California’s 2026 legislative session brought changes affecting school facilities, construction and modernization contracting, wildfire recovery guidance, charter school facilities funding, and other facilities issues.

This overview highlights major changes local educational agencies (LEAs) should be aware of as they prepare for implementation. Unless otherwise specified, bills signed by the Governor take effect January 1, 2027.

Wrapping Up Proposition 2 Regulations

Over the last two years the Office of Public School Construction (OPSC) and the State Allocation Board (SAB) have worked collaboratively with stakeholders through a series of over 20 webinars to draft and seek input on regulations that implement Prop 2, the $10 billion Kindergarten through Grade 12 Schools and Local Community College Public Education Facilities Modernization, Repair and Safety Act of 2024.

Funding from Prop 2 continues to flow, as the SAB apportions roughly $1.5 billion a year for school modernization and construction projects (in order to make the dollars last longer) with approximately $7.2 billion in projects still awaiting funding. It’s been clear since the passage of Prop 2 that the $10 billion would only go so far and that the State School Facilities Program will ultimately need additional funding. Unsurprisingly, there was little to no discussion this year by the Legislature or Newsom Administration around another statewide school facilities bond. As we transition early next year to a new Governor, a Legislature with at least 20 new members and await a very strong El Niño, which is already impacting certain areas of the state, we are likely to see conversations shift toward the unmet school facilities needs in the state.

Statewide Guidance on Wildfire Contamination and School Reopening Passes

Sponsored by the Eaton Fire Residents United and in response to the onslaught of wildfire-related school closures and growing concerns about the health impacts on students and school communities,

AB 1642 (Harabedian, D-Pasadena) requires state agencies to develop standards and guidance for addressing contamination following wildfires. Despite opposition by insurance companies, the Governor signed AB 1642 which requires the Department of Toxic Substances Control (DTSC), working with the California Department of Education (CDE) and other state agencies, to develop guidance specifically for schools, by July 1 2028. The guidance will help districts navigate decisions about closing and reopening campuses, how to safely clean and restore facilities, and identify resources for the community to access emergency funding.

Bundle of Bills Provides More Flexibility for School Construction and Modernization

Several new laws preserve crucial contracting options for school districts undertaking construction and modernization projects. AB 1809 (Fong, D-Alhambra) extends school districts’ authority to use job order contracting until January 1, 2037, while clarifying that districts cannot use this method when it would increase project costs without sufficient documented justification. The initial version of the bill

extended the sunset indefinitely, however, the Legislature wanted to keep sunset review oversight even though job order contracting has been in place since 2003. AB 2067 (Patel, D-San Diego) extends the authorization for school districts to use lease-leaseback agreements through a competitive best-value selection process until July 1, 2032. AB 1860 (McKinnor, D-Inglewood) extends existing design-build and alternative design-build contracting authorities to county offices of education (COEs), giving them parity with procurement methods already available to school districts. Lastly, in an effort to ensure kids can get outside despite rising temperatures, SB 1107 (Stern, D-Los Angeles) allows districts to bundle comparable shade structure projects across multiple campuses into a single design-build solicitation until December 31, 2031, if the total value of the projects exceeds one million dollars.

Charter School Facilities Funding Requirements Eased

AB 2316 (Hoover, R-Folsom) provides additional financial flexibility for charter schools seeking state facilities funding. Beginning with application rounds opened on or after January 1, 2028, the SAB may reduce a charter school’s required 50% local contribution under the Charter School Facilities Program (CSFP) if the California School Finance Authority (CSFA) determines that the requirement would impose an undue financial burden. The state grant would increase correspondingly. The bill requires regulations establishing criteria for these determinations.

Legislative Proposals That Did Not Become Law, and Wildfire Liability Remains Unresolved

In addition to the new laws you should be aware of, a few bills that did not make it to the Governor’s desk are likely to resurface next year. Of particular interest, AB 948 (Flora, R-Modesto) proposed changes involving task order contracting, an issue that remains important to districts seeking more efficient ways to complete repairs and modernization projects. Ongoing discussions are expected as stakeholders consider ways to increase contracting flexibility while maintaining appropriate oversight and accountability.

AB 2362 (Hadwick, R-Alturas), would have provided greater flexibility for districts with fewer than 2,500 units of ADA and frontier districts by exempting drivers from several SB 88 requirements if they are school employees transporting pupils for a field trip, extracurricular activity, or athletic program for up to 200 hours. (Current law is 40 hours).

A deal on wildfire liability, that would have determined accountablity for wildfire damage caused by utility equipment dominated the end of the legislative session with the State Assembly ultimately pulling out of what many described as a three party deal. The legislative clock ran out and the effort, opposed by utility companies, insurance companies trial attorneys and wildfires victims, was put on hold until next year. There’s been talk of the Governor calling a special session after the November 3rd election, however, that is all just speculation at this point so stay tuned.

El Niño Impact on School Facilities

California school districts face heightened concerns about facility damage during the upcoming winter as a strong El Niño is expected to bring wetter-than-normal conditions to portions of the state. Heavy

precipitation, flooding, roof leaks, drainage failures, landslides, and other storm-related damage could create significant repair costs and disrupt school operations, particularly for districts with aging facilities or substantial deferred maintenance needs. Though the severity and scope of storm impacts remain uncertain, LEAs should revisit emergency preparedness plans, assess aging or otherwise vulnerable facilities, and identify available resources for urgent repairs. Again, depending on the severity of the storm damage, this could highlight the continued need for school facilities funding especially if there is a public safety risk.

Facilities Bills Signed Into Law

Charter Schools

• AB 2316 (Hoover) – School facilities: Charter School Facilities Program.This bill authorizes the SAB to reduce a charter school’s required 50% local share under the Charter School Facilities Program (CSFP) when the CSFA determines the obligation would impose an undue financial burden, and to correspondingly increase the state grant amount for filing rounds opened on or after January 1, 2028. The bill also requires the adoption of regulations establishing criteria for making that determination.

  Chapter 597, Statutes of 2026

Environmental Issues

• AB 1642 (Harabedian) – Wildfires: contamination standards.AB 1642 requires DTSC and the California Air Resources Board (CARB) to develop regulations and guidance pertaining to indoor and outdoor contaminants after a wildfire. DTSC, in collaboration with CDE and other relevant state agencies, no later than July 1, 2028, must develop advisory guidance to support LEAs after a wildfire. The guidance should include, among other things, information on the balance between the protection of the public health of pupils, school staff, and community members, and the reopening of schools as expeditiously as possible.

  Important Dates:

  • July 1, 2028 – DTSC must develop advisory guidance for LEAs.

  Chapter 239, Statutes of 2026

Facilities

• AB 1809 (Fong) – Public contracts: school and community college districts.This bill extends the sunset for school districts and community college districts to use job order contracting for public works projects until January 1, 2037. The sunset extension also expressly states that job order contracting shall not be used if the school district finds, based on criteria and

  methodology established by the school district, that it will increase the total cost of the project without sufficient documented justification.

  Chapter 548, Statutes of 2026

• AB 1860 (McKinnor) – School facilities: design-build: alternative design-build: county superintendents of schools.AB 1860 authorizes county superintendents of schools, on behalf of the COE, and the county board of education, to use the same design-build sometimes referred to as alternative design-build procurement methods currently available to school districts for eligible public works projects, including awarding contracts based on either the lowest responsible bidder or best value.

  Chapter 902, Statutes of 2026

• AB 2067 (Patel) – School facilities: leasing real property.This bill extends, by five years, current law which authorizes school districts to use the lease-leaseback project delivery method through a competitive best value process for school construction projects. This authorization originally sunset on July 1, 2027, but is now extended until July 1, 2032.

  Chapter 286, Statutes of 2026

• SB 1107 (Stern) – School facilities: design-build: shade structures.SB 1107 authorizes a school district, on or before December 31, 2031, and with the approval of its governing board, to procure multiple design-build contracts for comparable shade structure projects at various sites, bundled through a single solicitation, if the total value of the projects exceeds $1 million but does not exceed $10 million, awarding the bundled contracts to the lowest bid or the best value. The bill requires each contract awarded through the bundled solicitation to be a separate contract for a single project.

  Chapter 1010, Statutes of 2026

Source: Capitol Advisors Group, Facilities: Changes in Law 2026, October 2026.