BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 349
                                                                  Page  1

          Date of Hearing:   May 13, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                    AB 349 (Silva) - As Amended:  April 13, 2009 

          Policy Committee:                              Local  
          GovernmentVote:7-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill requires, beginning January 1, 1012, the  
          administration to produce draft trailer bill language with its  
          January budget proposal that repeals mandates that are proposed  
          to be suspended for at least the third consecutive year.

           FISCAL EFFECT  

          Minor absorbable cost to the Department of Finance (DOF) to  
          produce trailer bill language repealing mandates.

           COMMENTS  

           1)Background  . Section 6 of Article XIII B of the California  
            Constitution requires the state to reimburse local agencies  
            and school districts for increased costs if the Legislature  
            passes a law or the administration issues an executive order  
            or adopts regulations that require a local agency to perform a  
            new or higher level of service. There are several exemptions  
            to the reimbursement requirement, such as for laws expanding  
            the definition of crimes.

            Article XIII B also provides that certain mandates are  
            suspended (that is, the local agency is not required to  
            perform the mandate) in years in which there is no  
            appropriation provided in the annual Budget Act.  The local  
            agency is not required to comply with a state mandate that has  
            been suspended.  The Legislature cannot suspend a state  
            mandate relating to schools, community colleges, or local  
            government employee rights.









                                                                  AB 349
                                                                  Page  2

           2)Rationale  . The purpose of the bill is to focus attention on a  
            concern raised by the author about a significant number of  
            reimbursable mandates on the books which have not been funded  
            for several years. The author states there are currently over  
            two dozen reimbursable state mandates that have been suspended  
            for at least three years, 10 of which have been suspended for  
            at least 18 years.  The author believes that repealing  
            suspended mandates would make the law more clear.

           3)Is draft language going to be effective?  The bill merely  
            requires the DOF to include draft language as part of the  
            January budget proposal package. In order to have an impact,  
            the language would have to be included in a bill introduced by  
            a member, adopted by the Legislature, and signed by the  
            governor. Thus, a question raised by the bill is whether draft  
            bill language (which is not widely read) is the best mechanism  
            for focusing attention on the issue, or whether a more  
            effective means would be to simply require the budget proposal  
            to include a display of these items.

           Analysis Prepared by  :    Brad Williams / APPR. / (916) 319-2081