What SB 5 does
An act to amend Sections 53398.75 and 62005 of, and to add Sections 53398.75.1 and 62009 to, the Government Code, relating to local government.
Existing law, the California Land Conservation Act of 1965, otherwise known as the Williamson Act, authorizes a city or county to enter into contracts with owners of agricultural land to preserve the land for agricultural use, as specified, in return for reduced property tax assessments. The act also authorizes a landowner of specified agricultural land to petition the city or county to cancel the Williamson Act contract in order to designate the land as a farmland security zone, whereby the land is eligible for a specified property tax valuation and taxed at a reduced rate for specified special taxes.
Existing law authorizes the legislative body of a city or a county to establish an enhanced infrastructure financing district, with a governing body referred to as the public financing authority, to finance public capital facilities or other specified projects of communitywide significance. Existing law requires the public financing authority to prepare and adopt a proposed infrastructure financing plan, as specified. Existing law authorizes the plan to require a certain portion of specified taxes levied upon property within the district to be allocated to the district each year, as specified.
Existing law authorizes certain local agencies to form a Community Revitalization and Investment Authority within a community revitalization and investment area to carry out a community revitalization plan in that area for specified purposes. Existing law authorizes the plan to require a certain portion of specified taxes levied upon property within the area to be allocated to the authority to finance improvements, as specified.
This bill would exclude the taxes levied upon a parcel of land enrolled in or subject to a Williamson Act contract or a farmland security zone contract, as specified, from the above-described allocations to the district or authority, as applicable.
This bill would incorporate additional changes to Section 53398.75 of the Government Code proposed by SB 516 to be operative only if this bill and SB 516 are enacted and this bill is enacted last.
Summary from the Legislative Counsel's Digest of the enrolled text, September 12, 2025. Read the full text on leginfo.
How it got here
Senator Cabaldon introduced SB 5 on December 2, 2024. The text was amended 3 times, 2 in the Assembly and 1 in the Senate, and heard in 2 committee hearings before its final floor votes.
- Senate Floor, June 2, 2025: 32 ayes, 5 noes.
- Assembly Floor, September 8, 2025: 67 ayes, 2 noes.
- Senate Floor, September 9, 2025: 33 ayes, 6 noes.
Committee votes along the way:
- Senate Local Government, April 23, 2025: Do pass as amended, 5-2.
- Assembly Local Government, July 16, 2025: Do pass., 9-0.
Who supports and opposes SB 5
The Senate Floor Analyses analysis dated October 9, 2025 lists 23 organizations in support and 5 in opposition. When Senate Floor Analyses first listed positions on May 14, 2025, the count was 2 in support and 5 opposed. By the Senate Floor Analyses analysis of October 9, 2025 it was 23 to 5.
In support: African American Farmers of California; American Farmland Trust; California Citrus Mutual; California Farm Bureau Federation; California Fresh Fruit Association; California Rice Commission; California Rural Legal Assistance Foundation; California Walnut Commission; and 15 more.
Opposed: Building Owners and Managers Association; California Building Industry Association; California Business Properties Association; California Chamber of Commerce; Naiop California.
Read the Senate Floor Analyses analysis.
What happens next
The Governor vetoed it, with the last recorded action on March 2, 2026.
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
A vetoed bill usually returns. The veto message is the clearest statement of what a successor would have to change, and the interval before it is reintroduced is when that language gets negotiated.
The agriculture group at Capitol Axis handles that for agriculture clients.
Questions about SB 5
What does SB 5 do?
This bill would exclude the taxes levied upon a parcel of land enrolled in or subject to a Williamson Act contract or a farmland security zone contract, as specified, from the above-described allocations to the district or authority, as applicable.
Has SB 5 passed the California Legislature?
The Governor vetoed it, with the last recorded action on March 2, 2026.
Who supports and opposes SB 5?
The Senate Floor Analyses analysis dated October 9, 2025 lists 23 organizations in support and 5 in opposition. Supporters include African American Farmers of California; American Farmland Trust; California Citrus Mutual. Opponents include Building Owners and Managers Association; California Building Industry Association; California Business Properties Association.
What happens next with SB 5?
A veto can be overridden by a two-thirds vote in both houses, which is rare. The usual path is a successor bill in the next session, and the veto message is the clearest guide to what that bill would have to change.