AB 392, as introduced, Jones-Sawyer. State mandates: prorated claims.
The California Constitution, whenever the Legislature or a state agency mandates a new program or higher level of service on any local government, including school districts, requires the state is to provide a subvention of funds to reimburse the local government, with specified exceptions. Existing law requires the Controller to prorate claims if the amount appropriated for reimbursement is not sufficient to pay all of the claims approved by the Controller. Existing law requires the Controller to report to the Department of Finance and various legislative entities when it is necessary to prorate claims.
This bill would delete that reporting requirement and would require the Controller to determine the most cost-effective allocation method if $1,000 or less is appropriated for a program.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 17567 of the Government Code is
2amended to read:
In the event that the amount appropriated for
2reimbursement purposes pursuant to Section 17561 is not sufficient
3to pay all of the claims approved by the Controller, the Controller
4shall prorate claims in proportion to the dollar amount of approved
5claims timely filed and on hand at the time of proration. The
6Controller shall adjust prorated claims if supplementary funds are
7appropriated for this purpose.
11In the event that the Controller finds it necessary to prorate
12claims as provided by this section, the Controller shall immediately
13report this action to the Department of Finance, the Chairperson
14of the Joint Legislative Budget Committee, and the Chairperson
15of the respective committee in each house of the Legislature which
16considers appropriations in order to assure appropriation of these
17funds in the Budget Act.