The recently completed 2025 legislative session reflected both the complexity and potential of doing business in California. Though not all doom and gloom, Sacramento has far more work ahead to ensure our state remains a place where businesses, families and communities can thrive.
A win for businesses and the people they employ was the passage of SB 79, which was signed into law by Governor Gavin Newsom on Oct. 10. The bill creates a “by right” approval process for housing near transit stations. Streamlining approvals for high-density homes along major transportation corridors is a smart step that will help communities meet housing demand, reduce traffic, and give workers more options to live closer to where they work.
This bill, along with the OCBC-supported housing trailer bill SB 131, which was signed into law this summer (June 30), includes reforms to streamline approvals near transit hubs. Overall, this progress represents a win for common-sense housing policy.
On the other side of the coin, OCBC opposed AB 130, which created a Vehicle Miles Traveled housing tax and was signed into law on June 30. Instead of pairing reforms with new fees, California should encourage housing production and not make it more expensive for developers and residents. The VMT tax is shortsighted and will serve as a counterbalance to the solid reforms passed by the legislature, ultimately making those reforms moot.
The CEQA Roadblock Remains
The Legislature moved AB 52, an effort to expand California Environment Quality Act (CEQA) by including tribal consultation, to a two-year bill, showing that Sacramento may finally be listening to concerns about the urgent need to streamline housing development.
Still, CEQA— a law that requires government agencies to identify and reduce a project’s possible environmental impacts—remains a major roadblock, with lawsuits delaying critical housing and job-creating projects. Until meaningful reform is achieved, housing affordability will remain out of reach for many Californians.
On the infrastructure front, opening the door to a Western States Energy Grid was a win for energy reliability. As seems to be the case with actions out of Sacramento, progress is counterbalanced with regression. Inexplicably, lawmakers delayed action on the Delta Conveyance Project, a critical initiative for water reliability and regional infrastructure hardening.
Businesses, residents and agriculture depend on secure water supplies, and Orange County agencies like Irvine Ranch, Moulton Niguel and Santa Margarita have led the way in recycling, conservation and storage. It is time for the rest of the state to follow their lead.
This year proved challenging for regulatory reform efforts. OCBC opposed AB 288, which expands the jurisdiction of the Public Employment Relations Board into matters already covered by federal law under the National Labor Relations Act. By adding an extra layer of oversight, businesses could face conflicting rules and longer disputes, making it harder and more expensive to resolve workplace issues.
These additional costs and delays also make it more difficult for employers to hire, grow and invest in our communities, ultimately slowing job creation and making California a less attractive place for businesses and workers alike.
OCBC also opposed SB 82, which restricts how businesses can structure dispute resolution in consumer contracts. By limiting the ability of companies to enforce agreed-upon terms, the bill increases legal uncertainty and the potential for costly litigation.
Both bills, which were signed by the governor, create new hurdles for businesses, reduce private investment, slow economic growth, and limit job creation in California.
Still Facing the Highest Costs in the Nation
With all the pros and cons from this session, employers continue to face some of the highest costs in the nation. If the legislature and administration want this great state to remain competitive, every bill coming out of Sacramento should be measured by a simple test: Does it make it easier or harder to create jobs and opportunities here?
OCBC and the broader business community will continue to partner with policymakers to build a more affordable and competitive state. That means advancing housing production, addressing CEQA abuse, prioritizing investments in water and energy infrastructure, revising overly complex and restrictive employment laws, and advocating for policies that support job growth and help keep companies and good-paying jobs in California—rather than encouraging them to leave the state.
Reform must become the standard, not the exception, if we are to keep our state affordable, competitive and a place where both businesses and families can thrive.
Editor’s Note: Jeff Ball was the founder of First Pacific Bank (formerly Friendly Hills Bank), where he was chief executive officer and is currently board vice chair. He has more than 30 years of experience in commercial and investment banking, including leadership positions with Bank of America, as well as past chair of the California Bankers Association. Currently, he serves on the board for the Federal Home Loan Bank of San Francisco, Mobility21, Data Center Inc. and Kinetic Academy charter school.
