The Senate and Assembly each spent more than an hour debating a plan that's been in the making for more than a year.
It would make major changes to the state's under-funded pension system by increasing retirement ages, capping salaries on which pensions can be based, and ending abuses.
Democratic Assembly member Warren Furutani authored the legislation.
Furutani: "This is good public policy, it's something that's getting us way down the road, it's not the end-all be-all, those of you that are going to be here next year are going to have more work to do I urge an aye vote."
But Republicans like Assembly Member Jim Nielsen complained that the legislation doesn't go far enough and was hastily drafted.
Nielsen: "This is the legislature at its worst, last minute scrambling around on a major, major issue."
Some GOP lawmakers voted yes anyway. Others voted no or abstained.