State government.
What changed between versions
New Section 1 expresses legislative intent for the state to collaborate with Alpine, Mono, and San Mateo counties (and their cities) to develop solutions to vehicle license fee revenue shortfalls, operative beginning in the 2027-28 fiscal year and applicable to all counties and cities experiencing such shortfalls from that year forward.
Section 13 authorizes the Director of General Services, until January 1, 2031, to convey a portion of property received by the state from a local government back to that same local government if prescribed conditions are met.
Section 2 prohibits the Secretary of State from accepting any new applications for payment from the Victims of Corporate Fraud Compensation Fund, requires wind-down of the fund, mandates annual reporting to the Legislature starting February 1, 2027 until all outstanding claims are paid, and makes any future funding contingent on a legislative appropriation.
Multiple bond limits are reduced: library construction bonds by $5,040,000 (to $344,960,000), K-12 school facility bonds by $35,000 (to $6,699,965,000), voting modernization bonds by $10,430,000 (to $189,570,000), veterans' homes bonds by $975,000, 1988 prison construction bonds by $1,245,000, 1990 prison construction bonds by $605,000, and parks/coastal protection bonds by $8,025,000.
Section 4 clarifies that California Education Learning Laboratory grant funding must be awarded to public postsecondary educational institutions geographically located in California, and recipients must include institutions in both northern and southern California (previously the requirement applied to 'laboratory funding' more broadly).
Section 7 extends the exemption from public records disclosure for peace officer personnel files held by POST from January 1, 2027 to January 1, 2028, and adds 10-day deadlines: POST must forward requests within 10 days of receipt, agencies must request copies within 10 days of receiving the forwarded request, and POST must provide records or notify non-possession within 10 days of the agency's request.
Section 8 extends the deadline for the Director of General Services to sell or exchange Camp Coombs and Skyline Wilderness Park property in Napa County from January 1, 2026 to June 30, 2028.
Section 9 narrows the $8 million contract approval threshold for the middle-mile broadband network: the prohibition now applies only to contracts 'for operation of' the network rather than any contract 'related to' it. Also adds a requirement that the office retain a California-based nonprofit third-party administrator with demonstrated experience serving public libraries, schools, and higher education institutions.
Sections 10-12 completely repeal and recast the State Leadership Accountability Act. Key changes: reporting frequency changed from biennial to annual (first report due July 31, 2027); scope expanded from internal control alone to a 'risk management system and internal control'; DOF gains authority to establish guidance and conduct examinations; noncompliance reports must be publicly posted; new definitions added for terms like 'entity head,' 'entity management,' 'risk management system,' and 'internal control.'
The bill clarifies that public entities using electronic procurement platforms must still satisfy all statutory requirements for public advertising, bid submission, and document retention, and expressly states this does not waive newspaper printing or posting notice requirements under the Public Contract Code.