State agencies and departments: strategic plans: diversity, equity, and inclusion.

2025-2026 Regular Session Introduced by Mia Bonta and 11 co-sponsors

AB 766 mandates California state agencies to develop strategic plans that incorporate diversity, equity, and inclusion, ensuring operations address racial disparities.

Consideration of Governor's veto stricken from file.

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Bill Overview

Bill Number: AB 766
Introduced: February 18, 2025
Status: Consideration of Governor's veto pending
Author: Sharp-Collins
Classification: Bill
Subject: State agencies and departments, Diversity, Equity, and Inclusion, Strategic Plans

AB 766 aims to enhance the strategic planning processes of state agencies and departments in California by incorporating principles of diversity, equity, and inclusion (DEI). The bill seeks to ensure that these agencies not only develop strategic plans but also actively address racial equity and disparities within their operations.

Key Provisions

Strategic Plan Development:

Each agency, department, office, or commission under the Governor's authority is required to develop a strategic plan.
Agencies must report to the Governor and the Joint Legislative Budget Committee by April 1, 2026, and annually thereafter, detailing their progress in developing and adopting these plans.

Reporting Requirements:

The annual report must include:
- A description of the elements included in the strategic plan.
- The process for developing and adopting the plan.
- A timetable for completion.
- Steps taken to develop performance measures for budgeting and review.

Incorporation of DEI Principles:

Agencies are mandated to utilize data analysis and inclusive practices in their strategic plans to advance racial equity.
Plans should address identified disparities and may include changes to the organization’s mission, vision, goals, policies, programs, and community engagement strategies.

Consultation Requirements:

Agencies must consult with various stakeholders, including employee organizations, the Legislature, client groups, suppliers, and contractors, during the development of their strategic plans.

Impact

Affected Entities: All state agencies, departments, offices, and commissions under the Governor's authority will be directly impacted by this legislation.

Goals: The bill aims to create a more equitable and inclusive approach to governance in California, ensuring that state operations reflect the diversity of the population they serve.

Procedural Aspects

The bill has passed through various legislative committees and has been amended multiple times.

It is currently pending consideration of a veto by the Governor, who vetoed the bill on October 13, 2025.

The legislative process included multiple readings, committee referrals, and amendments, demonstrating a thorough review before reaching its current status.

Conclusion

AB 766 represents a significant step towards integrating diversity, equity, and inclusion into the strategic planning of California's state agencies. By mandating the use of data-driven approaches and stakeholder consultations, the bill seeks to ensure that state operations are responsive to the needs of all Californians, particularly marginalized communities.

Bill