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Bill

AB 156

Labor.

2025-2026 Regular Session

AB 156 allocates $372 million to enhance state employee pensions, streamlines firefighter hiring, and improves negotiation processes for IHSS workers in California.

Ordered to inactive file at the request of Senator Grayson.
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Bill Summary · AB 156

Summary of AB 156 - Labor

Bill Number: AB 156
Introduced: January 08, 2025
Status: Ordered to inactive file at the request of Senator Grayson
Classification: Bill, Appropriation
Subject: Labor

Purpose and Intent

AB 156 aims to address various aspects of labor law in California, particularly focusing on the funding and management of the Public Employees' Retirement System (PERS). The bill seeks to appropriate funds to support state employee pensions and benefits, while also making adjustments to existing labor laws that affect public agencies and their employees.

Key Provisions

  1. Funding for Public Employees' Retirement Fund:

    • Appropriates $372 million from the General Fund to supplement the state’s contribution to the Public Employees' Retirement Fund.
    • Allocates funds to specific employee categories:
      • $174,523,000 for state miscellaneous members
      • $10,296,000 for state industrial members
      • $20,479,000 for state safety members
      • $166,702,000 for state peace officer/firefighter members
    • The appropriation is intended to address unfunded liabilities for the 2025-26 fiscal year.

  2. Successor Agency Provisions:

    • Authorizes the successor agency for the Humboldt No. 1 Fire Protection District and City of Eureka Fire Department to provide employees with the defined benefit plan they received prior to annexation.

  3. Firefighter Hiring Criteria:

    • Revises criteria for local governments hiring additional firefighters to include those who were permanent career civilian firefighters employed by the federal government or contracted to serve at federal installations.

  4. In-Home Supportive Services (IHSS) Program:

    • Modifies the mediation and factfinding process for IHSS workers, allowing either party to bypass mediation and move directly to factfinding.
    • Requires findings of fact and recommended settlement terms to be made public immediately if either party declines postfactfinding mediation.
    • Changes the timeline for counties to reach agreements with employee organizations from 90 days to 30 days after the release of the factfinding panel’s recommended settlement terms.

  5. Medi-Cal Program Adjustments:

    • Addresses the provision of in-home supportive services and waiver personal care services, ensuring compliance with federal guidelines regarding work hours and travel time.

Impact

  • State Employees: The bill directly impacts state employees by enhancing the funding for their retirement benefits, thereby improving financial security for current and future retirees.
  • Public Agencies: Local governments and public agencies will have clearer guidelines for hiring firefighters and managing employee benefits, potentially streamlining operations and improving workforce stability.
  • IHSS Workers: Changes to the mediation process may expedite negotiations and improve working conditions for IHSS workers, ensuring timely delivery of services to vulnerable populations.

Procedural Aspects

  • The bill has undergone several readings and amendments in both the Assembly and Senate. It was passed by the Assembly on March 20, 2025, and subsequently sent to the Senate for consideration.
  • As of September 13, 2025, the bill has been ordered to the inactive file at the request of Senator Grayson, indicating it may not proceed further in the legislative process at this time.

This summary provides an overview of AB 156, highlighting its key provisions and potential impacts on labor and retirement systems in California.

Compiled from official sources — confirm details with the bill’s official record.

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