As the midnight deadline for signing or rejecting 704 bills approached, Schwarzenegger said sufficient progress had been made in the water talks, and he planned to act on all of the bills. As negotiations concluded late Sunday, the governor had signed into law 168 bills and vetoed 183. Those he signed included a measure intended to combat human trafficking and an anti-drunk-driving bill requiring DUI offenders in some counties to install devices in their vehicles that test blood-alcohol content before they can be started. Those he rejected included bids to force any extension of Interstate 710 to be done underground, ban pay hikes for top administrators at public universities in bad budget years and tighten oversight on fertility clinics. Schwarzenegger also called a special legislative session on water to start this week. 'Over the past few days we have made enough progress in our negotiations that I am calling a special session on water,' he said in a statement. 'While we still have a few remaining issues to work out, I commend the legislative leaders for their focus and commitment to solving this crisis and I will weigh all the bills on their merits.' Water negotiations, however, have been slow going, repeatedly becoming stuck in decades-old political and policy feuds. The governor wants lawmakers to agree to ask voters to borrow billions of dollars to pay for infrastructure upgrades and other improvements. Legislative aides said the prime obstacles remained the monitoring of groundwater and how to finance structural improvements that include two possible new dams. As it became clear that an agreement was not at hand, negotiations appeared to shift toward finding a way for Schwarzenegger to retreat from his veto threat -- an option he ultimately did not want to exercise. 'We made great progress,' Assembly Speaker Karen Bass said. 'But with such a complex issue as water, as much as we wanted to finish by midnight, we're just not quite there.' She said she expected details of a bipartisan plan to be hammered out in time to present to the legislative caucuses within about 48 hours. One of the bills Schwarzenegger signed Sunday was a measure to reduce the prison population by 20,000 to 25,000 inmates, although it stops far short of solving the overcrowding crisis and does not include more extensive reductions that the governor wanted. The measure also would leave California's budget with $200 million more in red ink. Top finance officials reported Friday that state revenue was already $1 billion short of their projections. The drunk-driving bill creates a pilot program in Los Angeles, Alameda, Sacramento and Tulare counties. The program will permit first-time DUI offenders to drive only if they install a breath device on every vehicle they own and pass a test on it before the ignition can be unlocked and they can take to the road. The human-trafficking bill quadruples fines, to $20,000, on those convicted of such a crime. It also allows law enforcement officers to seize the assets of traffickers. Those assets and money collected in increased fines would be spent on local programs serving the victims of trafficking. Charter schools will be given a boost by two bills the governor signed. One tweaks state law to allow the schools access to some $900 million in voter-approved bond money for construction. The other creates a uniform funding model for charters, giving districts more incentive to approve them. On the university pay hike bill, Schwarzenegger wrote that 'a blanket prohibition' on certain raises would limit the ability of state universities to attract the best staff, ultimately harming the state's students. Sen. Leland Yee responded in a statement that the veto 'protects the UC and CSU administration's egregious executive compensation practices and allows them to continue to act more like AIG than a public trust.' (Optional add end) In addition, the governor: -- Vetoed a bill that animal welfare advocates believed would stem the scourge of puppy mills in the state by capping at 50 the number of unsterilized dogs and cats for breeding or selling by one owner. . -- Rejected an extension of a moratorium on new card clubs in the state until 2020. -- Said no to a measure that would have required police to receive training in how to deal with members of the Sikh faith, who carry a small, curved sword called a kirpa. -- Signed into law a bill intended to allow California to compete for billions of dollars in new 'Race to the Top' education grants from the federal government. -- Approved higher penalties on dogfight spectators. 