Joint powers authorities: South Bay Regional Housing Trust.

Removed all prior amendment history dates (January 2025 through August 2026) from the header and replaced with final passage dates: Passed the Senate August 19, 2026 and Passed the Assembly August 17, 2026.

Removed all line numbers (line 1 through line 40) that appeared in the amended assembly version, producing a clean statutory text format.

Added Governor approval block at the end with signature lines for the Private Secretary of the Governor and the Governor, along with an 'Approved ___, 2026' line, indicating the bill is ready for executive action.

The trust's authority for moderate-income housing expanded from 'planning and construction' to 'planning, construction, and preservation,' broadening what activities can be funded.

Section (a)(1) now lists 'extremely low, very low, low, and moderate income' as the populations the agency serves, adding moderate income to the general purpose statement alongside the previously listed categories.

New public funding sources authorized for moderate-income housing: (i) federal resources, and (ii) state resources restricted to use for affordable housing for persons and families at or above 80% of area median household income. Previously only private resources could be used for this purpose.

Moderate income is now explicitly defined by reference to Section 50093 of the Health and Safety Code, rather than being left undefined in that context.

The trust may now fund the preservation of housing in addition to planning and construction. Previously only planning and construction were authorized activities.

The legislative findings section was updated to reference 'homeless, low-income, and moderate-income populations' instead of just 'homeless and low-income populations,' reflecting the expanded scope.

Moderate-income persons and families are now included as an eligible population for housing assistance, expanding beyond the previous categories of extremely low, very low, and low income.

A new limitation requires that moderate-income housing be funded only using private resources available to the trust, meaning public funds cannot be used for this purpose.

All amendments to the False Claims Act (Sections 12651, 12652, 12653 of Government Code) were removed. This eliminated: expansion of false claims liability to Revenue and Taxation Code claims with a $200,000 damages or $500,000 income threshold; authorization for the Attorney General to obtain confidential tax records for investigation; a change requiring complaints to remain under seal for at least 60 days (previously up to 60 days); a prohibition on pre-filing payment demands by attorneys; and expanded whistleblower protections defining 'lawful act' to include obtaining or transmitting documents even if it violates a contract or employment duty.

Board composition authority shifted from the governing board of the South Bay Cities Council of Governments to the joint powers agreement itself. The number of directors and the process for appointing directors and filling vacancies are now established by the joint powers agreement rather than by the council's governing board.

A new cap was added: each alternate board member who is not currently an elected official may not participate as a voting member in more than 75 percent of all meetings in a calendar year. This prevents non-elected alternates from effectively serving as permanent voting members.

Fiscal committee and state-mandated local program designations changed from 'yes' to 'no,' reflecting the removal of the False Claims Act provisions that would have imposed costs on local agencies.

Minor wording change: 'homeless or housing policy' was changed to 'homelessness or housing policy' in two places describing required board expertise.

Added an entirely new subject matter: amendment to Section 6539.9 of the Government Code establishing governance rules for the South Bay Regional Housing Trust, a joint powers authority that funds housing for homeless and extremely low, very low, and low-income persons in the South Bay Cities region of Los Angeles County.

Added legislative findings declaring that a special statute is necessary because of the acute affordable housing crisis in the South Bay Cities region due to high housing costs, and that the trust could help finance affordable housing projects.

Board size determination shifted from being set by the governing board of the South Bay Cities Council of Governments to being established by the trust's own joint powers agreement.

Director appointment process changed from direct appointment by the governing board of the South Bay Cities Council of Governments to appointment in accordance with a process established by the joint powers agreement.

Required all directors and alternates to be subject to the board of directors' adopted conflict of interest code.

Vacancy filling process shifted from the governing board of the South Bay Cities Council of Governments directly appointing a qualified individual to the joint powers agreement establishing the process for appointing a qualified individual (still within 60 days).

Added provision allowing the board of directors to include alternate members, who may be elected or appointed members of a party's governing body, appointed members of an advisory body, staff members of a party, or public members who are experts in homeless or housing policy.

Chairperson and vice chairperson elections changed from occurring at the first meeting of each calendar year to the first meeting of each calendar or fiscal year, giving the board more flexibility.

The bill no longer amends Government Code Section 17552 relating to state government local costs. This provision was entirely dropped from the bill, narrowing its scope to only false claims provisions.

The seal requirement for private qui tam complaints changed from optional ('may remain under seal for up to 60 days') to mandatory with a minimum duration ('shall remain under seal for at least 60 days'). This gives plaintiffs more time to build their case before the defendant is notified.

The financial threshold structure for applying the False Claims Act to Revenue and Taxation Code claims was restructured. The sales-of-the-defendant provision was moved from a separate top-level requirement into the 'one of the following' alternatives list, making it one of several ways to meet the $500,000 threshold rather than an additional independent requirement.

The bill's fiscal committee determination and state-mandated local program designation were both confirmed as 'yes,' reflecting that the remaining provisions still impose costs on local agencies requiring state reimbursement analysis.

The False Claims Act now applies to claims, records, obligations, or statements made under the Revenue and Taxation Code (previously excluded entirely), but only if damages pleaded exceed $200,000 AND the defendant's taxable income, gross receipts, or total sales exceed $500,000 per taxable year.

The bill's stated purpose expanded from amending only Section 17552 (state mandates) to also amending Sections 12651, 12652, and 12653 (False Claims Act). The fiscal committee vote changed from 'no' to 'yes' and state-mandated local program changed from 'no' to 'yes' due to the expanded scope.

The Attorney General or prosecuting authority is authorized to obtain otherwise confidential tax records from state and local taxing authorities to investigate or prosecute suspected violations, though federal tax information cannot be provided without IRS authorization. All such information must be kept confidential except as necessary for investigation and prosecution.

A demand for payment or request for payment based on an alleged False Claims Act violation made by an attorney representing a private person prior to filing a complaint is deemed a violation of the requirement that the complaint be filed in superior court in camera. This targets pre-suit settlement demands.

Before filing or intervening in a false claims action based on Revenue and Taxation Code claims, the Attorney General or prosecuting authority must consult with the taxing authorities to whom the claim was submitted or the obligation was owed.

The seal period for qui tam complaints changed from 'up to 60 days' to 'at least 60 days,' and service on the defendant now requires a court order rather than simply occurring after unsealing.

Whistleblower anti-retaliation protections now explicitly cover current and former employees, contractors, or agents (previously only current). The definition of 'lawful act' is expanded to include obtaining or transmitting documents, data, correspondence, or electronic mail even if doing so violates a contract, employment term, or duty owed to the employer.

A new False Claims Act Fund is created in the State Treasury. Proceeds from actions brought by the Attorney General are deposited into this fund and, upon legislative appropriation, used to support ongoing investigation and prosecution of false claims.

New legislative findings section (Section 4) demonstrates the constitutional basis for limiting public access to tax records, as required by Section 3 of Article I of the California Constitution.