Overview:

In California, the process of creating laws often begins outside the Capitol through legislation typically sponsored by special interest groups.  However, it’s only a Member of the Legislature who can request an official draft, author, and introduce a bill/measure.  The Member then sends the proposal to the Office of the Legislative Counsel, a crucial nonpartisan legal office that not only converts policy concepts into legally enforceable text but also ensures that the proposed legislation aligns with existing laws and is constitutionally sound.  This draft then enters the Legislature’s formal process. 

Special interest groups, often representing public concerns, play a significant role in shaping the initial form of proposed legislation.  They accomplish this by drafting, negotiating, and amending the legislation as needed.  However, it’s important to note that the minority party is often hesitant to propose legislation unless it can also assign credit to a Member of the majority party, typically through identifying such a Member as a co-author.  These dynamics highlight political power and authority that may take precedence over the best interests of the public, with particular concern for citizens who are constituents of the authors.

1) Idea Intake: Where Concepts Come From

These ideas, crucial in shaping the laws that govern them, can come from anybody.  A Senator or Assemblymember must agree to author the bill and submit it to Legislative Counsel for drafting.  The originating group, often a special interest group reflecting public concerns, will frequently review the draft with the author’s office, highlighting the significant influence some members of the public may have on the authors or policy committee members.  The legislative process requires public hearings before policy committees to which the leadership/rules committees of each house have assigned the measure.    

Industry examples:

• Real Estate/HOA: HOA boards report that mandatory structural inspections are financially burdensome for older condos; construction and association groups advocate for phased compliance concepts.  (Illustrative)
• Insurance: Carriers propose “risk-based pricing flexibility” in wildfire zones to reflect loss patterns   (Illustrative)
• Banking: Community banks seek right-sizing of compliance for small institutions overseen by the state regulator (DFPI (Illustrative)

Note: Model or “copy-and-paste” bill language is standard in statehouses nationwide, including California; a USA TODAY/Arizona Republic/Center for Public Integrity investigation documented over 10,000 such introductions across states. 

2) Policy Development: From Concept to a Feasible Plan

The author’s Capitol and district staff research the issue, map existing Law, estimate fiscal and operational impacts, and line up stakeholders before drafting instructions to go to Legislative Counsel. California’s public guides explain the early process steps, including the 30-day in-print rule.  This rule, which mandates that most bills must be in print for 30 days before the first policy committee hearing in the house of origin, allows for a thorough review and public input on the proposed legislation, ensuring transparency and accountability in the legislative process. 

Industry examples:

• Real Estate/HOA: Staff compare proposed inspection triggers with existing Davis-Stirling requirements and building codes to forecast the impacts on HOA assessments. (Illustrative)
• Insurance: Staff examine how rate‑review statutes and mitigation‑credit requirements would interact with any “pricing flexibility” proposal.  (Illustrative)
• Banking: Staff consults with DFPI materials and prior reports to understand the safety-and-soundness implications   (Illustrative)

3) Legal Drafting: Turning Policy into Statute

After receiving drafting instructions, the Legislative Counsel prepares the bill in proper legal form.  California’s Joint Rules require that every bill introduced include a Legislative Counsel’s Digest summarizing how the bill changes current Law and that the legislation be structured appropriately (title requirements, division into sections, etc.). 

Industry examples: .

• Real Estate/HOA: Counsel drafts a new statutory framework authorizing inspection schedules, minimum reserve disclosures, and enforcement remedies. (Illustrative)
• Insurance: Draft clauses defining “risk tiers” are reconciled with existing Unfair Practices and rate‑filing provisions to avoid conflicts.  (Illustrative)
• Banking: Asset‑threshold carve-outs are harmonized with references to oversight provisions   (Illustrative)

4) Internal Review: Aligning Policy, Politics, and the objectives of members of the Legislature and of the Administration.

During the internal review stage, the author’s office and policy committee staff meticulously review the language of the bill.  They consider factors such as costs, the operative political objectives, possible unintended consequences, and the support and opposition from special interest groups and their lobbyists.  This thorough review process, which also considers comments from the general public, ensures that all aspects of the bill are carefully examined and evaluated. 

Industry examples:

• Real Estate/HOA: Penalties for missed inspection deadlines are moderated; hardship waivers are added for cash-strapped associations. (Illustrative)
• Insurance: Consumer‑notice language is strengthened; implementation is staged by county wildfire risk.  (Illustrative)
• Banking: An unsettled reporting requirement is added to force a post-implementation review   (Illustrative)

5) Introduction: Only Lawmakers Can File

The Members/authors file the bill at the Assembly or Senate Desk; it’s numbered and read for the first time before referral to committee by the Rules Committees of the house of origin and the second house. 

Industry examples:

• Real Estate/HOA: A “Condominium Safety and Affordability Act” is introduced and referred to the Housing/Judiciary committees. (Illustrative)
• Insurance: A wildfire‑pricing bill is referred to Insurance and, if necessary, Appropriation. (Illustrative)
• Banking: A community bank relief bill goes to Banking/Finance.  (Illustrative)

6) Committee Stage: Where Most Text Changes Happen

Policy committees hold hearings, during which testimony is taken.  Amendments, if any, are prepared by committee staff and may be ultimately reviewed by the Office of Legislative Counsel.  Appropriation committees may hear bills when public expenditures are mandated to accomplish the objectives of the legislation.   Bills must appear in the Daily File before hearing and typically sit in print for 30 days after introduction.  The public’s input is not just valued, it’s crucial and considered during these hearings, and many measures die by inaction or an unfavorable vote by a policy committee or the floor. 

Industry examples:   

• Real Estate/HOA: Amendments phase inspections are conducted by building age and occupancy; smaller buildings are offered alternative compliance options. (Illustrative)
• Insurance: Caps on annual rate movement are paired with mandatory mitigation credits for defensible space.  (Illustrative)
• Banking: Stress‑test exemptions are narrowed while preserving targeted liquidity reviews   (Illustrative)

7) Floor, Second House, Conference, and Final Text

If a bill passes its house of origin, the second house repeats the committee and floor process.  If amended in the second house, the first house must concur; otherwise, the bill goes to a joint conference committee to reconcile the differences.  Final identical text must pass both houses before being enrolled and transmitted to the Governor. 

Industry examples:  

• Real Estate/HOA: Effective dates are delayed to align with HOA budget cycles; an emergency-repair escrow is added in conference. (Illustrative)
• Insurance: A pilot clause sunsets pricing flexibility after three years, unless it is renewed.  (Illustrative)
• Banking: A data‑reporting provision enables formal post-implementation evaluation.  (Illustrative)

8.  California Spotlight: Exterior Elevated Elements (Balconies).  This list of examples may be ok, as it describes specific legislation.

• Common‑interest developments (condos/HOAs). In 2019, SB 326 (Hill) mandated inspections of a statistically significant sample of exterior elevated elements (EEEs) by 1 January 2025, and every nine years thereafter, now codified in Civil Code §5551. Committee analyses provide details on the scope, definitions, and reporting requirements. 
• Apartments (non-HOA multifamily. In 2018, SB 721 established inspection requirements for EEEs in buildings with three or more dwelling units, which are now codified in the Health & Safety Code. 2.2 (beginning with §17973). 

Together, these examples illustrate how industry stakeholders, local agencies, and counsel‑drafted text converge to produce California’s balcony/EEE statutes. 

References (California‑specific)

• California State Senate – Legislative Process (Citizens’ Guide): How Ideas Become Bills; Drafting by Legislative Counsel; Committee and Calendar Mechanics. senate.ca.gov
• California State Assembly – Legislative Process: overview of referral to committees, floor action, and second house procedures.  assembly.ca.gov
• California State Capitol Museum – Life Cycle of a Bill: 30-day in‑print rule; committee hearing basics. capitolmuseum.ca.gov
• Office of the Legislative Counsel of California: nonpartisan drafting office supporting the Legislature   legislativecounsel.ca.gov
• Joint Rules of the Senate and Assembly (Digest, bill form): Joint Rule 7 (title), Joint Rule 8 (division into sections), Joint Rule 8.5 (Legislative Counsel’s Digest requirement. 2017–18 Joint Rules PDF; 2023–24 Joint Rules PDF (SCR 1)
• Lobbyist definitions: Government Code §82039; FPPC R  g. 2 CCR §18239 (definition and scope).  California.  Public Law; fppc.ca.gov PDF
• SB 326 (2019) – Common Interest Developments; EEE inspections: Assembly Housing & Community Development analysis.  ahcd.assembly.ca.gov PDF; Civil Code §5551 (current codification). California.  Public.  Law
• SB 721 (2018) – Apartments; EEE inspections: Health & Safety Code Art. 2.2 (beginning with §17973) (current codification)   leginfo.legislature.ca.gov
• Model bills in state legislatures (context): Center for Public Integrity/USA TODAY investig publicintegrity.org • usatoday.com