🏛️ Assembly & Senate announce 2026–27 budget agreement · June 11⏰ Constitutional budget deadline · midnight June 15⚡ Doss v. Tesla · yard hostlers exempt from FAA arbitration · June 11🤖 Quinteros v. Harbor Distributing · AI citation sanctions upheld🏥 Sgaraglino v. Ventura · W&I §5113 psychiatric immunity · June 9🚧 Bonta & Santa Clara sue to block Gilroy ICE facility · June 10💊 CVS pays $36.5M over Medi-Cal insulin overbilling · June 10📜 In re Tung Trust · antilapse statute restored · June 9🏛️ Assembly & Senate announce 2026–27 budget agreement · June 11⏰ Constitutional budget deadline · midnight June 15⚡ Doss v. Tesla · yard hostlers exempt from FAA arbitration · June 11🤖 Quinteros v. Harbor Distributing · AI citation sanctions upheld🏥 Sgaraglino v. Ventura · W&I §5113 psychiatric immunity · June 9🚧 Bonta & Santa Clara sue to block Gilroy ICE facility · June 10💊 CVS pays $36.5M over Medi-Cal insulin overbilling · June 10📜 In re Tung Trust · antilapse statute restored · June 9
Sunday Edition · Budget cycle · Week of June 8–14, 2026
MidnightLine
On June 11, Speaker Robert Rivas and Senate President pro Tempore Monique Limón announced a 2026–27 budget agreement — rejecting proposed In-Home Supportive Services cuts, blocking a Medi-Cal asset test, and adding roughly $5 billion in revenue — as negotiators raced toward the constitutional deadline that strips legislators of pay if they miss it.
AB 109 advances toward transmission as conference committees reconcile
The Assembly Budget Committee's June 11 floor report anticipates transmitting AB 109 to Governor Newsom by June 15, with signing or partial veto expected by June 29 — the statutory window before the July 1 fiscal year begins.
The joint Assembly–Senate plan fully rejects proposed cuts to In-Home Supportive Services, blocks the Governor's Medi-Cal asset test, and delays pending healthcare reductions affecting seniors and people with disabilities — while funding additional childcare slots, courthouse maintenance, and new judgeships.
Still negotiating
Climate-fund spending, CalFire appropriations, and Proposition funding decisions remain unresolved. Senate Democrats' "Deal is a Deal" plan would block new industrial carbon-market permits until last year's three-party climate agreement is fully funded — a direct counter to Governor Newsom's endorsed cap-and-trade rule changes.
The Senate and Assembly budget agreement reflects a balanced approach to addressing the state's budget challenges — it cuts the structural deficit in half, maintains strong reserves, and makes progress on Rainy Day Fund reforms.
Climate funding remains the summer's unresolved legal battleground
While AB 109 must pass by June 15, much of the climate spending tied to CARB's new industrial permit program is not bound by that deadline — negotiators may hash out statutory changes through September as Senate Democrats demand certification that last year's three-party deal can be fully funded before new cap-and-trade rules take effect.
Court of Appeal, First District, Division Three · published June 11, 2026
Doss v. Tesla, Inc.
No. A173210 · Justice Carin T. Fujisaki · appeal from Alameda County Superior Court
Division Three held that Tesla yard hostlers who move 53-foot trailers containing out-of-state auto parts within the Fremont factory grounds qualify as transportation workers engaged in interstate commerce — exempt from the Federal Arbitration Act under 9 U.S.C. section 1. Their work finishing the interstate journey of parts shipped from other states is a necessary step in continuous commerce, blocking Tesla's motion to compel individual arbitration on wage-and-hour claims.
The court partially reversed on Labor Code section 229, ruling it applies only to claims seeking collection of due wages under sections 200–244 — not overtime, meal-and-rest-break, or wage-statement violations — and remanded class-waiver severability questions for further proceedings.
Legal ethics · CCP §128.7 · First District, Division Two
Quinteros v. Harbor Distributing
Attorneys cannot delegate citation verification to contract counsel and escape sanctions when AI-generated briefs contain fabricated case citations and false quotations — the attorney of record bears ultimate responsibility for every filing.
Mental health law · Second District, Division Six · June 9, 2026
Sgaraglino v. County of Ventura
Division Six held that psychiatric facilities enjoy broad immunity under Welfare and Institutions Code section 5113 for actions taken by patients after release from involuntary detention — even when parents allege gross negligence in the decision to discharge a patient who died by suicide hours after a section 5150 hold ended.
Section 5113 immunizes facilities from civil liability for any action by a patient released after involuntary detention — including claims alleging gross negligence in the release decision — where the patient was detained under §5150 and released at or before the authorized period expired.
Attorney General Rob Bonta and the U.S. Department of Justice announced that CVS Pharmacy will pay $36.5 million to resolve allegations that, from January 2010 through December 2020, the chain submitted false Medi-Cal claims by dispensing more insulin than prescribed and misrepresenting refill timelines to obtain payment for unauthorized medication.
Bonta and Santa Clara County sue to block Gilroy ICE facility
Attorney General Bonta and County Counsel Tony LoPresti filed in the Northern District of California seeking to permanently enjoin construction at 7240 Holsclaw Road — alleging federal agencies violated NEPA by beginning demolition without environmental review, breached the Intergovernmental Cooperation Act by concealing the project's purpose, and violated Williamson Act covenants limiting the agricultural parcel to farming uses since 1967. Blueprints revealed holding rooms for up to 150 detainees on land marketed as administrative office space.
Probate · Probate Code §21110 · Second District, Division Seven
In re Tung Trust — antilapse statute prevails over survival clause
Revocable trust established
Ya-Ching Tung names three children beneficiaries; son Lin-Chuan designated to receive all real property.
Lin-Chuan predeceases settlor
Three grandchildren (Yeh children) stand to inherit through the antilapse statute as issue of a predeceased beneficiary.
Division Seven reverses summary adjudication
A 30-day survival clause deeming beneficiaries to have "predeceased" the settlor does not express a "contrary intention" under Probate Code section 21110(b) — the antilapse statute applies and grandchildren remain beneficiaries.
Citizens argued that class representative Tara Clark's family relationship to class counsel created a per se inadequacy that negated probable cause for the underlying wage-and-hour action — and that defendants therefore lacked probable cause for their malicious-prosecution counterclaim.
Division One holding · June 10, 2026
The Fourth District, Division One affirmed: no per se rule bars relatives of class counsel from serving as representative plaintiffs. Even if a conflict existed, it would not defeat probable cause when the underlying statutory violation was real and the claim could proceed with different counsel or a different representative. Evidence Code section 352 exclusions affirmed.
Housing law · Health & Safety Code · First District, Division Three
County of Del Norte v. Britt
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Division Three held that sisters improperly named in a nuisance-abatement receivership proceeding were prevailing parties entitled to attorney fees under Health and Safety Code section 17980.7(c)(11) — a more specific and recent statute that creates an exception to section 17984's general shield barring cost awards against municipal enforcement agencies.
Attorney General Rob Bonta launched a concentrated enforcement push this week — spanning immigration, healthcare fraud, federal preemption, and antitrust — while advancing to the November general election after the June 2 primary.
June 8
H-1B fee struck down
Final judgment vacating the Trump Administration's $100,000 tax on new H-1B visa petitions — a multistate challenge Bonta led in the District of Massachusetts.
New DOJ unit targeting unlawful conduct driving consumer prices — citing prior actions against Agri Stats, Greystar, Amazon, and Live Nation as enforcement models.
Multistate suit in the Northern District challenging the U.S. Department of Education's discontinuation of State Personnel Development Grant awards affecting 880,000 California students.
20-state coalition sues over new DEI-related contract requirements imposed without notice-and-comment procedures under the Administrative Procedure Act.
Special education grant discontinuation challenged
Bonta leads Rhode Island and Wisconsin in suing the Department of Education over its September 2025 termination of a five-year State Personnel Development Grant awarded to the California Department of Education in 2022 — alleging APA violations and Spending Clause overreach after the Department cited "equity-related initiatives" as grounds for pulling funding mid-grant.
The constitutional budget deadline dominates the coming week, Supreme Court publication days resume their Monday rhythm, and briefing deadlines approach in pending high-court proceedings — including the death-penalty racial-disparity challenge remanded to Sacramento Superior Court.
Constitutional budget passage deadline
The Legislature must pass a balanced budget by midnight or forfeit salaries under Cal. Const. art. IV §12 — AB 109 transmission to the Governor expected as conference committees finalize the June 11 agreement with Newsom.
Monday publication cycle resumes — watch for new certified opinions following the June 10 conference that granted review in multiple criminal cases and remanded Healy v. Committee of Bar Examiners to the State Bar.
State courts closed for the federal and California holiday — the Legislature continues budget negotiations toward the Governor's June 30 signing deadline as trailer bills take shape.
The June 11 floor report anticipates legislative passage of a housing bond and Rainy Day Fund constitutional amendment for the November ballot — statutory changes requiring voter approval.
Attorney General Bonta's show-cause return in Office of the State Public Defender v. Bonta is due in Sacramento County Superior Court — the first evidentiary proceedings on California's capital punishment racial-disparity claims since the Supreme Court remanded the case in May.
Newsom must sign, veto, or line-item reduce the Budget Act by June 30 — trailer bills implementing statutory changes typically follow through the summer after the main appropriations measure passes.