Final Suspense Hearings Clear the Way for End-of-Session Action

By Morgan Leskody posted 5 hours ago

Like

On August 13, the Assembly and Senate Appropriations Committees held their final Suspense File hearings of the 2026 legislative year, determining which measures with significant fiscal impacts would advance to the floors of their respective houses.

Bills with estimated state costs of $150,000 or more are generally referred to the Suspense File for further fiscal review. The process allows the Appropriations Committees to consider the cumulative impact of proposed legislation on the state budget before deciding which measures will continue through the legislative process. During this review, committee consultants may also work with authors on amendments to address fiscal concerns or provide technical clarification.

This year, the Assembly Appropriations Committee considered 293 measures on its Suspense File, while the Senate Appropriations Committee considered 561. Measures released from suspense may advance as either “Do Pass” or “Do Pass as Amended,” while measures held in committee generally do not advance further during the legislative year.

Assembly Appropriations Committee Chair Buffy Wicks (D-Oakland) emphasized the committee’s responsibility as a steward of state resources and the difficult choices involved in determining where limited state funds should be invested. Similarly, Senate Appropriations Committee Chair Sabrina Cervantes (D-Riverside) acknowledged the challenging decisions facing the committee as it sought to limit additional costs to the state budget.

With the suspense process now complete, bills that advanced out of the Appropriations Committees move into the final weeks of the legislative session and, if approved by the Legislature, ultimately to the Governor’s desk.

The Governor has until September 30 to sign or veto any bills sent to his desk. As the Legislature enters the final weeks of the 2026 Legislative Session, lawmakers will now turn their attention to bills that cleared the Appropriations Committees, including measures amended as part of the suspense process. Bills must clear both houses of the Legislature by the August 31 deadline before they can be sent to the Governor for consideration. CSDA will continue to monitor and advocate on priority legislation as it moves through these final stages, and will keep members informed of significant developments and outcomes.

Elections in Focus

SB 1164 (Cervantes) Elections. This measure was voted out of the Assembly Appropriations Committee and would enact sweeping changes to the California Voting Rights Act of 2001 (CVRA). The bill targets any practice that effectuates voter suppression or vote dilution; agencies would be prohibited from employing any method of election that has the effect, or will likely have the effect, of suppressing or diluting the vote of protected class members. The standards for establishing/demonstrating vote dilution would be significantly revised as a result of SB 1164. An agency that responds in a timely manner to a notice alleging a violation of the CVRA by making the requisite changes demanded by the issuer of the notice would be obligated to pay up to the value of $30,000 in 2016 (now approximately $42,000). SB 1164 also implements a version of “pre-clearance” for jurisdictions previously found to have run afoul of voting rights similar to a mechanism previously established under the federal Voting Rights Act. As a comprehensive overhaul of the CVRA, SB 1164 contains many other provisions related to election practices.

SB 1360 (Cervantes) Elections: translation of election materials. This measure was also voted out of the Assembly Appropriations Committee and would require expanded language assistance for election materials. In addition to the assistance for certain languages required under federal law, jurisdictions would be required to provide assistance for additional election materials and services (ballots, voter registration forms and instructions, voter education and outreach materials, voting-related notices, notices of in-language assistance availability, in-person bilingual poll workers and interpreters, live telephonic interpretation services, and websites) and provide that assistance in additional languages specified by the Secretary of State. The Secretary would be required to determine which California counties meet at least one element of a specified list of criteria. All materials and services provided by the state or counties in a language other than English would be required to be distributed at the same time as the corresponding English materials. SB 1164 also stands up a process whereby interested citizens and entities may provide evidence to the Secretary of State demonstrating that a significant need exists for translated election materials for a language not part of the language determinations by the Secretary of State.

Public Pensions Reform Measure Continues to Advance

AB 1383 (McKinnor) Public employees’ retirement benefits. This bill was voted out of the Senate Appropriations Committee. This bill would:

Increase the pensionable compensation cap (for all PEPRA employees, not just fire and police);

Reduce the retirement age for public safety from 57 to 55 prospectively;

Add a 4th safety tier that is 3% @ 55, prospective and subject to bargaining; and,

Allow local agencies to adjust their local formula in a prospective manner

According to CalPERS, given the current discount rate of 6.8%, AB 1383 is expected to increase the required contributions of employers and PEPRA members and increase the present value of future benefits (PVB) by $4.8 billion across State, Schools, and Local Agency plans. In addition to the change in PVB, CalPERS estimates that the change to the accrued liability to be $233 million across State, Schools, and Local Agency plans. Additionally, AB 1383 further proposes that employers may increase their PEPRA formula to 3% at age 55 through individual agency collective bargaining. The benefit for this formula will be limited to 90 percent of final compensation. The increase in the normal cost due to this change could lead to increased annual normal cost contributions of $353 million in the first year and increase the present value of future benefits by $3.4 billion, assuming all safety plans adopted this tier. This is estimate only for CalPERS member agencies; independent public pensions and special districts in 1937 Act county retirement systems may also see increased costs.

CSDA is opposed to this measure, together with its coalition parters, because it will increase costs and undermine public agency budget stability that PEPRA helps to maintain.

Bills Attempting to Restrict Employer Flexibility in Using Workplace Technology Continue to Advance

The following significant measures were voted out of the Assembly and Senate Appropriations Committees, respectively:

SB 947 (McNerney) Employment: automated decision systems. This bill requires employers that primarily rely on an ADS to make a discipline, termination, or deactivation decision to provide a specified notice and to appoint a human reviewer to investigate and compile supporting evidence for the decision. This bill provides an employee with the right to request and requires an employer to provide a copy of the most recent 12 months of the worker’s own data primarily used by an ADS to make a disciplinary, termination, or deactivation decision. A worker is limited to one request every 12 months for a copy of their own data used by an ADS to make a disciplinary, termination, or deactivation decision. This bill requires employers primarily relying on ADS to make a disciplinary, deactivation, or termination decision to provide a post-use notice, as specified. CSDA is the local government and school coalition leader on this measure.

SB 951 (Reyes) Employment: technological displacement: notice. As applicable to public employers, this bill requires specified notices in connection with a “Technological cessation in hiring” meaning the permanent ending of hiring or contracting workers or contractors for a particular occupation or position, caused in whole or in substantial part by the employer’s use of AI or other automation, as specified. Amendments limit this to an establishment that employs, or has employed within the preceding 12 months, 75 or more persons. CSDA is opposing the measure unless it is amended,

AB 1883 (Bryan) Workplace surveillance tools. Places restrictions on employers utilizing workplace surveillance technology. CSDA is opposing the measure unless it is amended,

AB 2656 (Petrie-Norris) Public employees: notice: artificial intelligence performing service within scope of work. Requires a public employer to provide a recognized employee organization no less than 45 days’ written notice before taking an action to develop, purchase, or require the use of any generative artificial intelligence to perform a service that is within the scope of work of the job classification represented by the recognized employee organization. CSDA remains opposed to this measure.

Tribal Relations

Because of the array of services provided by special districts in diverse regions of the state. CSDA has been engaged on pending measures concerning Native American tribal relations and tribal cultural resources. One bill was held on Appropriations suspense and several important measures advanced off the Assembly and Senate Appropriations Committee Suspense Files, including:

SB 1326 (Wahab) California Environmental Quality Act: tribal cultural resources: mitigation measures. This bill was held in Assembly Appropriations suspense file. This bill states that tribal cultural resources are separate and distinct from other cultural or archaeological resources. The bill expands the definition of a tribal cultural resource to include, "a site, feature, place, cultural landscape, sacred place, including a sanctified cemetery, cemetery, or burial area of a California Native American tribe, or object with cultural value to a California Native American tribe that is 1) included or determined to be eligible for the California or National Register of Historical Resources, or 2) included in a local register of historical resources, or 3) identified by the Native American Heritage Commission, or 4) included in a local tribal register. The bill recasts lead agencies’ responsibilities related to consultations with tribes, including avoiding or minimizing significant impacts on tribal cultural resources, where feasible. The bill sets forth additional means for avoidance and mitigation, including, 1) relocation or reburial to protect from any future disturbance, 2) relinquishing the resource to the consulting tribe, or, 3) providing the tribe access to the resource of cultural practices, heritage teachings, stewardship or comanagement of lands. If the lead agency determines avoidance or preservation are not feasible, the lead agency, consistent with existing law, demonstrates its decision by substantial evidence.

AB 1881 (Ramos) California Indian Freedom Act of 2026. This bill passed off Appropriations suspense. Under existing law California Native American Tribes must be notified of a project by a local government if they are culturally and traditionally affiliated with the given project area, and given deference during any consultation that occurs. However, any information they provide during the environmental review process is exempt from being disclosed to the public.

This bill would prohibit the state from substantially burdening a tribe's exercise of spiritual practices on state public lands, including access to and use of land, sites or sacred objects. This includes any state or local permitting decisions, land use approvals, environmental reviews, and enforcement actions, except for actions taken by the State Water Resources Control Board. The burden may be justified if there is a demonstrated, compelling government interest. This bill authorizes a tribe or individual of a tribe to challenge any violations. Before any project is undertaken, approved, permitted, funded, or authorized, there must be a good faith consultation with the impacted tribe and the project must avoid any adverse impacts on sacred sites, cultural landscapes, and religious practices, including disclosure of the information under the California Public Records Act. CSDA remains engaged on this measure.

AB 2218 (Kalra) Water policy: California Native American tribes. This bill also passed off of Appropriations suspense. This bill would set up a state policy to address the historic inequities against Native American tribes that were caused by state-sanctioned acts of termination, removal, and assimilation. The policy is to acknowledge and correct these inequities through financial assistance, protection of tribal uses, and consultation. This bill requires the State Water Resources Control Board, regional water quality boards, the Natural Resources Agency, the Delta Stewardship Council, and the Office of Land Use & Climate Innovation to consider and incorporate this policy when revising regulations, permits, or grants to address the identified inequities. The bill provides that if there is a dispute between a tribe and state agency over an action the matter would be mediated by the Governor’s Office of Tribal Affairs, prior to any action in the courts. CSDA remains engaged on this measure.

Other Significant Bills Passed Off Suspense Files

AB 1578 (Jackson) State and local officials: sexual harassment training and education: anti-hate speech training. Would modify existing requirements related to the mandatory sexual harassment prevention training that local agency officials and employees are generally obligated to complete every two years. If signed into law, beginning January 1, 2028, AB 1578 would require that the sexual harassment prevention training include anti-hate speech training as a component of the training and education. The impetus for this legislation, sponsored by the author, arose from the work of the California Commission on the State of Hate, particularly the Commission’s 2023-24 annual report which recommended that training and onboarding for officials include information about how to address threats, harassment, and hate.

Other Significant Bills Held Under Submission and Not Advancing

AB 1859 (Ortega) Public works. This bill would require a public works site to allow reasonable access to monitor prevailing wage compliance by "representatives of a joint-labor management committee." The bill requires the representative to comply with safety standards, including personal protective equipment and access may be revoked if they fail to comply with safety standards. The bill specifically states that any injury would fall under the committee’s workers’ compensation and insurance, and there is no legal recourse against the contractor or site. A representative has only six months to bring an action if reasonable access is willfully denied, for statutory damages of $1,000 and attorney's fees per violation. The bill does not apply to school districts. The bill specifically states that any injury would fall under the committee’s workers’ compensation and insurance, and there is no legal recourse against the contractor or site. A representative has only six months to bring an action if reasonable access is willfully denied, for statutory damages of $1,000 and attorney's fees per violation.

AB 1564 (Arhens) Employer-employee relations: confidential communications. Would have made certain confidential communications between employees and union representatives off limits to employer questioning. CSDA opposed the measure due to its potential impact on certain workplace investigations, and led the successful public employer coalition opposed to the measure.

Below is a selection of other notable Senate Bills that were voted off the Assembly Committee on Appropriations Suspense File:

SB 690 (Caballero) Crimes: invasion of privacy.

SB 1125 (Menjvar) Water Rate Assistance Program.

SB 1203 (Smallwood-Cuevas) Security services.

SB 1312 (Richardson) Cemeteries.

SB 1425 (Cortese) High-Speed Rail Authority: property: operating right-of-way.

Below is a selection of other notable Senate Bills that were held on the Assembly Committee on Appropriations Suspense File, and are therefore dead:

SB 601 (Allen) Water: waste discharge.

SB 1326 (Wahab) California Environmental Quality Act: tribal cultural resources: mitigation measures.

Below is a selection of other notable Assembly Bills that were voted off the Senate Committee on Appropriations Suspense File:

AB 1198 (Haney) Public works: prevailing wages.

AB 1439 (Garcia) Public retirement systems: development projects: labor standards.

AB 1793 (Ward) Cash payments: calculation.

AB 1803 (Lowenthal) Employment: sexual harassment training and education: anti-hate speech training.

AB 1940 (Calderon) Unlawful practices: discrimination: menopause.

AB 1961 (Ahrens) Civil actions: protective orders: workplace violence.

AB 2032 (Ransom) Fish and Wildlife: golden mussels.

AB 2465 (Ortega) State government: benefits.

AB 2739 (Soria) Water: affordability and system stabilization.