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AB 140

Relating to: limitations on the total value of taxable property that may be included in a tax incremental financing district created in the city of Port Washington. (FE)

2025-2026 Regular Session Introduced by Dave Armstrong and 3 co-sponsors

Approves the State Bargaining Unit 6 MOU with contingent funding, extending continuous pay/benefit authority if Budget Acts lag, and implementing PLP 2025 (3% pay reduction).

Published 7-9-2025
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Bill Summary · AB 140

AB 140 — State Bargaining Unit 6 (Budget Act of 2025) — Summary

Status: Re‑referred to Senate Committee on Budget & Fiscal Review (July 2, 2025)
Introduced: January 8, 2025
Sponsor/Author: Committee on Budget (as amended)
Classification: Bill; appropriation

Purpose

AB 140 approves terms of the memorandum of understanding (MOU) reached between the state employer and State Bargaining Unit 6 and implements related budget and technical changes needed to carry out those terms in the Budget Act of 2025. The bill contains appropriations and modifies temporary compensation and benefit prefunding rules for Unit 6 employees.

Key provisions

  • Approval of Unit 6 MOU: Approves provisions of the agreement between the state employer and State Bargaining Unit 6, notwithstanding certain normal procedural requirements for MOU legislative consideration.
  • Spending caveat and appropriation authority:
    • Provisions of the agreement that require expenditure of funds are approved but will not take effect unless funds for those provisions are specifically appropriated by the Legislature.
    • By approving provisions requiring expenditures, the bill itself constitutes an appropriation.
    • Either the state employer or Unit 6 may reopen negotiations if the Legislature does not specifically appropriate funds for those provisions.
    • The bill allows those expenditure provisions to become effective if funded through legislation other than the annual Budget Act.
  • Continuous appropriation adjustments:
    • Includes the Unit 6 MOU effective July 3, 2025, through July 2, 2028 within the state’s continuous appropriation provisions that authorize the Controller to pay compensation and benefits if the annual Budget Act is not enacted by statutory deadlines for 2025–26, 2026–27, and 2027–28.
    • For 2028–29, if the Budget Act of 2028 is not enacted by July 1, 2028, the bill provides a conditional, continuous appropriation for Unit 6 compensation until that Budget Act is enacted.
  • Personal Leave Program (PLP 2025) for Unit 6:
    • Requires Unit 6 employees (except where specified) to participate from July 1, 2025, through June 30, 2027.
    • Under PLP 2025 each affected employee takes a 3% pay reduction in exchange for 5 hours of PLP leave credits credited on the first day of each monthly pay period.
  • OPEB prefunding suspension:
    • Suspends the employer’s monthly contribution for prefunding other postemployment benefits (OPEB) for the 2025–26 and 2026–27 fiscal years for Unit 6 (PEMHCA‑related).
  • Budget reductions and technical changes:
    • Provides for reductions to certain Budget Act of 2025 appropriations pursuant to an agreed schedule between the state and Unit 6.
    • Contains a conditional incorporation clause to add changes to specified Government Code sections proposed in AB 139 and/or SB 139, operative only if those bills and AB 140 all pass and AB 140 is enacted last.
  • Effective date: Declares immediate effect as an appropriation bill tied to the Budget Bill.

Who is affected

  • Primary: State employees represented by State Bargaining Unit 6 (subject to PLP 2025 and MOU terms).
  • State employer agencies (payroll/HR responsibilities), the State Controller (payment authority), and state funds (General Fund, unallocated special funds, federal funds, other funds used to compensate state employees).
  • Public Employees’ Retirement System administration insofar as OPEB prefunding is affected.

Fiscal and procedural implications

  • The bill both approves an MOU and makes appropriations; it conditions the implementation of expenditure items on specific legislative funding and allows reopening of negotiations if funds are not appropriated.
  • Extends and adjusts the state’s continuous appropriation mechanism to cover Unit 6 compensation if Budget Acts are not enacted on time through the 2028–29 fiscal year (subject to conditions).
  • Modifies short‑term employee compensation (3% PLP reduction) and delays employer OPEB prefunding contributions for two fiscal years — both with budgetary savings/impacts to be reflected in the Budget Act and fiscal analyses.
  • Legislative action history: Passed Assembly (Mar 20, 2025; Ayes 53, Noes 17); referred and amended in Senate Budget Committee (committee Do Pass 6/30/25, 17–0); re‑referred to Senate Budget & Fiscal Review (7/2/25).

Notes / Considerations

  • The bill explicitly overrides or modifies typical timing/analytical requirements for MOU legislative review by approving the Unit 6 agreement “notwithstanding” certain statutory provisions (e.g., Legislative Analyst review timing).
  • Specific appropriation amounts and the detailed schedule of Budget Act item reductions are not included in the digest; those fiscal details would appear in the bill text, legislative fiscal analyses, and the Budget Act.

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

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