Governor Gavin Newsom signed a wide range of significant bills into law in 2025, reflecting California’s continued focus on housing, environmental sustainability, public safety, and consumer protection.
Among the highlights are:
SB 79 – Abundant & Affordable Homes Near Transit Act
Senate Bill 79 compels local jurisdictions to permit multi-family housing near transit, effectively overriding local zoning restrictions in many transit-adjacent areas. Under SB 79, housing projects within a certain radius of major transit stops are treated as “allowed uses” provided they meet density, height, and affordability requirements. The bill also empowers transit agencies to adopt their own transit-oriented development (TOD) zoning for land they control, expanding opportunities for housing development on publicly owned land. The goal is to boost housing supply in high-demand areas, promote transit usage, and reduce sprawl by encouraging dense infill housing. SB 79 took effect beginning July 1, 2026 (i.e., in the next development cycle).
AB 130 & SB 131 – CEQA / Streamlining & Infill Housing Reform
As part of the 2025–26 budget package, Governor Newsom signed AB 130 and SB 131, landmark reforms to California’s Environmental Quality Act (CEQA) aimed at accelerating infill housing and infrastructure projects.
AB 130 rolls out a new CEQA exemption for qualifying infill housing projects that meet local zoning and planning standards, provided they avoid environmentally sensitive sites or hazards. It also mandates that agencies act on qualifying projects within 30 days (approve or deny), a significant acceleration over prior timelines.
- SB 131 dovetails with AB 130 by narrowing the scope of CEQA review for near-miss projects (i.e. those that fail to qualify for exemption by a narrow margin). Under SB 131, CEQA analyses may be limited to the impacts caused by the disqualifying factor, rather than full CEQA review of the entire project. SB 131 also expands exemptions to various non-housing infrastructure, manufacturing, and community projects meeting defined criteria.
Together, AB 130 and SB 131 represent among the most sweeping rewrites of CEQA in decades, intended to reduce delays, legal challenges, and barriers to housing production and related development.
SB 41 – Pharmacy Benefit Manager Reform
SB 41 imposes sweeping regulatory changes on pharmacy benefit managers (PBMs). The law requires PBMs doing business in California to obtain a license from the Department of Insurance by January 1, 2027, and subjects them to enhanced oversight, reporting obligations, and penalties for noncompliance. It mandates the use of a passthrough pricing model—i.e. PBMs must pass along rebates and discounts directly to health plans rather than retaining “spread” profits—and prohibits “spread pricing” in new or amended contracts after January 1, 2026. The Attorney General is empowered to pursue civil penalties and equitable relief for violations. SB 41 is designed to increase transparency, reduce middle-man costs, and ultimately lower out-of-pocket drug spending for consumers and insurers.
AB 70 – Organic Waste Diversion & Biomethane
AB 70 updates California’s solid waste and organic waste diversion requirements, particularly as part of the state’s efforts to reduce methane and other harmful emissions. Under the newly amended law, local jurisdictions must meet a 50% solid waste diversion goal, and may satisfy up to 10% of that via biomass conversion—though explicitly excluding pyrolysis from eligible methods. The legislation adds clarity around what qualifies as biomass conversion, defines the term “pyrolysis,” and establishes constraints intended to prevent loopholes that might permit less rigorous conversion technologies. Overall, AB 70 tightens the state’s regulatory regime to further align solid waste policy with climate mitigation goals, reduce landfill methane emissions, and prevent less-desirable technologies from undermining diversion efforts.
AB 495 – Family Preparedness Plan Act
AB 495 is intended to bolster protections for children and families when a parent becomes suddenly unavailable (e.g., due to detention, deportation, military deployment, or incapacitation). The law strengthens the legal framework around Caregiver’s Authorization Affidavits, nominations of temporary guardians in probate court, and required emergency contact planning in schools and child-care settings, aiming to reduce the trauma and uncertainty children face during family separations. AB 495 also bars daycare or preschool operators from collecting immigration-status information on children or their families (beyond what state or federal law demands), and requires that child-care programs adopt model policies on limiting cooperation with immigration enforcement. Supporters describe the law as closing exploitable gaps in child safety and preserving family unity; critics warn it may enable overreach or unintended custody conflicts without robust procedural safeguards.
SB 627 (“No Secret Police Act”)
SB 627 prohibits law enforcement officers from wearing masks or other personal disguises while interacting with the public, with limited exceptions for medical masks (e.g. N95), smoke masks in wildfires, and undercover operations. Under the statute, violations are classified as misdemeanors, making mask concealment by officers in daily public encounters a punishable offense. The law was drafted in response to public concern over masked federal law enforcement activity (such as ICE raids) and aims to promote transparency, accountability, and community trust by preventing anonymity in policing.
AB 1078 – Firearms & Purchase Limits
AB 1078 updates California’s firearm regulations by imposing new restrictions on gun purchases and revising concealed carry rules to better align with recent federal and judicial mandates. The law caps gun purchases to three firearms per 30-day period, intended to reduce illegal trafficking and rapid accumulation of firearms. AB 1078 also provides exemptions for transporting unloaded, locked firearms in a lockbox on public transit or within public transportation zones. Additionally, it revises aspects of the concealed carry licensing regime to reconcile state standards with recent court rulings (e.g., Linton) and ensures compliance with constitutional guardrails.
