Amended  IN  Senate  July 03 ,  2025

CALIFORNIA LEGISLATURE— 2025 – 2026 REGULAR SESSION

Assembly Bill No. 104

Introduced by Assembly Member Gabriel

January 08 ,  2025

An act relating to the Budget Act of 2025. to amend the Budget Act of 2025 (Chapters 4 and 5 of the Statutes of 2025) by amending Item 0977-401 of Section 2.00 of, amending Sections 13.30 and 99.50 of, and repealing Section 37.00 of, that act, relating to the state budget, and making an appropriation therefor, to take effect immediately, budget bill.


LEGISLATIVE COUNSEL'S DIGEST


AB104, as amended, Gabriel . Budget Act of 2025.
The Budget Act of 2025 made appropriations for the support of state government for the 2025–26 fiscal year.
This bill would amend the Budget Act of 2025 by amending items of appropriation and making other changes.
This bill would declare that it is to take effect immediately as a Budget Bill.

This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2025.

Vote: MAJORITY   Appropriation: NOYES   Fiscal Committee: NOYES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Item 0977-401 of Section 2.00 of the Budget Act of 2025 is amended to read:
0977-401—(a) The repayment period as described in subdivision (b) shall be extended for Palomar Health pursuant to or any other nondesignated public hospitals participating in the Nondesignated Public Hospital Loan Program authorized under Provision (1) of Item 0977-101-0001 of the Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022). 2022) that had received a loan approval from, and entered into a loan and security agreement with, the California Health Facilities Financing Authority, and that the authority has determined were unable to repay their loan by the time required under the loan and security agreement.
(b) Notwithstanding Provision (1)(e) of Item 0977-101-0001 of the Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022), Palomar Health or any other nondesignated public hospital participating in the loan program described in subdivision (a) that had received a loan approval from, and entered into a loan and security agreement with, the California Health Facilities Financing Authority shall be required to begin monthly repayments on the loan 36 months after the date of that loan, and shall discharge the loan within 24 months after beginning the monthly repayments. The monthly payments shall be amortized over the term of the loan at zero percent interest and there shall be no prepayment penalty.
(c) Upon request by the California Health Facilities Financing Authority, Palomar Health or any other nondesignated public hospital that receives an extension of its repayment period pursuant to subdivision (a) shall provide any financial documentation or records deemed necessary to monitor compliance with the terms of such loan.

SEC. 2.

 Section 13.30 of the Budget Act of 2025 is amended to read:

SEC. 13.30.

 (a) The Director of Finance shall may make available from the General Fund loans to eligible local entities that, in the aggregate, total no more than $1,000,000,000 for eligible local entities in Los Angeles County and no more than $750,000,000 for eligible local entities that are not in Los Angeles County.
(b) For purposes of this section, “eligible local entities” includes all of the following:
(1) Local government entities, including, but not limited to, the County of Los Angeles, the Los Angeles County Office of Education, and cities, special districts, school districts, and community college districts located in Los Angeles County, if the entity has significant responsibilities for recovery from the January 2025 wildfires in that county.
(2) San Francisco Bay Area Rapid Transit District.
(3) San Francisco Municipal Transportation Agency.
(4) Peninsula Corridor Joint Powers Board.
(5) Alameda-Contra Costa Transit District.
(c) Loans authorized in subdivision (a) shall be provided to eligible local entities in Los Angeles County for public purposes related to recovery from the January 2025 wildfires in the county.
(d) Loans authorized in subdivision (a) shall be provided to eligible local entities that are not in Los Angeles County for operating expenditures to maintain transit services.
(e) This section shall be operative only if trailer bill legislation establishing the terms of the loans is enacted in the 2025 legislative session, including both of the following:
(1) In furtherance of this requirement, the trailer bill legislation shall, at a minimum, require full repayment of the loan principal with any agreed-upon interest rate, pursuant to a clearly defined repayment schedule.
(2) The trailer bill legislation shall require a guaranteed repayment mechanism to ensure that any funding provided under this section is repaid from a reliable and predictable revenue source. For funding pursuant to subdivision (d), repayment may include, but is not limited to, future fare revenue.
(f) Notwithstanding subdivision (e), subdivision (d) shall be operative only if future legislation is enacted during the 2025 regular legislative session, which, at a minimum, shall authorize a regional measure to support the long-term financial stability of transit operators specified in subdivision (b). This measure is intended to reinforce the ability of these agencies to repay the state funds provided pursuant to this section.

SEC. 3.

 Section 37.00 of the Budget Act of 2025 is repealed.
SEC. 37.00.

Notwithstanding any other law, if the Governor does not sign one of Assembly Bill 131 or Senate Bill 131 on June 30, 2025, the provisions of the Budget Act of 2025, as enacted in Senate Bill 101 and as amended in this act, and any associated bills providing for appropriations related to the budget identified in Section 39.00 of this act that are enacted on or before June 30, 2025, shall be inoperative and repealed in their entirety on June 30, 2025, at 11:59 p.m.

SEC. 4.

 Section 99.50 of the Budget Act of 2025 is amended to read:

INDEX FOR CONTROL SECTIONS

SEC. 99.50.

 The following is an index to the general sections of this act. These sections serve to define terms and identify restrictions concerning the appropriations contained in this act.
 1.00
 Budget Act Citation
 1.50
 Intent and Format
 1.51
 Citations to Prior Budget Acts
 1.80
 Availability of Appropriations
 2.00
 Items of Appropriation
 3.00
 Defines Purposes of Appropriations
 3.10
 Subschedule Transfers for Capital Projects
 3.50
 Benefit Charges Against Salaries and Wages
 3.60
 Contribution to Public Employees’ Retirement Benefits
 3.61
 Contribution to Prefund Other Postemployment Benefits
 3.90
 Reduction for Employee Compensation
 4.05
 Budget Adjustment Authority
 4.11
 Position Vacancy Report
 4.12
 Vacant Position Elimination
 4.13
 AB 85 Repayments to Counties
 4.20
 Contribution to Public Employees’ Contingency Reserve  Fund
 4.30
 Lease-Revenue Payment Adjustments
 4.72
 Electric Vehicle Charging Infrastructure
 4.75
 Statewide Surcharge
 4.80
 State Public Works Board Interim Financing
 4.90
 Architectural Revolving Fund Transfer
 4.95
 Inmate and Ward Construction Revolving Account Transfer
 5.25
 Attorney’s Fees
 6.00
 Project Alterations Limits
 8.00
 Antiterrorism Federal Reimbursements
 8.50
 Federal Funds Receipts
 8.51
 Federal Funds Accounts
 8.52
 Federal Reimbursements
 8.53
 Notice of Federal Audits
 8.54
 Enforce Recovery of Federal Funds for Statewide Indirect  Costs
 8.75
 Infrastructure Investment and Jobs Act
 9.30
 Federal Levy of State Funds
 9.50
 Minor Capital Outlay Projects
 11.00
 Information Technology Reporting Requirements
 11.10
 Reporting of Statewide Software License Agreements
 11.11
 Privacy of Information in Pay Stubs
 11.25
 Artificial Intelligence Projects in State Departments
 11.96
 Coronavirus Fiscal Relief
 11.97
 State Appropriation Limit Excludable Federal Fund  Appropriations for Capital Outlay
 12.00
 State Appropriations Limit (SAL)
 12.30
 Special Fund for Economic Uncertainties
 12.32
 Proposition 98-Funding Guarantee
 12.35
 Financial Aid Policy Change Requirements
 12.45
 June to July Payroll Deferral
 13.00
 Legislative Counsel Bureau
 13.30
 Emergency Loans for Local Entities
 13.40
 Budgetary Loan Borrowing from Special Funds
 14.00
 Special Fund Loans Between Boards of the Department of  Consumer Affairs
 15.14
 Allocation of Greenhouse Gas Reduction Fund
 15.25
 Data Center Rate Adjustment
 15.45
 Trial Court Funding Offsets
 19.56
 Appropriations for Legislative Priorities
 19.57
 Encumbrance Deadline Extension Authority
 20.00
 Reappropriations and Reversions
 24.00
 State School Fund Allocations
 24.03
 Reading Control
 24.30
 Transfer School Building Rental Income to the General  Fund
 24.60
 Report of Lottery Funds Received
 24.70
 Local Educational Agency Fiscal Accountability
 25.40
 Contracted Fiscal Services Costs
 25.50
 SCO Apportionment Payment System Assessments
 26.00
 Intraschedule Transfers
 28.00
 Program Change Notification
 28.30
 Federal Funds Realignment
 28.31
 Short-Term Cash Loans Due to Delay in Federal Funds
 28.50
 Agency Reimbursement Payments
 29.00
 Position Estimates of Governor’s Budget, May Revision,  and Final Change Book
 30.00
 Continuous Appropriations
 31.00
 Budget Act Administrative Procedures for Salaries  and Wages
 32.00
 Prohibits Excess Expenditures
 33.00
 Item Veto Severability
 34.00
 Constitutional Severability
 35.21
 Application of Net Final Payment Accrual Methodology
 35.35
 FI$Cal—​Short-Term Cash Loans
 35.50
 Estimated General Fund Revenues and Various Estimates  Related to the Budget Stabilization Account
37.00

Repeal of the Budget Act in Specified Circumstances
 38.00
 Provides That This Bill Is a Budget Bill
 39.00
 Identification of Bills Related to the Budget Bill
 90.00
 Los Angeles County Response and Recovery Costs
 99.00
 Alphabetical Organization Index
 99.50
 Numerical Control Section Index

SEC. 5.

 This act is a Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution and shall take effect immediately.
SECTION 1.

It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2025.