governs how local agencies collect development-related fees to fund essential infrastructure such as water, sewer, fire protection, parks, flood control, and libraires. The one-size-fits-all fee deferral program would have effectively turned local agencies into banks, shifting financial risk to residents and impairing the timely construction of essential infrastructure. Read CSDA’s AB 874 opposition letter to learn more.

SB 430 applied limitations on automated decision systems (ADS) to a potentially wide range of technologies and broad array of services. In certain instances, the burdens required to comply with the provisions of the measure could have disincentivized the use of such tools. Local agencies have successfully utilized ADS in numerous settings, including scheduling, training, and development for example. As technologies geared to government use become more available and affordable, it is likely that more local agencies will find utility in adopting forms of ADS. Read CSDA’s SB 430 opposition letter to learn more.

CSDA thanks Assembly Member Anamarie Ávila-Farías and Senator Christopher Cabaldon for withdrawing their legislation from consideration at this time, and the association will continue to monitor these policy areas as the legislative session continues. February 20, 2026 is the bill introduction deadline for new legislative vehicles in this second year of the session.