What AB 2180 does
An act to add Section 53751.5 to the Government Code, relating to local government finance.
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.
Summary from the Legislative Counsel's Digest of the enrolled text, August 21, 2026. Read the full text on leginfo.
How it got here
Assemblymember Ward introduced AB 2180 on February 19, 2026, with coauthors Senators Arreguín, Becker, Blakespear, and Padilla. The text was amended 2 times, 1 in the Assembly and 1 in the Senate, and heard in 2 committee hearings before its final floor votes.
- Assembly Floor, April 9, 2026: 46 ayes, 18 noes.
- Senate Floor, August 18, 2026: 30 ayes, 10 noes.
- Assembly Floor, August 19, 2026: 53 ayes, 17 noes.
Committee votes along the way:
- Assembly Local Government, March 25, 2026: Do pass., 7-2.
- Senate Local Government, June 10, 2026: Do pass, 5-2.
Who supports and opposes AB 2180
The Senate Floor Analyses analysis dated June 12, 2026 lists 95 organizations in support and 5 in opposition. When Assembly Local Government first listed positions on March 24, 2026, the count was 69 in support and 4 opposed. By the Senate Floor Analyses analysis of June 12, 2026 it was 95 to 5.
In support: Association of California Water Agencies (sponsor); Bear Valley Water District; Bella Vista Water District; Burbank Water and Power; Calaveras County Water District; California Coastkeeper Alliance; California Council for Environmental & Economic Balance; California Municipal Utilities Association; and 87 more.
Opposed: California Apartment Association; California Association of Realtors; California Business Properties Association; California Taxpayers Association; Howard Jarvis Taxpayers Association.
Read the Senate Floor Analyses analysis.
What happens next
It reached the Governor's desk on August 25, 2026. Bills presented after the Legislature adjourned on August 31 must be signed or vetoed within thirty days.
The Governor can sign the bill, veto it, or let it become law without a signature. Until the decision, sign and veto request letters are the remaining channel, and the Department of Finance's enrolled bill report carries weight on anything with a fiscal effect. If signed, most provisions take effect January 1, and implementation moves to the agencies named in the bill.
What it means for agriculture organizations
Two decisions follow from a bill at this stage. The first is whether to weigh in with the Governor's office before the thirty-day window closes. The second is how to prepare for implementation if it becomes law: which agency writes the rules, when the comment period opens, and which obligations begin January 1.
The agriculture group at Capitol Axis handles that for agriculture clients.
Questions about AB 2180
What does AB 2180 do?
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 wa
Has AB 2180 passed the California Legislature?
It reached the Governor's desk on August 25, 2026. Bills presented after the Legislature adjourned on August 31 must be signed or vetoed within thirty days.
Who supports and opposes AB 2180?
The Senate Floor Analyses analysis dated June 12, 2026 lists 95 organizations in support and 5 in opposition. Supporters include Association of California Water Agencies (sponsor); Bear Valley Water District; Bella Vista Water District. Opponents include California Apartment Association; California Association of Realtors; California Business Properties Association.
What happens next with AB 2180?
The Governor can sign it, veto it, or let it become law without a signature. Until then, sign and veto request letters are the remaining channel, and the Department of Finance's enrolled bill report carries weight on anything with a fiscal effect.