Civil Rights Department: racially motivated eminent domain.

All references to the 'Office of Legal Affairs within the Bureau for Descendants of American Slavery' were replaced with simply the 'Civil Rights Department.' The bill no longer depends on a new agency being created; it uses an existing one.

Section 11041's exemption from the in-house counsel prohibition now lists only the Civil Rights Department, removing the separate listing for the Bureau for Descendants of American Slavery and deleting subdivision (c) which had tied the amendment to SB 518's enactment.

All provisions making the bill operative only if Senate Bill 518 was enacted (establishing the Bureau for Descendants of American Slavery) were deleted. The bill is now independently operative upon appropriation by the Legislature.

The new chapter was renumbered from Chapter 4 (Section 16005) in Part 14 to Chapter 8.5 (Section 12991) in Part 2.8 of Division 3 of Title 2 of the Government Code, changing its placement within the code.

The Bureau for Descendants of American Slavery is now explicitly placed within the Civil Rights Department, changing its organizational home from a standalone agency to a component of an existing department.

Section 11041 now exempts both the Bureau for Descendants of American Slavery and the Civil Rights Department from the prohibition on employing in-house counsel in adjudicative proceedings, expanding the exemption beyond just the Bureau.

The new chapter is renumbered from Chapter 4 (Section 16005) in Part 14 to Chapter 4.8.5 (Section 12991) in Part 2.8 of the Government Code, relocating it alongside the Civil Rights Department's existing provisions.

Typo correction: 'benefitting' changed to 'benefiting' in Section 3's findings and declarations regarding the gift of public funds clause.

The legislative digest now references the California Fair Employment and Housing Act as the existing law establishing the Civil Rights Department, providing statutory context for where the new Bureau will be housed.

The entire chapter (Sections 16005-16006) and the Section 11041 amendment now become operative only if SB 518 of the 2025-26 Regular Session is enacted establishing the Bureau for Descendants of American Slavery. This makes the bill entirely dependent on a separate piece of legislation passing.

The responsible agency was changed from an unnamed placeholder ('the ____ Agency') to the explicitly named 'Bureau for Descendants of American Slavery' throughout the bill, including in the digest, operative provisions, and judicial review clause.

Section 11041's list of agencies exempted from the in-house counsel prohibition was expanded to include the Office of the Governor, Bureau for Descendants of American Slavery, Treasurer (with respect to bonds), State Department of Education, Department of Financial Protection and Innovation, and a catch-all for any state agency authorized by law enacted after Chapter 213 of the Statutes of 1933.

A new paragraph (Section 16006(b)(6)) requires the Office of Legal Affairs to prioritize applications from individuals who held legal title at the time of taking, give priority to heirs if the original owner is deceased, allow joint eligibility or proportional apportionment among multiple heirs based on documentation or intestate succession laws, and adopt equitable procedures to resolve disputes among multiple claimants.

The standalone 'SECTION 1' stating the Legislature's intent to assist victims of racially motivated eminent domain was removed as a separate section. Its substance is retained in the legislative findings within Section 16005(a).

The fiscal committee designation changed from 'no' to 'yes,' indicating the bill now requires fiscal committee review, likely due to the conditional operative provision and potential budgetary implications tied to SB 518.

Added an entirely new Chapter 4 (Sections 16005-16006) to Part 14 of Division 3 of Title 2 of the Government Code, creating a formal restitution process for victims of racially motivated eminent domain. The original bill only expressed legislative intent; the amendment creates binding procedural requirements.

Amended Section 11041 of the Government Code to add the responsible agency to the list of agencies exempted from the prohibition on employing in-house counsel in adjudicative proceedings, enabling the agency to represent itself in related legal actions.

Added definitions for 'dispossessed owner' (a person whose property was taken without just compensation due to race or ethnicity, or their direct descendant), 'publicly held property' (property owned by the state or local agency that took the property), and 'racially motivated eminent domain' (acquisition of private property where just compensation was not distributed and the taking or failure to compensate was due in whole or in part to the owner's ethnicity or race).

Requires the Office of Legal Affairs within a state agency (name left blank) to accept applications, review and investigate claims, determine present-day fair market value of taken property, and certify whether the dispossessed owner is entitled to return of the taken property, other publicly held property of equal value, or financial compensation.

Establishes a compensation formula: fair market value of the property minus the amount paid at the time of taking, adjusted for inflation. If no suitable publicly held property is available, the office determines a just compensation amount using this formula.

Fiscal committee designation changed from 'no' to 'yes,' indicating the bill now requires fiscal committee approval due to its potential financial impact on state and local agencies.

Creates an appeal process where applicants denied can appeal within 60 days and the office must issue a determination on the appeal within 120 days. Also provides that every finding, decision, or determination of the agency is subject to judicial review, and actions brought under this chapter are not subject to any statute of limitations.