BILL ANALYSIS
SENATE LOCAL GOVERNMENT COMMITTEE
Senator Patricia Wiggins, Chair
BILL NO: AB 548 HEARING: 7/1/09
AUTHOR: Krekorian FISCAL: Yes
VERSION: 6/1/09 CONSULTANT:
Weinberger
STATE MANDATED LOCAL PROGRAMS
Background and Existing Law
In 1979, the voters amended the California Constitution,
requiring the state to reimburse local governments for the
cost of new programs or higher levels of service mandated
by the Legislature or any state agency. In 1984, the
Legislature created the Commission on State Mandates. The
Commission is a quasi-judicial body which decides test
claims alleging that the Legislature or a state agency
imposed a reimbursable state-mandated local program. If
the Commission identifies a state-mandated program, it
adopts parameters and guidelines defining what activities
will be reimbursed, and adopts statewide cost estimates.
After receiving the adopted parameters and guidelines for a
mandate, the State Controller's Office issues claiming
instructions to guide local agencies and school districts
in claiming reimbursable costs. The Controller's office
receives, pays, and audits reimbursement claims. The
Controller must begin an audit of reimbursement claims no
later than three years after the date the claim is filed,
or last amended, whichever is later. However, if no funds
are appropriated or no payment is made to a claimant during
the fiscal year in which a claim is filed, the Controller
is not required to initiate an audit until three years from
the date of initial payment.
School district officials want to shorten the length of
time it takes for the Controller's office to complete its
initial audits of reimbursement claims.
Proposed Law
Assembly Bill 548 repeals the State Controller's authority
to initiate an audit up to three years after the initial
payment of a mandate claim if no funds are appropriated or
AB 548 -- 6/1/09 -- Page 2
no payment is made to a claimant for the program for the
fiscal year for which the claim is filed. AB 548 prohibits
the State Controller from initiating an audit more than
four years after the date that a mandate reimbursement
claim is filed or last amended, whichever is later.
Comments
1. Speeding up the mandate claims process . Delays in the
audit process for mandate claims create problems for local
governments. Deferring audits of reimbursement claims can
leave local officials in the dark about their compliance
with reimbursement guidelines and require them to maintain
many years' worth of detailed records relating to mandate
costs. Through no fault of their own, local governments
must sometimes carry out mandates for years under the
threat that an audit may eventually require them to return
reimbursement funds to the state. As a result of this
uncertainty, local officials may hesitate from spending
reimbursement funds until after audits are completed. AB
548 solves this problem by setting a firm deadline, thereby
forcing the Controller's office to audit local governments'
claims more expeditiously.
2. Previous legislation . AB 548 is similar to a provision
in AB 1170 (Krekorian, 2007). That bill passed the Senate
Local Government Committee, but died in the Senate
Appropriations Committee.
Assembly Actions
Assembly Local Government Committee: 7-0
Assembly Appropriations Committee:13-3
Assembly Floor: 78-0
Support and Opposition (6/25/09)
Support : Five Star Education Coalition, Riverside County
Schools Advocacy Association, American Federation of State
County and Municipal Employees, AFL-CIO, California
AB 548 -- 6/1/09 -- Page 3
Association of School Business Officials, California
Federation of Teachers, California State Association of
Counties, the Educational Coalition, Elk Grove Unified
School District, Los Angeles Unified School District,
Saddleback Valley Unified School District, San Diego County
Board of Supervisors, State Controller John Chiang.
Opposition : Unknown.