Labor.

The California Assembly Committee on Budget proposes comprehensive changes to state employee benefits and pension funding while strengthening workers' compensation enforcement mechanisms. The legislation expands disability benefit eligibility to career executive employees starting October 2025 and appropriates $584 million to address unfunded liabilities in the Public Employees' Retirement System, with specific allocations across various state employee categories.

The bill establishes dedicated funding streams for workers' compensation programs through employer assessments and surcharges. These revenues will support fraud investigation and prosecution, benefits for employees of uninsured employers, and assistance for workers with previous disabilities. The measure requires the Fraud Assessment Commission to determine annual assessment amounts, with 40 percent directed to the Department of Insurance Fraud Division and 40 percent to district attorneys for enforcement activities.

For the Golden Gate Bridge Suspension Bridge Seismic Retrofit Project, the legislation maintains existing lead safety standards from 2024 for construction contracts awarded in 2025. The bill creates several special funds, including the Workers' Compensation Administration Revolving Fund and the Occupational Safety and Health Fund, each with specific purposes and funding mechanisms. These funds operate through employer surcharges calculated as percentages of payroll or indemnity payments, with amounts capped to prevent excessive burden on employers.