Resolution Criteria

This market will resolve to "Yes" if California Senate Bill 543 (SB 543) is enacted into law by December 31, 2026. Enactment occurs when the Governor signs the bill, or it becomes law without the Governor's signature. The official status of the bill can be verified through the California Legislative Information website: California Legislative Information - SB 543.

Background

SB 543, introduced by Senator Jerry McNerney on February 20, 2025, aims to streamline the construction of accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) in California. Key provisions include:

• Definition Clarifications: Specifies that a JADU must be no more than 500 square feet of interior livable space and contained entirely within a single-family residence.

• Fee Limitations: Prohibits impact fees for ADUs under 750 square feet and JADUs under 500 square feet; larger units would incur fees proportional to the primary dwelling's square footage.

• Approval Process: Mandates local agencies to approve or deny ADU and JADU permit applications within 60 days of receiving a complete application. If no action is taken within this period, the application is deemed approved.

• State Oversight: Requires local agencies to submit ADU and JADU ordinances to the Department of Housing and Community Development within 60 days of adoption for review. The department can mandate amendments to non-compliant ordinances or require written justification for existing regulations.

As of May 27, 2025, SB 543 passed the California Senate with a 39-0 vote and is pending consideration in the Assembly. Source

Considerations

• Legislative Process: While the bill has passed the Senate, it must still be approved by the Assembly and signed by the Governor to become law. The legislative process can be unpredictable, and amendments may alter the bill's provisions.

• Local Impact: If enacted, SB 543 would standardize and potentially expedite the approval process for ADUs and JADUs across California, impacting local housing policies and development practices.