AB 171: Labor.

Official summary

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

(1)Existing law establishes a workers’ compensation system, administered by the Administrative Director of the Division of Workers’ Compensation with the Department of Industrial Relations, to compensate an employee for injuries sustained in the course of employment. Existing law provides that the administrative director shall be appointed by the Governor, with the advice and consent of the Senate. Existing law sets, among others, the director’s annual salary at $81,635 and provides for general salary increases, as specified.

This bill would remove the director from the above-described compensation structure.

(2)The Public Employees’ Retirement Law (PERL) creates the Public Employees’ Retirement System (PERS) for the purpose of providing pensions and benefits to state employees and their beneficiaries and prescribes the rights and duties of employers participating in the system. Under PERL, benefits are funded by investment income and employer and employee contributions, which are deposited into the Public Employees’ Retirement Fund, a continuously appropriated trust fund administered by the system’s board of administration.

PERL prescribes methods for the calculation and payment of the state employer contribution for its employees who are PERS members. PERL provides for an annual adjustment of the state’s contribution in the budget and quarterly appropriations to the Public Employees’ Retirement Fund from the General Fund and other funds that are responsible for payment of the employer contribution.

Existing law makes additional General Fund appropriations to the Public Employees’ Retirement Fund for the 2020–21, 2021–22, 2022–23, 2023–24, 2024–25, and 2025–26 fiscal years. Supplemental payments connected with appropriations for those fiscal years are to be apportioned to the state employee member categories generally, as directed by the Department of Finance, and to specified state employee member categories, including to the state miscellaneous member category, the industrial member category, the state safety member category, and the state peace officer/firefighter member category.

The California Constitution establishes the Budget Stabilization Account in the General Fund and requires the Controller, in each fiscal year, to transfer from the General Fund to the Budget Stabilization Account amounts that include a sum equal to 1.5% of the estimated amount of General Fund revenues for that fiscal year. These provisions further require, until the 2029–30 fiscal year, that the Legislature appropriate a percentage of these moneys, the amount of which is generated pursuant to specified calculations, for certain obligations and purposes, including addressing unfunded liabilities for state-level pension plans.

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. August 6, 2026Ordered to inactive file at the request of Senator Laird.
2. June 29, 2026Read second time. Ordered to third reading.
3. June 29, 2026From committee: Do pass. (Ayes 13. Noes 3.) (June 29).
4. June 26, 2026From 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.
5. April 2, 2025Referred to Com. on B. & F. R.
6. March 20, 2025In Senate. Read first time. To Com. on RLS. for assignment.
7. March 20, 2025Read third time. Passed. Ordered to the Senate. (Ayes 53. Noes 17. Page 748.)
8. March 18, 2025Read second time. Ordered to third reading.
9. March 17, 2025(Ayes 53. Noes 17. Page 643.)
10. March 17, 2025Ordered to second reading.
11. March 17, 2025Withdrawn from committee.
12. February 3, 2025Referred to Com. on BUDGET.