Summary: The Select Committee on Housing Construction Innovation met to examine how industrialized construction, including modular, panelized, manufactured, and 3D-printed building methods, could help lower California’s housing costs and speed delivery. Chair Buffy Wicks opened by describing the committee’s purpose as a cross-cutting effort to address construction costs, drawing on visits to factories in Sweden, Idaho, and Indiana. Members from both the committee and invited participants broadly agreed that California’s housing crisis is driven not only by land use and permitting, but also by high construction costs, labor shortages, and a lack of scalable innovation. Ben Metcalf of UC Berkeley’s Turner Center provided the main policy overview, saying California needs roughly 2.5 million additional homes by 2030 and that multifamily construction costs in the state can be far higher than in Texas or Colorado. He said factory-built housing can reduce hard costs and timelines under the right conditions, but barriers remain in financing, local code and design review, uncertain demand pipelines, and fragmented research and data. In response to committee questions, he discussed possible state actions such as pro-housing incentives, state-backed purchasing or subsidies, more standardized approvals, and better research infrastructure. Members also raised the need to involve labor and building trades in the process. A panel of developers and builders then described projects and cost savings from factory-built and related methods. Caleb Rupp of Pacific Companies said modular construction can save about 20% on average and cited a project where modular delivery reduced the need for public subsidy by $18 million; he suggested incentives such as tax exemptions, state-owned sites, third-party inspections, and limits on local code variation. Lois Kim of Mutual Housing California described a pipeline of more than 660 units across six jurisdictions, saying a predictable factory pipeline can reduce construction time by about 40% and total development costs by at least 10%. Danny Haber of O’WOW said standardized design, componentized construction, and mass timber can cut costs substantially, while also criticizing outdated codes, utility hookup fees, and financing costs. Donna Jamian of Emergent Construction described California’s first code-approved 3D concrete printing projects, including homes in Redding and work on a commercial building and fire-recovery projects in Altadena. She said current codes have not caught up to the technology and asked for participation in local self-certification programs. Committee members asked about the role of state incentives, code alignment, financing support, and how to build developer confidence after failures like Katerra. No votes were taken; the hearing was informational and ended with plans for further hearings and a forthcoming white paper with policy recommendations.

Summary: The committee opened its first Senate Housing hearing of 2026 by taking up several two-year bills and bond measures. SB 222 by Senator Wiener, the Heat Pump Access Act, would streamline permitting for heat pump water heaters and HVAC systems, allow video/phone participation by contractors during inspections, and limit HOA barriers. Supporters said the bill would cut costs, speed replacements, reduce pollution, and help Californians lower energy bills; the League of California Cities opposed unless amended, citing concerns about a permit fee cap and virtual inspections. After questions about fees, inspection liability, HOA authority, and electrical panel upgrades, the bill passed 10-0 to Senate Local Government. The committee then considered SB 677, a follow-up to SB 79. The author announced the bill would be narrowed to two definition changes and that broader SB 79 cleanup would come in a new bill later in 2026. Testimony reflected both support and concern: some local governments and counties said more clarity was needed on implementation, transit-related definitions, and timing, while housing and transit advocates supported the cleanup and the removal of the ferry-stop provision. The committee approved the amended bill 10-1 to Local Government. SB 417, the Affordable Housing Bond Act of 2026, proposed a $10 billion general obligation bond for affordable rental housing, supportive housing, homeownership, and preservation. Supporters argued that state housing funds had been exhausted, that thousands of shovel-ready units were waiting for financing, and that the bond would leverage federal tax credits and create jobs. Opponents, including Habitat for Humanity, asked for a dedicated CalHome set-aside for homeownership. Members debated state debt levels, bond repayment, and whether the state should rely more on direct appropriations, but the bill passed 8-1 to Appropriations. The committee also began hearing SB 492, the Youth Housing and Youth Center bond, which the author said was intended to be folded into a larger housing bond package. The bill would authorize bonds for youth housing and youth centers for transition-age youth up to age 25, with the author arguing that early intervention could prevent future homelessness. The transcript cuts off before the committee completed action on SB 492.

Summary: The committee heard several housing-related measures, beginning with SB 222 by Senator Wiener, the Heat Pump Access Act. The bill would streamline permitting for heat pump water heaters and HVAC systems, allow virtual contractor participation during inspections, and limit HOA barriers to installation. Supporters, including Spur, a contractor, and several clean-energy and environmental groups, said the measure would lower costs, reduce pollution, and speed replacements. The League of California Cities opposed the bill over the permit fee cap and concerns about virtual inspections, while committee members raised questions about HOA authority, electrical panel upgrades, and whether the bill could create unintended costs for local governments. SB 222 was approved 10-0 and sent to Local Government. The committee then considered SB 677, a follow-up to SB 79. The author announced the bill had been narrowed to two items: mobile home exemption language and a future SB 79 cleanup bill in the next session, with the larger set of implementation issues to be handled separately. Local governments and counties said the reduced bill still needed clearer definitions and more implementation guidance, while several housing and transit advocates supported the narrowing and the decision to revisit the broader cleanup later. After the amendments were accepted, SB 677 passed 10-1 and was sent to Local Government. The main debate centered on SB 417, a proposed $10 billion affordable housing bond for the 2026 ballot. Supporters, including the California Housing Consortium, labor, housing nonprofits, local governments, and many advocacy groups, argued that the state’s existing housing bond funds were exhausted, that thousands of shovel-ready projects were waiting for financing, and that the bond would leverage federal tax credits and private capital to produce and preserve affordable homes. Opponents and skeptics focused on state debt levels, the cost of housing production, and whether another bond was the right approach, with Habitat for Humanity asking for a dedicated CalHome allocation. Committee members discussed debt capacity, affordability, homeownership, and the need to keep funding flowing to existing programs. SB 417 passed 8-1 to Appropriations. The committee also heard SB 492, a youth housing and youth center bond proposal, which the author said was intended to be folded into the larger housing bond package; testimony from Covenant House California emphasized the need to house transition-age youth and prevent long-term homelessness. No vote on SB 492 was shown in the transcript excerpt.

Summary: The committee opened its first Senate Housing hearing of 2026 by establishing quorum and explaining that several two-year bills and bond measures would be heard, with witnesses limited to two minutes and “me too” testimony grouped together. The first bill, SB 222 by Senator Wiener, would streamline permitting for heat pumps, water heaters, and HVAC installations and limit HOA barriers. Supporters said it would lower costs, speed replacements, reduce pollution, and help Californians switch to efficient electric appliances. The League of California Cities opposed unless amended, raising concerns about a permit-fee cap and the feasibility of virtual inspections. Committee members largely supported the policy but flagged fee recovery, inspection liability, HOA authority, and possible electrical panel upgrade costs; the bill passed to Local Government on a roll call vote. The committee then heard SB 677, also by Senator Wiener, which was narrowed to two remaining changes related to commuter rail definitions and mobile home exemption language, with a separate future cleanup bill for SB 79 promised later in the session. Local governments and counties said the amended bill still needed clearer definitions and implementation guidance, while several groups shifted to support after the amendments. The committee approved the bill 10-1 and sent it to Local Government. Next, SB 417 by Senator Cabaldon proposed a $10 billion 2026 affordable housing bond to fund construction, preservation, rehabilitation, supportive housing, and homeownership opportunities. Supporters emphasized the need to replace exhausted housing funds, leverage federal tax credits, and keep shovel-ready projects moving; opponents and some members raised concerns about state debt, the lack of a dedicated CalHome share, and whether the bond should include more homeownership or higher-education allocations. After extensive debate over bond indebtedness and housing need, the bill passed to Appropriations on an 8-1 vote. Finally, the committee began hearing SB 492, a youth housing and youth center bond proposal. Senator Reyes described it as a way to fund transitional housing and youth centers for transition-age youth up to age 25, arguing that early intervention could prevent future homelessness and reduce long-term public costs. Witnesses from Covenant House California and the California Coalition for Youth supported the measure, citing the needs of foster youth and homeless young people, the benefits of transitional housing, and the high success rate of youth exiting to stable housing. The transcript cuts off during additional testimony, so no final action on SB 492 is shown in the provided excerpt.

Summary: The Senate held a special ceremonial session to swear in Monique Limón as the 50th President Pro Tempore of the California State Senate and the first Latina to hold the position. The proceedings included a roll call establishing quorum, a prayer, the Pledge of Allegiance, a land acknowledgement, musical performances, and remarks from numerous senators and invited leaders. Speakers repeatedly highlighted the historic nature of the moment, Limón’s background as the daughter of immigrants and a former school board member and higher-education advocate, and her leadership on issues such as education, child care, labor, wildfire response, environmental protection, and immigrant rights. Several senators, including Mike McGuire, Caroline Menjivar, Sasha Renée Pérez, Steve Cabaldon, Catherine Blakespear, and Scott Wiener, praised Limón as a unifier, coalition-builder, and effective legislator. They emphasized her preparation, calm demeanor, and ability to work across differences, while also noting the broader significance of women’s leadership and gender parity in the Senate. Some remarks referenced current political and fiscal challenges facing California, including attacks on immigrants, reproductive freedom, health care, and the state budget. Chief Justice Patricia Guerrero administered the oath of office, after which Limón was formally introduced as the new pro tem. In her acceptance remarks, Limón thanked her predecessor, Governor Newsom, legislative leaders, her family, and the many guests in attendance. She spoke about her immigrant family, her Central Coast district, her work in education and higher education, and her commitment to protecting Californians, especially immigrants, children, working families, and communities facing economic and environmental hardship. The session concluded with an announcement that the Senate would recess and reconvene on January 8, 2026, after a reception in the Capitol Rotunda.

Summary: The California State Senate held a special ceremonial session to swear in Monique Limón as the 50th President Pro Tempore, described throughout the event as the first Latina to hold the post and only the second woman to lead the chamber. The session opened with acknowledgments of statewide officials, tribal leaders, members of Congress, former legislative leaders, and other guests, followed by a quorum call, suspension of Senate Rule 55 to allow guests and media on the floor, a prayer, the Pledge of Allegiance, and a land acknowledgement honoring the Miwok, Nisenan, Patwin, and Southern Maidu peoples. The ceremony included musical performances by Mariachi Bonitas and the Sacramento Women’s Choir/Genesis Church, after which several senators delivered remarks praising Limón’s leadership, coalition-building, work on education, labor, child care, wildfire response, and her role as a trailblazer for women and Latinas in California politics. Speakers also referenced the state’s fiscal challenges, federal policy concerns, and the importance of inclusive leadership. Chief Justice Patricia Guerrero administered the oath of office, and Limón was formally introduced as President Pro Tempore. In her acceptance remarks, Limón thanked her predecessor Mike McGuire, Governor Gavin Newsom, Assembly Speaker Robert Rivas, and her colleagues, family, and supporters. She emphasized her immigrant family background, the importance of education, child care, consumer protection, labor rights, and support for working families, and said California must continue to protect immigrants and expand opportunity. The Senate then announced a reception in the Capitol Rotunda and adjourned/recessed until January 8, 2026 at 9 a.m.

Summary: The Assembly convened with a quorum call, roll call, and prayer/pledge to open the first floor session of 2026. After routine announcements, members approved several procedural actions, including suspending rules to allow adjournment-in-memory remarks and guest seating, and re-referring a list of bills to various committees. The chamber also gave one-day notice to remove AB 710 from the inactive file, and members offered birthday acknowledgments for Assembly Member Irwin and the Speaker. On the daily file, the Assembly passed and retained items 1 and 2, passed and retained Governor’s veto items 3 through 76, continued reconsideration items 77 through 79, and passed and retained Assembly third reading item 80 and Senate third reading items 81 and 82. The session then moved to adjournment-in-memory tributes. Assembly Member Ward honored Roman Reuters Volgasang, describing his life, Capitol community ties, education, career in policy, and marriage to Sasha, and Assembly Member Sharp-Collins honored Pastor Glenn Arthur McKinney, Sr., highlighting his long service as senior pastor, community leadership, and family legacy. The Assembly observed a moment of silence, then announced upcoming check-in days and a Thursday, January 8 session at 10 a.m. for the Governor’s State of the State joint convention before adjourning until that date and time.

Summary: The Rules Committee met, called the roll, and established a quorum. The committee noted that AB 664 by Assembly Member Alvarez was added to the referral list and sent to the Higher Education Committee. One member requested that item two be removed from the consent agenda so it could be considered separately. The committee then approved the remainder of the consent agenda by roll call vote. After that, it took up item two, the urgency clause request for AB 35 by Assembly Member Alvarez. The motion passed on a roll call vote, with one no vote and one member not voting. No substantive bill testimony was presented in the transcript beyond the procedural motions and votes. The meeting concluded with adjournment of the Rules Committee.