AB 184

Bill Text  - AB-184 State government.
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                      |  Add To My Favorites   |  Track Bill   |   Version:  	 08/28/26 - Amended Senate
	 01/08/25 - Introduced
                     AB-184 State government. (2025-2026)
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               Date Published: 08/28/2026 02:11 PM
AB184:v98#DOCUMENT
       Bill Start
                Amended
               IN 
                Senate
                 August 28, 2026
                    CALIFORNIA LEGISLATURE—
                    2025–2026 REGULAR SESSION
                Assembly Bill
                    No. 184  Introduced by   Assembly Member Gabriel     Committee on Budget (Assembly Members Gabriel (Chair), Addis, Ahrens, Alvarez, Bennett, Bonta, Caloza, Connolly, Fong, Haney, Hart, Jackson, Lee, Ortega, Patel, Petrie-Norris, Quirk-Silva, Ramos, Rogers, Schiavo, Schultz, Sharp-Collins, Solache, Stefani, Ward, and Wilson)  January 08, 2025  An act   relating to the Budget Act of 2025.     to amend Section 2296 of the Corporations Code, to amend Sections 20000, 99352, and 100425 of the Education Code, to amend Section 19254 of the Elections Code, to amend Sections 7923.601, 11011.24, and 11549.53 of, to amend, repeal, and add Section 14664 of, to repeal Section 13296 of, and to repeal and add Chapter 5 (commencing with Section 13400) of Part 3 of Division 3 of Title 2 of, the Government Code, to amend Section 1106 of the Military and Veterans Code, to amend Sections 7404 and 7424 of the Penal Code, to amend Section 1604 of the Public Contract Code, and to amend Section 5096.360 of the Public Resources Code, relating to state government, and making an appropriation therefor, to take effect immediately,
		  bill related to the budget.        LEGISLATIVE COUNSEL'S DIGEST     AB 184, as amended, Committee on Budget.
                        Budget Act of 2025.     State government.  (1) Existing property tax law requires the county auditor, in each fiscal year, to allocate property tax revenue to local jurisdictions in accordance with specified formulas and procedures, and generally provides that each jurisdiction be allocated an amount equal to the total of the amount of revenue allocated to that jurisdiction in the prior fiscal year, subject to certain modifications, and that jurisdiction’s portion of the annual tax increment, as defined.  Existing property tax law also requires that, for purposes of determining property tax revenue allocations in each county for the 1992–93 and 1993–94 fiscal years, the amounts of property tax revenue deemed allocated in the prior fiscal
			 year to the county, cities, and special districts be reduced in accordance with certain formulas. It requires that the revenues not allocated to the county, cities, and special districts as a result of these reductions be transferred to the Educational Revenue Augmentation Fund in that county for allocation to school districts, community college districts, and the county office of education.  The Vehicle License Fee Law imposes a license fee for the privilege of operating upon the public highways in this state of specified vehicles, including any vehicle of a type that is subject to registration under the Vehicle Code. Beginning with the 2004–05 fiscal year and for each fiscal year thereafter, existing law requires that each city, county, and city and county receive additional property tax revenues in the form of a vehicle license fee adjustment amount, as defined, from a Vehicle License Fee Property Tax
			 Compensation Fund that exists in each county treasury. Existing law requires that these additional allocations be funded from ad valorem property tax revenues otherwise required to be allocated to educational entities.  This bill would state the intent of the Legislature for the state to work collaboratively with the representatives of the County of Alpine, the County of Mono, and the County of San Mateo, representatives of cities within those counties, and representatives of other potentially impacted cities and counties to develop mutually agreeable legislative and fiscal solutions to the revenue shortfall from the vehicle license fee that the counties and cities are experiencing due to the operation of the above-described provisions relating to additional property tax revenues and vehicle license fees. The bill would further state the intent of the Legislature that any solution be operative beginning
			 in the 2027–28 fiscal year and apply to all state counties and cities to the extent those counties and cities experience revenue shortfall from the vehicle license fee in any fiscal year beginning with the 2027–28 fiscal year.  (2) Existing law establishes the Victims of Corporate Fraud Compensation Fund, a continuously appropriated fund, within the State Treasury administered by the Secretary of State, the sole purpose of which is to provide restitution to victims of corporate fraud. Existing law provides that an aggrieved person who obtains a final judgment, as specified, against a corporation based upon the corporation’s fraud, misrepresentation, or deceit, made with intent to defraud, may file an application with the Secretary of State for payment from the fund for the amount unpaid on the judgment that represents the awarded actual and direct loss to the claimant in the final judgment.   This bill would prohibit the Secretary of State from accepting any new applications from claimants for payment from the fund. The bill would require the Secretary of State to wind down the activities of the fund in accordance with certain procedures. The bill would provide that funding for purposes other than those described in those provisions after all outstanding claims are paid is contingent upon an appropriation of funds by the Legislature in the annual Budget Act.  (3) The California Constitution prohibits the Legislature from creating a debt or liability that singly or in the aggregate with any previous debts or liabilities exceeds the sum of $300,000, except by an act that (A) authorizes the debt for a single object or work specified in the act, (B) has been passed by a   2 / 3   vote
			 of all the Members elected to each house of the Legislature, (C) has been submitted to the people at a statewide general or primary election, and (D) has received a majority of all the votes cast for and against it at that election. The California Constitution authorizes the Legislature to reduce the amount of the indebtedness authorized by law at any time after the approval of law by the people to an amount not less than the amount contracted at the time of the reduction.  Various laws authorize the issuance of specified amounts of moneys in bonds for certain purposes, including, among others, the California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2000 which authorizes the issuance of up to $350,000,000 in bonds for the construction and renovation of public library facilities, as provided.  This bill would reduce the amount of indebtedness authorized under the bond act
			 described above by $5,040,000.  Existing law, as part of the Class Size Reduction Kindergarten-University Public Education Facilities Bond Act of 1998, authorizes $6,700,000,000 in bonds to be issued and sold for kindergarten through 12th grade school facilities, as provided.  This bill would reduce that debt limit by $35,000.  Existing law, as part of the Voting Modernization Bond Act of 2002, authorizes the creation of $200,000,000 in bonds to assist counties in the purchase of updated voting systems, as provided.  This bill would reduce that debt limit by $10,430,000.  Existing law, as part of the Veterans’ Homes Bond Act of 2000, authorizes $50,000,000 in bonds to be issued and sold for veterans’ facilities, as provided.  This bill would reduce that debt
			 limit by $975,000.  Existing law, as part of the New Prison Construction Bond Act of 1988, authorizes the creation of state debt in the aggregate principal amount of $817,000,000 for prison construction purposes, as provided.  This bill would reduce that debt limit by $1,245,000.  Existing law, as part of the New Prison Construction Bond Act of 1990, authorizes the creation of state debt in the aggregate principal amount of $450,000,000 for prison construction purposes, as provided.  This bill would reduce that debt limit by $605,000.  Existing law, as part of the Safe Neighborhood Parks, Clean Water, Clean Air, and Coastal Protection Bond Act of 2000, authorizes $2,100,000,000 in bonds to be issued and sold for parks and resources improvement, as provided.  This bill would reduce that debt limit by $8,025,000.  (4)  Existing law establishes the California Education Learning Laboratory, which is administered by the Government Operations Agency, to increase learning outcomes and close equity and achievement gaps using the science of human learning and adaptive learning technologies in science, technology, engineering, and mathematics (STEM) disciplines and other disciplines. Existing law requires the agency to award grants to competitive grant proposals from intersegmental faculty teams that apply principles of the science of human learning and adaptive learning technologies in STEM disciplines and other disciplines, as specified. Existing law requires laboratory funding to be awarded to California public postsecondary educational institutions in both northern and southern California, as specified.  This bill would
			 specifically require the California Education Learning Laboratory grant funding, instead of the California Education Learning Laboratory funding, to be awarded to public postsecondary educational institutions geographically located in California, and recipients of this grant funding to include public postsecondary educational institutions in both northern and southern California.  (5) Existing law, the California Public Records Act, authorizes the inspection and copying of any public record except where specifically prohibited by law.  Existing law establishes the Commission on Peace Officer Standards and Training (POST) to, among other functions, investigate and determine the fitness of any person to serve as a peace officer, as specified. Existing law establishes the Peace Officer Standards Accountability Division within POST to, among other things, review investigations conducted by law enforcement
			 agencies or any other investigative authority and to conduct additional investigations, as necessary, into serious misconduct that may provide grounds for suspension or revocation of a peace officer’s certification.  Existing law provides that, until January 1, 2027, specified peace officer personnel files and background investigation files that are in the custody of POST in connection with the above-described functions are not public records subject to disclosure, as specified. Existing law requires POST, upon receiving a request to disclose a record that is exempt under these provisions, to forward the request to the agency that transmitted the record to POST and to notify the requestor of where the request was forwarded.  This bill would require POST to take those actions within 10 days from receipt of the request.  Under existing law, the agency that transmitted the record to POST
			 is responsible for complying with the public record request, as provided. Existing law requires an agency that no longer has possession of the record to request copies of the record from POST and requires POST to provide the record to the agency if it is in the possession of POST.  This bill would require the agency to make its request for copies of the record within 10 days from receipt of the forwarded request from POST, and would require POST, within 10 days from receipt of the agency’s request, to provide the record to the agency, or to notify the agency that POST does not possess the record. By imposing new duties on local entities, the bill would impose a state-mandated local program.  The bill would extend this public records exemption until January 1, 2028.  (6) Existing law authorized the Director of General Services to sell or exchange all or part of
			 specified parcels of state property, including a property known as Camp Coombs, to the County of Napa or the Napa County Regional Park and Open Space District, as specified. Existing law terminated this authority on January 1, 2026.  This bill would extend the duration of that authority to June 30, 2028.   The California Constitution requires that the proceeds from the sale of surplus state property be used to pay the principal and interest on bonds issued pursuant to the Economic Recovery Bond Act, until the principal and interest on those bonds are fully paid, the final payment of which was made in the 2015–16 fiscal year, after which these proceeds are required to be deposited into the Special Fund for Economic Uncertainties, a continuously appropriated fund.   By increasing the amount transferred into the Special Fund
			 for Economic Uncertainties, a continuously appropriated fund, this bill would make an appropriation.   (7) Existing law establishes the Office of Broadband and Digital Literacy, within the Department of Technology, to oversee the development, construction, maintenance, and operation of a statewide open-access middle-mile broadband network (middle-mile network) to facilitate high-speed broadband service and prioritize last-mile connections to unserved and underserved areas. Under existing law, the office is generally authorized to exercise the powers and authority necessary to implement the middle-mile network, including the authority to enter into contracts it deems necessary and appropriate. Existing law specifically prohibits the department or office from entering into, amending, or assigning a contract related to the middle-mile network if the contract is for an amount exceeding a total cost of $8,000,000, unless the
			 contract is approved in advance by the Director of Finance.  This bill would revise this prohibition to instead prohibit the department or office from entering into a contract for operation of the middle-mile network if the contract is for an amount exceeding a total cost of $8,000,000, unless the contract is approved in advance by the Director of Finance.  (8) Existing law, the State Leadership Accountability Act, requires state agency heads to be responsible for the establishment and maintenance of systems of internal control with specific elements, including a plan of organization that provides segregation of duties appropriate for proper safeguarding of state agency assets. The act requires a state agency head to conduct a biennial review on the adequacy of the state agency’s systems of internal control and monitoring practices and report the results to the Legislature,
			 California State Auditor, Controller, Secretary of Government Operations, the California State Library, and the Department of Finance (DOF). The act requires copies of the report to be, among other things, available for public inspection at the California State Library. The act requires DOF, in consultation with the California State Auditor and the Controller, to establish a system of reporting and a general framework to guide state agencies in conducting internal reviews of their systems of internal control, exempt from the rulemaking provisions of the Administrative Procedure Act and subject to modification, as specified. The act requires a state agency to investigate any allegation that an employee of the state agency provided false or misleading information in connection with the review of the state agency’s systems of internal control or in connection with the preparation of the biennial report on the systems of internal control and monitoring practices, to take disciplinary or corrective action as
			 deemed necessary, and to report the action taken to DOF.  Existing law makes it a misdemeanor for a person to fail or neglect to make, verify, and file with DOF specified reports, including those required pursuant to the State Leadership Accountability Act.  This bill would revise and recast the State Leadership Accountability Act. The bill would require a state agency head and state agency management to be responsible for the implementation, oversight, and management of a risk management system and internal control, as provided. The bill would also authorize specified state personnel to, at the direction of entity management, facilitate entity management’s risk assessment process and perform internal control evaluations to assist entity management in its monitoring role. The bill would require DOF to establish and periodically update, as necessary, the guidance and system of reporting for the risk management system and
			 internal control, exempt from the rulemaking provisions of the Administrative Procedure Act, and would authorize the Controller and the California State Auditor to, at the request of DOF, provide consultation on modifying that guidance.  The bill would require a state agency head to conduct an annual review on the adequacy of the state entity’s risk management system and internal control, as provided, and report the results to DOF. The bill would require DOF to accept the annual report or create a noncompliance report if the state entity does not comply with its requirements, and provide copies of those reports to the California State Library. The bill would require the annual reports and the noncompliance reports to be publicly posted, as provided. The bill would define terms for these purposes. By requiring the submission of additional reports to DOF, thus expanding the scope of a misdemeanor, this bill would impose a state-mandated local program.  Existing law requires the Director of Finance to supply a certified copy of each periodical audit of the accounts of any state agency to the Controller, and to the Legislature and the affected state agency if the audit includes a review of federal funds.  This bill would repeal that provision.  (9) Existing law authorizes the Director of General Services, without regard to any other law, upon written request and consent, as specified, to sell, convey, or exchange specified properties that are not needed by any state agency at fair market value following a 30-day notice to the Joint Legislative Budget Committee and the applicable Members of the Senate and the Assembly who represent the district in which the properties are located. Existing law authorizes the director to exchange property for another property, or properties, if the properties proposed to be conveyed
			 to the state are suitable for the purpose of affordable housing, as specified, and a specified finding is made.  This bill would, until January 1, 2031, authorize the Director of General Services to convey a portion of property received by the state from a local government pursuant to the above-described provisions to a local government that has jurisdiction over the area in which the property is located if prescribed conditions are met.  (10) Existing law authorizes a public entity to adopt methods and procedures to receive bids on public works contracts over the internet, as provided, and authorizes the Department of General Services to develop, implement, and maintain secure electronic procurement platforms for use by public entities. Existing law provides that posting solicitations and receiving bids through an electronic procurement platform satisfies all statutory requirements
			 for public advertising, bid submission, and document retention.  This bill, instead, would require a public entity posting solicitations and receiving of bids through an electronic procurement platform to still satisfy all statutory requirements for public advertising, bid submission, and document retention. The bill would expressly state that nothing in this provision is intended to waive or otherwise eliminate requirements, including requirements to print in newspapers or to advertise or otherwise post notices for solicitations, as may be required by the Public Contract Code.  (11) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that
			 interest.  This bill would make legislative findings to that effect.  (12) This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Napa and the Napa County Regional Park and Open Space District.  (13) 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 with regard to certain mandates no reimbursement is required by this act for a specified reason.  With regard to any other mandates, this bill would provide that, if the Commission on
			 State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.  (14) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.       This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2025.  Digest Key
      Vote:
       MAJORITY   
      Appropriation:
         NO    YES     
      Fiscal Committee:
         NO    YES     
      Local Program:
         NO    YES          Bill Text     The people of the State of California do enact as follows:  SECTION 1.    (a) It is the intent of the Legislature for the state to work collaboratively with the representatives of the County of Alpine, the County of Mono, and the County of San Mateo, representatives of the cities within those counties, and representatives of other potentially impacted cities and counties to develop mutually agreeable legislative and fiscal solutions to the revenue shortfall from the vehicle license fee, described in the Vehicle License Fee Law (Part 5 (commencing with Section 10701) of Division 2 of the Revenue and Taxation Code), that the counties and cities are experiencing
				due to the operation of Section 97.70 of the Revenue and Taxation Code.  (b) The Legislature further intends that any solution enacted pursuant to this section be operative beginning in the 2027–28 fiscal year.  (c) The Legislature further intends that any solution enacted pursuant to this section apply to all state counties and cities to the extent those counties and cities experience revenue shortfall from the vehicle license fee in any fiscal year beginning with the 2027–28 fiscal year.  SEC. 2.      Section 2296 of the Corporations Code is amended to read:  2296.    (a)   This chapter shall apply to applications submitted to the Secretary of State on or after January 1, 2013.    (b) On and after the effective date of the act adding this subdivision, the Secretary of State shall not accept any new applications from claimants for payment from the fund. Thereafter, the Secretary of State shall wind down the activities of the fund pursuant to this chapter. While any obligation of the Secretary of State incurred pursuant to this chapter remains outstanding and not fully performed or discharged, the rights, powers, and duties of the Secretary of
						State shall not be diminished or impaired in any manner that will adversely affect the interests and rights of existing claimants or other parties to those obligations.      (c) The Secretary of State, starting February 1, 2027, and annually thereafter until all outstanding claims have been paid, shall provide to the Joint Legislative Budget Committee and other appropriate committees of the Legislature an update on the fund balance, the number of outstanding claims and the amount owed, and the estimated time for paying off any outstanding claims. When all outstanding claims are paid off, the department shall submit a notice to the Joint Legislative Budget Committee and appropriate committees of the Legislature.      (d) Funding for purposes other than those described in this chapter after all outstanding claims are paid is contingent upon an appropriation of funds by the Legislature in the annual Budget Act.  SEC. 3.      Section 20000 of the Education Code is amended to read:  20000.  Bonds in the amount of three hundred   fifty     forty-four   million   nine hundred sixty thousand   dollars   ($350,000,000), exclusive of     ($344,960,000), excluding   refunding bonds, or so much thereof as is necessary, may be issued and sold for deposit in the fund to be used in accordance with, and for carrying out the purposes   expressed in,     of,   this chapter,   including all acts amendatory thereof   and   supplementary thereto, and   to be used to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code. The bonds, when sold, shall be and constitute a valid and binding obligation of the   State of California,     state,   and the full faith and credit of the   State of California     state   is hereby pledged for the punctual payment of both principal of and interest on bonds as the principal and interest become due and payable.  SEC. 4.      Section 99352 of the Education Code is amended to read:  99352.  The agency shall award learning lab   grant   funding in compliance with both of the following:  (a) Learning lab   grant   funding shall be awarded to public postsecondary educational institutions geographically located in California.  (b) Recipients of learning lab   grant   funding shall include, but are not limited to, public postsecondary educational institutions in both northern and southern
						California.  SEC. 5.      Section 100425 of the Education Code is amended to read:  100425.  (a) Bonds in the total amount of six billion   seven     six   hundred   ninety-nine   million   nine hundred sixty-five thousand   dollars   ($6,700,000,000),     ($6,699,965,000),   not including the amount of any refunding bonds issued in accordance with Section 100444, or so much thereof as is necessary, may be issued and sold to provide a fund to be used for carrying out the purposes   expressed in     of   this chapter and to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code. The bonds, when sold, shall be and constitute a valid and binding obligation of the   State of California,     state,   and the full faith and credit of the   State of California     state   is hereby pledged for the punctual payment of the principal of, and interest on, the bonds as the principal and interest become due and payable.  (b) Pursuant to this section, the Treasurer shall sell the bonds authorized by the State School Building Finance Committee established pursuant to Section 15909 at any different times necessary to service expenditures required by the apportionments.  SEC. 6.      Section 19254 of the Elections Code is amended to read:  19254.  (a) The committee may create a debt or debts, liability or liabilities, of the   State of California,     state,   in the aggregate amount of not more than   two     one   hundred   eighty-nine   million   five hundred seventy thousand   dollars   ($200,000,000), exclusive of     ($189,570,000), excluding   refunding bonds, in the manner provided herein for the purpose of creating a fund to assist counties in the purchase of updated voting systems.  (b) The proceeds of bonds issued and sold pursuant to this article shall be deposited in the Voting Modernization Fund, which is hereby established.  (c) A county is eligible to apply to the board for fund money if it meets all of the following requirements:  (1) The county has purchased a new voting system after January 1, 1999, and is continuing to make payments on that system on the date that this article becomes effective.  (2) The county matches fund moneys at a ratio of one dollar ($1) of county moneys for every three dollars ($3) of fund moneys.  (3) The county has not previously requested fund money for the purchase of a new voting system.   Applications     An application   for   expansion of     expanding   an existing system or components related to a previously certified or conditionally approved application shall be accepted.  (d) (1) Fund moneys shall only be used to purchase systems certified or conditionally approved by the Secretary of State.  (2) A county may use fund moneys to contract and pay for the following:  (A) Research and development of a new voting system that has not been certified or conditionally approved by the Secretary of State and uses only nonproprietary software and firmware with disclosed source code, except for unmodified commercial off-the-shelf software and firmware, as defined in
						paragraph (1) of subdivision (a) of Section 19209.  (B) Manufacture of the minimum number of voting system units reasonably necessary for either of the following purposes:  (i) To test and seek certification or conditional approval for the voting system pursuant to Sections 19210 to 19214, inclusive.  (ii) To test and demonstrate the capabilities of the voting system in a pilot program pursuant to paragraph (2) of subdivision (b) of, and subdivision (c) of, Section 19209.  (3) Fund moneys shall not be used to purchase a voting system that uses prescored punch card ballots.  (e)   Any     A
						  voting system purchased using bond funds that does not require a voter to directly mark on the ballot must produce, at the time the voter votes   his or her     their   ballot or at the time the polls are closed, a paper version or representation of the voted ballot or of all the ballots cast on a unit of the voting system. The paper version shall not be provided to the voter but shall be retained by elections officials for use during the   1 percent     1-percent   manual recount or other recount, audit, or contest.  SEC. 7.      Section 7923.601 of the Government Code is amended to read:  7923.601.  (a) This division does not require the disclosure in response to a request for records filed under the California Public Records Act, of peace officer personnel files and background investigation files gathered by law enforcement agencies pursuant to Section 1031 that are in the custody of the Commission on Peace Officer Standards and Training in connection with the commission’s authority to verify eligibility for the issuance of certification and investigate grounds for decertification of a peace officer pursuant to Section 13510.8 of the Penal Code, including any and all investigative files and records relating to complaints of, and investigations of, police misconduct, and all other investigative files and materials.  (b) If the commission receives a
						request to disclose a public record that the commission is exempt from disclosing pursuant to subdivision (a),   within 10 days from receipt of   the   request, the   commission shall   both   forward the request to the agency that transmitted the record to the commission and   shall   notify the requestor of where the request was forwarded. That agency shall be responsible for complying with the request, subject to applicable disclosure laws.  (c) In the event that the requested public record is no longer in the possession of the agency that previously transmitted the record to the commission, the   agency     agency, within 10 days from receipt of the forwarded request from the commission,   shall request copies of the record from the   commission, which     commission. Within 10 days from receipt of this request from the agency, the commission   shall   either   provide the record to the agency if it is in the possession of the   commission.     commission or notify the agency that the commission does not possess the record.   The agency shall then be responsible for complying with the request, subject to applicable disclosure laws.  (d) This section does not limit the obligation of another public agency to disclose records of police misconduct, or other public records, pursuant to Section 832.7 of the Penal Code or any other provision of law.  (e) This section does not limit the disclosure of records created by the commission during its own investigations or decisionmaking, which are otherwise subject to disclosure under the law.  (f) This section does not limit the disclosure of records
						pursuant to Section 13510.85 of the Penal Code.  (g) This section shall remain in effect only until January 1,   2027,     2028,   and as of that date is repealed.  (h) It is the intent of the Legislature that upon repeal of this section, the commission shall comply with all applicable disclosure requirements, including any request for documents in the possession of the commission that were also in the possession of the commission during any time that this section was in effect.  SEC. 8.      Section 11011.24 of the Government Code is amended to read:  11011.24.  (a) Except as provided in subdivisions (b) and (c), the Director of General Services may sell or exchange, pursuant to Section 11011.1, at fair market values based upon an appraisal approved by the Department of General Services, only to the County of Napa or the Napa County Regional Park and Open Space District, upon those terms and conditions and subject to those reservations and exceptions the director determines are in the best interests of the state, all or any part of the following real properties, by   January 1, 2026,     June 30, 2028,   after which date, if not sold or exchanged to the County of Napa or the Napa County Regional Park and Open Space District, the property is no longer surplus and shall not be available for sale or exchange:  (1) Approximately 850 acres of property, currently leased to or controlled by the County of Napa as part of Skyline Wilderness Park, located at the Napa State Hospital, 2100 Napa Vallejo Highway, Napa, in the County of Napa.  (2) Approximately 80 acres of property, currently under the jurisdiction of the State Department of State Hospitals, known as Camp Coombs, located at the Napa State Hospital, 2100 Napa Vallejo Highway, Napa, in the County of Napa.  (b) An agreement for the sale or exchange of the property identified in, and pursuant to, subdivision (a), shall require the County of Napa or the Napa County Regional Park and Open Space District to retain title to the entire property sold or exchanged for use as a park or wilderness preserve, or in the event of the future sale or exchange of that property by the County of Napa or the Napa County Regional Park and Open Space District, shall require the County of Napa or the Napa County Regional Park and Open Space District, by recorded easement, to limit future uses of the property to a park or wilderness preserve.  (c) The sale or exchange of the property identified in paragraph (2) of subdivision (a) shall be separate from the sale or exchange of the property identified in paragraph (1) of subdivision (a).  (d) The
						Department of General Services shall be reimbursed for any cost or expense incurred in the disposition of the property described in subdivision (a) from the proceeds of the disposition. The net proceeds of any moneys received from the disposition of the property shall be paid into the Special Fund for Economic Uncertainties, as established by Section 16418.  (e) The County of Napa or the Napa County Regional Park and Open Space District may enter into an agreement with a nonprofit land trust or nonprofit conservation entity for the purpose of sharing the costs associated with making the sale or exchange authorized by this section, provided that all the requirements of this section, including, but not limited to, those of subdivision (b), are met.  SEC. 9.      Section 11549.53 of the Government Code is amended to read:  11549.53.  (a) The office has the powers and authorities necessary to implement this chapter, including, but not limited to, the authority to enter into contracts with one or more entities to acquire goods and services and to take actions it deems necessary and appropriate for the development, acquisition, construction, maintenance, and operation of a statewide open-access middle-mile broadband network, including the creation of rural exchange points.  (b) (1) The office shall retain a third-party administrator to manage the development, acquisition, construction, maintenance, and operation of a statewide open-access middle-mile broadband network, including the creation of rural exchange points.  (2) The third-party administrator retained by the office shall be a   California based     California-based   nonprofit entity with demonstrated experience serving public libraries, elementary and secondary schools, and institutions of higher education with broadband connectivity.  (c) Contracts entered into by the office are exempt from Section 10295 of, and Article 4 (commencing with Section 10335) of Chapter 2 of Part 2 of Division 2 of, the Public Contract Code.  (d) (1) The department or the office shall not enter   into, amend, or assign     into   a contract   related to     for operation of   the statewide open-access middle-mile broadband network if the contract is for an amount exceeding a total cost of eight million dollars ($8,000,000) unless the contract is approved in advance by the Director of Finance.  (2) The Director of Finance shall not approve a contract described in paragraph (1) until at least 30 days after informing the Joint Legislative Budget Committee of the director’s intent to approve the contract unless the 30-day notification period is waived by the Chairperson of the Joint Legislative Budget Committee or the chairperson’s designee. The approval of the Director of Finance shall take effect immediately following either the completion of the 30-day notification period or the waiver of that period.  (3) This subdivision shall not apply in the case of an emergency, as defined in Section 1102 of the Public Contract Code.  SEC. 10.      Section 13296 of the Government Code is repealed.  13296.     The director shall supply to the Controller a certified copy of each periodical audit of the accounts of any state agency. Additionally, if the audit includes a review of federal funds, the director shall also report the results of the audit simultaneously to the Legislature and the affected state agency.  SEC. 11.      Chapter 5 (commencing with Section 13400) of Part 3 of Division 3 of Title 2 of the Government Code is repealed.  SEC. 12.      Chapter 5 (commencing with Section 13400) is added to Part 3 of Division 3 of Title 2 of the Government Code, to read:
                CHAPTER
               5. The State Leadership Accountability Act       13400.  This act shall be known, and may be cited, as the State Leadership Accountability Act.       13401.  (a) The Legislature finds and declares that this chapter is an active oversight process designed to provide public accountability of state entities by maintaining a robust risk management system and internal control with ongoing monitoring.  (b) Each state entity shall maintain and monitor a system designed to manage risk, including fraud, errors, waste, and abuse, to effectively safeguard, administer, and monitor public resources, as provided in this chapter.  (c) All levels of entity management shall be involved in developing and maintaining a risk management system and internal control, as provided in this chapter.  (d) Each state entity shall prepare an annual report on its risk management system, to promote transparency and accountability, as provided in Section 13405.  (e) The Department of Finance is responsible for establishing the guidance for the implementation of the requirements of this chapter and may consult with the Controller and the California State Auditor, as needed, as provided in Section 13403.       13402.  For the purposes of this chapter, all of the following definitions apply:  (a) “Auditor” means personnel employed by the state performing activities that provide independent, objective assurance or consulting services following audit standards as prescribed in Section 13886.5.  (b) “Entity head” means the individual responsible for a state entity’s overall operations, governance, and risk management system and internal control.  (c) “Entity management” means the personnel who are directly responsible for an entity’s activities, including the design, implementation, operating effectiveness, and ongoing monitoring of its risk management
						  system and internal control. “Entity management” includes program, administrative, and financial management at all levels within the entity’s organizational structure, whose responsibilities may vary depending on their functions and level in the organizational structure.  (d) “Examination” means activities of the Department of Finance pursuant to the authority prescribed by Section 13070 and Sections 13293 to 13295.5, inclusive.  (e) “Internal control” means a process, including a continuous built-in component of operations, effected by a state entity’s oversight body, management, and other personnel that provides reasonable assurance that the state entity’s mission, goals, and objectives will be achieved, and that is an essential function of any risk management system.  (f) “Oversight” means the authoritative process
						  of supervising, monitoring, and evaluating activities, operations, or individuals to ensure compliance with established standards, policies, and objectives. “Oversight” includes reviewing performance, identifying deficiencies, and taking corrective actions to promote accountability and effective governance.  (g) “Risk” means the possibility that an event will occur and adversely affect the achievement of an organization’s mission, goals, and objectives.  (h) “Risk management system” means the coordinated activity of directing and controlling the full spectrum of the state entity’s challenges or threats to achieving its mission, goals, and objectives, including its internal control.  (i) “State entity” means every state agency included in Section 11000 and the California State University that the Department of Finance
						  determines is subject to the provisions of this chapter, as provided in subdivision (e) of Section 13406.       13403.  (a) The Department of Finance shall establish and periodically update, as necessary, the guidance and system of reporting for the risk management system and internal control related to this chapter. The adoption, amendment, or repeal of this general guidance and system of reporting, or other directives to guide state entities consistent with this chapter, shall be exempt from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1).  (b) The Controller and the California State Auditor may, at the request of the Department of Finance, provide consultation on modifying the guidance for state entities’ compliance with this chapter.       13404.  A risk management system shall include at least the following five internal control components:  (a) Control environment, which is the foundation for internal control that provides the discipline and structure to help an entity achieve its mission, goals, and objectives.  (b) Risk assessment, which is the identification and analysis of risks facing the state entity, including, but not limited to, fraud, errors, waste, and abuse of public resources, as it seeks to achieve its mission, goals, and objectives, and provides the basis for developing appropriate risk responses.  (c) Control activities, which are the actions entity management
						  establishes through policies and procedures to mitigate risks to achieving the state entity’s mission, goals, and objectives to acceptable levels.  (d) Information and communication, which is the quality of information that entity management and other personnel communicate and use to support its internal control.  (e) Monitoring, which are the activities entity management establishes and operates to assess the quality of performance over time and promptly resolve the identified weaknesses, including findings of audits, other reviews, and ongoing assessments.       13405.  (a) A state entity shall conduct annual reporting in accordance with all of the following:  (1) After an annual internal review, entity management shall prepare a report on the adequacy of the state entity’s risk management system and internal control in accordance with the guidance established by the Department of Finance, as provided in Section 13403.  (2) The annual report shall include the preceding period from July 1 to June 30, inclusive, of the reporting year.  (3) The annual report shall be submitted to the Department of Finance, in the manner provided by the Department of Finance, on or before July 31,
						  2027, and annually thereafter by July 31.  (4) The state entity shall publicly post a copy of an accepted report on the state entity’s internet website within five business days after receiving notice of acceptance by the Department of Finance.  (b) Upon the annual report’s acceptance by the Department of Finance, the state entity shall be notified by the Department of Finance, and a copy of the annual report shall be provided by the Department of Finance to the California State Library. In the event a state entity does not comply with the reporting requirement of this chapter, the Department of Finance shall create a noncompliance report and publicly post it on its internet website. The noncompliance report shall also be provided by the Department of Finance to the California State Library.  (c) The California State
						  Library shall make the state entity’s accepted annual report and the noncompliance report available for public inspection.       13406.  (a) The entity head is responsible for the implementation of a risk management system and internal control, identifying challenges and weaknesses, and ensuring the identified challenges and weaknesses are mitigated or resolved.  (b) The entity head and entity management shall be responsible for the oversight of the risk management system to help ensure that program, administrative, and financial operations are functioning properly within their state entity.  (c) Entity management, at all levels, and under the direction of the entity head, shall manage the state entity’s risk as an integral part of its overall management practices. Entity management shall do all of the
						  following:  (1) Ensure the state entity’s risk management system and internal control are designed, implemented, maintained, functioning as intended, continuously evaluated, improved as necessary, documented, and that system requirements are communicated throughout the state entity.  (2) Ensure that the state entity is effective and efficient in its operations, information reporting, and compliance efforts.  (3) Ensure that the risk management system and internal control help safeguard, administer, and monitor public resources.  (4) Comply with the guidance provided by the Department of Finance pursuant to Section 13403 and cooperate when subject to examination pursuant to subdivision (f).  (d) Auditors may, at the direction of entity management, facilitate entity management’s risk assessment process and perform internal control evaluations to assist entity management in its monitoring role.  (e) The Department of Finance shall make a final determination whether a state entity is subject to this chapter.  (f) The Department of Finance shall conduct, at its discretion, an examination of a state entity’s risk management system and internal control to ensure compliance with this chapter.       13407.  Because a risk management system and internal control, including ongoing monitoring, inhibit resource waste and thereby create savings, the fiscal effect of this chapter should be minor and manageable, therefore, state entities shall implement the provisions of this chapter by using existing resources.  SEC. 13.      Section 14664 of the Government Code is amended to read:  14664.  (a) The director may execute grants to real property belonging to the state in the name and upon behalf of the state, whenever the sale or exchange of real property is authorized or contemplated by law, if no other state agency is specifically authorized and directed to execute the grants. The director may also execute deeds or any other instruments necessary to correct erroneous descriptions on deeds by which the state acquired title.  (b) (1) Notwithstanding any other law, upon the written request and consent of the state agency with control or jurisdiction over the property concerned, the director may sell, convey, or exchange properties that are not needed by any state agency at fair market value following a 30-day notice to the Joint
						Legislative Budget Committee and the applicable Members of the Senate and Assembly who represent the district in which the properties are located, under any of the following circumstances:  (A) Property, not to exceed five acres, to a local governmental agency for the purpose of local public works projects, including, but not limited to, utility rights-of-way, drainage ditches, road widening, including curbs, gutters, sidewalks, and small parking lots.  (B) Property with a fair market value of up to one million dollars ($1,000,000) received by the state through the office of the Attorney General or another state agency as the result of a foreclosure, seizure, or court action.  (C) Property that is being encroached on, where the adjacent landowner and the state agency with control or jurisdiction over the property
						concerned, the director, and the Attorney General agree that the best manner in which to resolve the matter is through a sale of the property or for an exchange of property of equal value.  (D) Property not needed by any state agency with a fair market value of less than twenty-five thousand dollars ($25,000).  (E) Property, not to exceed 50 acres, that is landlocked, or without legal access from a public road, street, or highway, if the sale, conveyance, or exchange is with the owner of an adjoining property.  (F) Property, not to exceed 15 acres, that is a remainder or remnant parcel having a diminished economic utility or value due to its size, shape, location, or other detrimental characteristics if the sale, conveyance, or exchange is with the owner of an adjoining property.  (G) Property that is a remainder or remnant parcel of property acquired as part of a capital outlay project, if the request to sell the property is made by the jurisdictional agency within one year of its purchase date.  (H) Property to be exchanged for another property or other properties belonging to a local government if:  (i) The Department of Housing and Community Development has determined that the property or properties proposed to be conveyed to the state are suitable for the purpose of affordable housing, which may include permanent supportive or transitional housing or emergency shelter, and the state intends to utilize the property or properties for that purpose.  (ii) The   Director of the Department of General Services     director   makes a finding that the exchange is in the best interest of the state.    (iii) The director may convey a portion of property received by the state pursuant to an exchange under this subparagraph to a local government that has land use authority over the area in which the property is located if all of the following conditions are met:      (I) At least five years after the state received the property pursuant to this subparagraph for the purpose described in clause (i), the director
						determines that a portion of the property is unlikely to be developed and the conveyance is limited to that portion.      (II) A different portion of the property exchanged pursuant to this subparagraph for the purpose described in clause (i) was developed.      (III) The director obtains the consent of the state agency that holds title to the property.       (iii)  (iv)   For purposes of this subparagraph, “affordable housing” has the same meaning as in Section 50052.5 of the Health and Safety Code.  (2) All funds received by the state pursuant to this subdivision shall be handled in the identical manner as funds received from state property disposed of pursuant to Section 11011.    (c) This section shall remain in effect only until January 1, 2031, and as of that date is repealed.  SEC. 14.      Section 14664 is added to the Government Code, to read:  14664.  (a) The director may execute grants to real property belonging to the state in the name and upon behalf of the state, whenever the sale or exchange of real property is authorized or contemplated by law, if no other state agency is specifically authorized and directed to execute the grants. The director may also execute deeds or any other instruments necessary to correct erroneous descriptions on deeds by which the state acquired title.  (b) (1) Notwithstanding any other law, upon the written request and consent of the state agency with control or jurisdiction over the property concerned, the director may sell, convey, or exchange properties that are not needed by any state agency at fair market value following a 30-day notice to the Joint
						Legislative Budget Committee and the applicable Members of the Senate and Assembly who represent the district in which the properties are located, under any of the following circumstances:  (A) Property, not to exceed five acres, to a local governmental agency for the purpose of local public works projects, including, but not limited to, utility rights-of-way, drainage ditches, road widening, including curbs, gutters, sidewalks, and small parking lots.  (B) Property with a fair market value of up to one million dollars ($1,000,000) received by the state through the office of the Attorney General or another state agency as the result of a foreclosure, seizure, or court action.  (C) Property that is being encroached on, where the adjacent landowner and the state agency with control or jurisdiction over the property
						concerned, the director, and the Attorney General agree that the best manner in which to resolve the matter is through a sale of the property or for an exchange of property of equal value.  (D) Property not needed by any state agency with a fair market value of less than twenty-five thousand dollars ($25,000).  (E) Property, not to exceed 50 acres, that is landlocked, or without legal access from a public road, street, or highway, if the sale, conveyance, or exchange is with the owner of an adjoining property.  (F) Property, not to exceed 15 acres, that is a remainder or remnant parcel having a diminished economic utility or value due to its size, shape, location, or other detrimental characteristics if the sale, conveyance, or exchange is with the owner of an adjoining property.  (G) Property that is a remainder or remnant parcel of property acquired as part of a capital outlay project, if the request to sell the property is made by the jurisdictional agency within one year of its purchase date.  (H) Property to be exchanged for another property or other properties belonging to a local government if:  (i) The Department of Housing and Community Development has determined that the property or properties proposed to be conveyed to the state are suitable for the purpose of affordable housing, which may include permanent supportive or transitional housing or emergency shelter, and the state intends to utilize the property or properties for that purpose.  (ii) The Director of the Department of General Services makes a finding that the
						exchange is in the best interest of the state.  (iii) For purposes of this subparagraph, “affordable housing” has the same meaning as in Section 50052.5 of the Health and Safety Code.  (2) All funds received by the state pursuant to this subdivision shall be handled in the identical manner as funds received from state property disposed of pursuant to Section 11011.  (c) This section shall become operative on January 1, 2031.  SEC. 15.      Section 1106 of the Military and Veterans Code is amended to read:  1106.  Bonds in the total amount of   fifty     forty-nine   million   twenty-five thousand   dollars   ($50,000,000),     ($49,025,000),   not including the amount of any refunding bonds issued in accordance with Section 1130, or as much thereof as is necessary, may be issued and sold to provide a fund to be used for carrying out the purposes   expressed in     of   this   chapter     chapter,   and to be used and sold for carrying out the purposes of Section   1104     1104,   and to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code. The bonds, when sold, shall   be and shall   constitute a valid and binding obligation of the   State of California,     state,   and the full faith and credit of the   State of California     state   is hereby pledged for the punctual payment of both the principal of, and interest on, the bonds as the principal and interest become due and payable.  SEC. 16.      Section 7404 of the Penal Code is amended to read:  7404.  The committee is hereby authorized and empowered to create a debt or debts, liability or liabilities, of the   State of California,     state,   in the aggregate principal amount of eight hundred   seventeen     fifteen   million   seven hundred fifty-five thousand   dollars   ($817,000,000), exclusive of     ($815,755,000), excluding   refunding bonds, in the manner provided in this chapter. That debt or debts, liability or liabilities, shall be created for the purpose of providing the fund to be used for the object and work specified in Section 7406.  SEC. 17.      Section 7424 of the Penal Code is amended to read:  7424.  The committee is hereby authorized and empowered to create a debt or debts, liability or liabilities, of the   State of California,     state,   in the aggregate principal amount of four hundred   fifty     forty-nine   million   three hundred ninety-five thousand   dollars   ($450,000,000), exclusive of     ($449,395,000), excluding   refunding bonds, in the manner provided in this chapter. That debt or debts, liability or liabilities, shall be created for the purpose of providing the fund to be used for the object and work specified in Section 7426.  SEC. 18.      Section 1604 of the Public Contract Code is amended to read:  1604.    Posting     (a) A public entity posting   solicitations and receiving bids through an electronic procurement platform shall   still   satisfy all statutory requirements for public advertising, bid submission, and document retention under this code, including the procurement platform requirements set forth in this chapter.    (b) Nothing in this section is intended to waive or otherwise eliminate
						requirements, including requirements to print in newspapers or to advertise or otherwise post notices for solicitations, as may be required by this code.  SEC. 19.      Section 5096.360 of the Public Resources Code is amended to read:  5096.360.  Bonds in the total amount of two billion   one     ninety-one million three   hundred   million     seventy-five thousand   dollars   ($2,100,000,000), not including     ($2,091,375,000), excluding   the amount of any refunding bonds issued in accordance with Section 5096.370, or so much thereof as is necessary, may be issued and sold to provide a fund to be used for carrying out the purposes set forth in Section 5096.310 and to be used to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code. The bonds, when sold, shall   be and   constitute a valid and binding obligation of the   State of California,     state,   and the full faith and credit of the   State of California     state   is hereby pledged for the punctual payment of the principal of, and interest on, the bonds as the principal and interest become due and payable. Pursuant to this section, the Treasurer shall sell the bonds authorized by the Safe Neighborhood Parks, Clean Water, Clean Air, and Coastal Protection (the Villaraigosa-Keeley Act) Finance Committee created pursuant to subdivision (a) of Section 5096.362 at any different times that are necessary to service expenditures appropriated pursuant to this chapter.  SEC. 20.    The Legislature finds and declares that Section 7 of this act, which amends Section 7923.601 of the Government Code, imposes a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:  To enable the Commission on Peace Officer
				Standards and Training to continue to focus on the implementation of Senate Bill 2 (Chapter 409 of the Statutes of 2021) and work toward holding peace officers accountable for their misconduct, it is necessary to extend the temporary exemption that exempts the commission from the requirements of the California Public Records Act for records it receives from local law enforcement agencies in conjunction with the requirements of Senate Bill 2. These public records would continue to be available to the public from the local agencies that compiled the records.  SEC. 21.    The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances applicable to the County of Napa and the Napa County Regional Park and Open Space District.  SEC. 22.    No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.  However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.  SEC. 23.    This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.  SECTION 1.    It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2025.