The California Global Warming Solutions Act of 2006, until January 1, 2031, authorizes the State Air Resources Board to adopt a regulation establishing a system of market-based declining aggregate emissions limits for sources or categories of sources that emit greenhouse gases (market-based compliance mechanism) that meets certain requirements. Existing law establishes the Greenhouse Gas Reduction Fund and requires all moneys, except for fines and penalties, collected by the state board from the auction or sales of allowances as a part of a market-based compliance mechanism to be deposited into the fund and requires the Legislature to appropriate moneys in the fund for the purpose of reducing greenhouse gas emissions in the state, as provided. Existing law, the California Climate Crisis Act, declares that it is the policy of the state both to achieve net-zero greenhouse gas emissions as soon as possible, but no later than 2045, and achieve and maintain net-negative greenhouse gas emissions thereafter, and to ensure that by 2045, statewide anthropogenic greenhouse gas emissions are reduced to at least 85% below the 1990 levels. This bill would enact the Polluters Pay Climate Superfund Act of 2025 and would establish the Polluters Pay Climate Superfund Program to be administered by the California Environmental Protection Agency to require fossil fuel polluters to pay their fair share of the damage caused by greenhouse gases released into the atmosphere during the covered period, which the bill would define as the time period between the 1990 and 2024 calendar years, inclusive, resulting from the extraction, production, refining, sale, or combustion of fossil fuels or petroleum products, to relieve a portion of the burden to address cost borne by current and future California taxpayers. The bill would require the agency, within 90 days of the effective date of the act, to determine and publish a list of responsible parties, which the bill would define as an entity with a majority ownership interest in a business engaged in extracting or refining fossil fuels that, during the covered period, did business in the state or otherwise had sufficient contact with the state, and is determined by the agency to be responsible for more than 1,000,000,000 metric tons of covered fossil fuel emissions, as defined, in aggregate globally, during the covered period. This bill would require the agency, within one year of the effective date of the act, to conduct and complete a climate cost study to, among other things, quantify the total damage amount, which the bill would define as all past and future climate harms and damages to the state from January 1, 1990, through December 31, 2045, inclusive. The bill would require the agency to update the climate cost study, not less frequently than every 5 years, through January 1, 2045, as provided. The bill would require the agency, within 60 days of the completion of the climate cost study, to determine and assess, as provided, a cost recovery demand for each responsible party listed, which represents the responsible party's proportionate share of the total damage amount. The bill would require responsible parties to pay their cost recovery demand, as provided. The bill would require the collected cost recovery demands to be deposited in the Polluters Pay Climate Superfund, which the bill would create in the State Treasury. The bill would, upon appropriation by the Legislature, require moneys in the fund be expended for, among other things, qualifying expenditures, which the bill would define to include expenditures for projects and programs to mitigate, adapt, or respond to the damages and costs caused to the state from climate change. The bill would require all interest earned on moneys that have been deposited into the fund to be retained in the fund for use in implementing the program. The bill would require the agency to determine the initial implementation costs for the act, as provided, and would require the agency to assess an amount allocated equitably among responsible parties to cover those costs. This bill would require the Director of Finance, within 45 days of the effective date of the act, to perform an initial assessment of the reasonable and appropriate initial implementation costs that will be incurred by the agency. This bill would declare that it is to take effect immediately as an urgency statute.
(1) Existing law creates the Metropolitan Transportation Commission as a local area planning agency for the 9-county San Francisco Bay area with comprehensive regional transportation planning and other related responsibilities. Existing law creates various transit districts located in the San Francisco Bay area, with specified powers and duties relating to providing public transit services. This bill would establish the Public Transit Revenue Measure District with jurisdiction extending throughout the boundaries of the Counties of Alameda, Contra Costa, San Mateo, and Santa Clara and the City and County of San Francisco and would require the district to be governed by the same board that governs the commission, thereby imposing a state-mandated local program. The bill would authorize a retail transactions and use tax applicable to the entire district to be imposed by the board of the district or by a qualified voter initiative for a duration of 14 years, and in an amount of 0.5% in each of the above-described counties located within the district and 1% in the City and County of San Francisco, subject to voter approval at the November 3, 2026, statewide general election. After payments are made for various administrative expenses, the bill would require the district to transfer specified portions of the proceeds of the tax to the commission for allocation to certain programs and other purposes and for allocation to the Alameda-Contra Costa Transit District, the Peninsula Corridor Joint Powers Board, commonly known as Caltrain, the San Francisco Bay Area Rapid Transit District, the San Francisco Municipal Transportation Agency, and other specified transit agencies, for transit operations expenses, and would require the district to transfer specified portions of the proceeds of the tax directly to other specified local transportation agencies, including the San Mateo County Transit District and the Santa Clara Valley Transportation Authority, for public transit expenses, as prescribed. By adding to the duties of local officials with respect to elections procedures for this bill on behalf of the district, the bill would impose a state-mandated local program. (2) Existing law requires the commission to develop regional transit service objectives, develop performance measures of efficiency and effectiveness, specify uniform data requirements to assess public transit service benefits and costs, and formulate procedures for establishing regional transportation priorities in the allocation of funds for transportation purposes. This bill would require the commission to contract with, and manage, a third-party consultant to conduct a financial efficiency review of the Alameda-Contra Costa Transit District, Caltrain, the San Francisco Bay Area Rapid Transit District, and the San Francisco Municipal Transportation Agency, as specified. The bill would require the review to be completed in 2 phases, with the analysis for the 2nd phase only required if the tax measure is approved by the voters of the Public Transit Revenue Measure District. The bill would require the consultant to transmit the analysis for each phase to an oversight committee, which the bill would create with a prescribed membership, for review and adoption. The bill would require a transit operator subject to the financial efficiency review to take specified actions in response to the analysis for the first phase and, subject to review of the oversight committee, to adopt an implementation plan that describes the cost-saving measures identified in the analysis for the 2nd phase that the operator plans to implement, as specified. The bill would require a transit operator subject to the financial efficiency review to verify its compliance with the requirements of the review as a condition of receiving funds from the tax measure approved by the voters of the district. The bill would require each transit operator to which the commission allocates funds to comply with a maintenance of effort requirement as a condition of receiving those funds, as provided. This bill would require the commission, if the tax measure is approved by the voters of the district and other conditions are satisfied, to establish an ad hoc adjudication committee for a transit operator subject to the above-described financial efficiency review to assess and adjudicate petitions submitted by a participating county transportation entity, as defined, or a county board of supervisors with regard to the performance of the transit operator within the geographic jurisdiction of the entity submitting the petition, as provided. As part of this process, the bill would require an ad hoc adjudication committee, among other things, to determine whether to direct the commission to withhold funding from the tax measure allocated to the transit operator if the committee agrees with a claim regarding the performance of the transit operator, as specified. This bill would require the commission to submit a report to the Legislature on or before March 31, 2026, on its forecast of the impacts to ridership on the Alameda-Contra Costa Transit District, Caltrain, the San Francisco Bay Area Rapid Transit District, and the San Francisco Municipal Transportation Agency from planned transportation projects and strategies included in its adopted regional transportation plan. By adding to the duties of the commission, the bill would impose a state-mandated local program. (3) The Bay Area County Traffic and Transportation Funding Act authorizes the formation of county transportation authorities in each of the 9 bay area counties, and provides for the imposition of a retail transaction and use tax in each of those counties of either 12 of 1% or 1%, subject to voter approval, with revenues to be used for various transportation purposes. This bill would instead provide that a retail transaction and use tax imposed under those provisions in the County of San Mateo or the City and County of San Francisco may be imposed in 18 of 1% increments up to 1%. (4) This bill would declare that its provisions are severable. (5) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
(1) Existing law requires each campus of the California Community Colleges to establish the position of Basic Needs Coordinator to assist students with on- and off-campus housing, food, mental health, and other basic needs services and resources, among other responsibilities, and to establish a Basic Needs Center where basic needs services and resources, including food services and resources, and staff are made available to students, as specified. Existing law requires each community college campus to report specified information related to basic needs services and resources to the office of the Chancellor of the California Community Colleges, and requires the chancellor's office to develop and submit to the Governor and the Legislature an annual report based on, among other things, the data and information reported by campuses. This bill would require, for the 2026–27 and 2027–28 fiscal years, each community college campus to provide classified employees with access to food pantry services offered by the Basic Needs Centers and report data and information related to that access to the chancellor's office, as specified, and would require the annual reports submitted by the chancellor's office to include that data and information. By expanding the services provided by Basic Needs Centers, the bill would impose a state-mandated local program. (2) Existing law establishes the Middle Class Scholarship Program (MCSP) under the administration of the Student Aid Commission. Existing law, subject to an available and sufficient appropriation, makes an undergraduate student eligible for a scholarship award under the MCSP if the student is enrolled at the University of California or the California State University, or enrolled in upper division coursework in a community college baccalaureate program, and meets certain eligibility requirements. Existing law generally sets the MCSP award at an amount that equals the difference between the student's cost of attendance and the sum of other scholarships, grants, or fee waivers, including those administered by federal, state, and institutions, awarded to the student in excess of $7,898 in expected student contribution, and, for dependent students with a household income exceeding $100,000, a percentage of the parents' contribution, as specified. If a federal, state, or institutionally administered student need-based scholarship, grant, or fee waiver of less than $300 is identified following determination of a student's MCSP award, this bill, for purposes of determining the student's MCSP award amount, would not require the student's MCSP award to be recalculated. The bill would require each institution participating in the MCSP to sign an institutional participation agreement with the commission acknowledging the institution's willingness to administer the MCSP program, as specified. (3) Existing law establishes the Zero-Textbook-Cost Degree Grant Program to reduce the overall cost of education for students and to decrease the time it takes students to complete degree programs offered by community colleges. Existing law requires the Chancellor of the California Community Colleges to distribute grants to community college districts that meet specified criteria to develop and implement associate degrees or career technical education certificate programs earned entirely by completing courses that eliminate conventional textbook costs by using alternative instructional materials and methodologies, including open educational resources. Existing law authorizes grant recipients to use the funds for developing and implementing degrees to obtain professional development and technical assistance to assist in the development of degrees. This bill would authorize grant recipients to also use the funds for developing and implementing degrees to obtain professional development and technical assistance to assist in the development of open educational resource materials. The bill would authorize the chancellor's office to allocate any unallocated resources appropriated for purposes of the program, on or after June 30, 2025, to a community college district to contract for the establishment of statewide open educational resources infrastructure, as provided. (4) Existing law requires the Board of Governors of the California Community Colleges to adopt regulations providing for the payment of apportionments to community college districts on a specified schedule. Existing law, notwithstanding that provision referenced above, adjusts the payment of apportionments to community college districts for the 2024–25 fiscal year to defer $243,693,000 of those payments to the 2025–26 fiscal year in accordance with a designated schedule. This bill would specifically reference two items of appropriation made in the Budget Act of 2025 as the funding source of the deferral payment described above. (5) The California Constitution establishes the Public School System Stabilization Account in the General Fund to provide a reserve for public school funding. The California Constitution requires, pursuant to specified calculations, the Controller to transfer certain moneys from the General Fund into the Public School System Stabilization Account for subsequent allocation to school districts and community college districts in fiscal years when the minimum state funding obligation for the support of school districts and community college districts falls below specified levels. The California Constitution authorizes the Legislature, upon the Governor's proclamation declaring a budget emergency, as described, to enact a statute that, among other things, appropriates funds in the Public School System Stabilization Account for the support of school districts and community college districts. This bill would appropriate $49,734,000 from the Public School System Stabilization Account to be transferred by the Controller to Section B of the State School Fund for the support of community college districts, as provided. (6) Existing law encourages community colleges to develop and implement Mathematics, Engineering, Science, Achievement (MESA) programs directed at identifying students affected by social, economic, and educational disadvantages, increasing the number of eligible students served under MESA programs, and increasing student success in transferring and completing baccalaureate degree programs in science, technology, engineering, and mathematics majors at 4-year higher education institutions, as specified. Existing law requires the board of governors to adopt regulations for purposes of MESA programs and requires those regulations to be consistent with specified requirements and accomplish certain goals. This bill, beginning in the 2026–27 fiscal year, would prohibit the Chancellor of the California Community Colleges from reserving more than 3.5% of funds appropriated for MESA programs on administrative and discretionary costs of supporting MESA programs, and would authorize the chancellor, in consultation with the California Community College Association of MESA Directors, to allocate the reserved funds solely for statewide coordination and enhancement of MESA programs. (7) Existing law appropriates $20,000,000 from the General Fund to the board of governors to support emergency financial assistance grants to students attending a community college. Existing law requires the office of the Chancellor of the California Community Colleges to allocate these funds to community college district's based on each district's share of total California Dream Act application (CADAA) filers that also received a Cal Grant systemwide. This bill would authorize the chancellor's office to reallocate those funds to community college districts to ensure all eligible CADAA filers receive a grant. The bill would require the chancellor's office to report to the appropriate policy committees and budget subcommittees of the Legislature on the progress of community college districts in awarding the emergency financial assistance grants to students, as specified. (8) This bill, for the 2025–26 fiscal year, would make funding appropriated in the Budget Act of 2025 in certain items of appropriation for community colleges available for transfer by the Controller to Section B of the State School Fund for purposes of distributing those funds to community college districts. (9) (A) This bill would incorporate additional changes to Section 66023.5 of the Education Code proposed by SB 271 to be operative only if this bill and SB 271 are enacted and this bill is enacted last. (B) This bill would incorporate additional changes to Section 70022 of the Education Code proposed by AB 88 and SB 67 to be operative only if this bill and either, or both, of those bills are enacted and this bill is enacted last. (10) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. (11) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
Existing sales and use tax laws impose taxes on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state. The California Alternative Energy and Advanced Transportation Financing Authority Act establishes the California Alternative Energy and Advanced Transportation Financing Authority. The act authorizes, until January 1, 2026, the authority to provide financial assistance to a participating party by authorizing exclusions from sales and use tax for certain projects, including those that promote California-based manufacturing, California-based jobs, advanced manufacturing, the reduction of greenhouse gases, or a reduction in air and water pollution or energy consumption. The Sales and Use Tax Law, for the purposes of the taxes imposed pursuant to that law, until January 1, 2026, excludes the lease or transfer of title of tangible personal property constituting one of those projects to any contractor for use in the performance of a construction contract for a participating party that will use that property as an integral part of the approved project. This bill would extend to January 1, 2028, the authorization to provide financial assistance in the form of a sales and use tax exclusion for projects approved by the authority. The bill would add electrical generation facilities using nuclear fusion technology to the types of projects qualifying for this sales and use tax exclusion. The bill would, on and after January 1, 2026, for an applicant that, together with its parent corporation and subsidiaries, employs 500 or more employees, prohibit the authority from approving a project unless the applicant certifies that the applicant and its subcontractors will comply with certain labor requirements. The bill would make other conforming changes. This bill would take effect immediately as a tax levy.
Existing law, the California Child Day Care Facilities Act, provides for the licensure and regulation of daycare centers and family daycare homes by the State Department of Social Services. Under existing law, the use of a home as a small or large family daycare home is considered a residential use of property and a use by right for the purposes of all local ordinances, including zoning ordinances, and a local jurisdiction is prohibited from imposing a business license, fee, or tax for the privilege of operating a small or large family daycare home. Existing law also exempts small and large family daycare homes from the provisions of the California Environmental Quality Act. This bill would similarly require a daycare center, as defined, when colocated with multifamily housing, to be considered a residential use of property and a use by right, as defined. The bill would similarly prohibit a local jurisdiction from imposing a charge, tax, or fee for a business license, equivalent instrument, or permit for the privilege of operating a daycare center that is colocated with multifamily housing. The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA) , an initiative measure, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) , among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities and establishes the Department of Cannabis Control (DCC) within the Business, Consumer Services, and Housing Agency to administer the act. Existing law, the Cannabis Tax Law, imposes an excise tax upon purchasers of cannabis or cannabis products sold in this state at the rate of 15% of the gross receipts of any retail sale by a cannabis retailer, and, as enacted by AUMA, imposed a cultivation tax on all harvested cannabis that entered the commercial market, as specified. Chapter 56 of the Statutes of 2022 (AB 195) amended AUMA to, among other things, discontinue the imposition of the cultivation tax on July 1, 2022. AB 195, beginning in the 2025–26 fiscal year and every 2 years thereafter, requires the California Department of Tax and Fee Administration (CDTFA) to adjust the cannabis excise tax rate by a percentage that will generate an amount of revenue that would have been collected pursuant to the cultivation tax imposed prior to its discontinuation, as specified, not to exceed 19% of the gross receipts of retail sale. Pursuant to that law, the department increased the cannabis excise tax rate to 19% for the 2025–26 fiscal year. This bill would revise the above-described provisions governing the cannabis excise tax rate. Specifically, the bill, for the period from July 1, 2025, to September 30, 2025, inclusive, would retain the existing cannabis excise tax rate of 19%. For the period from October 1, 2025, to June 30, 2028, inclusive, the bill would decrease the excise tax rate to 15%. Beginning in the 2028–29 fiscal year and every 2 years thereafter, the bill would require the department to adjust the cannabis excise tax rate by a percentage that will generate an amount of revenue that would have been collected pursuant to the cultivation tax imposed prior to its discontinuation, as specified, not to exceed 19%. The bill would also require the DCC, in consultation with the CDTFA and the Legislative Analyst's Office, on or before October 1, 2027, to submit a report to the Legislature that analyzes, among other things, the current and future effect of the Cannabis Tax Law on the regulated cannabis market and recommends options for changes to the Cannabis Tax Law to accomplish the intent of AUMA. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill also would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.
(1) Existing law, the Child Care and Developmental Services Act, administered by the State Department of Social Services, establishes a system of childcare and development services for children up to 13 years of age. Existing law authorizes, upon departmental approval, the use of appropriated funds for alternative payment programs to allow for maximum parental choice. Existing law authorizes those programs to include, among other things, a subsidy that follows the family from one provider to another, or choices among hours of service. Under existing law, effective July 1, 2025, through June 30, 2026, reimbursement of state-subsidized childcare and development providers and license-exempt providers is to be based on the maximum authorized hours of care, as specified. Existing law, the Early Education Act, requires the Superintendent of Public Instruction to provide an inclusive and cost-effective preschool program. Under existing law, commencing January 1, 2023, through June 30, 2026, reimbursement of California state preschool family childcare home education network providers is to be based on the maximum certified hours of care, as specified. This bill would extend the period in which reimbursement of state-subsidized childcare and development providers, license-exempt providers, and California state preschool family childcare home education network providers is based on the maximum authorized or certified, as applicable, hours of care to July 1, 2028. (2) Existing law allocates certain appropriated funds to the State Department of Social Services and the State Department of Education to provide specified family childcare providers and childcare centers with a monthly cost of care plus rate commencing January 1, 2024, and through June 30, 2026. The monthly cost of care plus rate is a supplemental monthly payment to those providers and centers. Existing law establishes the base amount of the monthly cost of care plus rate and, for the period from July 1, 2025, to June 30, 2026, provides for an increase to that base amount. This bill would extend the payment of the monthly cost of care plus rate, including the increase, indefinitely, for those family childcare providers and childcare centers. The bill would additionally establish a one-time payment to family daycare providers for the total amount of the increase for each month or partial month occurring between July 1, 2025, and December 30, 2025. The bill would require the payment to be paid to providers by January 1, 2026, contingent on full ratification by September 30, 2025, of the tentative agreement received between the State of California and the Child Care Providers United - California (CCPU) on August 7, 2025. The bill would specify that, if full ratification of the tentative agreement is not achieved by September 30, 2025, the January 1, 2026, deadline for the payment would not be applicable; however, the bill would require, if the payment is not made by January 1, 2026, that providers receive an increase to the one-time payment, as specified. The bill would also require those family daycare providers and childcare centers to receive a one-time, per-child stabilization payment. That payment would be $431 for licensed family childcare providers and childcare centers and $300 for license-exempt family childcare providers. The bill would require, if the tentative agreement described above is ratified by September 30, 2025, this one-time payment to be made to family childcare providers by January 1, 2026. This bill would appropriate $157,852,000 from the General Fund to the State Department of Social Services for the purpose of making those one-time stabilization payments to family childcare providers and childcare centers, as specified. The bill would also approve the agreement dated August 7, 2025, entered into by the Governor and Child Care Providers United - California, in its sole capacity as the certified provider organization representing family childcare providers, as specified. (3) Existing law establishes, and appropriates funds to, the Joint Child Care Providers United - State of California Training Partnership Fund and the Child Care Providers United - California (CCPU) Workers Health Care Fund. Existing law also appropriates funds to the State Department of Social Services for a one-time contribution payable to Child Care Providers United - California (CCPU) , or its designee, for the establishment of the CCPU Retirement Trust. This bill would, for each year of the tentative agreement described above, from July 1, 2025, to July 1, 2028, inclusive, require funds to be allocated in the annual Budget Act, upon approval of the Department of Finance, to those funds and trust. (4) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
Existing law establishes, in the Government Operations Agency, the Franchise Tax Board consisting of the Controller, the Director of Finance, and the Chairperson of the State Board of Equalization. Existing law prescribes various powers and duties to the Franchise Tax Board, including, among other things, the administration of state personal income taxes and corporation franchise and income taxes. The Personal Income Tax Law, in conformity with federal income tax laws, defines "gross income" as income from whatever source derived, except as specifically excluded, and provides various exclusions from income, including, for taxable years beginning on or after January 1, 2021, and before January 1, 2030, an exclusion from income for any qualified taxpayer, as defined, for amounts received in settlement in connection with a wildfire in the state, as provided. This bill would amend the definitions provided in that exclusion from tax and would limit the exclusion to qualified amounts made in connection with a qualified wildfire disaster, as defined. This bill would also appropriate $10,000 from the General Fund to the Franchise Tax Board to administer qualified wildfire disaster settlements, as specified. This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature. This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
(1) Existing law requires each campus of the California Community Colleges to establish the position of Basic Needs Coordinator to assist students with on- and off-campus housing, food, mental health, and other basic needs services and resources, among other responsibilities, and to establish a Basic Needs Center where basic needs services and resources, including food services and resources, and staff are made available to students, as specified. Existing law requires each community college campus to report specified information related to basic needs services and resources to the office of the Chancellor of the California Community Colleges, and requires the chancellor's office to develop and submit to the Governor and the Legislature an annual report based on, among other things, the data and information reported by campuses. This bill would require, for the 2026–27 and 2027–28 fiscal years, each community college campus to provide classified employees with access to food pantry services offered by the Basic Needs Centers and report data and information related to that access to the chancellor's office, as specified, and would require the annual reports submitted by the chancellor's office to include that data and information. By expanding the services provided by Basic Needs Centers, the bill would impose a state-mandated local program. (2) Existing law establishes the Middle Class Scholarship Program (MCSP) under the administration of the Student Aid Commission. Existing law, subject to an available and sufficient appropriation, makes an undergraduate student eligible for a scholarship award under the MCSP if the student is enrolled at the University of California or the California State University, or enrolled in upper division coursework in a community college baccalaureate program, and meets certain eligibility requirements. Existing law generally sets the MCSP award at an amount that equals the difference between the student's cost of attendance and the sum of other scholarships, grants, or fee waivers, including those administered by federal, state, and institutions, awarded to the student in excess of $7,898 in expected student contribution, and, for dependent students with a household income exceeding $100,000, a percentage of the parents' contribution, as specified. If a federal, state, or institutionally administered student need-based scholarship, grant, or fee waiver of less than $300 is identified following determination of a student's MCSP award, this bill, for purposes of determining the student's MCSP award amount, would not require the student's MCSP award to be recalculated. The bill would require each institution participating in the MCSP to sign an institutional participation agreement with the commission acknowledging the institution's willingness to administer the MCSP program, as specified. (3) Existing law establishes the Zero-Textbook-Cost Degree Grant Program to reduce the overall cost of education for students and to decrease the time it takes students to complete degree programs offered by community colleges. Existing law requires the Chancellor of the California Community Colleges to distribute grants to community college districts that meet specified criteria to develop and implement associate degrees or career technical education certificate programs earned entirely by completing courses that eliminate conventional textbook costs by using alternative instructional materials and methodologies, including open educational resources. Existing law authorizes grant recipients to use the funds for developing and implementing degrees to obtain professional development and technical assistance to assist in the development of degrees. This bill would authorize grant recipients to also use the funds for developing and implementing degrees to obtain professional development and technical assistance to assist in the development of open educational resource materials. The bill would authorize the chancellor's office to allocate any unallocated resources appropriated for purposes of the program, on or after June 30, 2025, to a community college district to contract for the establishment of statewide open educational resources infrastructure, as provided. (4) Existing law requires the Board of Governors of the California Community Colleges to adopt regulations providing for the payment of apportionments to community college districts on a specified schedule. Existing law, notwithstanding that provision referenced above, adjusts the payment of apportionments to community college districts for the 2024–25 fiscal year to defer $243,693,000 of those payments to the 2025–26 fiscal year in accordance with a designated schedule. This bill would specifically reference two items of appropriation made in the Budget Act of 2025 as the funding source of the deferral payment described above. (5) The California Constitution establishes the Public School System Stabilization Account in the General Fund to provide a reserve for public school funding. The California Constitution requires, pursuant to specified calculations, the Controller to transfer certain moneys from the General Fund into the Public School System Stabilization Account for subsequent allocation to school districts and community college districts in fiscal years when the minimum state funding obligation for the support of school districts and community college districts falls below specified levels. The California Constitution authorizes the Legislature, upon the Governor's proclamation declaring a budget emergency, as described, to enact a statute that, among other things, appropriates funds in the Public School System Stabilization Account for the support of school districts and community college districts. This bill would appropriate $49,734,000 from the Public School System Stabilization Account to be transferred by the Controller to Section B of the State School Fund for the support of community college districts, as provided. (6) Existing law encourages community colleges to develop and implement Mathematics, Engineering, Science, Achievement (MESA) programs directed at identifying students affected by social, economic, and educational disadvantages, increasing the number of eligible students served under MESA programs, and increasing student success in transferring and completing baccalaureate degree programs in science, technology, engineering, and mathematics majors at 4-year higher education institutions, as specified. Existing law requires the board of governors to adopt regulations for purposes of MESA programs and requires those regulations to be consistent with specified requirements and accomplish certain goals. This bill, beginning in the 2026–27 fiscal year, would prohibit the Chancellor of the California Community Colleges from reserving more than 3.5% of funds appropriated for MESA programs on administrative and discretionary costs of supporting MESA programs, and would authorize the chancellor, in consultation with the California Community College Association of MESA Directors, to allocate the reserved funds solely for statewide coordination and enhancement of MESA programs. (7) Existing law appropriates $20,000,000 from the General Fund to the board of governors to support emergency financial assistance grants to students attending a community college. Existing law requires the office of the Chancellor of the California Community Colleges to allocate these funds to community college district's based on each district's share of total California Dream Act application (CADAA) filers that also received a Cal Grant systemwide. This bill would authorize the chancellor's office to reallocate those funds to community college districts to ensure all eligible CADAA filers receive a grant. The bill would require the chancellor's office to report to the appropriate policy committees and budget subcommittees of the Legislature on the progress of community college districts in awarding the emergency financial assistance grants to students, as specified. (8) This bill, for the 2025–26 fiscal year, would make funding appropriated in the Budget Act of 2025 in certain items of appropriation for community colleges available for transfer by the Controller to Section B of the State School Fund for purposes of distributing those funds to community college districts. (9) (A) This bill would incorporate additional changes to Section 66023.5 of the Education Code proposed by SB 271 to be operative only if this bill and SB 271 are enacted and this bill is enacted last. (B) This bill would incorporate additional changes to Section 70022 of the Education Code proposed by AB 88 and SB 67 to be operative only if this bill and either, or both, of those bills are enacted and this bill is enacted last. (10) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. (11) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
(1) Existing law provides that a provision of a memorandum of understanding reached between the state employer and a recognized employee organization representing state civil service employees that requires the expenditure of funds does not become effective unless approved by the Legislature in the annual Budget Act. Existing law requires the Department of Human Resources to provide a memorandum of understanding to the Legislative Analyst, who then has 10 calendar days from the date the tentative agreement is received to issue a fiscal analysis to the Legislature. Existing law prohibits the memorandum of understanding from being subject to legislative determination until either the Legislative Analyst has presented a fiscal analysis of the memorandum of understanding or until 10 calendar days have elapsed since the memorandum was received by the Legislative Analyst. This bill, notwithstanding the above-described statutory provisions, would approve provisions of the agreements entered into by the state employer and specified state bargaining units. The bill would provide that the provisions of the agreements that require the expenditure of funds will not take effect unless funds for these provisions are specifically appropriated by the Legislature. The bill would authorize the state employer or the bargaining units to reopen negotiations if funds for these provisions are not specifically appropriated by the Legislature. The bill would require the provisions of the agreement that require the expenditure of funds to become effective even if the provisions are approved by the Legislature in legislation other than the annual Budget Act. By approving provisions of the agreements that require the expenditure of funds, this bill would make an appropriation. (2) Existing law, for the 2026–27 fiscal year, continuously appropriates to the Controller from the General Fund unallocated special funds, including federal funds and unallocated nongovernmental cost funds, and any other fund from which state employees are compensated, the amount necessary for the payment and compensation and employee benefits to state employees covered by specified memoranda of understanding if the Budget Act of 2026 is not enacted by July 1, 2026. This bill would additionally include the memoranda of understanding for State Bargaining Unit 8 (effective July 1, 2024, to June 30, 2027, inclusive) and State Bargaining Unit 18 (effective July 1, 2025, to July 1, 2028, inclusive) . Existing law, for the 2027–28 fiscal year, continuously appropriates to the Controller from the General Fund unallocated special funds, including federal funds and unallocated nongovernmental cost funds, and any other fund from which state employees are compensated, the amount necessary for the payment and compensation and employee benefits to state employees covered by specified memoranda of understanding if the Budget Act of 2027 is not enacted by July 1, 2027. This bill would additionally include the memorandum of understanding for State Bargaining Unit 18 (effective July 1, 2025, to July 1, 2028, inclusive) . Existing law, for the 2028–29 fiscal year, continuously appropriates to the Controller from the General Fund unallocated special funds, including federal funds and unallocated nongovernmental cost funds, and any other fund from which state employees are compensated, the amount necessary for the payment and compensation and employee benefits to state employees covered by the memoranda of understanding for State Bargaining Unit 6 and State Bargaining Unit 16, if the Budget Act of 2028 is not enacted by July 1, 2028. This bill would additionally include the memorandum of understanding for State Bargaining Unit 18 (effective July 1, 2025, to July 1, 2028, inclusive) . (3) Existing law states that it is the policy of the state that the workweek of the state employee shall be 40 hours, and the workday of state employees 8 hours, except that workweeks and workdays of a different number of hours may be established in order to meet the varying needs of the different state agencies. Existing law also requires state employees in specified bargaining units, except as specified, from July 1, 2025, to June 30, 2027, inclusive, to participate in the Personal Leave Program 2025 (PLP 2025) , either as required by an applicable memorandum of understanding reached or by the direction of the department for excluded employees, under which each employee receives a reduction in pay not greater than certain listed amounts in exchange for a specified number of hours per month of PLP 2025 leave credits. This bill would also require state employees in State Bargaining Units 8, 10, and 18 to participate in the PLP 2025, either as required by an applicable memorandum of understanding or by the direction of the department for excluded employees, as prescribed. Under the program, in exchange for a reduction in pay not greater than certain listed amounts, those employees would receive monthly PLP 2025 leave credits, subject to certain exclusions. (4) The Public Employees' Retirement Law (PERL) creates the Public Employees' Retirement System for the purpose of providing public employees pension and other benefits, which are funded by employee and employer contributions and investment returns. Contributions and investment returns are deposited in the Public Employees' Retirement Fund, which is continuously appropriated for the payment of benefits and administration of the system. PERL vests management and control of PERS in its board of administration. PERL and labor agreements prescribe different normal rates of contribution for employees depending on bargaining unit, employer, and inclusion of service in the federal social security system, among other factors. Under PERL, effective July 1, 2021, the normal contribution rates for state miscellaneous or state industrial members who are represented by State Bargaining Unit 18 are adjusted in accordance with specified procedures based on changes in normal cost rates, as determined by the board. This bill would change the above-described effective date to July 1, 2027. The bill would also provide that, effective July 1, 2025, to June 30, 2027, specified employee contributions for state miscellaneous and industrial members represented by State Bargaining Unit 18 shall remain in place. Under PERL, effective July 1, 2021, the normal contribution rates for state safety members who are represented by State Bargaining Unit 18 are adjusted in accordance with specified procedures based on changes in normal cost rates, as determined by the board. This bill would change the above-described effective date to July 1, 2027. The bill would also provide that, effective July 1, 2025, to June 30, 2027, specified employee contributions for state safety members represented by State Bargaining Unit 18 shall remain in place. The bill would make other related and conforming changes to these provisions on normal cost rates. (5) The Public Employees' Medical and Hospital Care Act (PEMHCA) , which is administered by the Board of Administration of the Public Employees' Retirement System, prescribes methods for calculating the state employer contribution for postemployment health care benefits for eligible retired public employees and their families and for the vesting of these benefits. PEMHCA establishes the Annuitants' Health Care Coverage Fund, which is continuously appropriated, for the purpose of prefunding health care coverage for annuitants, including administrative costs. PEMHCA requires employees in State Bargaining Unit 10 to prefund retiree health care and requires the state to make a matching contribution. PEMHCA suspended the employees' monthly contribution for prefunding other postemployment benefits for the 2020–21 fiscal year for State Bargaining Unit 10. This bill would suspend the employee and employer monthly contribution for prefunding other postemployment benefits for State Bargaining Unit 10, effective the first day of the pay period following ratification by both parties, for the 2025–26 and 2026–2027 fiscal years. PEMHCA requires certain state employees in the judicial branch to make contributions to prefund retiree health care based on a specified schedule and requires the state to make a matching contribution. This bill would suspend the employee and employer monthly contribution for prefunding other postemployment benefits for those judicial branch employees, effective July 31, 2025, for the 2025–26 and 2026–2027 fiscal years. PEMHCA requires employees in State Bargaining Unit 18 to prefund retiree health care and requires the state to make a matching contribution. PEMHCA suspends the employee and employer monthly contribution for prefunding other postemployment benefits for the 2025–26 and 2026–27 fiscal years. This bill would provide that, effective July 1, 2027, the amount of the employee and employer contributions required to prefund retiree health care shall be based on a specified schedule, beginning with 1.5% of pensionable compensation on July 1, 2027, and increasing to 4.5 % of pensionable compensation on July 1, 2029. Beginning July 1, 2030, the bill would require both the employer and employee contribution percentages to be increased or decreased to maintain a 50% cost sharing of actuarially determined normal costs, as prescribed. The bill would make various related and conforming changes to those provisions on retiree health care costs. (6) The Budget Act of 2025 makes various appropriations for the purpose of employee compensation. This bill would revise specified Budget Act items, for a total increase of $14,597,000, pursuant to agreements reached between the state employer and State Bargaining Units 1, 3, 4, 5, 8, 10, 11, 14, 15, 17, 18, 20, and 21, in accordance with a specified schedule. (7) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
