Assembly committee advances AB 35 to exempt Prop. 4 programs from APA rulemaking

Assemblymember Alvarez asked the Assembly Appropriations Committee to approve AB 35, a narrowly scoped bill that would exempt programs funded by Proposition 4 from the Administrative Procedures Act’s formal rulemaking timetable so that state agencies can distribute bond funds more quickly. Alvarez said agencies told him the APA-required rulemaking process could delay funding "12 to 18 months" and leave Prop. 4 programs for water reuse, recycling, wildfire mitigation and long-duration energy storage "effectively on hold."

The bill drew coalition support from conservation and water groups. "This is a simple but critical measure for our community and all your communities," said Reid Addis on behalf of the Clean Water Natural Resources and Parks Coalition, adding that the Coastal Conservancy and Wildlife Conservation Board could hold hearings and grant funds sooner if the bill becomes law. Mark Fenstermaker registered support for multiple land trusts and conservation organizations, and the Nature Conservancy was listed as a supporter.

Christian Beltran of the Department of Finance did not take a position on AB 35 but reminded the committee that DOF assesses fiscal impacts for bills and will share analyses during the second-house process. He noted broader state budget risks, including market volatility and geopolitical uncertainty, and said the administration looks to tackle policy changes within budgetary constraints.

Alvarez said state agencies anticipate the cost of the exemption would be "minimal and absorbable," citing the committee analysis. The committee voted to put AB 35 "out on a roll call" after a motion and second; the transcript records the motion and the chair’s announcement that the item will be taken by roll call. The committee record will show the formal vote tally when published.