AB 2180: Local government: Proposition 218 Omnibus Implementation Act: proportional cost of service.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

The California Constitution specifies various requirements with respect to the levying of assessments and property-related fees and charges by a local agency. As part of those requirements, the California Constitution mandates that such fees or charges that are extended, imposed, or increased satisfy certain requirements, including, but not limited to, that the amount of the fee or charge imposed upon any parcel or person as an incident of property ownership not exceed the proportional cost of the service attributable to the parcel.

Existing law, known as the Proposition 218 Omnibus Implementation Act (act), prescribes specific procedures and parameters for local jurisdictions to comply with these requirements and, among other things, authorizes an agency providing water, wastewater, sewer, or refuse collection services to adopt a schedule of fees or charges authorizing automatic adjustments that pass through increases in wholesale charges for water, sewage treatment, or wastewater treatment or adjustments for inflation under certain circumstances.

This bill would authorize a local government to demonstrate the proportional cost of the service attributable to the parcel by any method that reasonably allocates the ascertainable cost of providing service to all parcels, if substantiated as provided. The bill would, however, provide that for water or sewer service fee or charge impositions, a local government is not required to provide an exact measure of the cost of the service at each parcel and may instead impose uniform or tiered rates to parcel or customer classes that are defined based on common characteristics indicative of likely water or sewer use. The bill would provide that the proportional cost of service within each tier of water service may be substantiated by using any reasonable basis for allocating costs attributed to the tier, as described, and would provide a local government discretion to determine the costs allocated to each tier as long as the rate for each tier does not exceed the proportional cost of service reasonably allocated to parcels subject to that tier. The bill would specify that its provisions do not apply to fees for water connections or sewer connections, or capacity charges, as specified.

Sponsors

Sponsors by party (alphabetical): Democratic 5

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. September 27, 2026Chaptered by Secretary of State - Chapter 587, Statutes of 2026.
2. September 27, 2026Approved by the Governor.
3. August 25, 2026Enrolled and presented to the Governor at 4 p.m.
4. August 19, 2026Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 53. Noes 17. Page 6255.).
5. August 18, 2026In Assembly. Concurrence in Senate amendments pending.
6. August 18, 2026Read third time. Passed. Ordered to the Assembly. (Ayes 29. Noes 9. Page 5520.).
7. June 11, 2026Read second time. Ordered to third reading.
8. June 10, 2026From committee: Do pass. (Ayes 5. Noes 2.) (June 10).
9. May 22, 2026From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on L. GOV.
10. May 6, 2026Referred to Com. on L. GOV.
11. April 9, 2026In Senate. Read first time. To Com. on RLS. for assignment.
12. April 9, 2026Read third time. Passed. Ordered to the Senate. (Ayes 46. Noes 18. Page 4555.)