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