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Senate panel approves AB 138 to codify recent state bargaining agreements and side letters

5403825 · July 14, 2025

Summary

AB 138, a state bargaining trailer bill that codifies memoranda of understanding and side letters with multiple bargaining units, including BU 10 and BU 16 agreements, passed the Senate budget committee 13–5.

The Senate Committee on Budget and Fiscal Review voted to pass AB 138, a trailer bill that makes statutory changes to codify and ratify memoranda of understanding and side letters reached between the state and several bargaining units.

What the bill does: According to the Department of Finance presentation, AB 138 "makes necessary statutory changes to codify and ratify a memorandum of understanding and side letters reached between the state and several bargaining units." The bill specifically approves a side letter for the California Association of Professional Scientists (bargaining unit 10) and the tentative agreement reached between the state and the Union of American Physicians and Dentists (bargaining unit 16). The bill also codifies agreements or side letters reached with 16 bargaining units between June 21 and June 30 that were automatically ratified pursuant to Section 11 of Senate Bill 139.

Questions and concerns: Senators asked about the inclusion of various agencies and units in the package. Senator comments during roll call indicated some members registered "no" votes on procedural or content grounds, but no additional amendments were taken on the floor of the committee.

Vote and disposition: Senator Laird moved to pass AB 138. The committee recorded a final vote of 13–5; the bill was forwarded out of committee.

Ending: With AB 138 advanced, committee leadership said the package codifying bargaining agreements will proceed through legislative steps; staff did not report additional fiscal actions required beyond those already negotiated in the agreements presented to the committee.

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