20250SB__011196CHP INTRODUCED 2025-01-23 AMENDED_ASSEMBLY 2026-06-26 PASSED_ASSEMBLY 2026-06-29 PASSED_SENATE 2026-06-29 ENROLLED 2026-06-29 CHAPTERED 2026-06-29 APPROVED 2026-06-29 FILED 2026-06-29 2025 SB CHP CHP 0 Introduced by Senator Laird LEAD_AUTHOR SENATE Laird

An act to amend the Budget Act of by amending Items 0250-001-0001, 0250-101-0001, 0250-101-0932, 0250-111-0001, 0250-301-0001, 0250-301-0660, 0250-490, 0509-101-0001, 0516-001-0001, 0521-490, 0530-001-0001, 0540-103-0001, 0540-491, 0552-001-0001, 0680-001-0001, 0690-001-0001, 0690-001-0022, 0690-101-0022, 0820-001-0001, 0840-001-0001, 0840-001-0970, 0890-001-0001, 0950-001-0001, 1111-001-0326, 1750-001-3153, 2240-001-0001, 2250-001-0001, 2255-001-0001, 2660-001-0042, 2660-301-3291, 2740-001-0044, 2740-003-0044, 3100-001-0001, 3125-301-0140, 3340-001-0318, 3360-001-3117, 3360-101-0001, 3360-494, 3540-003-0001, 3760-490, 3790-003-0001, 3855-490, 3860-490, 3900-101-0115, 3900-101-3122, 3900-490, 3900-492, 4100-001-0001, 4140-001-0001, 4140-001-0143, 4140-001-0890, 4140-001-3085, 4140-101-0001, 4140-101-0890, 4140-101-3085, 4140-490, 4260-001-0001, 4260-001-0890, 4260-101-0001, 4260-101-0890, 4260-101-3085, 4260-101-3397, 4260-115-3414, 4265-001-0001, 4265-001-3085, 4265-111-0001, 4265-111-3085, 4300-101-0001, 4440-011-0001, 4700-001-6093, 5180-001-0001, 5180-001-0890, 5180-101-0001, 5180-101-0890, 5180-111-0001, 5180-141-0001, 5180-141-0890, 5180-151-0001, 5180-493, 5225-001-0001, 5225-002-0001, 5225-008-0001, 5225-017-0001, 5227-122-0001, 6100-001-0001, 6100-009-0001, 6100-104-0890, 6100-110-0001, 6100-161-0890, 6100-172-0001, 6100-195-0890, 6100-196-0001, 6100-197-0890, 6100-295-0001, 6100-488, 6120-011-0001, 6120-211-0001, 6440-001-0001, 6440-005-0001, 6610-001-0001, 6870-101-0001, 6870-109-0001, 6870-488, 6980-101-0001, 7100-011-0890, 7100-021-0890, 7350-001-3078, 7350-001-3121, 7350-101-3078, 7502-001-0001, 8120-002-0001, 8260-001-0001, 8260-101-0001, 8570-001-0001, 8570-103-0001, 8570-490, 8660-101-0471, 8820-001-0001, 8955-101-0001, 8955-301-3313, 9210-110-0001, and 9286-101-0001 of, repealing Items 2660-103-0042, 4260-101-3414, 4300-490, 7120-101-3078, and 8660-002-0461 of, and adding Items 0511-002-0001, 0540-002-0001, 0650-102-0001, 0680-101-0001, 0690-104-0001, 0890-101-0001, 1111-012-0001, 1750-011-0001, 2240-107-0001, 2245-401, 2660-101-0001, 2740-004-0044, 3100-002-0001, 3600-102-0001, 3640-493, 3720-001-3228, 3790-009-0392, 3820-001-3228, 3900-001-3228, 3900-101-0001, 3900-101-3228, 3900-102-0115, 3900-491, 3940-491, 3970-001-3228, 3980-001-3228, 4260-001-3397, 4260-116-3397, 4700-490, 4700-491, 4700-492, 4700-493, 5180-493, 6051-001-0001, 6100-001-6093, 6100-101-6093, 6100-115-0001, 6100-142-0001, 6100-222-0001, 6100-499, 6120-218-0001, 7120-001-3228, 7120-103-0001, 7760-301-0660, 8570-105-0001, 8570-106-0001, 8955-102-0001, and 9210-103-0001 to,

Section 2.00 of, amending Sections 5.27, 6.40, 12.32, 35.50, 35.55, 39.00, 99.00, and 99.50 of, repealing Sections 13.40 and 15.02 of, and adding Sections 4.12, 4.85, 12.33, and 24.20 to, that act, relating to the state budget, and making an appropriation therefor, to take effect immediately, budget bill. the state budget, and making an appropriation therefor, to take effect immediately, budget bill Budget Act of 2026. The Budget Act of would make appropriations for the support of state government for the 2026–27 fiscal year.

This bill would amend the Budget Act of by amending, adding, and repealing items of appropriation and making other changes. This bill would declare that it is to take effect immediately as a Budget Bill. MAJORITY YES YES NO YES NO NO NO NO YES NO The people of the State of California do enact as follows:

SECTION 1. Item 0250-001-0001 of

Section 2.00 of the Budget Act of is amended to read: 0250-001-0001 —For support of Judicial Branch 884,396,000 Schedule: (1) 0130-Supreme Court 55,616,000 (2) 0135-Courts of Appeal 297,042,000 (3) 0140-Judicial Council 521,734,000 (4) 0155-Habeas Corpus Resource Center 18,575,000

(5) Reimbursements to 0140-Judicial Council −8,371,000

(6) Reimbursements to 0135-Courts of Appeal −200,000 Provisions: 1. Of the funds appropriated in this item, $5,800,000 is available for the defense and indemnity of the Judicial Council, the appellate courts, the trial courts, and the officers, judicial officers, and employees of these entities, including government claims, litigation-related matters, labor- and employment-related matters, and matters requiring specialized legal advice.

The funds may be used for prelitigation and litigation fees, and costs from the Attorney General or other outside legal counsel, fees for legal advice in specialized areas of law, and any judgment, stipulated judgment, offer of judgment, or settlement. This amount is for use in connection with the following matters: (

a) matters arising from the actions of appellate courts, appellate court judicial officers, appellate court employees, or court contractors, (

b) matters arising from the actions of the Judicial Council, council members, council employees or agents, or Judicial Council contractors, and (

c) matters arising from the actions of trial courts, trial court judicial officers, trial court employees, or court contractors. The Judicial Council, an appellate court, or trial court, or an officer, judicial officer, or employee of these entities, must be named as a defendant or alleged to be the responsible party, or be the responsible party pursuant to a contractual provision, memorandum of understanding, or intrabranch agreement. Any funds not used for this purpose shall revert to the General Fund. The amount allocated shall be available for encumbrance or expenditure until June 30, 2028. 2.

Notwithstanding any other law, upon approval and order of the Department of Finance, the amount appropriated in this item shall be reduced by the amount transferred in Item 0250-011-0001 to provide adequate resources to the Judicial Branch Workers’ Compensation Fund to pay workers’ compensation claims for judicial branch employees and justices, and administrative costs pursuant to

Section 68114.10 of the Government Code. 3. Of the funds appropriated in

Schedule (2), $82,486,000 is available for the Court-Appointed Counsel Program and shall be used solely for that program. Any funds for the program not expended by June 30, 2027, shall revert to the General Fund. 4. Of the amount appropriated in this item, up to $325,000 is available to reimburse the California State Auditor for the costs of audits incurred by the California State Auditor pursuant to subdivision (

c) of

Section of the Public Contract Code. 5. Of the funds appropriated in

Schedule (3), $1,500,000 shall be available for administrative costs related to the management and claiming of federal reimbursements for court-appointed dependency counsel. To the extent these administrative costs are able to be reimbursed, any excess funding shall revert to the General Fund. 6. Of the amount appropriated in

Schedule (3), $1,050,000 shall be retained by the Judicial Council for costs associated with implementing, supporting, and evaluating pretrial programs in courts, including, but not limited to: (

a) Providing technical assistance to courts on practices and programs related to pretrial decisionmaking. (

b) Providing judicial education. (

c) Evaluating pretrial programs and practices through this program. (

d) Providing administrative services on programs related to pretrial decisionmaking. 7. Of the amount appropriated in

Schedule (3), $866,000 shall be distributed by the Judicial Council to the Legal Services Trust Fund Commission of the State Bar of California for administrative costs related to allocating resources for legal services to implement the Community Assistance, Recovery, and Empowerment Act (Part 8 (commencing with

Section 5970) of Division of the Welfare and Institutions Code). The commission shall coordinate with the Judicial Council to ensure that the commission collects and reports the data necessary for the Judicial Council to comply with all Community Assistance, Recovery, and Empowerment Act reporting requirements. (

a) The Legal Services Trust Fund Commission shall be responsible for collecting outcome data from each county’s public defender office, qualified legal services projects, and support centers. The State Bar of California shall annually provide to the Judicial Council a report that includes funding allocations, annual expenditures, and program outcomes by service area and service provider.

Data shall be reported using the reporting framework developed by the Legal Services Trust Fund Commission in consultation with the Judicial Council to ensure that data reporting is consistent and comparable across Judicial Council and Legal Services Trust Fund Commission data. The Judicial Council shall include this report in the annual report pursuant to

Section of the Welfare and Institutions Code. 8. Of the amount appropriated in

Schedule (3), $150,000,000 shall be expended to address deferred maintenance projects that represent critical infrastructure deficiencies. The amount allocated shall be available for encumbrance or expenditure until June 30, 2029. 9. Of the amount appropriated in

Schedule (3), $98,376,000 shall be expended to address facility modifications to accommodate new superior court judgeships. The amount allocated shall be available for encumbrance or expenditure until June 30, 2029.

SEC. 2. Item 0250-101-0001 of

Section 2.00 of the Budget Act of is amended to read: 0250-101-0001 —For local assistance, Judicial Branch 179,338,000 Schedule: (1) 0150010-Support for Operation of Trial Courts 87,501,000 (2) 0150051-Child Support Commissioner Program (AB 1058) 59,082,000 (3) 0150055-California Collaborative and Drug Court Projects 5,748,000 (4) 0150075-Grants—​Other 2,550,000 (5) 0150083-Equal Access Fund 90,677,000

(6) Reimbursements to 0150051-Child Support Commissioner Program (AB 1058) −59,082,000

(7) Reimbursements to 0150055-California Collaborative and Drug Court Projects −4,588,000

(8) Reimbursements to 0150075-Grants—​Other −2,550,000 Provisions: 1. In order to improve equal access and the fair administration of justice, $59,392,000 of the funds appropriated in

Schedule (5) are to be distributed by the Judicial Council through the Legal Services Trust Fund Commission to qualified legal services projects and support centers as defined in Sections to 6215, inclusive, of the Business and Professions Code, to be used for legal services in civil matters for indigent persons. The Judicial Council shall approve awards made by the commission if the council determines that the awards comply with statutory and other relevant guidelines.

Up to percent of the funds appropriated for purposes of this provision shall be for joint projects of courts and legal services programs to make legal assistance available to pro per litigants and not less than percent of the funds appropriated for purposes of this provision shall be distributed consistent with Sections to 6223, inclusive, of the Business and Professions Code. Any funding not allocated for joint projects shall be redistributed consistent with Sections to 6223, inclusive, of the Business and Professions Code.

The Judicial Council may establish additional reporting or quality control requirements consistent with Sections to 6223, inclusive, of the Business and Professions Code. Of the amount appropriated for purposes of this provision, not more than 2.5 percent shall be available, upon order of the Department of Finance, for administrative costs of the Judicial Council and the State Bar. 1.5. Funds appropriated under Provision shall not be used for legal services defending a person against removal from the United States consistent with the restrictions set forth in paragraph of subdivision (

b) of

Section of the Welfare and Institutions Code. 2. In order to improve equal access and the fair administration of justice, $10,250,000 shall be appropriated in

Schedule (5) by the Judicial Council to the California Access to Justice Commission for grants to civil legal aid nonprofits, including qualified legal services projects and qualified support centers as defined in Sections to 6215, inclusive, of the Business and Professions Code, to be used to support the infrastructure and innovation needs of legal services in civil matters for indigent persons. Of this amount, not more than percent shall be available for administrative costs of the California Access to Justice Commission associated with distributing and monitoring the grants. 3.

The California Access to Justice Commission shall make award determinations for grants described in Provision 2. In awarding these grants, preference shall be given to qualified legal aid agencies’ proposals that focus on services to rural or underserved immigrant communities regardless of citizenship status and proposals that are innovative or that involve partnership with community-based nonprofits. Any funding not allocated in a given fiscal year shall be reallocated pursuant to Provision 1. 4.

The grant process described in Provision shall ensure that any qualified legal service project and qualified support center demonstrates a high need for infrastructure and innovation to ensure that funding is distributed equitably among qualified legal service projects and support centers. The qualified legal service project or support center shall demonstrate that funds received under this provision will not be used to supplant existing resources. 5. The funds described in Provisions and are available for encumbrance or expenditure until June 30, 2028. 6. The amount appropriated in

Schedule (1) is available for reimbursement of court costs related to the following activities: (

a) payment of service of process fees billed to the trial courts pursuant to

Chapter of the Statutes of 2002, (

b) payment of the court costs payable under Sections to 4755, inclusive, and

Section of the Penal Code, and (

c) payment of court costs of extraordinary homicide trials. 7. Of the amount appropriated in

Schedule (1), $68,950,000 shall be allocated to the Judicial Council to fund local assistance to each superior court based on each county’s relative proportion of the state population that is through years of age. These resources may be used for the following: (

a) Costs associated with judicial officer pretrial release decisions prior to or at arraignment. (

b) Costs for technology to facilitate information exchange and process automation between courts and county departments. (

c) Costs for implementation and improvement of court date reminder programs. (

d) Costs associated with assessments of defendants’ ability to pay a financial condition in cases where the court determines that such a condition is necessary to ensure public safety and return to court. (

e) Costs associated with providing services to and monitoring of individuals released pretrial. The pretrial services agencies shall implement evidence-based monitoring practices of defendants released prearraignment and pretrial with the least restrictive interventions and practices necessary to enhance public safety and ensure the defendants’ return to court. Electronic monitoring that is funded under this program may only be used in limited cases after other less restrictive interventions are deemed insufficient to enhance public safety and to ensure the defendants return to court. (

f) Other programs and practices related to pretrial decisionmaking that address public safety, appearance in court, and the efficient and fair administration of justice. (

g) Costs associated with providing services to and monitoring individuals subject to felonies pursuant to

Section of the Health and Safety Code or subdivision (

b) of

Section 666.1 of the Penal Code. 8. Courts shall contract with any county department, including county probation departments, to provide pretrial services, except those departments or agencies that have primary responsibility for making arrests or prosecuting criminal offenses. 9. The Superior Court of California, County of Santa Clara, may contract with the Office of Pretrial Services in that county.

The Superior Court of California, County of San Francisco, may contract with the Sheriff’s Office and the existing not-for-profit entity that is performing pretrial services in the city and county for pretrial assessment and supervision services. 10. The county department with which the court has contracted is not precluded from contracting with community-based organizations to provide complementary or supportive services in furtherance of the county department’s pretrial release services if all of the following conditions have been satisfied: (

a) The contractor adheres to the same transparency, accountability, and outcome measure standards that apply to county probation departments. (

b) The contractor has a proven record of providing culturally competent and responsive rehabilitative services. (

c) The contract will not result in the displacement of county employees or a reduction in the provision of services by county probation department employees. (

d) The contractor pays wages and benefits to its nonsupervisory employees that are commensurate with or greater than the wages and benefits paid to public employees in similar job classifications. (

e) The contractor does not pay wages and benefits to its most highly compensated executive and managerial employees that are significantly higher than the rates that would be paid to public employees performing similar job duties. (

f) The county has consulted with the court prior to entering into a contract for the provision of these services. 11. Of the amount allocated in Provision 7, superior courts may retain up to percent of the funding for costs associated with these programs and practices. The superior courts shall contract with a county department as described in Provision and shall provide the county department with the remainder of the funds to be used for costs outlined in Provision 10, as appropriate. 12.

To receive the funding allocated in Provision 7, courts and county departments and their contractors shall collaborate with local justice system partners in reporting to the Judicial Council on pretrial programs and practices, including information on expenditure of funds, as required by the Judicial Council, for evaluation of the programs and practices. 12.5. The Judicial Council may reallocate unspent funds from counties to other counties with demonstrated needs. 13.

The Judicial Council shall provide an annual report to the Legislature providing an evaluation of pretrial programs and practices, and shall include any changes made to the pretrial allocation. 14. Of the funds appropriated in this item, $15,750,000 is available for legal services to implement the Community Assistance, Recovery, and Empowerment (CARE) Act (Part 8 (commencing with

Section 5970) of Division of the Welfare and Institutions Code), and shall be distributed by the Judicial Council through the Legal Services Trust Fund Commission of the State Bar of California as grants to qualified legal services projects, as defined in Sections to 6215, inclusive, of the Business and Professions Code, to provide legal counsel pursuant to subdivision (

c) of

Section of the Welfare and Institutions Code for representation in CARE Act proceedings, matters related to CARE agreements, and CARE plans by July 1, 2026. Funds shall be available for encumbrance or expenditure by qualified legal services projects and public defender offices until January 1, 2028. As a condition of receiving these funds, recipients are required to comply with Judicial Council or Legal Services Trust Fund Commission directions on the collection and reporting of data necessary for the Judicial Council to comply with all CARE Act reporting requirements specified in Item 0250-001-0001. (

a) Notwithstanding the competitive nature of these grants, the Legal Services Trust Fund Commission shall use a formula to determine the amount of funding to provide representation in CARE Act proceedings, matters related to CARE agreements, and CARE plans in each county. (

b) These grants are to serve counties described in subdivisions (

a) and (

b) of

Section 5970.5 of the Welfare and Institutions Code. The Legal Services Trust Fund Commission shall provide any funds not awarded to qualified legal services projects for representation in CARE Act proceedings, matters related to CARE agreements, and CARE plans in each county to that county’s public defender office, public defender services shared with another county, or organization providing public defender services to the county to provide those services. (c)

(1) The Legal Services Trust Fund Commission of the State Bar shall provide funds to qualified legal services projects that received three-year awards pursuant to the Budget Act of 2025 (Chs. 4 and 5, Stats. 2025) to provide legal counsel pursuant to subdivision (

c) of

Section of the Welfare and Institutions Code.

(2) If Budget Act of funds were provided to a county for public defender services, an associated funding commitment was also provided for a three-year period. If a county receives funding for public defender services according to this item, the county’s proportional share of overall funding for legal counsel in the county pursuant to subdivision (

c) of

Section of the Welfare and Institutions Code, shall not be reduced by more than percent at the next three-year funding cycle.

(3) In fiscal year 2026–27, neither a qualified legal services project nor a county for public defender services shall have their proportional share of overall funding for legal counsel in the county, pursuant to subdivision (

c) of

Section of the Welfare and Institutions Code, be reduced by more than percent compared to the 2025–26 fiscal year, unless the qualified legal services project does not apply. 15. Of the funds appropriated in

Schedule (5), up to $788,000 is available to provide legal training and technical assistance related to the implementation of the CARE Act. These funds shall be distributed by the Judicial Council through the Legal Services Trust Fund Commission of the State Bar of California by December 1, 2026, as grants to qualified support centers, as defined in Sections to 6215, inclusive, of the Business and Professions Code, or other entities that have expertise in providing legal training and technical assistance to legal aid providers or public defenders.

The Legal Services Trust Fund Commission shall provide any funds not awarded for legal training and technical assistance related to the implementation of the CARE Act to qualified legal services projects and public defender offices to provide legal counsel pursuant to subdivision (

c) of

Section of the Welfare and Institutions Code for representation in CARE Act proceedings, matters related to CARE agreements, and CARE plans by December 1, 2026. Funds under this provision shall be available for encumbrance or expenditure by recipients until January 1, 2028. 16. If any funds in Provision remain after grants are awarded, upon order of the Department of Finance, up to $275,000 shall be transferred to Item 8140-001-0001 for the State Public Defender to provide legal training and technical assistance to legal aid providers or public defenders. 17. Of the funds appropriated in

Schedule (1), $10,000,000 is available for the continued implementation of Proposition 36 (2024), the Homelessness, Drug Addiction, and Theft Reduction Act. Of this amount, at least $9,500,000 shall be distributed to the trial courts, with allocations determined by the Judicial Council, but with at least percent of the funding allocated based on each trial court’s share of nontraffic misdemeanor and felony filings in the 2024–25 fiscal year. 17.1.

The funding allocated in Provision shall be used to address increased workload and expanding or establishing collaborative courts for the implementation of Proposition 36 (2024). 17.2. Courts shall collaborate with county departments and treatment providers to ensure maximum federal financial participation for eligible services. 17.3. The funding allocated in Provision shall be available for both state operations and local assistance and shall be available for expenditure or encumbrance until June 30, 2029. Any unspent funds shall revert to the General Fund. 17.4.

The Judicial Council, in collaboration with the State Department of Health Care Services, shall provide to the Legislature no later than March 1, 2027, an annual report of Proposition implementation during the prior calendar year until all funds are spent. This report shall include the following, by county: specific allocations made to individual trial courts, a

summary of how trial courts are using the funding, and the number of people served by trial court by criminal charge. For the number of people served by each trial court, key outcome and demographic data shall also be reported including, but not limited to, the following: (

a) The number of cases charged that included a violation of a treatment-mandated felony pursuant to

Section of the Health and Safety Code. (

b) The number of cases described in subprovision (

a) in which it is alleged that the defendant had previously been charged with a violation of a treatment-mandated felony pursuant to

Section of the Health and Safety Code, and whether the defendant:

(1) Did not agree to participate in a treatment program and was convicted of a treatment-mandated felony pursuant to

Section of the Health and Safety Code or another charge in the same indictment, complaint, or information.

(2) Agreed to participate in a treatment program, and: (

i) successfully completed the treatment program and had the charge dismissed pursuant to paragraph (3) of subdivision (

d) of

Section of the Health and Safety Code, (ii) was participating in a treatment program at the time they allegedly committed a treatment-mandated felony pursuant to

Section of the Health and Safety Code, or (iii) did not successfully complete a treatment program and sustained a conviction of a treatment-mandated felony pursuant to

Section of the Health and Safety Code. (

c) The number of cases described in subprovision (

a) in which the defendant elected treatment by pleading guilty or no contest to a violation agreeing to participate in, and complete, a detailed treatment program developed by a drug addiction expert and approved by the court, pursuant to subparagraph (

A) of paragraph (1) of subdivision (

d) of

Section of the Health and Safety Code. (

d) The number of cases described in subprovision (

a) in which the court ordered a drug addiction expert to conduct a substance abuse and mental health evaluation of the defendant pursuant to subparagraph (

B) of paragraph (1) of subdivision (

d) of

Section of the Health and Safety Code. (

e) The number of cases described in subprovision (

a) in which an expert submitted a report of the evaluation to the court and the parties. (

f) The number of cases described in subprovision (

a) in which the court ordered that a case worker or other qualified individual determine whether the defendant was eligible to receive Medi-Cal, Medicare, or any other relevant benefits for any programs or evaluations, pursuant to subparagraph (

C) of paragraph (1) of subdivision (

d) of

Section of the Health and Safety Code. (

g) The number of cases described in subprovision (

a) in which the defendant entered into drug treatment but not mental health treatment. (

h) The number of cases described in subprovision (

a) in which the defendant entered into mental health treatment but not drug treatment. (

i) The number of cases described in subprovision (

a) in which the defendant entered into drug treatment and mental health treatment. (

j) The number of cases described in subprovision (

a) in which the defendant was ordered to receive job training. (

k) The number of cases described in subprovision (

a) in which the defendant successfully completed the treatment program and received the positive recommendation of the treatment program pursuant to paragraph (3) of subdivision (

d) of

Section of the Health and Safety Code. (

l) The number of cases described in subprovision (

a) in which the defendant successfully completed the treatment program, received the positive recommendation of the treatment program, and the court subsequently dismissed the charge pursuant to paragraph (3) of subdivision (

d) of

Section of the Health and Safety Code. (

m) The number of cases described in subprovision (

a) in which the defendant is currently undergoing treatment at the time data is submitted to the Judicial Council. (

n) The number of cases described in subprovision (

a) in which the prosecuting attorney, the court, or the probation department moves for entry of judgment and sentencing and whether that motion was based on the defendant performing unsatisfactorily in the program, not benefiting from treatment, not being amenable to treatment, refusing treatment, or having been convicted of a crime. (

o) The number of cases described in subprovision (

a) for which judgment was imposed and the defendant was sentenced because the court found true one or more of the circumstances described in subprovision (n). (

p) Demographic data as available including, at a minimum: race, gender, age, and housing status for reporting pursuant to subprovisions (

a) to (o), inclusive. 17.5. Trial courts receiving an allocation described in Provision shall provide all necessary court information described in Provision 17.4 to the Judicial Council by January 15, 2027. 18. Of the amount appropriated in

Schedule 5, $750,000 is available for assisting legal aid staff eligible for Public Service Loan Forgiveness as of January 1, 2026, but are no longer eligible due to their work representing immigrants or marginalized communities. The remainder is available for program administration, and if funding remains, for other purposes specified in

Section of the Government Code, and shall be available until June 30, 2030. 19. Of the amount appropriated in this item, $3,500,000 shall be available to public defenders to increase CARE Act petitions and referrals. These funds shall be distributed by the Judicial Council through the Legal Services Trust Fund Commission of the State Bar of California. Funds under this provision shall be available for encumbrance or expenditure until June 30, 2028.

SEC. 3. Item 0250-101-0932 of

Section 2.00 of the Budget Act of is amended to read: 0250-101-0932 —For local assistance, Judicial Branch, payable from the Trial Court Trust Fund 3,569,271,000 Schedule: (1) 0150010-Support for Operation of Trial Courts 2,859,338,000 (2) 0150019-Compensation of Superior Court Judges 468,276,000 (3) 0150028-Assigned Judges 32,519,000 (4) 0150037-Court Interpreters 155,473,000 (5) 0150067-Court Appointed Special Advocate (CASA) program 22,713,000 (6) 0150071-Model Self-Help Program 957,000 (7) 0150083-Equal Access Fund 5,482,000 (8) 0150087-Family Law Information Centers 345,000 (9) 0150091-Civil Case Coordination 832,000 (10) 0150095-Expenses on Behalf of the Trial Courts 23,337,000

(11) Reimbursements to 0150010-Support for Operation of Trial Courts −1,000 Provisions: 1. Of the funds appropriated in

Schedule (1), $25,300,000 shall be available for support of services for self-represented litigants, and any unexpended funds shall revert to the General Fund. 2. The funds appropriated in

Schedule (2) shall be made available for costs of the workers’ compensation program for trial court judges. 3. The amount appropriated in

Schedule (3) shall be made available for all judicial assignments.

Schedule (3) expenditures for necessary support staff shall not exceed the staffing level that is necessary to support the equivalent of three judicial officers sitting on assignments. Prior to utilizing funds appropriated in

Schedule (3), trial courts shall maximize the use of judicial officers who may be available due to reductions in court services or court closures. 4. Upon order of the Department of Finance, the amount available for expenditure in this item may be augmented by the amount of any additional resources available in the Trial Court Trust Fund, which is in addition to the amount appropriated in this item.

Any augmentation shall be approved in joint determination with the Chairperson of the Joint Legislative Budget Committee and shall be authorized not sooner than days after notification in writing to the chairpersons of the committees in each house of the Legislature that consider appropriations, the chairpersons of the committees and appropriate subcommittees that consider the State Budget, and the chairperson of the joint committee, or not sooner than whatever lesser time the chairperson of the joint committee, or the chairperson’s designee, may determine.

When a request to augment this item is submitted to the Director of Finance, a copy of that request shall be delivered to the chairpersons of the committees and appropriate subcommittees that consider the State Budget. Delivery of a copy of that request shall not be deemed to be notification in writing for purposes of this provision. 5.

Notwithstanding any other law, upon approval and order of the Department of Finance, the amount appropriated in this item shall be reduced by the amount transferred in Item 0250-115-0932 to provide adequate resources to the Judicial Branch Workers’ Compensation Fund to pay workers’ compensation claims for judicial branch employees and judges, and administrative costs pursuant to

Section 68114.10 of the Government Code. 6. In order to improve equal access and the fair administration of justice, the funds appropriated in

Schedule (7) are available for distribution by the Judicial Council through the Legal Services Trust Fund Commission in support of the Equal Access Fund program to qualified legal services projects and support centers as defined in Sections to 6215, inclusive, of the Business and Professions Code, to be used for legal services in civil matters for indigent persons. The Judicial Council shall approve awards made by the commission if the council determines that the awards comply with statutory and other relevant guidelines. Upon approval by the Administrative Director of the Courts, the Controller shall transfer up to percent of the funding appropriated in

Schedule (7) to Item 0250-001-0932 for administrative expenses. Ten percent of the funds remaining after administrative costs shall be for joint projects of courts and legal services programs to make legal assistance available to pro per litigants and percent of the funds remaining after administrative costs shall be distributed, consistent with Sections to 6223, inclusive, of the Business and Professions Code. The Judicial Council may establish additional reporting or quality control requirements, consistent with Sections to 6223, inclusive, of the Business and Professions Code. 7. Funds available for expenditure in

Schedule (7) may be augmented by order of the Department of Finance by the amount of any additional resources deposited for distribution to the Equal Access Fund program in accordance with Sections 68085.3 and 68085.4 of the Government Code.

Any augmentation under this provision shall be authorized not sooner than days after notification in writing to the chairpersons of the committees in each house of the Legislature that consider appropriations, the chairpersons of the committees and appropriate subcommittees that consider the State Budget, and the Chairperson of the Joint Legislative Budget Committee, or not sooner than whatever lesser time the chairperson of the joint committee, or the chairperson’s designee, may determine. 7.5. Funds appropriated under

Schedule (7) shall not be used for legal services defending a person against removal from the United States consistent with the restrictions set forth in paragraph of subdivision (

b) of

Section of the Welfare and Institutions Code. 8. Sixteen (16.0) subordinate judicial officer positions are authorized to be converted to judgeships in the 2026–27 fiscal year in the manner and pursuant to the authority described in subparagraph (

B) of paragraph (1) of subdivision (

c) of

Section of the Government Code, as described in the notice filed by the Judicial Council under subparagraph (

B) of paragraph (3) of subdivision (

c) of

Section of the Government Code. 9. Notwithstanding any other law, and upon approval of the Department of Finance, the amount available for expenditure in

Schedule (1) may be increased by the amount of any additional resources collected for the recovery of costs for court-appointed dependency counsel services. 10. Upon approval of the Administrative Director of the Courts, the Controller shall transfer up to $556,000 to Item 0250-001-0932 for administrative services provided to the trial courts in support of the court-appointed dependency counsel program. 11. Of the amounts appropriated in

Schedule (1), $325,000 shall be allocated by the Judicial Council in order to reimburse the California State Auditor for the costs of trial court audits incurred by the California State Auditor pursuant to

Section of the Public Contract Code. 12. Upon approval of the Administrative Director of the Courts, the Controller shall transfer up to $500,000 of the funding appropriated in

Schedule (10) of this item to

Schedule (1) of Item 0250-001-0932 for administrative services provided by the Judicial Council to implement and administer the civil representation pilot program. 13. Upon approval of the Administrative Director of the Courts, the amount available for expenditure in

Schedule (10) may be augmented by the amount of resources collected to support the implementation and administration of the civil representation pilot program. 14. Of the amount appropriated in this item, up to $1,925,000 is available to reimburse the Controller for the costs of audits incurred by the Controller. 15. Upon order of the Department of Finance, the amount available for expenditure in Schedules (1) and (4) may be augmented by an amount sufficient to fund trial court employee benefit increases in the 2026–27 fiscal year. 16. Notwithstanding any other law, and upon approval of the Department of Finance, the amount available for expenditure in

Schedule (10) may be increased by the amount of any additional resources collected to support programs pursuant to the Sargent Shriver Civil Counsel Act (Chapter 2.1 (commencing with

Section 68650) of Title of the Government Code). 17. The funds appropriated in

Schedule (4) shall be for payments to contractual court interpreters and certified and registered court interpreters employed by the courts for services provided during court proceedings and other services related to pending court proceedings, including services provided outside a courtroom, and for court interpreter coordinator positions. For the purposes of this provision, “court interpreter coordinators” may be full- or part-time court employees. 18.

The Judicial Council shall set statewide or regional rates and policies for payment of court interpreters, not to exceed the rate paid to certified interpreters in the federal court system. 19. The Judicial Council shall adopt appropriate rules and procedures for the administration of these funds. The Judicial Council shall report to the Legislature and the Department of Finance annually regarding expenditure of the funds appropriated in

Schedule (4). For the 2026–27 and 2027–28 fiscal years, the Judicial Council shall provide additional information to the Legislature and Department of Finance. Specifically, this additional information shall include, but not be limited to, interpreter utilization information, unmet need information, cost-containment measures, recruitment strategies, interpreter staffing and compensation costs, and contractor costs, as determined by the Judicial Council. The trial courts shall provide the additional information necessary to complete this report in a manner prescribed by the Judicial Council. 20. Of the funds appropriated in

Schedule (1), $7,000,000 shall be available for the Judicial Council to establish a methodology to allocate a share of resources to all courts to cover the costs associated with the increased transcript rates. 22. Of the amount appropriated in

Schedule (1), $30,000,000 shall be allocated by the Judicial Council in a manner that ensures all courts are allocated funds to be utilized to increase the number of official court reporters in family and civil law cases. This funding may be used for recruitment and retention purposes, filling existing vacancies, converting part-time positions to full-time positions, increasing salary schedules, and providing signing and retention bonuses to enable trial courts to compete with private employers in the labor market.

This funding shall not supplant existing trial court expenditures on court reports in family law and civil law cases. Any unspent funds shall revert to the General Fund. 23. Of the funds appropriated in

Schedule (1), $32,884,000 is available for the implementation of the Community Assistance, Recovery, and Empowerment (CARE) Act. 25. The Judicial Council shall provide a report to the relevant budget subcommittees of the Legislature in each house, the Joint Legislative Budget Committee, and the Legislative Analyst’s Office by January 10, 2028, assessing strategies to reduce and contain court interpreter costs.

In addition to any other cost containment and reduction strategies identified by Judicial Council, the council shall assess potential strategies to increase recruitment and retention of civil servant court interpreters, including, but not limited to, creating a pool of remote civil service interpreters, targeted recruitment of court interpreters from public and private college and university language programs, and the creation of court interpreter training programs at the California Community Colleges, the California State University, and/or the University of California.

This information can be submitted as part of the annual report on expenditures on court interpreter services required by Provision of Item 0250-101-0932 of the Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023). 26. Of the amount appropriated in

Schedule (1), $1,519,000 shall be expended to accommodate new superior court judgeships, as authorized by

Chapter 482, Statutes of 2023. 27. The Department of Finance may authorize transfer of expenditure authority for the funding referenced in Provision between this item and any other item of appropriation to support facility modification projects to accommodate the new judgeships funded by this item.

Any transfer shall authorized not sooner than days after notification in writing to the chairpersons of the committees in each house of the Legislature that consider the State Budget, the chairpersons of the committees and appropriate subcommittees in each house of the Legislature that consider appropriations, and Chairperson of the Joint Legislative Budget Committee, or not sooner than whatever lesser time after that notification the chairperson of the joint committee, or the chairperson’s designee, may determine. 28. Of the amount appropriated in

Schedule (5), $16,000,000 shall be allocated to the California Court Appointed Special Advocate Association to provide funding to the local court-appointed special advocate (CASA) programs to expand capacity, recruitment, and training and to stabilize local budgets and staffing. 29. Of the amount appropriated in

Schedule (5), $4,000,000 shall be allocated to the California Court Appointed Special Advocate Association to be used statewide for volunteer recruitment initiatives, shared resources and infrastructure, development of statewide training curriculum, collection of data on program implementation and outcomes to support the report to the Legislature, and other uses to expand court-appointed special advocate (CASA) services in the state. 30. Of the amount appropriated in

Schedule (5), $20,000,000 shall be available for expenditure for an encumbrance period of two years, ending June 30, 2028. 31. The Judicial Council shall annually report to the Legislature on the court-appointed special advocate (CASA) program implementation and outcomes. The initial report shall be due on July 1, 2027, and shall describe funding allocations and program development. 32. Upon approval by the Administrative Director of the Judicial Council, the Controller shall transfer up to $100,000 appropriated in

Schedule (5) to Item 0250-001-0001 for administrative costs of the Judicial Council for implementing development of the programs described in Provisions and 29.

SEC. 4. Item 0250-111-0001 of

Section 2.00 of the Budget Act of is amended to read: 0250-111-0001 —For transfer by the Controller to the Trial Court Trust Fund 2,102,127,000 Provisions: 1. Upon order of the Department of Finance, the amount available for transfer in this item may be increased by an amount sufficient to fund trial court employee benefit increases in the 2026–27 fiscal year.

SEC. 5. Item 0250-301-0001 of

Section 2.00 of the Budget Act of is amended to read: 0250-301-0001 —For capital outlay, Judicial Branch 62,124,000 Schedule: (1) 0000096-Nevada County: New Nevada City Courthouse 1,491,000 (

a) Performance criteria 1,491,000 (2) 0000099-Plumas County: New Quincy Courthouse 2,276,000 (

a) Performance criteria 2,276,000 (3) 0010364-Kings County: One New Shelled Courtroom for One New Judgeship 7,618,000 (

a) Construction 7,618,000 (4) 0010366-San Joaquin County: One New Shelled Courtroom for One New Judgeship 6,420,000 (

a) Working drawings 395,000 (

b) Construction 6,025,000 (5) 0010367-Sutter County: One New Shelled Courtroom for One New Judgeship 6,521,000 (

a) Construction 6,521,000 (6) 0016278-Los Angeles County: Spring Street Courthouse—​Chatsworth Buildout 6,276,000 (

a) Preliminary plans 2,052,000 (

b) Working drawings 4,224,000 (7) 0000089-Los Angeles County: New Santa Clarita Courthouse 12,460,000 (

a) Performance criteria 12,460,000 (8) 00014205-Lake County: Clearlake Courthouse Renovation 2,712,000 (

a) Preliminary plans 1,107,000 (

b) Working drawings 1,605,000 (9) 00010916-San Joaquin County: New Tracy Courthouse 3,503,000 (

a) Performance criteria 3,503,000 (10) 00010918-Kern County: New East County Courthouse 6,408,000 (

a) Study 1,000 (

b) Acquisition 4,764,000 (

c) Performance criteria 1,643,000 (11) 0012589-Placer County: Tahoe Courthouse Renovation 6,439,000 (

a) Study 1,000 (

b) Acquisition 5,356,000 (

c) Performance criteria 1,082,000

SEC. 6. Item 0250-301-0660 of

Section 2.00 of the Budget Act of is amended to read: 0250-301-0660 —For capital outlay, Judicial Branch, payable from the Public Buildings Construction Fund 1,698,511,000 Schedule: (1) 0009732-San Luis Obispo County: New San Luis Obispo Courthouse 320,265,000 (

a) Design-build 320,265,000 (2) 0009728-Solano County: New Solano Hall of Justice (Fairfield) 316,779,000 (

a) Design-build 316,779,000 (3) 0000096-Nevada County: New Nevada City Courthouse 195,583,000 (

a) Design-build 195,583,000 (4) 0000099-Plumas County: New Quincy Courthouse 69,598,000 (

a) Design-build 69,598,000 (5) 0000089-Los Angeles County: New Santa Clarita Courthouse 627,033,000 (

a) Design-build 627,033,000 (6) 00014205-Lake County: Clearlake Courthouse Renovation 21,845,000 (

a) Construction 21,845,000 (7) 00010916-San Joaquin County: New Tracy Courthouse 65,854,000 (

a) Design-build 65,854,000 (8) 00010918-Kern County: New East County Courthouse 64,014,000 (

a) Design-build 64,014,000 (9) 0012589-Placer County: Tahoe Courthouse Renovation 17,540,000 (

a) Design-build 17,540,000 Provisions: 1. The Judicial Branch is authorized to execute and deliver any and all leases, contracts, agreements, or other documents necessary or advisable to consummate the sale and issuance of bonds by the State Public Works Board in accordance with the State Building Construction Act of 1955 (Part 10b (commencing with

Section 15800) of Division of Title of the Government Code) or otherwise to effectuate the financing of the scheduled project.

SEC. 7. Item 0250-490 of

Section 2.00 of the Budget Act of is amended to read: 0250-490 —Reappropriation, Judicial Branch. The amounts specified in the following citations are reappropriated for the purposes provided for in those appropriations and shall be available for encumbrance or expenditure until June 30, 2027: 0001—​General Fund (.5) Up to $81,837,000 in Item 0250-301-0001, Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022), as reappropriated in Item 0250-490, Budget Act of 2025 (Chs. 4 and, 5, Stats. 2025). Of that amount:

(1) Up to $34,177,000 in Project 0000089-Los Angeles County: New Santa Clarita Courthouse—Acquisition

(2) Up to $1,470,000 in Project 0000099- Plumas County: New Quincy Courthouse—Acquisition

(5) Up to $12,127,000 in Project 0009728- Solano County: New Solano Hall of Justice (Fairfield)—Acquisition

(6) Up to $11,194,000 in Project 0009729- Fresno County: New Fresno Courthouse— Acquisition

(7) Up to $22,869,000 in Project 0009732-San Luis Obispo County: New San Luis Obispo Courthouse—Acquisition (.7) Up to $4,550,000 in Item 0250-301-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023). Of that amount:

(1) Up to $4,550,000 in Project 0000096-Nevada County: New Nevada City Courthouse—Acquisition

(1) Up to $31,157,000 in Item 0250-301-0001, Budget Act of 2025 (Chs. 4 and 5, Stats. 2025). Of that amount:

(2) Up to $5,159,000 in Project 0009728-Solano County: New Solano Hall of Justice (Fairfield)—​Performance criteria

(3) Up to $18,145,000 in Project 0009729-Fresno County: New Fresno Courthouse—​Performance criteria

(4) Up to $7,853,000 in Project 0009732-San Luis Obispo County: New San Luis Obispo Courthouse—Performance criteria Provisions: 1. On or before January 10, 2027, the Judicial Council, in consultation with the Department of Finance, shall report on a roadmap to accelerate and streamline courthouse construction projects. The report shall be provided to the relevant budget subcommittees of the Legislature in each house, the Joint Legislative Budget Committee, and the Legislative Analyst’s Office.

The report shall identify common barriers and potential solutions; opportunities to leverage contract or outside project management expertise; changes in pre-planning and acquisition approaches; changes in the timeline and management of funding phases; the potential use of progressive-design build; and any other approaches as determined by the Judicial Council to help accelerate capital outlay projects. The report shall also evaluate the project management capacity and needs of the Judicial Branch to support additional construction projects.

The report shall include recommendations to the Legislature including, but not limited to, potential statutory changes and resource needs.

SEC. 8. Item 0509-101-0001 of

Section 2.00 of the Budget Act of is amended to read: 0509-101-0001 —For local assistance, Governor’s Office of Business and Economic Development (GO-Biz) 117,884,000 Schedule: (1) 0220-GO-Biz 103,884,000 (2) 0230-Office of the Small Business Advocate 14,000,000 Provisions: 1. Of the amount appropriated in this item, $100,000,000 shall be available to the City of Fresno to support the city’s Public Infrastructure Plan. 2. Of the amount appropriated in this item, $1,384,000 shall be available to support international trade and to provide export promotion services.

Upon the order of the Department of Finance, five percent of the amount appropriated in this provision shall be available to be transferred to

Schedule (1) of Item 0509-001-0001 for costs to administer the program. 3. Of the amount appropriated in

Schedule (2), $2,000,000 shall be used for the Urban Business Resource Center to support infrastructure and facility modernization. 4. Of the amount appropriated in this item, $1,500,000 shall be available for the INDSTRY Workforce Development Initiative. 5. Of the amount appropriated in this item $1,000,000 shall be available for California Fringe. 6. Of the amount appropriated in this item $12,000,000 shall be available for the Performing Arts Equitable Payroll Fund.

SEC. 9. Item 0511-002-0001 is added to

Section 2.00 of the Budget Act of 2026 , to read: 0511-002-0001 —For support of Secretary of Government Operations 11,000,000 Schedule: (1) 0250-Office of the Secretary of Government Operations 11,000,000 Provisions: 1. Of the amount appropriated in

Schedule (1), $6,500,000 shall be available to the California Black Women’s Collective Empowerment Institute. 2. Of the amount appropriated in

Schedule (1), $2,000,000 shall be available to the Black Freedom Fund for the California Community Policy Fellowship. 3. Of the amount appropriated in

Schedule (1), $1,000,000 shall be available to the Black Freedom Fund for Truth and Reconciliation. 4. Of the amount appropriated in

Schedule (1), $1,500,000 shall be available for Hispanas Organized for Political Equality leadership initiatives. Hispanas Organized for Political Equality shall submit proposals to the Government Operations Agency for consideration. 5.

Notwithstanding any other law, grants awarded or contracts entered into pursuant to this item, amendments to those contracts during their terms, or contracts for services reasonably related to those contracts, shall not be subject to competitive bidding or any other state contracting requirements, shall not require the review, consent, or approval of the Department of General Services or any other state department or agency, and are not subject to the requirements of the State Contracting Manual, the Public Contract Code, or the personal services contracting requirements of

Article 4 (commencing with

Section 19130) of

Chapter of Part of Division of Title of the Government Code.

SEC. 10. Item 0516-001-0001 of

Section 2.00 of the Budget Act of is amended to read: 0516-001-0001 —For support of Secretary of California Housing and Homelessness Agency 4,616,000 Schedule: (1) 0266-Administration of California Housing and Homelessness Agency 5,902,000

(2) Reimbursements to 0266-Administration of California Housing and Homelessness Agency −1,286,000

SEC. 11. Item 0521-490 of

Section 2.00 of the Budget Act of is amended to read: 0521-490 —Reappropriation, Secretary for Transportation Agency. Notwithstanding any other law, the period to liquidate encumbrances of the following citations is extended to June 30, 2032. 0001—General Fund

(1) Up to $300,000,000 of the amount identified in Provision (3) of Item 0521-131-0001, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021).

SEC. 12. Item 0530-001-0001 of

Section 2.00 of the Budget Act of is amended to read: 0530-001-0001 —For support of Secretary of California Health and Human Services 60,321,000 Schedule: (1) 0280-Secretary of California Health and Human Services 39,792,000 (2) 0286-Office of Youth and Community Restoration 18,951,000 (3) 0290-Office of Technology and Solutions Integration 2,763,000 (4) 0296-Center for Data Insights and Innovation 0 (5) 0297-Office of Surgeon General 1,428,000

(6) Reimbursements to 0280-Secretary of California Health and Human Services −2,613,000

(7) Reimbursements to 0286-Office of Youth and Community Restoration 0

(8) Reimbursements to 0297-Office of the Surgeon General Provisions: 1. Of the amount appropriated in

Schedule (3), $2,763,000 shall be used for the Office of the Agency Information Officer and Office of Technology and Solutions Integration and Enterprise Capabilities. The California Health and Human Services Agency shall report to the Legislature at regular intervals and at least on an annual basis on the benefits to participants and beneficiaries of impacted government programs, and which specific programs in the agency improved. 2. Of the funds appropriated in

Schedule (2), $10,000,000 shall be available to the Office of Youth and Community Restoration for purposes including, but not limited to, providing technical assistance, disseminating best practices, and issuing grants to counties and probation departments for the purpose of transforming the juvenile justice system to improve outcomes for justice involved youth. 3. Of the amount appropriated in

Schedule (2), $2,000,000 shall be available to counties for county probation departments for the purposes specified in subdivision (

g) of

Section of the Welfare and Institutions Code. These funds shall be allocated to the counties by the Controller for county probation departments according to a

schedule provided by the Department of Finance and developed in collaboration with the Office of Youth and Community Restoration and Chief Probation Officers of California. The Department of Finance shall provide the

schedule to the Controller by September of each year and the Controller shall allocate these funds no later than October of each year, consistent with the

schedule provided by the Department of Finance. 4. Of the amount appropriated in

Schedule (1), $730,000 shall be available to support the interagency agreement for administrative services provided to the State Council on Developmental Disabilities by the California Department of Social Services. 5. Of the amount appropriated in

Schedule (1), $25,000,000 shall be available for the Child Mind Institute. 6. Of the amount appropriated in

Schedule (1), $1,500,000 shall be available for the California Health and Human Services Agency to strengthen the Community Assistance, Recovery, and Empowerment (CARE) Act referral and petition pipeline. Funding may be used for, including, but not limited to, training and support for first responders, homeless outreach workers, and street medicine teams.

SEC. 13. Item 0540-002-0001 is added to

Section 2.00 of the Budget Act of 2026 , to read: 0540-002-0001 —For support of Secretary of the Natural Resources Agency 10,000,000 Schedule: (1) 0320-Administration of Natural Resources Agency 10,000,000 Provisions: 1. The funds appropriated in this item shall be available to support exploration, mapping, characterization, and development of geothermal resources. 2. Any data and information from the exploration, mapping, characterization, and development of geothermal resources, including exploratory wells and development and production techniques, shall be made publicly available. 3.

For development of exploratory wells, the Natural Resources Agency shall secure at least $10,000,000 in matching funds from non-state sources. 4. The Director of Finance may transfer all or part of these funds to other state agencies including, but not limited to, the State Energy Resources Conservation and Development Commission and the Department of Conservation, to deploy these funds for the purposes specified in this item.

SEC. 14. Item 0540-103-0001 of

Section 2.00 of the Budget Act of is amended to read: 0540-103-0001 —For local assistance, Secretary of the Natural Resources Agency 29,820,000 Schedule: (1) 0320-Administration of Natural Resources Agency 29,820,000 Provisions: 1. Of the amount appropriated in this item, $10,000,000 shall be available for cultural, educational, and economic improvements. 2. Of the amount appropriated in this item, $5,650,000 shall be available to Camp Ramah. 3. Of the amount appropriated in this item, $5,000,000 shall be available for restoration projects and other efforts to restore habitat. 4.

Of the amount appropriated in this item, $5,000,000 shall be available to Oakland Children’s Fairyland, of which $2,000,000 shall be available for operations and $3,000,000 shall be available for revitalization projects. 5. Of the amount appropriated in this item, $1,770,000 shall be available to Child and Family Services. 6. Of the amount appropriated in this item, $1,400,000 shall be available to Reclamation District for the management and remediation of harmful algal blooms in Discovery Bay. 7. Of the amount appropriated in this item, $1,000,000 shall be available to the Women in California Politics Museum.

SEC. 15. Item 0540-491 of

Section 2.00 of the Budget Act of is amended to read: 0540-491 —Reappropriation, Secretary of the Natural Resources Agency. The balances of the appropriations provided in the following citations are reappropriated for the purposes provided for in those appropriations and shall be available for encumbrance, or expenditure until June 30, 2028: 0001—​General Fund

(1) The amount transferred in Provision of Item 0540-101-0001 of the Budget Act of 2018 (Chs. 29 and 30, Stats. 2018) to the San Gabriel and Lower Los Angeles Rivers and Mountains Conservancy, as reappropriated by Item 0540-491, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).

(2) The amount transferred in Provision of Item 0540-101-0001 of the Budget Act of 2019 (Chs. 23 and 55, Stats. 2019) to the San Gabriel and Lower Los Angeles Rivers and Mountains Conservancy, as reappropriated by Item 0540-491, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).

(3) Item 0540-001-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).

(4) Item 0540-001-0001, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024).

(5) Item 0540-103-0001, Budget Act of 2025 (Chs. 4 and 5, Stats. 2025), including administrative funding transferred to technical Item 0540-502-0001. 0183—Environmental Enhancement and Mitigation Program Fund

(1) Item 0540-101-0183, Budget Act of 2014 (Chs. 25 and 663, Stats. 2014), as reappropriated by Item 0540-490, Budget Act of 2017 (Chs. 14, 22, and 54, Stats. 2017), and Item 0540-490, Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022).

(1.5) Item 0540-101-0183, Budget Act of 2019 (Chs. 23 and 55, Stats. 2019).

(2) Item 0540-101-0183, Budget Act of 2020 (Chs. 6 and 7, Stats. 2020), as reappropriated by Item 0540-492, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).

(2.5) Item 0540-101-0183, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021).

(3) Item 0540-101-0183, Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022).

(4) Item 0540-101-0183, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023). 3228—Greenhouse Gas Reduction Fund

(1) Item 0540-101-3228, Budget Act of 2016 (Ch. 23, Stat. 2016), as reappropriated by Item 0540-490, Budget Act of 2020 (Chs. 6 and 7, Stats. 2020), as reappropriated by Item 0540-492, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).

(2) Item 0540-101-3228, Budget Act of 2019 (Chs. 23 and 55, Stats. 2019), as reappropriated by Item 0540-490, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021).

SEC. 16. Item 0552-001-0001 of

Section 2.00 of the Budget Act of is amended to read: 0552-001-0001 —For support of Office of the Inspector General 53,941,000 Schedule: (1) 0330-Office of the Inspector General 53,941,000

SEC. 17. Item 0650-102-0001 is added to

Section 2.00 of the Budget Act of 2026 , to read: 0650-102-0001 —For local assistance, Governor’s Office of Land Use and Climate Innovation 3,000,000 Schedule: (1) 0370-Strategic Growth Council 3,000,000 Provisions: 1. The funds appropriated in this item shall be available for the Central Coast Community Resilience Hub Accelerator.

SEC. 18. Item 0680-001-0001 of

Section 2.00 of the Budget Act of is amended to read: 0680-001-0001 —For support of Governor’s Office of Service and Community Engagement 114,451,000 Schedule: (1) 0372-California Volunteers 117,679,000

(2) Reimbursements to 0372-California Volunteers −3,228,000 Provisions: 1. The California Volunteers’ database shall be subject to all state privacy and use policies, as required by the Department of Technology. 2. Of the amount appropriated in

Schedule (1), $68,100,000 shall be available for the California Volunteers Youth Corps. (

a) It is the intent of the Administration that the Youth Corps program, including its fellowship program, prioritize the recruitment of, and outreach to, students described in

Chapter of the Statutes of 2019 (AB 540), and immigrant youth with federal work authorization, including Deferred Action for Childhood Arrivals (DACA) beneficiaries, and this

section is therefore enacted pursuant to subdivision (

d) of

Section of Title of the United States Code. For purposes of implementing this initiative, no entity or person shall seek information that is unnecessary to determine eligibility, including immigration or citizenship status. (

b) Of the amount allocated in this provision, $2,000,000 shall be available for California’s tribal communities to apply through a competitive process. (

c) Of the amount remaining after the allocation described in subprovision (b), a share proportional to funding provided in Provision of Item 0650-163-8506, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021) shall be provided to the largest cities in California. Funding shall be proportional to each city’s population as a percent of the total population of the largest cities, as estimated by the Department of Finance. (

d) Of the amount remaining after the allocation described in subprovision (b), a share proportional to funding provided in Provision of Item 0650-163-8506, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021) shall be distributed, via a competitive grant process, to all cities and counties that are not funded pursuant to subprovision (c), without regard to total population size. 3. Of the funds available in

Schedule (1), $9,383,000 shall be available for support or local assistance and shall be used for the purpose of implementing the California Climate Action Service Corps program to create service opportunities to take on climate action such as urban greening, food waste recovery, and wildfire prevention. 4. Of the amount appropriated in

Schedule (1), $18,268,000 shall be available for the California College Corps. 5. Of the amount appropriated in

Schedule (1), $5,000,000 shall be available for the California Men’s Service Challenge. 6. Of the amount appropriated in

Schedule (1), $5,000,000 shall be available for the Reading Corps and Math Corps.

SEC. 19. Item 0680-101-0001 is added to

Section 2.00 of the Budget Act of 2026 , to read: 0680-101-0001 —For local assistance, Governor’s Office of Service and Community Engagement 15,000,000 Schedule: (1) 0372-California Volunteers 15,000,000 Provisions: 1. Of the amount appropriated in this item $5,000,000 shall be available for the California Student Success Coach Grant Program. 2. Of the amount appropriated in this item $10,000,000 shall be available for City Year.

SEC. 20. Item 0690-001-0001 of

Section 2.00 of the Budget Act of is amended to read: 0690-001-0001 —For support of Office of Emergency Services 288,175,000 Schedule: (1) 0380-Emergency Management Services 182,454,000 (2) 0385-Special Programs and Grant Management 115,823,000 (3) 0390-Alfred E. Alquist Seismic Safety Commission 351,000 (4) 0395-Public Safety Communications 325,000 (5) 9900100-Administration 61,200,000 (6) 9900200-Administration—​Distributed −61,200,000

(7) Reimbursements to 0380-Emergency Management Services −5,515,000

(8) Reimbursements to 0385-Special Programs and Grant Management −5,263,000 Provisions: 1. Funds appropriated in this item may be reduced by the Director of Finance, after giving notice to the Chairperson of the Joint Legislative Budget Committee, by the amount of federal funds made available for the purposes of this item in excess of the federal funds scheduled in Item 0690-001-0890. 2. Of the amount appropriated in

Schedule (2), $6,700,000 shall be for the Office of Emergency Services to reimburse local law enforcement agencies to offset the cost to local law enforcement agencies of reimbursing qualified health care professionals, hospitals, or other emergency medical facilities for medical evidentiary examinations for all sexual assault victims in accordance with

Section 13823.95 of the Penal Code. 3. The Department of Finance may augment the amount appropriated in

Schedule (7) for the receipt of reimbursements provided to the Office of Emergency Services for participation in Emergency Management Assistance Compact activities in support of other states or territories. Within days of approval, the Department of Finance shall provide written notification of any such augmentation to the chairpersons of the committees in each house of the Legislature that consider appropriations, the chairpersons of the committees and the appropriate subcommittees of each house of the Legislature that consider the State Budget, and the chairperson of the Joint Legislative Budget Committee. 4. Of the amount appropriated in

Schedule (1), $750,000 shall be available for the Office of Emergency Services to conduct misinformation and disinformation tracking and contingency planning for the November 3, 2026, General Election.

SEC. 21. Item 0690-001-0022 of

Section 2.00 of the Budget Act of is amended to read: 0690-001-0022 —For support of Office of Emergency Services, payable from the State Emergency Telephone Number Account 54,375,000 Schedule: (1) 0395-Public Safety Communications 54,375,000 Provisions: 1. The amount appropriated in this item is available to stabilize and bolster the state system, including support for the legacy system, call handling equipment upgrades and maintenance, 911 support services, automatic location identification (ALI) databases, regional Next Generation network providers, and the statewide bridge contract dated April 28, 2026. 2.

This funding shall not be used to establish a permanent Next Generation system until an independent technical evaluation is completed and reviewed by the Legislature, pursuant to

Section 53121.1 of the Government Code. 3. Of the amount appropriated in this item, up to $2,000,000 shall be provided to the Rand Corporation for an independent technical evaluation of, and recommendations for, the Next Generation system project, pursuant to

Section 53121.1 of the Government Code. The Office of Emergency Services shall fully execute a contract with the contractor consistent with

Section 53121.1 no later than August 15, 2026. 4. The Office of Emergency Services shall enter into a contract or agreement with the California Department of Technology or another qualified vendor for Next Generation project oversight and independent verification and validation services. The selected vendor may not have a business or financial interest in the state Next Generation project or system. Up to $8,400,000 of the amount provided in this item may be used for these services. 5. The Office of Emergency Services shall provide quarterly fiscal and project progress reports to the Legislature on the development and implementation of the Next Generation system in California, pursuant to

Section 53121.2 of the Government Code. 6. The Office of Emergency Services shall not take actions that would prevent the state from transitioning to a regional network in the future. Additionally, the office shall take steps to minimize cost to the state of a potential future transition to a regional network, except in cases where so doing would prevent the installation of technology needed to bolster and stabilize the statewide transitional network. 7. Any funding in this item unencumbered by June 30, 2027, shall revert to the fund balance from which the appropriation was made. 8.

Of the funds appropriated in this item, up to $1,000,000 shall be authorized for expenditure for the California State Auditor to conduct an audit of the state’s effort to develop and implement the Next Generation system.

SEC. 22. Item 0690-101-0022 of

Section 2.00 of the Budget Act of is amended to read: 0690-101-0022 —For local assistance, Office of Emergency Services, payable from the State Emergency Telephone Number Account 272,000,000 Schedule: (1) 0395-Public Safety Communications 272,000,000 Provisions: 1.

The amount appropriated in this item is available to stabilize and bolster the state system, including support for the legacy system, call handling equipment upgrades and maintenance, 911 support services, automatic location identification (ALI) databases, regional Next Generation network providers, and the statewide bridge contract dated April 28, 2026. 2. This funding shall not be used to establish a permanent Next Generation system until an independent technical evaluation is completed and submitted to the Legislature, and the review period has passed, pursuant to

Section 53121.1 of the Government Code. Funds may be used for this purpose no sooner than days after notification in writing to the chairpersons of the committees in each house of the Legislature that consider the State Budget, the chairpersons of the committees and appropriate subcommittees in each house of the Legislature that consider appropriations, the Legislative Analyst’s Office, and the Chairperson of the Joint Legislative Budget Committee, or not sooner than whatever lesser time after that notification the chairperson of the joint committee, or the chairperson’s designee, may determine.

The notification shall include an expenditure plan approved by the Department of Finance for the use of these funds. 3. The Office of Emergency Services shall provide quarterly fiscal and project progress reports to the Legislature on the development and implementation of the Next Generation system in California, pursuant to

Section 53121.2 of the Government Code. 4. The Office of Emergency Services shall not take actions that would prevent the state from transitioning to a regional network in the future. Additionally, the office shall take steps to minimize cost to the state of a potential future transition to a regional network, except in cases where so doing would prevent the installation of technology needed to bolster and stabilize the statewide transitional network. 5. Any funding in this item unencumbered by June 30, 2027, shall revert to the fund balance from which the appropriation was made.

SEC. 23. Item 0690-104-0001 is added to

Section 2.00 of the Budget Act of 2026 , to read: 0690-104-0001 —For local assistance, Office of Emergency Services 6,100,000 Schedule: (1) 0385-Special Programs and Grant Management 6,100,000 Provisions: 1. Of the amount appropriated in this item, $3,000,000 shall be available to expand access to technology-driven solutions that support standardized sexual assault and domestic violence forensic examinations across California. 2. Of the amount appropriated in this item, $800,000 shall be available for the Stinson Fire District for a fire station project. 3.

Of the amount appropriated in this item, $1,200,000 shall be available to the City of San Marcos for fire equipment. 4. Of the amount appropriated in this item, $1,100,000 shall be available to the County of Los Angeles for sheriff department vehicles.

SEC. 24. Item 0820-001-0001 of

Section 2.00 of the Budget Act of is amended to read: 0820-001-0001 —For support of Department of Justice 474,363,000 Schedule: (1) 9900100-Administration 211,080,000 (2) 9900200-Administration—​Distributed −211,080,000 (3) 0435-Division of Legal Services 248,003,000 (4) 0440-Law Enforcement 136,758,000 (5) 0445-California Justice Information Services 118,040,000

(6) Reimbursements to 0435-Division of Legal Services −1,767,000

(7) Reimbursements to 0440-Law Enforcement −19,570,000

(8) Reimbursements to 0445-California Justice Information Services −7,101,000 Provisions: 1. Of the amount appropriated in

Schedule (4), $6,666,000 shall be used to support a statewide enforcement program to combat the manufacturing, distribution, and trafficking of fentanyl throughout and into the state by organized criminal enterprises, including organized cartels. The Department of Justice may coordinate with the State Department of Health Care Services and the Military Department to support the statewide enforcement program. 2. Of the amount appropriated in

Schedule (4), $500,000 shall be available to support investigations and prosecutions of organized retail crime, including those referred by other law enforcement or prosecutorial agencies. Any unspent funds shall revert to the General Fund and may not be redirected to any other purposes. 3. Of the amount appropriated in

Schedule (4), $7,206,000 shall be used to support statewide enforcement to combat violent career criminals, gangs, and organized crime groups, with priority for disrupting the production, supply, and distribution of illicit fentanyl, opioid, and narcotic operations by multijurisdictional and transnational trafficking organizations, and in seizing illegal, smuggled, and trafficked firearms, ammunition, and component parts used in furtherance of those operations. 4.

Notwithstanding any other law, the Department of Justice may purchase or lease vehicles that, in the judgment of the Attorney General or the Attorney General’s designee, are necessary to the performance of the investigatory and enforcement responsibilities of the Department of Justice, from the funds appropriated for that purpose in this item. This exemption does not apply to vehicles that are classified as military equipment pursuant to subdivision (

c) of

Section of the Government Code, except for paragraph of subdivision (

c) of

Section of the Government Code. 5. Of the amount appropriated in

Schedule (5), $812,000 is allocated for the implementation of

Chapter of the Statutes of 2024. The expenditure of these funds is contingent upon the Department of Justice submitting the Stage Business Analysis to the Department of Technology as part of the Project Approval Lifecycle process of the Department of Technology. 6. Of the amount appropriated in

Schedule (5), $1,096,000 shall be used to establish a new connection between the California Law Enforcement Telecommunications System (CLETS) and the new Department of Motor Vehicles Digital eXperience Platform (DXP). The Department of Justice, in consultation with the Department of Motor Vehicles, shall report to the Department of Finance and the Joint Legislative Budget Committee by January 10, 2026, if it does not appear that this new connection will be developed, tested, and fully functional by June 30, 2026.

This report shall include, but is not limited to, all of the following: a status update on progress towards completion of the new connection, a mitigation strategy or work-around to ensure minimal impact on law enforcement or criminal justice agency activities requiring information typically obtained through CLETS, and the identification of any additional resources or statutory changes needed to ensure CLETS functionality and access. The Department of Motor Vehicles shall fully cooperate with the Department of Justice in the preparation of this report. 7. Of the amount appropriated in

Schedule (3), $25,922,000 is available to address legal workload related to various actions taken at the federal level or administrative action authorized under state law to mitigate impacts of federal actions taken by the federal government. The Department of Justice shall report to the Department of Finance and the Joint Legislative Budget Committee annually on the use of all funds provided for these purposes by the Department of Justice in the prior fiscal year on or before August of each year.

The report shall include, but is not limited to, both of the following: (1) whether the state is using any of the appropriated funds to contract with outside counsel, if any; and (2) each instance in which the Department of Justice is taking administrative action authorized under state law to mitigate the impacts of actions taken by the federal government. This reporting may be consolidated with the reporting required by

Chapter of the Statutes of 2025, First Extraordinary Session. The Department of Justice shall also post details of litigation against the federal government paid for by these funds on the website originally created and maintained pursuant to

Chapter of the Statutes of 2025, First Extraordinary Session. These details shall include, but are not limited to, descriptive narratives and supporting documents as needed. Such details shall be posted as soon as feasible each time a court filing is made using these funds, and no less frequently than monthly. 8. Of the amount appropriated in

Schedule (3), $3,915,000 shall be used for workload associated with

Chapter of the Statutes of 2021. Any unspent funds shall revert to the General Fund and may not be redirected to any other purposes. 9. Of the amount appropriated in

Schedule (3), $2,200,000 shall be available to complete existing investigations and prosecutions of organized retail crime and shall be available for encumbrance or expenditure until June 30, 2028. Any unspent funds shall revert to the General Fund and may not be redirected to any other purposes. 10. No later than January 10, 2027, the department shall provide a framework for determining how firearm and ammunition workload should be funded.

This framework shall include, but is not limited to, the following information: identification of existing and anticipated firearm or ammunition workload or costs by program area, clear explanations for department recommendations on how, and from what fund source, each program area should be funded moving forward, the calculation of appropriate fees by fund source and how such calculations were reached, and department recommendations for how frequently the fees should be adjusted and the process by which they should be adjusted.

This framework shall also include any recommendations for statutory changes to improve operational or process efficiencies, or in the number of firearm and ammunition special funds, or their specified allowable uses, the department deems necessary. In preparing this framework, the department shall evaluate its entire workload, anticipated future costs, operational efficiencies, and existing federal and state statute and case law. This framework shall be provided to the appropriate budget, appropriations, and policy committees or subcommittees in each house.

SEC. 25. Item 0840-001-0001 of

Section 2.00 of the Budget Act of is amended to read: 0840-001-0001 —For support of the Controller 168,871,000 Schedule: (1) 0500-State Controller’s Office 233,833,000

(2) Reimbursements to 0500-State Controller’s Office −64,962,000 Provisions: 1. The Controller may, with the concurrence of the Director of Finance and the Chairperson of the Joint Legislative Budget Committee, bill affected state departments for activities required by

Section of the State Administrative Manual, relating to the administration of federal pass-through funds. A billing shall not be sent to affected departments sooner than days after the chairperson of the joint committee has been notified by the director that the director concurs with the amounts specified in the billings. 2. Of the moneys appropriated to the Controller in this act, the Controller shall not expend more than $500,000 to conduct posteligibility fraud audits of the Supplemental Security Income/State Supplementary Payment Program. 3. The Commission on State Mandates shall provide, in applicable parameters and guidelines, as follows: (

a) If a local agency or school district contracts with an independent contractor for the preparation and submission of reimbursement claims, the costs reimbursable by the state for that purpose shall not exceed the lesser of (1) 10 percent of the amount of the claims prepared and submitted by the independent contractor or (2) the actual costs that would necessarily have been incurred for that purpose if performed by employees of the local agency or school district. (

b) The maximum amount of reimbursement provided in subprovision (

a) may be exceeded only if the local agency or school district establishes, by appropriate documentation, that the preparation and submission of these claims could not have been accomplished without incurring the additional costs claimed by the local agency or school district. 4. It is the intent of the Legislature that audits conducted by the Controller, or under the direction of the Controller, shall be fiscal audits that focus on claims and disbursements, as provided for in

Section of the Government Code. Any report, audit, analysis, or evaluation issued by the Controller for the current fiscal year shall cite the specific statutory or constitutional provision authorizing the preparation and release of the report, audit, analysis, or evaluation. 5.

The Controller shall publish and provide the Controller’s monthly report, the Statement of General Fund Cash Receipts and Disbursements, within days after the close of each month to the Joint Legislative Budget Committee, the fiscal committees of each house of the Legislature, the Department of Finance, the Treasurer, and the Legislative Analyst’s Office. 6.

The Controller shall provide to the Department of Finance, the Chairperson of the Joint Legislative Budget Committee, and the chairpersons of the fiscal committees of each house of the Legislature a report that provides the following details by mandate: the level of claims requested, the amount reduced by the initial desk audit, the amount paid, the amount recouped, and the results of a final audit and subsequent funding adjustments. The report is due on June of the current fiscal year, and will cover the fourth quarter of the past fiscal year and the first three quarters of the current fiscal year. 7.

The Controller shall obtain actuarial valuation services to comply with governmental accounting and reporting standards for other postemployment benefits (OPEB). In addition to all other items required under the accounting and reporting standards, the report shall include an identification and explanation of any significant differences in actuarial assumptions or methodology from any relevant similar types of assumptions or methodology used by the Public Employees’ Retirement System to estimate state pension obligations.

To avoid duplication of effort and promote efficiency and cost-effectiveness, the Controller and the Department of Finance shall coordinate in obtaining additional actuarial valuation services related to OPEB plan liabilities and assets attributable to each of the state’s collective bargaining units or other state entities or groups. This provision does not obligate the state to change the practice of funding health and dental benefits for annuitants currently required under state law. 8.

The funds appropriated to the Controller in this act shall not be expended on additional actuarial valuations, beyond the annual actuarial valuations, for other postemployment benefits, prior to obtaining concurrence in writing from the Department of Finance. The additional actuarial valuations shall only be performed to the extent resources exist, or if funds are provided by the requesting agency. 9.

The Controller shall provide the Chairperson of the Joint Legislative Budget Committee and the chairpersons of the fiscal committees in each house of the Legislature a report on the California State Payroll System Project specifying the dollars expended on the program in the previous fiscal year and over the life of the program and any known savings that have occurred in the prior fiscal year by October of each year. 10.

The Controller shall provide yearend financial data as specified by the Department of Finance, for the immediately preceding fiscal year, in electronic format that is printable via application, including, but not limited to, Adobe PDF, Microsoft Excel, or Microsoft Word, by October of each year and periodically as requested by the Department of Finance. This information is necessary for the Department of Finance to determine the proper beginning balance of the current fiscal year for budgetary purposes. 11.

In the event new postage rates are adopted by the United States Postal Service, but not in time for inclusion in the May Revision prior to enactment of this Budget Act, and the Controller notifies the Department of Finance with its estimates of the increased postage costs within calendar days of the adoption of new rates, the Director of Finance may authorize expenditures in excess of the amount appropriated to the Controller in this item by an amount necessary to fund the postage increase.

This authorization shall occur not less than days after the Department of Finance notifies the Chairperson of the Joint Legislative Budget Committee. 12. Of the amount appropriated in this item, $428,000 shall be used to reimburse the Department of Justice for legal services. In addition to the amount above, upon order of the Director of Finance, any non-General Fund Budget Act item for support of the Controller may be augmented to reimburse the Department of Justice for legal services.

An augmentation shall not be made sooner than days after the Joint Legislative Budget Committee has been notified in writing. 13.

The Controller shall provide the Department of Finance and the Legislative Analyst’s Office a report on FI$Cal implementation by the State Controller’s Office verifying the progress or completion of predetermined FI$Cal milestones outlined in SPR7, 8, and 9, including future milestones necessary to complete the transition to FI$Cal as the Book of Record, the dollars expended on the program in the previous quarter and over the life of the program, and any known savings that have occurred in the prior fiscal year, to be submitted on a quarterly basis commencing September of each year, until completion of the implementation to FI$Cal.

The Department of Finance may augment this item if necessary to address unforeseen implementation issues relating to the transition of the state to the Book of Record.

Any augmentation shall be authorized not sooner than days after notification in writing to the chairpersons of the committees in each house of the Legislature that consider appropriations, the chairpersons of the committees and appropriate subcommittees that consider the state budget, and the Chairperson of the Joint Legislative Budget Committee, or not sooner than whatever lesser time the chairperson of the joint committee, or the chairperson’s designee, may determine. 14.

The Controller, in consultation with the Department of Finance, the Department of Human Resources, and the Department of Technology, shall provide the Legislature and the Legislative Analyst’s Office with briefings on the progress of the California State Payroll System Project, including newly executed contracts, and their purpose, and cost, on a quarterly basis. 16.

Of the amount appropriated in this item, up to $7,082,000 shall be allocated upon order of the Director of Finance for consulting services to support the legacy Accounting and Reporting Management System decommissioning, The Department of Finance may adjust the amount allocated upon confirmation of the executed decommissioning contract. 17. Of the amount appropriated in this item, up to $8,693,000 is provided for Department/Agency Readiness Team (DART) resources.

The Controller, in consultation with the Department of Human Resources, shall work with payroll processing departments through its DART program to complete the organizational change management activities associated with the California State Payroll System (CSPS) information technology project. The Controller, in consultation with the Department of Finance, shall identify amounts to be allocated to each department for the 2026–27 fiscal year.

Prior to any allocations to departments, the Controller shall define specific criteria that departments must meet to receive this funding and outline the specific project activities that require DART team involvement. The Controller shall require departments to submit requests for their respective allocations including an agreement to use the funding to only support CSPS project-related activities.

The Controller shall provide updates on DART funding allocations to the Legislature and the Legislative Analyst’s Office through existing bimonthly briefings on the progress of the project and report final annual allocation amounts to the Department of Finance. 18. Of the amount appropriated in this item, up to $453,000 shall be used to implement an automated workspace that will be used to input and publish the Annual Comprehensive Financial Report. 19. The Department of Finance may augment this item if necessary to address unforeseen implementation issues relating to the California State Payroll System project.

Any augmentation shall be authorized not sooner than days after notification in writing to the chairpersons of the committees in each house of the Legislature that consider appropriations, the chairpersons of the committees and appropriate subcommittees that consider the state budget, and the Chairperson of the Joint Legislative Budget Committee, or not sooner than whatever lesser time the chairperson of the joint committee, or the chairperson’s designee, may determine. 20.

The Department of Finance may augment this item if necessary to improve the timelines, accuracy, and information display of the Annual Comprehensive Financial Report.

Any augmentation shall be authorized not sooner than days after notification in writing to the chairpersons of the committees in each house of the Legislature that consider appropriations, the chairpersons of the committees and appropriate subcommittees that consider the state budget, and the Chairperson of the Joint Legislative Budget Committee, or not sooner than whatever lesser time the chairperson of the joint committee, or the chairperson’s designee, may determine.

SEC. 26. Item 0840-001-0970 of

Section 2.00 of the Budget Act of is amended to read: 0840-001-0970 —For support of the Controller, payable from the Unclaimed Property Fund 61,347,000 Schedule: (1) 0500-State Controller’s Office 61,347,000 Provisions: 1. The funding provided in this item shall cover all Unclaimed Property Program support operations costs (personal services and operating expenses and equipment). Continuous appropriations from the Unclaimed Property Fund are allowed for costs related to enforcement of the unclaimed property law, and other program costs authorized under subdivision (

b) of

Section and

Section of the Code of Civil Procedure. These continuous appropriations shall not be used to cover spending authorized under this item. 2. (

a) Pursuant to

Section of the Code of Civil Procedure, the Controller may publish notice of unclaimed property in any manner that the Controller determines reasonable. (

b) No funds appropriated in this act may be expended by the Controller to provide general information to the public, other than holders, as defined in subdivision (

g) of

Section of the Code of Civil Procedure, of unclaimed property, concerning the Unclaimed Property Program or possible existence of unclaimed property held by the Controller, except for informational announcements to the news media, through the exchange of information on the internet, or no more than $3,000,000 per year to inform the public about this program. This annual cap may be increased up to $5,000,000, upon the order of the Department of Finance, if the Controller demonstrates that additional funds are needed. This restriction does not apply to sending individual notices to property owners, as required by the Code of Civil Procedure.

SEC. 27. Item 0890-001-0001 of

Section 2.00 of the Budget Act of is amended to read: 0890-001-0001 —For support of Secretary of State 92,333,000 Schedule: (1) 0700-Filings and Registrations 3,998,000 (2) 0705-Elections 53,481,000 (3) 0710-Archives 16,265,000 (3.5) 0711-Special Items of Expense 17,292,000 (4) 0715-Department of Justice Legal Services 1,352,000 (5) 9900100-Administration 73,564,000 (6) 9900200-Administration—​Distributed −73,564,000

(7) Reimbursements to 0700-Filings and Registration −5,000

(8) Reimbursements to 0705-Elections −36,000

(9) Reimbursements to 0710-Archives −14,000 Provisions: 1. The Secretary of State shall not expend any special handling fees authorized by

Chapter of the Statutes of that are collected in excess of the cost of administering those special handling fees unless specifically authorized by the Legislature. 2. Of the funds appropriated in this item, $17,292,000 is available for the following election-related activities: (

a) Parallel Monitoring. (

b) Printing and Mailing of Voter Information Guides. (

c) Printing and Mailing of Voter Registration Cards. (

d) Election Night Reporting. (

e) Office of State Publishing Warehouse Lease. Any unexpended funds pursuant to this provision shall revert to the General Fund. Upon order of the Department of Finance, the amount available in

Schedule (3.5) may be augmented by the amount necessary to cover costs associated with parallel monitoring, printing and mailing of Voter Information Guides and Voter Registration Cards, and election night reporting.

Any augmentation shall be authorized not sooner than days after notification in writing to the chairpersons of the committees in each house of the Legislature that consider appropriations, the chairpersons of the committees and appropriate subcommittees that consider the State Budget, and the Chairperson of the Joint Legislative Budget Committee, or not sooner than whatever lesser time the Chairperson of the Joint Legislative Budget Committee, or the Chairperson’s designee, may determine. 3.

Of the amount appropriated in this item, $2,000,000 shall be used to establish and operate the Office of Elections Cybersecurity. Activities performed by the Office of Elections Cybersecurity are intended to be specific to elections and shall be designed so as to minimize overlap and in coordination with statewide cybersecurity efforts performed by the California Cybersecurity Integration Center. 4. Of the amount appropriated in this item, $150,000 shall be used for support of the State Government Oral History Program consistent with

Section of the Government Code, and $75,000 shall be used for the costs of a digital preservation subscription service. Expenditure of this funding requires the collaboration between the Secretary of State and the California State Library on projects and activities related to the State Government Oral History Program. 5. Upon order of the Department of Finance, the amount available in

Schedule (4) may be augmented by the amount necessary to cover costs associated with legal services provided by the Department of Justice. Any augmentation shall be authorized not sooner than days after notification in writing to the chairpersons of the committees in each house of the Legislature that consider appropriations, the chairpersons of the committees and appropriate subcommittees that consider the State Budget, and the Chairperson of the Joint Legislative Budget Committee, or not sooner than whatever lesser time the Chairperson of the Joint Legislative Budget Committee, or the Chairperson’s designee, may determine. 6. Of the funds appropriated in

Schedule (2), $5,000,000 shall be available for the Secretary of State to complete voter outreach and education, including with respect to the benefits of submitting ballots prior to election day, prior to the November 3, 2026, statewide general election. 7. Of the funds appropriated in

Schedule (2), $250,000 shall be available for the Secretary of State to support, strengthen, and protect the administration of the November 3, 2026, statewide general election.

SEC. 28. Item 0890-101-0001 is added to

Section 2.00 of the Budget Act of 2026 , to read: 0890-101-0001 —For local assistance, Secretary of State 34,000,000 Schedule: (1) 0705-Elections 34,000,000 Provisions: 1. Of the amount appropriated in this item, $29,000,000 shall be available to counties to increase the number of available staff to tabulate votes, make equipment purchases or technology upgrades, or acquire space to accommodate additional staff or equipment purchases to expedite the vote counting process and strengthen and protect election integrity. These funds shall be allocated to the counties by the Controller according to a

schedule provided by the Department of Finance. Counties shall prioritize expenses that will expedite the vote counting process for the November 3, 2026, statewide general election. 2. Of the amount appropriated in this item, $5,000,000 shall be available to counties to provide voter outreach and education before the November 3, 2026, statewide general election, including with respect to the benefits of submitting ballots before election day. These funds shall be allocated to the counties by the Controller according to a

schedule provided by the Department of Finance. 3. Notwithstanding any other law, the Department of Finance may authorize the transfer of resources between Provisions and to effectively administer the efforts identified in these provisions.

Any authorization shall be provided not sooner than days after notification in writing to the chairpersons of the committees in each house of the Legislature that consider the State Budget, the chairpersons of the committees and appropriate subcommittees in each house of the Legislature that consider appropriations, and the Chairperson of the Joint Legislative Budget Committee, or not sooner than whatever lesser time after that notification the chairperson of the joint committee, or the chairperson’s designee, may determine.

SEC. 29. Item 0950-001-0001 of

Section 2.00 of the Budget Act of is amended to read: 0950-001-0001 —For support of Treasurer 16,236,000 Schedule: (1) 0740-State Treasurer’s Office 43,244,000

(2) Reimbursements to 0740-State Treasurer’s Office −27,008,000 Provisions: 1. The Director of Finance may authorize a loan from the General Fund, in an amount not to exceed the level of reimbursements appropriated in

Schedule (2) to the Treasurer, provided that: (

a) The loan is to meet cash needs resulting from a delay in receipt of reimbursements. (

b) The loan is short term, and is repaid within six months. (

c) Interest charges may be waived pursuant to subdivision (

e) of

Section of the Government Code. (

d) The Director of Finance shall not approve the loan unless the approval is made in writing and filed with the Chairperson of the Joint Legislative Budget Committee and the chairpersons of the committees in each house of the Legislature that consider appropriations not later than days before the effective date of the approval, or not later than whatever lesser time the chairperson of the joint committee, or the chairperson’s designee, may determine. (

e) At the end of the six-month term of the loan, the Treasurer shall notify the Chairperson of the Joint Legislative Budget Committee whether the Treasurer has repaid the loan pursuant to subprovision (b). 2. Notwithstanding any other law, upon certification by the Treasurer, the Department of Finance may authorize expenditures of up to $8,000,000 in excess of the amount appropriated in this item for the payment of expenses incurred on general obligation bond, lease-revenue bond, and revenue anticipation note sales that have been canceled.

Prior to expenditure from the General Fund, the Treasurer shall determine if any bond funds are authorized and available for the payment of expenses, and then shall apply those funds to such payment. The Department of Finance shall provide notification in writing to the chairpersons of the fiscal committees of each house of the Legislature and the Chairperson of the Joint Legislative Budget Committee no more than days after that authorization. 3.

Upon order of the Director of Finance, a revenue transfer of $250,000 is hereby authorized in Item 0950-011-0467, from the State Notes Expense Account reserve to the General Fund due to a lack of previous activity and no anticipated need for the foreseeable future. This special fund will remain active and will be available to receive future appropriations in subsequent budgets to the extent they are determined necessary to carry out the purposes for which the fund was established. 4.

Of the amount appropriated in this item $1,000,000 shall be available on a one-time basis for the Blue Ribbon Commission on the Development of a California Department of Youth Sports.

SEC. 30. Item 1111-001-0326 of

Section 2.00 of the Budget Act of is amended to read: 1111-001-0326 —For support of State Athletic Commission, payable from the Athletic Commission Fund 2,142,000 Schedule: (1) 1110010-State Athletic Commission—​Support 2,142,000 Provisions: 1. The amount appropriated in this item may include revenues derived from the assessment of fines and penalties imposed as specified in

Section 13332.18 of the Government Code. 2. Provided that sufficient funds are available and upon request by the Department of Consumer Affairs, the Department of Finance may augment this item by up to $300,000 not sooner than days after notification in writing is provided to the chairpersons of the fiscal committees in each house of the Legislature and the Chairperson of the Joint Legislative Budget Committee. This augmentation shall only be provided for additional funding needed for Athletic Inspectors at sporting events or for Athletic Inspector training, or for Attorney General expenses. 3.

The State Athletic Commission may consider a study to evaluate its revenues, expenditures, current fees, and potentially identify new fees to address the Athletic Commission Fund structural deficit ahead of the Sunset Review process. 4. On or before February 1, 2027, and on or before February 1, 2028, the State Athletic Commission shall provide to the Joint Legislative Budget Committee a fund condition statement of the Athletic Commission Fund.

SEC. 31. Item 1111-012-0001 is added to

Section 2.00 of the Budget Act of 2026 , to read: 1111-012-0001 —For transfer, upon order of the Department of Finance, by the Controller to the Athletic Commission Fund 1,700,000

SEC. 32. Item 1750-001-3153 of

Section 2.00 of the Budget Act of is amended to read: 1750-001-3153 —For support of California Horse Racing Board, payable from the Horse Racing Fund 16,013,000 Schedule: (1) 1610-California Horse Racing Board 16,013,000 Provisions: 1. Pursuant to

Section 19616.51 of the Business and Professions Code, all racing associations and fairs including all breeds of racing shall remit a license fee to the California Horse Racing Board to be deposited in the Horse Racing Fund. For the 2026–27 fiscal year, each racing association and fair shall pay a proportionate share of $13,157,000 including any current year adjustments, in the form of a license fee in accordance with a formula developed by the board.

SEC. 33. Item 1750-011-0001 is added to

Section 2.00 of the Budget Act of 2026 , to read: 1750-011-0001 —For transfer, upon order of the Department of Finance, by the Controller to the Horse Racing Fund 4,000,000 Provisions: 1. This transfer is for the purpose of providing partial fee relief to the horse racing associations licensed by the California Horse Racing Board.

SEC. 34. Item 2240-001-0001 of

Section 2.00 of the Budget Act of is amended to read: 2240-001-0001 —For support of Department of Housing and Community Development 47,263,000 Schedule: (1) 1660-Codes and Standards Program 2,640,000 (2) 1665-Financial Assistance Program 15,267,000 (3) 1670-Housing Policy Development Program 29,356,000 Provisions: 1. Of the amount appropriated in

Schedule (2), $500,000 shall be available to Orange County United Way for a one-time regional pilot program for building more online awareness of affordable housing opportunities.

SEC. 35. Item 2240-107-0001 is added to

Section 2.00 of the Budget Act of 2026 , to read: 2240-107-0001 —For support of Department of Housing and Community Development 4,360,000 Schedule: (1) 1665-Financial Assistance Program 4,360,000 Provisions: 1. Of the amount appropriated in this item, $3,860,000 shall be provided to the Alliance for Community Empowerment. 2. Of the amount appropriated in this item, $500,000 shall be provided to the Napa County Housing Authority.

SEC. 36. Item 2245-401 is added to

Section 2.00 of the Budget Act of 2026 , to read: 2245-401 —Of the amount appropriated for the implementation of the Disaster Rebuilding Assistance Program, any expenditures pursuant to paragraph (4) of subdivision (

b) of

Section 51349.4 of the Health and Safety Code that exceed the threshold set forth in subparagraph (

B) of that paragraph are authorized only upon the occurrence of both of the following 1. Approval of an expenditure plan by the Department of Finance. 2.

Any expenditures shall be authorized not sooner than days after notification in writing of the Department of Finance’s approval of an expenditure plan to the chairpersons of the committees in each house of the Legislature that consider the state budget, the chairpersons of the committees and appropriate subcommittees in each house of the Legislature that consider appropriations, and the Chairperson of the Joint Legislative Budget Committee, or not sooner than whatever lesser time after that notification the chairperson of the joint committee, or the chairperson’s designee, may determine.

SEC. 37. Item 2250-001-0001 of

Section 2.00 of the Budget Act of is amended to read: 2250-001-0001 —For support of Housing Development and Finance Committee 5,327,000 Schedule: (1) 1720-Housing Development and Finance Committee 5,327,000

SEC. 38. Item 2255-001-0001 of

Section 2.00 of the Budget Act of is amended to read: 2255-001-0001 —For support of California Interagency Council on Homelessness 11,434,000 Schedule: (1) 1740-California Interagency Council on Homelessness 11,434,000

SEC. 39. Item 2660-001-0042 of

Section 2.00 of the Budget Act of is amended to read: 2660-001-0042 —For support of Department of Transportation, payable from the State Highway Account, State Transportation Fund 3,496,402,000 Schedule: (1) 1830019-Aeronautics 193,000 (2) 1835010-Capital Outlay Support 884,765,000 (3) 1835020-Local Assistance 67,113,000 (4) 1835029-Program Development 39,545,000 (5) 1835038-Legal 151,560,000 (6) 1835047-Operations 275,003,000 (7) 1835056-Maintenance 1,425,337,000 (8) 1840019-State and Federal Mass Transit 2,342,000 (9) 1840028-Intercity Rail Passenger Program 1,418,000 (10) 1845013-Statewide Planning 83,892,000 (11) 1870-Office of Inspector General 17,890,000 (12) 9900100-Administration 466,115,000 (13) 1850010-Equipment Service Program 446,326,000

(14) Reimbursements to 1835010-Capital Outlay Support −257,907,000

(15) Reimbursements to 1835020-Local Assistance −1,526,000

(16) Reimbursements to 1835029-Program Development −860,000

(17) Reimbursements to 1835038-Legal −3,617,000

(18) Reimbursements to 1835047-Operations −7,633,000

(19) Reimbursements to 1835056-Maintenance −50,405,000

(20) Reimbursements to 1845013-Statewide Planning −5,542,000

(21) Reimbursements to 9900100-Administration −35,521,000

(22) Reimbursements to 1850010-Equipment Service Program −2,086,000 Provisions: 1. Notwithstanding any other law, funds appropriated in this item from the State Highway Account may be reduced and replaced by an equivalent amount of federal funds determined by the Department of Transportation to be available and necessary to comply with

Section 8.50 and the most effective management of state transportation resources. Not more than days after replacing the state funds with federal funds, the Director of Finance shall notify in writing the chairpersons of the committees in each house of the Legislature that consider appropriations and the Chairperson of the Joint Legislative Budget Committee of this action. 2.

Notwithstanding any other law, funds appropriated in this item may be supplemented with federal funding appropriation authority and with prior fiscal year State Highway Account appropriation balances at a level determined by the Department of Transportation as required to process claims utilizing federal advance construction through the plan of financial adjustment process pursuant to Sections and of the Government Code. 3.

Notwithstanding any other law, funds appropriated in Program 9900100-Administration may be reduced and replaced by an equivalent amount of reimbursements determined by the Department of Transportation to be available and necessary to comply with

Section 28.50 and the most effective management of state transportation resources. The reimbursements may also be reduced and replaced by an equivalent amount of funds from the State Highway Account. Not more than days after replacing the State Highway Account funds with reimbursements and vice versa, the Director of Finance shall notify in writing the chairpersons of the committees in each house of the Legislature that consider appropriations and the Chairperson of the Joint Legislative Budget Committee of this action. 4.

Of the funds appropriated in Program 1835056-Maintenance, at least $234,000,000 is for major maintenance contracts for the preservation of highway pavement, and shall not be used to supplant any other funding that would have been used for major pavement maintenance. 5. Notwithstanding any other law, of the funds appropriated in Program 1835038-Legal, $75,556,000 is for the payment of tort lawsuit costs, claims, and awards and may be augmented by up to $20,000,000. Any funds for that purpose that are not needed as of April in any given year, may revert to the originating fund source.

The Department of Finance shall authorize the transfers not sooner than days after notification of the necessity therefor in writing to the chairpersons of the committees in each house of the Legislature that consider appropriations and the Chairperson of the Joint Legislative Budget Committee. 6. The Department of Finance may augment the amount appropriated in Program 1835047-Operations, by up to $2,000,000 for the federal Americans with Disabilities Act of 1990 (42 U.S.C.

Sec. 12101 et seq.) consultant contracts if the number of access requests and grievances exceeds the Department of Transportation’s projections. The Department of Finance shall authorize the augmentation not sooner than days after notification of the necessity therefor in writing to the chairpersons of the committees in each house of the Legislature that consider appropriations and the Chairperson of the Joint Legislative Budget Committee. 7.

Of the funds appropriated in Program 1845013-Statewide Planning, the Department of Transportation shall exempt project initiation document development and oversight services reimbursed from local government agencies from full cost recovery as outlined in its Indirect Cost Recovery Plan. 8. The Department of Transportation shall streamline the cooperative work agreement process related to project initiation document development and oversight to reduce costs to local agencies. 9. The Department of Finance may augment the amount appropriated in

Schedule (16) by up to $900,000 for additional reimbursements from the High-Speed Rail Authority for the review and approval of environmental and engineering documents regarding circumstances in which the high-speed train system interfaces with the state highway system, as well as specific highway realignment projects related to the high-speed train system. 10. The Department of Transportation shall exempt the High-Speed Rail Authority from full cost recovery as outlined in its Indirect Cost Recovery Plan. The Department of Transportation shall charge the High-Speed Rail Authority for functional overhead. 11.

The Department of Transportation shall provide data related to its 2027–28 fiscal year Capital Outlay Support budget request on or before May 1, 2027. 12. Of the funds appropriated in Program 1835010-Capital Outlay Support, $463,195,000 is for overhead and corporate resources in support of the Capital Outlay Support Program. This amount may be adjusted pursuant to the provisions of

Section 3.60 or provisions of Items 9800-001-0001, 9800-001-0494, or 9800-001-0988 with the concurrence of the Department of Finance. The Department of Transportation shall provide quarterly reports, to the Department of Finance, of actual expenditures for overhead and corporate resources beginning October 1, 2015. In addition, the Department of Transportation, in conjunction with the Department of Finance, shall review the overhead and corporate components of the Capital Outlay Support Program.

Results associated with this review shall be included in the 2026–27 fiscal year annual May Revision Finance Letter. 13. Of the funds appropriated in Program 1835010-Capital Outlay Support, the Department of Transportation shall exempt Local SB STIP Projects deprogrammed from the STIP from the full cost recovery as outlined in its Indirect Cost Recovery Plan if local agencies continue those projects with other funds.

The Department of Transportation shall not charge for administrative overhead for the portion of the project’s funding that was originally planned to come from the STIP before the project was deprogrammed. 14.

Notwithstanding any other law, if the California Transportation Commission reprograms projects removed from the STIP, the Director of Finance may increase the expenditure authority for additional staffing for Program 1835010-Capital Outlay Support to support the reprogrammed projects not sooner than days after notification in writing is made to the Chairperson of the Joint Legislative Budget Committee and the chairpersons of the committees in each house of the Legislature that consider appropriations and the State Budget.

The notification shall include a list of the reprogrammed projects and the additional staffing required for each project. 15. Notwithstanding any other law, funds may be transferred intraschedule between

Schedule (8) 1840019-State and Federal Mass Transit and

Schedule (9) 1840028-Intercity Passenger Rail Program. Any transfer requires the prior approval of the Department of Finance. 16. For Program 1835010-Capital Outlay Support, appropriations include funding and expenditure authority for full-time equivalent staff at an average annual labor rate of $287,000, totaling $338,331,000 for project direct external consultant and professional services related to project delivery. 17.

For Program 1835010-Capital Outlay Support, appropriations include funding and expenditure authority for state positions and personal services cash overtime totaling $1,977,642,000 in the program in the 2026–27 fiscal year. 18. Any funding from this item used to replace and modernize the Department of Transportation’s fleet shall prioritize spending on zero-emission vehicles whenever feasible, and when not feasible, prioritize vehicles with the lowest emissions. 19. The Department of Finance may augment the amount appropriated in

Schedule (13) to align the department’s budget with actual vehicle insurance costs per the State Motor Vehicle Insurance Account Assessment Memo issued by the Department of General Services. 20. Of the funds appropriated in

Schedule (13) of this item, $218,061,000 shall be available for encumbrance or expenditure until June 30, 2029, and liquidation until June 30, 2031.

SEC. 40. I