BILL NUMBER: AB 202 ENROLLED
BILL TEXT
PASSED THE SENATE SEPTEMBER 1, 2011
PASSED THE ASSEMBLY SEPTEMBER 6, 2011
AMENDED IN SENATE AUGUST 15, 2011
AMENDED IN SENATE JUNE 28, 2011
AMENDED IN ASSEMBLY MAY 16, 2011
AMENDED IN ASSEMBLY APRIL 15, 2011
AMENDED IN ASSEMBLY MARCH 25, 2011
INTRODUCED BY Assembly Member Brownley
JANUARY 27, 2011
An act to amend Sections 17557, 17557.1, and 17560 of, and to add
Sections 17518.83, 17562.1, and 17562.5 to, the Government Code,
relating to local educational agencies.
LEGISLATIVE COUNSEL'S DIGEST
AB 202, Brownley. Local educational agencies: reimbursable state
mandates.
Existing law establishes a procedure for local governmental
agencies to file, with the Commission on State Mandates, claims for
reimbursement of specified costs associated with state-mandated local
programs, and sets forth the procedure for a determination by the
commission for eligibility for reimbursement, appropriation, and
payment of claims, including payment pursuant to the enactment of a
local government claims bill, the establishment of interest accrued
on claims, and the review of state mandates by the Legislative
Analyst generally.
This bill would express the intent of the Legislature that
statutes creating a reimbursable state mandate on local educational
agencies be periodically reviewed, and that the Legislature consider
recommendations on whether those statutes should be amended,
repealed, or remain unchanged. The bill would require that, in
addition to a report submitted pursuant to existing law, the
Legislative Analyst review and report on each reimbursable state
mandate relating to local educational agencies that meets prescribed
criteria. The bill would specify the information to be provided in
the review and report, and would require that the review and report
be provided to the chairpersons of the Assembly Committee on
Education, the Senate Committee on Education, and the fiscal
committees of the Assembly and the Senate, on or before the January 1
following the adjournment of the regular session of the Legislature
for which the review was made. The bill would define a local
educational agency for the purposes of those provisions.
This bill would authorize a successful test claimant that is a
local educational agency to designate another local educational
agency to prepare and submit the proposed reimbursement parameters
and guidelines to the commission, as specified. The bill would modify
provisions governing the development of a draft reasonable
reimbursement methodology and would provide for binding arbitration
in the case of an impasse, as specified. The bill would enact other
related provisions.
Existing law requires the Controller to submit various reports to
the Legislature and the Department of Finance on each state mandate,
including the total amount of claims paid per fiscal year, whether
there are mandate deficiencies or surpluses, and a comparison of the
estimated annual cost of each mandate in the preceding fiscal year to
the amount determined to be payable by the state for that fiscal
year.
This bill would require the Controller to notify the appropriate
fiscal and education policy committees of the Legislature within 30
days of the date upon which the Controller determines that the total
claims for reimbursement filed in a fiscal year, on any mandate where
the test claim was filed by a local educational agency, exceed the
adopted statewide estimate of costs for that mandate by more than
25%. The bill would also require the Commission on State Mandates to
notify the above-referenced committees within 30 days of the date
upon which a test claim is filed by a local educational agency, where
that agency submits a written narrative that identifies certain
information regarding a regulation alleged to contain a mandate.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17518.83 is added to the Government Code, to
read:
17518.83. "Local educational agency" means a school district as
defined in Section 17519, except that it does not include a community
college district.
SEC. 2. Section 17557 of the Government Code is amended to read:
17557. (a) (1) If the commission determines there are costs
mandated by the state pursuant to Section 17551, it shall determine
the amount to be subvened to local agencies and school districts for
reimbursement. In so doing it shall adopt parameters and guidelines
for reimbursement of any claims relating to the statute or executive
order. Except as provided in paragraph (2), the successful test
claimants shall submit proposed parameters and guidelines within 30
days of adoption of a statement of decision on a test claim. The
proposed parameters and guidelines may include proposed reimbursable
activities that are reasonably necessary for the performance of the
state-mandated program. At the request of a successful test claimant,
the commission may provide for one or more extensions of this 30-day
period at any time prior to its adoption of the parameters and
guidelines. If proposed parameters and guidelines are not submitted
within the 30-day period and the commission has not granted an
extension, then the commission shall notify the test claimant that
the amount of reimbursement the test claimant is entitled to for the
first 12 months of incurred costs will be reduced by 20 percent,
unless the test claimant can demonstrate to the commission why an
extension of the 30-day period is justified.
(2) If the successful test claimant is a local educational agency,
the test claimant may designate another local educational agency to
prepare and submit the proposed parameters and guidelines to the
commission. A designation made pursuant to this paragraph shall be
made in writing and submitted to the commission.
(b) In adopting parameters and guidelines, the commission may
adopt a reasonable reimbursement methodology.
(c) The parameters and guidelines adopted by the commission shall
specify the fiscal years for which local agencies and school
districts shall be reimbursed for costs incurred. However, the
commission may not specify in the parameters and guidelines any
fiscal year for which payment could be provided in the annual Budget
Act.
(d) (1) A local agency, school district, or the state may file a
written request with the commission to amend the parameters or
guidelines. The commission may, after public notice and hearing,
amend the parameters and guidelines. A parameters and guidelines
amendment submitted within 90 days of the claiming deadline for
initial claims, as specified in the claiming instructions pursuant to
Section 17561, shall apply to all years eligible for reimbursement
as defined in the original parameters and guidelines. A parameters
and guidelines amendment filed more than 90 days after the claiming
deadline for initial claims, as specified in the claiming
instructions pursuant to Section 17561, and on or before the claiming
deadline following a fiscal year, shall establish reimbursement
eligibility for that fiscal year.
(2) For purposes of this subdivision, the request to amend
parameters and guidelines may be filed to make any of the following
changes to parameters and guidelines, consistent with the statement
of decision:
(A) Delete any reimbursable activity that has been repealed by
statute or executive order after the adoption of the original or last
amended parameters and guidelines.
(B) Update offsetting revenues and offsetting savings that apply
to the mandated program and do not require a new legal finding that
there are no costs mandated by the state pursuant to subdivision (e)
of Section 17556.
(C) Include a reasonable reimbursement methodology for all or some
of the reimbursable activities.
(D) Clarify what constitutes reimbursable activities.
(E) Add new reimbursable activities that are reasonably necessary
for the performance of the state-mandated program.
(F) Define what activities are not reimbursable.
(G) Consolidate the parameters and guidelines for two or more
programs.
(H) Amend the boilerplate language. For purposes of this section,
"boilerplate language" means the language in the parameters and
guidelines that is not unique to the state-mandated program that is
the subject of the parameters and guidelines.
(e) A test claim shall be submitted on or before June 30 following
a fiscal year in order to establish eligibility for reimbursement
for that fiscal year. The claimant may thereafter amend the test
claim at any time, but before the test claim is set for a hearing,
without affecting the original filing date as long as the amendment
substantially relates to the original test claim.
(f) In adopting parameters and guidelines, the commission shall
consult with the Department of Finance, the affected state agency,
the Controller, the fiscal and policy committees of the Assembly and
Senate, the Legislative Analyst, and the claimants to consider a
reasonable reimbursement methodology that balances accuracy with
simplicity.
SEC. 3. Section 17557.1 of the Government Code is amended to read:
17557.1. (a) Notwithstanding any other provision of this part,
within 30 days of the commission's adoption of a statement of
decision on a test claim, the test claimant, or a local educational
agency designated pursuant to subdivision (a) of Section 17557, and
the Department of Finance may notify the executive director of the
commission in writing of their intent to follow the process described
in this section to develop a reasonable reimbursement methodology
and statewide estimate of costs for the initial claiming period and
budget year for reimbursement of costs mandated by the state in
accordance with the statement of decision. The letter of intent shall
include the date on which the test claimant and the Department of
Finance will submit a plan to ensure that costs from a representative
sample of eligible local agency or school district claimants are
considered in the development of a reasonable reimbursement
methodology.
(b) This plan shall also include all of the following information:
(1) The date on which the test claimant and Department of Finance
will provide to the executive director an informational update
regarding their progress in developing the reasonable reimbursement
methodology.
(2) The date on which the test claimant and Department of Finance
will submit to the executive director the draft reasonable
reimbursement methodology and proposed statewide estimate of costs
for the initial claiming period and budget year. This date shall be
no later than 180 days after the date the letter of intent is sent by
the test claimant and Department of Finance to the executive
director.
(c) (1) At the request of a test claimant that is not a local
educational agency and Department of Finance, the executive director
may provide for up to four extensions of this 180-day period.
(2) At the request of a local educational agency test claimant, or
a local educational agency designated pursuant to subdivision (a) of
Section 17557, and the Department of Finance, the executive director
may provide for a single extension of this 180-day period, not to
exceed another 90 days.
(d) A test claimant that is not a local educational agency or
Department of Finance may notify the executive director at any time
that the claimant or Department of Finance no longer intends to
develop a reasonable reimbursement methodology pursuant to this
section. In this case, paragraph (2) of subdivision (a) of Section
17553 and Section 17557 shall apply to the test claim. Upon receipt
of this notification, the executive director shall notify the test
claimant of the duty to submit proposed parameters and guidelines
within 30 days under subdivision (a) of Section 17557.
(e) A local educational agency test claimant, or a local
educational agency designated pursuant to subdivision (a) of Section
17557, and Department of Finance may jointly notify the executive
director at any time that the local educational agency and Department
of Finance no longer intend to develop a reasonable reimbursement
methodology pursuant to this section. In this case, paragraph (2) of
subdivision (a) of Section 17553 and Section 17557 shall apply to the
test claim. Upon receipt of this notification, the executive
director shall notify the test claimant, or its designee, of the duty
to submit proposed parameters and guidelines within 30 days under
subdivision (a) of Section 17557.
(f) If the draft reasonable reimbursement methodology and proposed
statewide estimate of costs, developed pursuant to this section, for
a test claim filed by a local educational agency is not submitted to
the executive director prior to the date specified pursuant to
paragraph (2) of subdivision (b) or by the end of any extension
period provided pursuant to paragraph (2) of subdivision (c), or if
the test claimant, the local educational agency designated pursuant
to subdivision (a) of Section 17557, and the Department of Finance
notify the executive director that no further progress in developing
the reasonable reimbursement methodology is possible, then all of the
following shall be implemented:
(1) The executive director shall do the following:
(A) Immediately declare that the development of the reasonable
reimbursement methodology is at an impasse, and that binding
arbitration is necessary.
(B) Notify the Chief Executive Officer of the Fiscal Crisis and
Management Assistance Team established pursuant to Section 42127.8 or
his or her designee, the test claimant, any local educational agency
designated pursuant to subdivision (a) of Section 17557, and the
Department of Finance of the declaration made pursuant to
subparagraph (A).
(2) The Chief Executive Officer of the Fiscal Crisis and
Management Assistance Team or his or her designee shall do the
following:
(A) Serve as the sole arbitrator of the reasonable reimbursement
methodology impasse.
(B) Within 90 days of receiving the notification pursuant to
subparagraph (B) of paragraph (1), mediate or, if necessary,
arbitrate a draft reasonable reimbursement methodology that is
consistent with subdivisions (a) to (d), inclusive, of Section
17518.5, and provide that draft jointly to the test claimant, any
local educational agency designated pursuant to subdivision (a) of
Section 17557, and the Department of Finance.
(C) Be deemed to be "an interested party" for the purposes of
subdivision (e) of Section 17518.5.
(3) The local educational agency and the Department of Finance
shall do the following:
(A) Within 10 days of receiving the notification pursuant to
subparagraph (B) of paragraph (1), provide all available support
materials, including, but not limited to, estimates, local cost
projections, sample information, and input from associations or other
interested parties, to the arbitrator.
(B) Upon receipt of the draft reasonable reimbursement methodology
developed pursuant to paragraph (2), develop a proposed statewide
estimate of costs for the initial claiming period and budget year.
(C) Within 30 days of receiving the draft reasonable reimbursement
methodology from the arbitrator pursuant to subparagraph (B) of
paragraph (2), jointly submit to the executive director the draft
reasonable reimbursement methodology and proposed statewide estimate
of costs for the initial claiming period and budget year.
SEC. 4. Section 17560 of the Government Code is amended to read:
17560. Reimbursement for state-mandated costs may be claimed as
follows:
(a) A local agency or school district may, by February 15
following the fiscal year in which costs are incurred, file an annual
reimbursement claim that details the costs actually incurred for
that fiscal year.
(b) In the event revised claiming instructions are issued by the
Controller pursuant to subdivision (c) of Section 17558 between
November 15 and February 15, a local agency or school district filing
an annual reimbursement claim shall have 120 days following the
issuance date of the revised claiming instructions to file a claim.
(c) A local educational agency filing a reimbursement claim, where
reimbursements for that claim are based upon a reasonable
reimbursement methodology developed pursuant to Section 17557.1 and
approved pursuant to Section 17557.2, shall provide with the
reimbursement claim a signed certification from the superintendent
attesting to the accuracy of the data used to calculate the amount
claimed under the approved reasonable reimbursement methodology.
SEC. 5. Section 17562.1 is added to the Government Code, to read:
17562.1. (a) The Controller shall, consistent with the
legislative intent specified in subdivision (a) of Section 17562,
notify the appropriate fiscal committees and educational policy
committees in each house of the Legislature within 30 days of the
date upon which the Controller determines that the total claims for
reimbursement filed in a fiscal year, on any mandate where the test
claim was filed by a local educational agency, exceed the adopted
statewide estimate of costs for that mandate by more than 25 percent.
(b) The commission shall, consistent with the legislative intent
specified in subdivision (a) of Section 17562, notify the appropriate
fiscal committees and educational policy committees in each house of
the Legislature within 30 days of the date upon which a test claim
is filed by a local educational agency, where that local educational
agency submits a written narrative that identifies the effective date
and register number of any regulation alleged to contain a mandate.
SEC. 6. Section 17562.5 is added to the Government Code, to read:
17562.5. (a) It is the intent of the Legislature that statutes
creating a reimbursable state mandate on local educational agencies
be periodically reviewed, and that the Legislature consider
recommendations on whether those statutes should be amended,
repealed, or remain unchanged.
(b) In addition to the report submitted pursuant to subdivision
(c) of Section 17562, at least once in each regular session of the
Legislature, the Legislative Analyst shall review and report on each
reimbursable state mandate relating to local educational agencies
that meets each of the following criteria:
(1) Pursuant to Section 17551, the Commission on State Mandates
has determined the existence of a reimbursable state-mandated
program.
(2) A claim for reimbursement has been filed with the Controller
by a school district, county office of education, or other eligible
local educational agency.
(3) The Legislature has not provided an appropriation to fully
fund current and pending claims for reimbursement filed with the
Controller.
(c) The review and report prepared by the Legislative Analyst
pursuant to subdivision (b) shall:
(1) Include all of the following for each mandate:
(A) A summary and its statutory source.
(B) Fiscal information, including, but not necessarily limited to,
the claims paid to date, unpaid claims, pending claims, and the
history of appropriations for the mandate.
(C) Recommendations as to whether the mandate should be amended,
repealed, or remain unchanged.
(2) Be provided to the chairpersons of the Assembly Committee on
Education, the Senate Committee on Education, and the fiscal
committees of the Assembly and the Senate, on or before the January 1
following the adjournment of the regular session of the Legislature
for which the review was made.