The fracking process involves injecting a mixture of water and chemicals into underground wells to extract oil and gas.
Critics have raised concerns about potential environmental and public health hazards.
The bill's author, Assemblywoman Betsy Butler, says until regulators write rules governing fracking, it shouldn't take place.
BUTLER: "We need to look at how we're going to address this problem because we need to know what's happening and we really have very little information about any of it."
Tupper Hull with Western States Petroleum Association says the oil industry has used fracking for decades without incident in California.
Hull: "Suggesting a moratorium which would prevent, without any good reason, a very useful technology that produces energy is terribly destructive to the state's economy."
A previous measure that would have required oil and gas companies to notify nearby property owners before fracking could take place failed to pass the state senate.
The bill comes as California's Department of Conservation solicits public comment from around the state about potential regulations.