Labor.

The California Senate Committee on Budget and Fiscal Review proposes comprehensive changes to state employee disability benefits and retirement funding through legislation that expands benefit eligibility and addresses pension system obligations. The measure extends disability coverage to career executive appointees starting October 1, 2025, requiring claims for disabilities beginning between July and October 2025 to be filed within 41 days of the provision's effective date.

The bill appropriates $584 million from the General Fund to address unfunded liabilities in the Public Employees' Retirement System, with specific allocations across member categories: $274 million for state miscellaneous members, $16.2 million for industrial members, $32.2 million for safety members, and $261.7 million for peace officer/firefighter members. The Department of Finance will coordinate with the State Controller to establish the timing of fund transfers.

For construction work on the Golden Gate Bridge Suspension Bridge Seismic Retrofit Project, contracts awarded between January 1 and December 31, 2025, must comply with lead safety standards in effect as of December 31, 2024. The measure also modifies workers' compensation fraud prevention mechanisms, requiring the Fraud Division to investigate reported incidents and forward evidence to disciplinary bodies. A seven-member Fraud Assessment Commission will oversee funding for enhanced fraud investigation and prosecution through employer assessments.

The legislation establishes and modifies several special funds, including the Workers' Compensation Administration Revolving Fund, implementing surcharges on employers while setting revenue caps to manage fiscal impact. These funds maintain dedicated resources for specific workers' compensation programs and fraud prevention efforts, with regulations governing surcharge collection exempt from standard Administrative Procedure Act requirements.