AB 138: State employment: state bargaining units.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

(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 2 (effective July 1, 2025, to June 30, 2028, inclusive), State Bargaining Unit 7 (effective July 1, 2023, to June 30, 2027, inclusive), State Bargaining Unit 13 (effective July 1, 2025, to June 30, 2027, inclusive), State Bargaining Unit 16 (effective July 1, 2025, to July 1, 2028, inclusive), and State Bargaining Unit 19 (effective July 1, 2025, to June 30, 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.

Sponsors

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. July 29, 2025Chaptered by Secretary of State - Chapter 78, Statutes of 2025.
2. July 29, 2025Approved by the Governor.
3. July 18, 2025Enrolled and presented to the Governor at 11:30 a.m.
4. July 17, 2025Assembly Rule 63 suspended. (Page 2587.)
5. July 17, 2025In Assembly. Concurrence in Senate amendments pending.
6. July 17, 2025Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 67. Noes 4. Page 2588.).
7. July 17, 2025Read third time. Passed. Ordered to the Assembly. (Ayes 28. Noes 9. Page 2124.).
8. July 17, 2025Senate Rule 29.4 suspended. (Ayes 24. Noes 8. Page 2123.)
9. July 16, 2025Read second time. Ordered to third reading.
10. July 15, 2025From committee: Do pass. (Ayes 13. Noes 5.) (July 14).
11. July 14, 2025From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F. R.
12. June 25, 2025In committee: Hearing postponed by committee.