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AB 139

Relating to: a tax credit for relocating to this state due to Hurricane Helene or the Los Angeles wildfires. (FE)

2025-2026 Regular Session Introduced by Barbara Dittrich and 5 co-sponsors

AB 139 approves MOUs for Units 9 and 12 only if the Legislature explicitly funds the provisions; without a specific appropriation, those provisions cannot take effect.

Referred to committee on Rules
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Bill Summary · AB 139

AB 139 — State Bargaining Unit 9 and State Bargaining Unit 12

Status: Re‑referred to Senate Committee on Budget & Fiscal Review (July 2, 2025)
Introduced: January 8, 2025 — Passed Assembly (March 20, 2025). Classification: bill; appropriation.

Purpose / Intent

AB 139 implements, ratifies, and specifies budgetary treatment for tentative collective bargaining agreements between the state (the state employer) and State Bargaining Unit 9 and State Bargaining Unit 12. It modifies how those memoranda of understanding (MOUs) interact with the annual Budget Act, short‑term leave programs, appropriations continuity, and prefunding for postemployment health benefits.

Key provisions

  • Approval and budget condition

    • Approves provisions of the agreements for Bargaining Units 9 and 12 but conditions their effectiveness on the Legislature specifically appropriating funds for any provisions that require expenditure.
    • If the Legislature does not specifically appropriate funds for funded provisions, the state employer or the bargaining unit may reopen negotiations.
    • The provisions may become effective if appropriated by legislation other than the annual Budget Act.

  • Continuous appropriation changes (if Budget Act not enacted by July 1)

    • Extends inclusion of the Unit 12 MOU in the Controller’s continuous appropriation through June 30, 2027 (previously through June 30, 2026).
    • Adds Unit 9 MOU to continuous appropriation coverage (effective July 1, 2025 to June 30, 2028).
    • Makes related technical deletions for MOUs that expire before FY 2026–27.

  • Personal Leave Program 2025 (PLP 2025)

    • Requires employees in Unit 9 and Unit 12 to participate in PLP 2025 from July 1, 2025, through June 30, 2027 (as provided in the applicable MOU).
    • Under PLP 2025, covered employees receive a 3% reduction in pay in exchange for 5 hours of PLP leave credits credited on the first day of each monthly pay period (subject to exceptions in the bill/MOU).

  • Other postemployment benefits / PEMHCA prefunding

    • Suspends the state employer’s monthly prefunding contribution for other postemployment benefits for FY 2025–26 and FY 2026–27 (per the Public Employees’ Medical and Hospital Care Act framework).
    • Establishes that for FY 2027–28 (and for FYs 2028–29 through 2030–31) employees will contribute specified percentages of pensionable compensation toward prefunding and/or total employee contribution as provided in the bill (digest references “specified percentages”; exact figures are set in bill text).

  • Budget Act of 2025 adjustments

    • Provides for reductions to certain Budget Act of 2025 item appropriations consistent with the agreements and allows ratification of MOUs/addenda entered into by June 30, 2025 if they include savings measures that help meet the budgeted reductions.

  • Conditional cross‑bill provisions

    • Incorporates changes in specified Government Code sections proposed by related measures (e.g., AB 140, SB 140) to be operative only under specified enactment conditions.

Who is affected

  • Primary: State employees represented by Bargaining Unit 9 and Bargaining Unit 12 (including pay and leave changes; PLP participation).
  • Secondary: State budget and fiscal operations — General Fund and other funds used to pay these employees; state retirement prefunding accounts and employer contribution schedules.

Fiscal and procedural notes / timeline

  • PLP 2025 applies July 1, 2025 – June 30, 2027.
  • Continuous appropriation language applies if the Budget Act is not enacted by July 1 of the relevant fiscal years (2025–26, 2026–27, 2027–28).
  • Any expenditure provisions require explicit legislative appropriation to take effect; absent appropriation parties may reopen negotiations.
  • Assembly passage: March 20, 2025 (Ayes 53, Noes 17). Senate committee actions: hearings/amendments in June 2025; committee “do pass” June 30, 2025; re‑referred to Senate Budget & Fiscal Review July 2, 2025.

This summary is based on legislative digests and committee floor documents (June 2025). For exact statutory language, percentages, and operative text, consult the bill as enrolled or the official bill version.

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

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