AB 2180: Local government: Proposition 218 Omnibus Implementation Act: proportional cost of service.
This bill aims to update the requirements for local government finance in California. The proposed law allows local governments to demonstrate the proportional cost of a service by any method that reasonably allocates the cost to all parcels, if substantiated. For water or sewer services, a local government may impose uniform or tiered rates on parcel or customer classes defined by common characteristics of likely usage. The proportional cost of service within each tier can be substantiated using a reasonable basis for allocating costs attributed to the tier. Local governments have discretion to determine the costs allocated to each tier, as long as the rate for each tier does not exceed the proportional cost reasonably allocated to parcels subject to that tier. This bill aims to simplify the process of implementing Proposition 218 and provide more flexibility for local governments to m…
| Aug. 25, 2026 | Enrolled and presented to the Governor at 4 p.m. |
| Aug. 19, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 53. Noes 17. Page 6255.). |
| Aug. 18, 2026 | In Assembly. Concurrence in Senate amendments pending. |
| Aug. 18, 2026 | Read third time. Passed. Ordered to the Assembly. (Ayes 29. Noes 9.). |
| Jun. 11, 2026 | Read second time. Ordered to third reading. |
| Enrolled August 21, 2026 |
| Passed IN Senate August 18, 2026 |
| Passed IN Assembly August 19, 2026 |
| Amended IN Senate May 22, 2026 |
| Amended IN Assembly March 11, 2026 |
| Introduced by Assembly Member Ward (Coauthors: Senators Arreguín, Becker, Blakespear, and Padilla) |
February 19, 2026 |
LEGISLATIVE COUNSEL'S DIGEST
The people of the State of California do enact as follows:
SECTION 1.
Section 53751.5 is added to the Government Code, to read:53751.5.
(a) For any fee or charge adopted under Section 6 of Article XIII D of the California Constitution, “the proportional cost of the service attributable to the parcel” may be demonstrated by any method that reasonably allocates the ascertainable cost of providing service to all parcels. That allocation shall be substantiated by historic, existing, estimated, or projected data that reasonably captures the cost of the service to be provided.