CaliforniaSB 1292025-2026 Regular SessionSenateWALLET

Budget Act of 2025.

Sponsored By: Sponsor information unavailable

Signed by Governor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 1 costs, 1 mixed.

One-time $584 million for pensions

The state provides $584 million to the retirement fund to reduce unfunded pension liabilities in 2025–26. It splits $273,983,000 for miscellaneous members, $16,164,000 for industrial members, $32,150,000 for safety members, and $261,703,000 for peace officer/firefighter members. The Department of Finance sets the transfer schedule. The money applies above the base 2025–26 contribution amounts.

Trust funds help injured workers

A trust pays nonadministrative workers’ comp costs if you were hurt while working for an uninsured employer. Another trust pays nonadministrative costs for workers with a prior serious permanent disability who suffer a new serious injury. The director is trustee, and the funds are continuously available for these costs. The trusts can advance administrative expenses that are fully repaid after the annual Budget Act passes.

Employer surcharges for safety and comp

Employers pay surcharges to fund four programs: the Workers’ Compensation Administration Revolving Fund, the Uninsured Employers Benefits Trust Fund, the Subsequent Injuries Benefits Trust Fund, and the Occupational Safety and Health Fund. Self‑insured employers pay a percent of indemnity; insured employers pay a percent of premium. The administration fund supports workers’ comp operations, Return‑to‑Work, and coverage enforcement, and its money cannot be used or borrowed for other purposes. The OSH Fund surcharge is capped at $57 million a year (adjusted as needed). A separate Labor Enforcement and Compliance Fund exists, and its surcharge is capped at $46 million in 2013–14 with adjustments for later changes.

Fraud commission and employer assessments

The law creates a seven-member Workers’ Compensation Fraud Assessment Commission to set the yearly employer assessment. The Director of Industrial Relations collects the assessment and deposits it into a Fraud Account that is not a tax. After small expenses, at least 40% funds the state Fraud Division and at least 40% goes to district attorneys. If a county will not prosecute, funds can be moved to other counties or the Attorney General. The Insurance Commissioner issues emergency rules and public annual reports on results.

Disability benefits for career executives

Beginning October 1, 2025, state career executive appointees qualify for nonindustrial disability benefits. This covers any disability benefit period that starts on or after July 1, 2025. If your period started between July 1 and October 1, 2025, you must file a completed claim within 41 days after October 1, 2025.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 127 • No: 20

Senate vote 6/30/2025

Item 95 — Senate SFLOOR

Yes: 30 • No: 5

House vote 6/30/2025

Item 1000 — Assembly AFLOOR

Yes: 69 • No: 5

Senate vote 3/20/2025

Item 63 — Senate SFLOOR

Yes: 28 • No: 10

Actions Timeline

  1. Chaptered by Secretary of State. Chapter 23, Statutes of 2025.

    6/30/2025Senate
  2. Approved by the Governor.

    6/30/2025legislature
  3. Enrolled and presented to the Governor at 6:45 p.m.

    6/30/2025legislature
  4. Assembly amendments concurred in. (Ayes 30. Noes 5. Page 1843.) Ordered to engrossing and enrolling.

    6/30/2025Senate
  5. In Senate. Concurrence in Assembly amendments pending.

    6/30/2025Senate
  6. Read third time. Passed. (Ayes 69. Noes 5. Page 2360.) Ordered to the Senate.

    6/30/2025House
  7. Assembly Rule 63 suspended. (Ayes 56. Noes 18. Page 2359.)

    6/30/2025House
  8. Ordered to third reading.

    6/30/2025House
  9. Withdrawn from committee pursuant to Assembly Rule 96.

    6/30/2025House
  10. From committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET.

    6/27/2025House
  11. From committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET.

    6/24/2025House
  12. Referred to Com. on BUDGET.

    3/24/2025House
  13. In Assembly. Read first time. Held at Desk.

    3/20/2025House
  14. Read third time. Passed. (Ayes 28. Noes 10. Page 440.) Ordered to the Assembly.

    3/20/2025Senate
  15. Read second time. Ordered to third reading.

    3/18/2025Senate
  16. Ordered to second reading.

    3/17/2025Senate
  17. Withdrawn from committee. (Ayes 27. Noes 10. Page 384.)

    3/17/2025Senate
  18. Referred to Com. on B. & F. R.

    2/5/2025Senate
  19. From printer. May be acted upon on or after February 23.

    1/24/2025Senate
  20. Introduced. Read first time. To Com. on RLS. for assignment. To print.

    1/23/2025Senate

Bill Text

  • Chaptered

    6/30/2025

  • Enrolled

    6/30/2025

  • Amended Assembly

    6/27/2025

  • Amended Assembly

    6/24/2025

  • Introduced

    1/23/2025

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