Late-Night Votes and Last-Minute Deals: What the End of Session Means for Counties 

After many late nights and one final sprint to the finish, we write today with an update of major actions from Sacramento for the end of the 2025–2026 Legislative Session. 

The Legislature completed its business on Tuesday, September 1 – one day later than the constitutional legislative deadline of Monday, August 31.  You may ask: “How were they able to extend a constitutional deadline?” The answer: By adding urgency clauses to a few bills, including a budget bill and one on wildfire liability. Adding urgency clauses also changed the vote threshold for passage from majority to two-thirds.  

Lawmakers and CSAC staff worked late into the evenings during the last two weeks approaching this final deadline to determine the fate of hundreds of bills. 

End-Of-Session Events and Actions Significant for Counties:  

Utility-Caused Fires 

The Governor released a proposal on wildfire liability in early August, approximately one month before the end of the legislative session.  This initial proposal shifted wildfire liability costs from investor-owned utilities to local governments and insurers.   

After weeks of deliberations and several different proposals from the Legislature and Administration, the negotiations went well past the eleventh hour and resulted in a three-party agreement with the Assembly, the Senate and the Governor.  This agreement was amended into SB 492 (Becker), with an urgency clause at 7:26 am on Saturday, August 29^th. Included in the three-party deal were several provisions related to wildfire prevention including the creation of standards for a statewide data sharing platform and requiring a comprehensive five-year statewide community prevention and preparedness strategy.  However, what is most important for local governments is that this deal did not limit public entity recovery, nor did it eliminate insurance subrogation as originally proposed by the Governor.    

SB 492 also created the California Wildfire Relief Fast-Pay Program and allowed for bonds to be paid by ratepayers to support the Wildfire (Continuation) Fund. It prohibited insurers from selling subrogation rights to third parties, and wildfire claims from being sold to private equity. For utilities, SB 492 included executive compensation requirements intended to incentivize safety and wildfire prevention, capping bonuses if the company is responsible for a fire.  While county-level community wildfire protection plans are considered optional, the law did prioritize local assistance grant awards based on each project’s quantifiable return on investment incorporated into a county-level community wildfire protection plan. 

Outcome. SB 492 was eligible to be taken up by the Assembly today – September 1, after 7:26am.  However, the measure was never taken up by the Assembly because it did not have the two-thirds vote necessary for passage and therefore failed this legislative session. 

Speaker Robert Rivas made the following statement: “Over the past several weeks, we have spent hundreds of hours at the table with Californians from every side of this fight, and the verdict is clear: The proposal before us does not yet deliver the relief, accountability or meaningful reform that Californians deserve. So, we are going back to work — and we will not stop until we have done everything in our power to deliver real results.” 

It remains to be seen whether the Legislature will revisit this issue later this fall or during the next legislative session, which begins in December.  CSAC will continue to work with its coalition partners – Cal Cities, RCRC, insurers and attorneys – as this process unfolds and update all of you as issues arise.    

CSAC Position: Neutral  

Greenhouse Gas Reduction Fund (GGRF) 

SB 193 (Committee on Budget and Fiscal Review) includes an updated tiered expenditure plan for the auction revenues from the State’s Cap-and-Invest Program. Beginning in 2027-28, the funds will be allocated annually in the following priority:

Restoring Wage Parity for Goat Herders 

AB 187 (Committee on Budget) includes a temporary, two-year restoration to sheep and goat herder wage parity and worker protections which expired on July 1, 2026, among other provisions. SB 143 (Chapter 196, Statutes of 2023) amended the Labor Code to clarify that the same minimum monthly wage and labor protections for sheep herders should apply to goat herders. However, SB 143 also included a sunset provision that terminated this parity on July 1, 2026, and directed the Department of Industrial Relations to report to the Legislature on the employment of sheep and goat herders. The Report found that “Stakeholders [ranchers, herders, and worker advocates] agreed that the same alternative minimum monthly wage should apply to sheep and goat herders because the workers and work are similar and often overlap.”  

AB 187 restores parity between the wages of sheep and goat herders until January 1, 2029, and ensures the continuing availability of goats for wildfire fuels reduction until that time.  

CSAC Position: Support 

H.R. 1 and Indigent Health Care 

The 2026 Budget Act, enacted in late June, includes $420 million in one-time funding for county eligibility related to the impacts of H.R. 1 and $250 million in grants to support public hospital finances. After adoption of the Budget Act, CSAC and our county affiliates advocated for August budget action to provide an additional $100 million in funding to support county indigent care programs in the current year, as well as technical statutory changes to protect counties from inadvertent redirections of realignment funding. Unfortunately, neither of these items were included in August budget action. CSAC will continue to advocate for full funding for the county impacts of H.R.1 in the legislative session that begins in January 2027. 

AB 218 Liability 

SB 577 (Laird) addresses public agency liability due to AB 218 (Gonzalez, 2019), as well as general liability for cases when public agencies share a small portion of the fault. SB 577 includes provisions heightening evidence and knowledge standards for past claims brought by a claimant above age 40. The bill also improves joint and several liability, limiting public agency liability for economic damages to their share of fault, if their share of fault is fifteen percent or less. The bill also includes a variety of provisions aimed at prevention, including required adoption of assault prevention plans, requirements for recurring mandated reporter training, heightened state oversight and investigations roles, and opens certain personnel records held by the Office of Youth and Community Restoration. 

Pension Costs 

AB 1383 (McKinnor) would increase pension costs by reducing the retirement age for public safety members from age 57 to 55, establish a new bargainable tier of 3% at 55 for public safety members, and increase the pensionable compensation limit for any member who makes more than the current limit. Despite strong opposition from CSAC and other local agency advocate, the bill was passed out of both houses and awaits action by the Governor. Counties are encouraged to submit a veto request to the Governor’s office. A template veto request letter is available here. 

Artificial Intelligence and Automated Decision-Making Systems  

Throughout the 2025-26 session, several bills were introduced that would restrict workplace technology and create significant new liabilities for local governments. Initially, these bills defined AI and ADS so broadly that they captured routine workplace tools, causing significant compliance burdens.  

Near the end of the legislative session, several of these measures were substantially amended to narrow their scope. Notably, amendments to SB 951 (Reyes) removed the requirements for public employers to report a “technological cessation in hiring” along with the associated penalties, leading our coalition to remove its opposition and adopt a neutral position. This bill is awaiting action by the Governor.  

AB 1331 (Elhawary) was substantially narrowed to prohibit the use of specific workplace surveillance tools in bathrooms. CSAC negotiated additional amendments to protect worker privacy and address our remaining security concerns. This bill is awaiting action by the Governor.  

AB 1018 (Bauer-Kahan), which sat dormant most of this year until it suddenly reemerged with amendments on the August 21 deadline, would have continued to impose significant operational and financial burdens on local governments that could hinder the delivery of essential services and discourage the use of tools that can improve access to services and government efficiency. The measure would have imposed costly compliance requirements and a duplicative appeals process. Ultimately, this bill failed to make it out of the Assembly in time for the midnight deadline and died on the floor. Read CSAC’s most recent opposition letter here. 

While these bills represent major successes for counties, CSAC continues to advocate against several remaining AI-related measures that are currently on the Governor’s desk.  

AB 1883 (Bryan) would restrict how public agencies use tools defined as “workplace surveillance tools,” including routine security tools.  Amendments offered by our coalition of local government advocates that would have fully addressed our concerns while preserving the purpose of the bill were not taken. This bill is awaiting action by the Governor. Read CSAC’s veto request letter here.  

AB 2656 (Petrie Norris) would require public employers to provide written notice to employees before developing, purchasing, or requiring the use of any generative AI to perform a service that is within the scope of work of a represented job classification. CSAC has significant concerns regarding the burdensome, costly obligations for local agencies. This bill is awaiting action by the Governor. Read CSAC’s veto request letter here.  

SB 947 (McNerney) is the successor to SB 7 (McNerney) which was vetoed last year. This bill would complicate the routine work of local governments by regulating the use of ADS, which include AI and other routine tools used for every day work when making employment related decisions. This bill is awaiting action by the Governor. Our coalition will submit a letter to the Governor requesting a veto.  

Public Works 

AB 1198 (Haney) would require certain new prevailing wage determinations issued after a public works contract is awarded to apply during the life of the contract. Under current law, when a public works project enters the construction phase any new wage determinations that occur are not required to be applied. This bill would expose public works projects to new and potentially unpredictable costs after the project has been budgeted and bid. CSAC and local government coalition members have submitted a letter to the Governor requesting a veto.   

SB 342 (Umberg) would allow unlicensed contractors on public works projects to sue for compensation. Under current law contractors are prohibited from receiving payment for work performed on public works projects if they lose their license any point during the contract. Current law allows contractors exemptions for incidental lapses, such as for failing to make a timely license renewal payment. Late amendments to this bill undo the protecitions in existing law by essentially allowing unlicensed contractors to recover compensation for work that may have been the reason for the revocation of their licenses. SB 342 would allow contractors whose licenses are revoked by the Contractors State License Board, for such violations as project abandonment, failing to pay workers or suppliers, committing financial fraud, or failing to maintain required workers’ compensation insurance or surety bonds, to be compensated for work prior to the revocation, despite this conduct serving as the basis for revocation. CSAC and local government coalition members have submitted a letter to the Governor requesting a veto. 

SB 935 (Choi) eliminated the sunset on county and city authority to use the Design-Build (DB) procurement process for qualifying public works project; making statutory authority permanent.  

CSAC and other local governments submitted a signature request to the Governor and this bill was chaptered on July 16, 2026. 

Transportation 

Sustainable Aviation Fuel Trailer Bill: In January the Governor proposed a tax credit to incentive the production of sustainable aviation fuel that would have diverted revenues away from the state Local Streets and Roads funding stream that funds maintenance activities on county roads and bridges. Notably, the tax credit was crafted in a way that would have benefited out-of-state SAF producers while reducing California transportation revenues. CSAC, in coalition with CalCities and transportation advocates successfully prevented this proposal from being included in this year’s budget. 

The Work Continues: CSAC Elevates the County Voice  

The CSAC legislative affairs staff remain engaged on a number of these bills that have moved to the Governor’s desk. Governor Newsom has until Wednesday, September 30 to sign or veto legislation. In these critical weeks, CSAC will make requests for the Governor to veto or sign legislation consistent with the best interests of counties.  

Please do not hesitate to contact me or  CSAC legislative staff with questions about specific bills or policy areas.