BILL NUMBER: SB 11 CHAPTERED
BILL TEXT
CHAPTER 945
FILED WITH SECRETARY OF STATE OCTOBER 16, 1995
APPROVED BY GOVERNOR OCTOBER 16, 1995
PASSED THE SENATE SEPTEMBER 15, 1995
PASSED THE ASSEMBLY SEPTEMBER 14, 1995
AMENDED IN ASSEMBLY AUGUST 29, 1995
AMENDED IN ASSEMBLY AUGUST 21, 1995
AMENDED IN ASSEMBLY JULY 28, 1995
AMENDED IN ASSEMBLY JULY 11, 1995
AMENDED IN ASSEMBLY JUNE 7, 1995
AMENDED IN SENATE APRIL 17, 1995
AMENDED IN SENATE APRIL 4, 1995
AMENDED IN SENATE MARCH 7, 1995
AMENDED IN SENATE FEBRUARY 27, 1995
INTRODUCED BY Senators Ayala, Johannessen, and Monteith
(Principal coauthor: Senator Peace)
(Principal coauthor: Assembly Member Aguiar)
(Coauthors: Senators Hurtt, Leslie, and Russell)
(Coauthors: Assembly Members Alby, Goldsmith, Kuykendall, and
Thompson)
DECEMBER 5, 1994
An act to amend, repeal, and add Sections 17526, 17553, 17555,
17557, 17558, 17558.5, and 17562 of, and to add Sections 17561.5 and
17561.6 to, the Government Code, and to amend and repeal Section 2246
of the Revenue and Taxation Code, relating to state-mandated local
programs.
LEGISLATIVE COUNSEL'S DIGEST
SB 11, Ayala. State-mandated local programs.
(1) Existing law specifies that all Commission on State Mandates
meetings are open to the public.
This bill, on and after July 1, 1996, would specify that the
commission shall meet at least once a month and the time and place of
meetings shall be set by resolution.
(2) Existing law requires the commission to adopt procedures for
receiving claims.
This bill, on and after July 1, 1996, would further require that
the procedures ensure that a statewide cost estimate be adopted
within 18 months after receipt of a test claim or 6 months after an
undisputed test claim. The bill would specify other procedures
regarding local agency test claims.
(3) Existing law requires the commission to set a date for a
public hearing on a test claim within a reasonable time.
This bill, on and after July 1, 1996, would require that the
hearing be set within 75 days.
(4) The bill, on and after July 1, 1996, would require the
Controller to pay any eligible claims under these provisions within
60 days of the deadline for the local agency to file a claim with the
Controller. The bill would also require that interest be paid on
local agency claims if payment is more than 12 months after adoption
of a statewide cost estimate.
(5) Existing law authorizes the Legislative Analyst to make
certain reports to the Legislature regarding state mandates.
This bill, on and after July 1, 1996, would require the
Legislative Analyst to make these reports.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. This act shall be known and may be cited as the
Ayala-Monteith-Johannessen Mandate Relief and Reform Act of 1995.
SEC. 2. Section 17526 of the Government Code is amended to read:
17526. (a) All meetings of the commission shall be open to the
public, except that the commission may meet in executive session to
consider the appointment or dismissal of officers or employees of the
commission or to hear complaints or charges brought against a
member, officer, or employee of the commission.
(b) This section shall become inoperative on July 1, 1996, and, as
of January 1, 1997, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 1997, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 3. Section 17526 is added to the Government Code, to read:
17526. (a) All meetings of the commission shall be open to the
public, except that the commission may meet in executive session to
consider the appointment or dismissal of officers or employees of the
commission or to hear complaints or charges brought against a
member, officer, or employee of the commission.
(b) The commission shall meet at least once every month.
(c) The time and place of meetings may be set by resolution of the
commission, by written petition of a majority of the members, or by
written call of the chairperson. The chairperson may, for good
cause, change the starting time or place, reschedule, or cancel any
meeting.
(d) This section shall become operative on July 1, 1996.
SEC. 4. Section 17553 of the Government Code is amended to read:
17553. (a) The commission shall adopt procedures for receiving
claims pursuant to this article and for providing a hearing on those
claims. The hearing procedure shall provide for presentation of
evidence by the claimant, the Department of Finance and any other
affected department or agency, and any other interested person.
Hearing of a claim may be postponed at the request of the claimant,
without prejudice.
(b) This section shall become inoperative on July 1, 1996, and, as
of January 1, 1997, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 1997, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 5. Section 17553 is added to the Government Code, to read:
17553. (a) The commission shall adopt procedures for receiving
claims pursuant to this article and for providing a hearing on those
claims. The hearing procedure shall provide for presentation of
evidence by the claimant, the Department of Finance and any other
affected department or agency, and any other interested person. The
procedures shall ensure that a statewide cost estimate is adopted
within 18 months after receipt of a test claim or six months after an
undisputed test claim, except for any extensions or postponements by
the claimant, or if incomplete information is submitted by the
claimant, when a determination is made by the commission that a
mandate exists. Hearing of a claim may be postponed at the request
of the claimant, without prejudice, until the next scheduled hearing.
(b) The procedures adopted by the commission pursuant to
subdivision (a) shall include the following:
(1) Provisions for consolidating test claims relating to the same
statute or executive order filed with the commission with time limits
that do not exceed 30 days from the initial filing for consolidating
the test claims and for claimants to designate a single contact for
information regarding the test claim.
(2) Provisions for claimants to designate a single claimant for a
test claim relating to the same statute or executive order filed with
the commission, with time limits that do not exceed 30 days from the
initial filing for making that designation.
(c) If a completed test claim is not received by the commission
within 30 calendar days from the date that an incomplete test claim
was returned by the commission, the original test claim filing date
may be disallowed, and a new test claim may be accepted on the same
statute or executive order.
(d) This section shall become operative on July 1, 1996.
SEC. 6. Section 17555 of the Government Code is amended to read:
17555. (a) The commission, within 10 days after receipt of a test
claim based upon a statute or executive order, shall set a date for
a public hearing on the claim within a reasonable time. The test
claim may be based upon estimated costs that a local agency or school
district may incur as a result of the statute or executive order and
may be filed at any time after the statute is enacted or the
executive order is adopted. The claim shall be submitted in a form
prescribed by the commission. After a hearing in which the claimant
and any other interested organization or individual may participate,
the commission shall determine if there are costs mandated by the
state.
(b) This section shall become inoperative on July 1, 1996, and, as
of January 1, 1997, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 1997, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 7. Section 17555 is added to the Government Code, to read:
17555. (a) The commission, within 10 days after receipt of a test
claim based upon a statute or executive order, shall set a date for
a public hearing on the claim within 75 days. The test claim may be
based upon estimated costs that a local agency or school district may
incur as a result of the statute or executive order and may be filed
at any time after the statute is enacted or the executive order is
adopted. The claim shall be submitted in a form prescribed by the
commission. After a hearing in which the claimant and any other
interested organization or individual may participate, the commission
shall determine if there are costs mandated by the state.
(b) This section shall become operative on July 1, 1996.
SEC. 8. Section 17557 of the Government Code is amended to read:
17557. (a) If the commission determines there are costs mandated
by the state pursuant to Section 17555, 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. The successful test claimants shall submit proposed
parameters and guidelines within 60 days of adoption of a statement
of decision on a test claim. At the request of a successful test
claimant, the commission may provide for one or more extensions of
this 60-day period at any time prior to its adoption of the
parameters and guidelines and for any length of time the commission
specifies. If proposed parameters and guidelines are not submitted
within the 60-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 60-day period is justified. A local agency, school
district, and the state may file a claim or request with the
commission to amend, modify, or supplement the parameters or
guidelines. The commission may, after public notice and hearing,
amend, modify, or supplement the parameters and guidelines.
(b) In adopting parameters and guidelines, the commission may
adopt an allocation formula or uniform allowance which would provide
for reimbursement of each local agency or school district of a
specified amount each year.
(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, provided, however,
that the commission shall not specify therein any fiscal year for
which payment could be provided in the annual Budget Act. A test
claim shall be submitted on or before December 31 following a fiscal
year in order to establish eligibility for reimbursement for that
fiscal year.
(d) This section shall become inoperative on July 1, 1996, and, as
of January 1, 1997, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 1997, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 9. Section 17557 is added to the Government Code, to read:
17557. (a) If the commission determines there are costs mandated
by the state pursuant to Section 17555, 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. The successful test claimants shall submit proposed
parameters and guidelines within 30 days of adoption of a statement
of decision on a test claim. 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. A
local agency, school district, and the state may file a claim or
request with the commission to amend, modify, or supplement the
parameters or guidelines. The commission may, after public notice
and hearing, amend, modify, or supplement the parameters and
guidelines.
(b) In adopting parameters and guidelines, the commission may
adopt an allocation formula or uniform allowance which would provide
for reimbursement of each local agency or school district of a
specified amount each year.
(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, provided, however,
that the commission shall not specify therein any fiscal year for
which payment could be provided in the annual Budget Act. A test
claim shall be submitted on or before December 31 following a fiscal
year in order to establish eligibility for reimbursement for that
fiscal year.
(d) This section shall become operative on July 1, 1996.
SEC. 10. Section 17558 of the Government Code is amended to read:
17558. (a) The commission shall submit the adopted parameters and
guidelines to the Controller. All claims relating to a statute or
executive order that are filed after the determination of the test
claim pursuant to Section 17557 shall be transferred to the
Controller who shall pay and audit the claims from funds made
available for that purpose.
(b) The Controller shall prepare claiming instructions for each
mandate that requires state reimbursement to assist local agencies
and school districts in claiming costs to be reimbursed. In
preparing claiming instructions, the Controller may request the
assistance of other state agencies. The claiming instructions shall
be derived from the statute or executive order creating the mandate
and the parameters and guidelines provided by the commission and
approved by the Legislature.
(c) On behalf of any authorized state agency, the Controller shall
expeditiously prepare and issue new or revised claiming instructions
for new mandates that require state reimbursement that have been
established by commission action pursuant to Section 17555 or after
any decision or order of the commission pursuant to Section 17551,
and for which funding is provided pursuant to Section 17610, the
Budget Act, or other provisions.
(d) This section shall become inoperative on July 1, 1996, and, as
of January 1, 1997, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 1997, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 11. Section 17558 is added to the Government Code, to read:
17558. (a) The commission shall submit the adopted parameters and
guidelines to the Controller. All claims relating to a statute or
executive order that are filed after the determination of the test
claim pursuant to Section 17557 shall be transferred to the
Controller who shall pay and audit the claims from funds made
available for that purpose.
(b) The Controller shall prepare claiming instructions for each
mandate that requires state reimbursement to assist local agencies
and school districts in claiming costs to be reimbursed no later than
30 days after receiving the adopted parameters and guidelines from
the commission. In preparing claiming instructions, the Controller
may request the assistance of other state agencies. The claiming
instructions shall be derived from the statute or executive order
creating the mandate and the parameters and guidelines provided by
the commission and approved by the Legislature.
(c) On behalf of any authorized state agency, the Controller
shall, within 30 days, prepare and issue new or revised claiming
instructions for new mandates that require state reimbursement that
have been established by commission action pursuant to Section 17555
or after any decision or order of the commission pursuant to Section
17551, and for which funding is provided pursuant to Section 17610,
the Budget Act, or other provisions.
(d) This section shall become operative on July 1, 1996.
SEC. 12. Section 17558.5 of the Government Code is amended to
read:
17558.5. (a) A reimbursement claim for actual costs filed by a
local agency or school district pursuant to this chapter is subject
to audit by the Controller no later than four years after the end of
the calendar year in which the reimbursement claim is filed or last
amended. However, if no funds are appropriated for the program for
the fiscal year for which the claim is made, the time for the
Controller to initiate an audit shall commence to run from the date
of initial payment of the claim.
(b) The Controller shall notify the claimant in writing within 30
days after issuance of a remittance advice of any adjustment to a
claim for reimbursement that results from an audit or review. The
notification shall specify the claim components adjusted, the amounts
adjusted, and the reason for the adjustment. Remittance advices and
other notices of payment action shall not constitute notice of
adjustment from an audit or review.
(c) Nothing in this section shall be construed to limit the
adjustment of payments when inaccuracies are determined to be the
result of the intent to defraud, or when a delay in the completion of
an audit is the result of willful acts by the claimant or inability
to reach agreement on terms of final settlement.
(d) This section shall become inoperative on July 1, 1996, and, as
of January 1, 1997, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 1997, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 13. Section 17558.5 is added to the Government Code, to read:
17558.5. (a) A reimbursement claim for actual costs filed by a
local agency or school district pursuant to this chapter is subject
to audit by the Controller no later than two years after the end of
the calendar year in which the reimbursement claim is filed or last
amended. However, if no funds are appropriated for the program for
the fiscal year for which the claim is made, the time for the
Controller to initiate an audit shall commence to run from the date
of initial payment of the claim.
(b) The Controller shall notify the claimant in writing within 30
days after issuance of a remittance advice of any adjustment to a
claim for reimbursement that results from an audit or review. The
notification shall specify the claim components adjusted, the amounts
adjusted, and the reason for the adjustment. Remittance advices and
other notices of payment action shall not constitute notice of
adjustment from an audit or review.
(c) Nothing in this section shall be construed to limit the
adjustment of payments when inaccuracies are determined to be the
result of the intent to defraud, or when a delay in the completion of
an audit is the result of willful acts by the claimant or inability
to reach agreement on terms of final settlement.
(d) This section shall become operative on July 1, 1996.
SEC. 14. Section 17561.5 is added to the Government Code, to read:
17561.5. (a) The Controller shall pay any eligible claims
pursuant to Section 17561 within 60 days of the filing deadline.
(b) The payment of a claim shall include interest at the Pooled
Money Investment Account rate if the payment is more than 12 months
after adoption of the statewide costs estimate for an initial claim
or more than 12 months after subsequent claims relating to that same
statute or executive order.
(c) This section shall become operative on July 1, 1996.
SEC. 15. Section 17561.6 is added to the Government Code, to read:
17561.6. (a) A budget act item or appropriation pursuant to this
part for reimbursement of claims shall include an amount necessary to
reimburse any interest due pursuant to Section 17561.5.
(b) This section shall become operative on July 1, 1996.
SEC. 16. Section 17562 of the Government Code is amended to read:
17562. (a) The Legislature hereby finds and declares that the
increasing revenue constraints on state and local government and the
increasing costs of financing state-mandated local programs make
evaluation of the cumulative effects of state-mandated local programs
imperative. Accordingly, it is the intent of the Legislature to
establish a method for regularly reviewing the costs of
state-mandated local programs, by evaluating the benefit of
previously enacted mandates.
(b) The Legislative Analyst may review and report to the
Legislature with regard to any statute or executive order which
creates a state-mandated local program. The Legislative Analyst may
recommend that the Legislature continue, eliminate, or modify any
provision of law reviewed pursuant to this subdivision.
(c) This section shall become inoperative on July 1, 1996, and, as
of January 1, 1997, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 1997, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 17. Section 17562 is added to the Government Code, to read:
17562. (a) The Legislature hereby finds and declares that the
increasing revenue constraints on state and local government and the
increasing costs of financing state-mandated local programs make
evaluation of the cumulative effects of state-mandated local programs
imperative. Accordingly, it is the intent of the Legislature to
establish a method for regularly reviewing the costs of
state-mandated local programs, by evaluating the benefit of
previously enacted mandates.
(b) (1) The Legislative Analyst shall review and report to the
Legislature with regard to any statute or executive order which
creates a state-mandated local program. The Legislative Analyst
shall recommend that the Legislature continue, eliminate, or modify
any provision of law reviewed pursuant to this subdivision. The
recommendations may be by subject area or by year or years of
enactment. The report and recommendations shall be submitted to the
Legislature by September 1 each year.
(2) The Department of Finance shall review all statutes enacted
each year that contain provisions making inoperative Section 2229 or
Section 2230 of the Revenue and Taxation Code or Section 17561 or
Section 17565 that have resulted in costs or revenue losses mandated
by the state that were not identified when the statute was enacted.
The review shall identify the costs or revenue losses involved in
complying with the provisions of the statutes. The Department of
Finance shall also review all statutes enacted each year that may
result in cost savings authorized by the state. The Department of
Finance shall submit an annual report of the review required by this
subdivision, together with the recommendations as it may deem
appropriate, by September 1 each year.
(c) It is the intent of the Legislature that the Assembly
Committee on Local Government and the Senate Committee on Local
Government hold a joint hearing each year regarding the following:
(1) The reports and recommendations submitted pursuant to
subdivision (b).
(2) The reports submitted pursuant to Sections 17570, 17600, and
17601.
(3) Legislation to continue, eliminate, or modify any provision of
law reviewed pursuant to this subdivision. The legislation may be
by subject area or by year or years of enactment.
(d) This section shall become operative on July 1, 1996.
SEC. 18. Section 2246 of the Revenue and Taxation Code is amended
to read:
2246. (a) Before the end of each calendar year the Department of
Finance shall review all statutes enacted during that calendar year
which contain provisions making inoperative Section 2229 or 2230 or
Section 17561 or 17565 of the Government Code that have resulted in
costs or revenue losses mandated by the state which were not
identified when the statute was enacted. The review shall identify
the costs or revenue losses involved in complying with the provisions
of the statutes. The Department of Finance shall also review all
statutes enacted in the calendar year which may result in cost
savings authorized by the state. The Department of Finance shall
submit to the Legislature an annual report of the review required by
this section, together with the recommendations as it may deem
appropriate.
(b) This section shall become inoperative on July 1, 1996, and, as
of January 1, 1997, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 1997, deletes or
extends the dates on which it becomes inoperative and is repealed.