BILL NUMBER: SB 64 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Liu
JANUARY 5, 2011
An act to amend Sections 17553, 17554, 17557, 17557.1, 17557.2,
17558.5, and 17574 of, and to add Sections 17553.1, 17553.2, and
17558.55 to, the Government Code, relating to state mandates.
LEGISLATIVE COUNSEL'S DIGEST
SB 64, as introduced, Liu. State mandates: school district test
claims: procedure.
Under 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, the state is required
to provide a subvention of funds to reimburse the local government,
with specified exceptions. Existing law establishes a test claim
procedure for local governmental agencies to file claims for
reimbursement of these costs with the Commission on State Mandates.
This bill would revise these provisions to require the commission
to adopt procedures for receiving test claims for school districts
that eliminate specified existing requirements, including, among
others, requirements to file certain documents under penalty of
perjury. The bill would require the commission to create a school
district test claim advisory committee, with a prescribed membership,
for the purpose of reviewing school district test claims and
preparing a report for the commission that includes specified
information relating to the test claim. The bill would also require
the advisory committee to prepare and submit the parameters and
guidelines for an approved test claim to the commission for approval
on behalf of a school district claimant, as specified. The bill would
make a reimbursement claim filed by a school district claimant
subject to the initiation of an audit by the Controller for up to 4
years after the date that the claim is filed.
The bill would require the Controller to adopt regulations that
establish professional standards and internal controls for private
companies that provide mandate claim preparation or filing services
for school district claimants.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17553 of the Government Code is amended to
read:
17553. (a) The commission shall adopt procedures for receiving
claims filed by a l ocal agency pursuant to
this article and Section 17574 and for providing a hearing on those
claims. The procedures shall do all of the following:
(1) Provide for presentation of evidence by the claimant, the
Department of Finance, and any other affected department or agency,
and any other interested person.
(2) Ensure that a statewide cost estimate is adopted within 12
months after receipt of a test claim, when a determination is made by
the commission that a mandate exists. This deadline may be extended
for up to six months upon the request of either the claimant or the
commission.
(3) Permit the hearing of a claim to be postponed at the request
of the claimant, without prejudice, until the next scheduled hearing.
(b) All test claims shall be filed by a local agency on
a form prescribed by the commission and shall contain at least the
following elements and documents:
(1) A written narrative that identifies the specific sections of
statutes or executive orders and the effective date and register
number of regulations alleged to contain a mandate and shall include
all of the following:
(A) A detailed description of the new activities and costs that
arise from the mandate.
(B) A detailed description of existing activities and costs that
are modified by the mandate.
(C) The actual increased costs incurred by the claimant during the
fiscal year for which the claim was filed to implement the alleged
mandate.
(D) The actual or estimated annual costs that will be incurred by
the claimant to implement the alleged mandate during the fiscal year
immediately following the fiscal year for which the claim was filed.
(E) A statewide cost estimate of increased costs that all local
agencies or school districts will incur to
implement the alleged mandate during the fiscal year immediately
following the fiscal year for which the claim was filed.
(F) Identification of all of the following:
(i) Dedicated state funds appropriated for this program.
(ii) Dedicated federal funds appropriated for this program.
(iii) Other nonlocal agency funds dedicated for this program.
(iv) The local agency's general purpose funds for this program.
(v) Fee authority to offset the costs of this program.
(G) Identification of prior mandate determinations made by the
Commission on State Mandates or a predecessor agency that may be
related to the alleged mandate.
(H) Identification of a legislatively determined mandate pursuant
to Section 17573 that is on the same statute or executive order.
(2) The written narrative shall be supported with declarations
under penalty of perjury, based on the declarant's personal
knowledge, information, or belief, and signed by persons who are
authorized and competent to do so, as follows:
(A) Declarations of actual or estimated increased costs that will
be incurred by the claimant to implement the alleged mandate.
(B) Declarations identifying all local, state, or federal funds,
or fee authority that may be used to offset the increased costs that
will be incurred by the claimant to implement the alleged mandate,
including direct and indirect costs.
(C) Declarations describing new activities performed to implement
specified provisions of the new statute or executive order alleged to
impose a reimbursable state-mandated program. Specific references
shall be made to chapters, articles, sections, or page numbers
alleged to impose a reimbursable state-mandated program.
(D) If applicable, declarations describing the period of
reimbursement and payments received for full reimbursement of costs
for a legislatively determined mandate pursuant to Section 17573, and
the authority to file a test claim pursuant to paragraph (1) of
subdivision (c) of Section 17574.
(3) (A) The written narrative shall be supported with copies of
all of the following:
(i) The test claim statute that includes the bill number or
executive order, alleged to impose or impact a mandate.
(ii) Relevant portions of state constitutional provisions, federal
statutes, and executive orders that may impact the alleged mandate.
(iii) Administrative decisions and court decisions cited in the
narrative.
(B) State mandate determinations made by the Commission on State
Mandates or a predecessor agency and published court decisions on
state mandate determinations made by the Commission on State Mandates
are exempt from this requirement.
(4) A test claim shall be signed at the end of the document, under
penalty of perjury by the claimant or its authorized representative,
with the declaration that the test claim is true and complete to the
best of the declarant's personal knowledge, information, or belief.
The date of signing, the declarant's title, address, telephone
number, facsimile machine telephone number, and electronic mail
address shall be included.
(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) In addition, the commission shall determine whether an
incorrect reduction claim is complete within 10 days after the date
that the incorrect reduction claim is filed. If the commission
determines that an incorrect reduction claim is not complete, the
commission shall notify the local agency and school district
that filed the claim stating the reasons that the claim is
not complete. The local agency or school district
shall have 30 days to complete the claim. The commission shall serve
a copy of the complete incorrect reduction claim on the Controller.
The Controller shall have no more than 90 days after the date the
claim is delivered or mailed to file any rebuttal to an incorrect
reduction claim. The failure of the Controller to file a rebuttal to
an incorrect reduction claim shall not serve to delay the
consideration of the claim by the commission.
SEC. 2. Section 17553.1 is added to the Government Code, to read:
17553.1. (a) The commission shall adopt procedures for receiving
claims filed by a school district pursuant to this article and
Section 17574 and for providing a hearing on those claims. The
procedures shall do all of the following:
(1) Provide for presentation of evidence by the claimant, the
Department of Finance, and any other affected department or agency,
and any other interested person.
(2) Ensure that a statewide cost estimate is adopted within 12
months after receipt of a test claim, when a determination is made by
the commission that a mandate exists. This deadline may be extended
for up to six months upon the request of either the claimant or the
commission.
(3) Permit the hearing of a claim to be postponed at the request
of the claimant, without prejudice, until the next scheduled hearing.
(b) All test claims shall be filed by the school district on a
form prescribed by the commission and shall contain a written
narrative that identifies the specific sections of statutes or
executive orders and the effective date and register number of
regulations alleged to contain a mandate and shall include all of the
following:
(1) A description of the new activities and costs that arise from
the mandate.
(2) A description of existing activities and costs that are
modified by the mandate.
(c) (1) The procedures for a test claim filed by a school district
shall not require the test claim to include any of the elements or
documents required pursuant to paragraphs (2) to (4), inclusive, of
subdivision (b) of Section 17553.
(2) Except as required by this section and Section 17553.2, the
procedures adopted by the commission for a test claim filed by a
school district need not vary from the procedures adopted by the
commission for a test claim filed by a local agency pursuant to
Section 17553.
(d) 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.
(e) In addition, the commission shall determine whether an
incorrect reduction claim is complete within 10 days after the date
that the incorrect reduction claim is filed. If the commission
determines that an incorrect reduction claim is not complete, the
commission shall notify the school district that filed the claim
stating the reasons that the claim is not complete. The school
district shall have 30 days to complete the claim. The commission
shall serve a copy of the complete incorrect reduction claim on the
Controller. The Controller shall have no more than 90 days after the
date the claim is delivered or mailed to file any rebuttal to an
incorrect reduction claim. The failure of the Controller to file a
rebuttal to an incorrect reduction claim shall not serve to delay the
consideration of the claim by the commission.
SEC. 3. Section 17553.2 is added to the Government Code, to read:
17553.2. (a) The commission shall establish a school district
test claim advisory committee. The membership of the advisory
committee shall be selected by, and serve at the pleasure of, the
commission, and include officials from the Department of Finance, the
State Department of Education, and the Controller's office, and
representatives of school agencies, including, but not limited to,
chief business officials, board members, and superintendents.
Commission staff shall provide technical expertise and other support
for the advisory committee.
(b) The advisory committee shall review, prior to a hearing by the
commission, any test claim filed by a school district. As part of
the review, the advisory committee shall prepare and deliver to the
commission a report and recommendation for the school district test
claim that includes the following:
(1) A written narrative that identifies the specific sections of
statutes or executive orders and the effective date and register
number of regulations alleged to contain a mandate.
(2) A detailed description of the new activities and costs that
arise from the mandate.
(3) A detailed description of existing activities and costs that
are modified by the mandate.
(4) A statewide cost estimate of increased costs that school
districts will incur to implement the alleged mandate during the
fiscal year immediately following the fiscal year for which the claim
was filed.
(5) Identification of all of the following:
(A) Dedicated state funds appropriated for this program.
(B) Dedicated federal funds appropriated for this program.
(C) Other nonlocal agency funds dedicated for this program.
(D) The school district's general purpose funds for this program.
(E) Fee authority to offset the costs of this program.
(6) Identification of prior mandate determinations made by the
Commission on State Mandates or a predecessor agency that may be
related to the alleged mandate.
(7) Identification of a legislatively determined mandate pursuant
to Section 17573 that is on the same statute or executive order.
SEC. 4. Section 17554 of the Government Code is amended to read:
17554. With the agreement of all parties to the claim, the
commission may waive the application of any procedural requirement
imposed by this chapter or pursuant to Section 17553
Sections 17553, 17553.1, and 17553.2 . The
authority granted by this section includes the consolidation of
claims and the shortening of time periods.
SEC. 5. 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 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. The For purposes of a test claim filed
by a local agency, the successful test claimants shall submit
proposed parameters and guidelines within 30 days of adoption of a
statement of decision on a local agency test claim.
For purposes of a test claim filed by a school district, the advisory
committee established pursuant to Section 17553.2 shall develop
proposed parameters and guidelines on behalf of a school district
claimant and shall submit the proposed parameters and guidelines
within 30 days of adoption of a statement of decision on a school
district test claim, for final adoption by the commission within the
timeframe established by paragraph (2) of subdivision (a)
of Section 17553.1. 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 local agency test claimant or
the school district test claim advisory committee , 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 For purposes of a local agency
test claim, 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.
(b) In adopting parameters and guidelines, the commission may
adopt a reasonable reimbursement methodology. For purposes of a
school district test claim, it shall be the policy of the state for
the commission to adopt parameters and guidelines reflecting the
following preferences in serial order:
(1) A unit rate reasonable reimbursement methodology.
(2) A standard rate reasonable reimbursement methodology as
appropriate to a particular mandate.
(3) Actual cost parameters and guidelines.
(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, the advisory
committee established by Section 17553.2, 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 or amend 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.
(g) The advisory committee established pursuant to Section 17553.2
shall review the parameters and guidelines for a school district
test claim at least once every three years. If the advisory committee
determines that the parameters and guidelines require revision, the
advisory committee shall propose revisions to be considered by the
commission by filing a written request in the manner prescribed by
this section.
SEC. 6. 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 and
the Department of Finance and either the local agency test
claimant or the school district test claim advisory committee,
respectively, 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 and the local agency test claimant or
the school district test claim advisory committee 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 and the local agency test claimant or the
school district test claim advisory committee 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 and the local agency test claimant or the
school district test claim advisory committee 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) At the request of the test claimant and
Department of Finance and the local agency test claimant or the
school district test claim advisory committee , the executive
director may provide for up to four extensions of this 180-day
period.
(d) The test claimant or Department of Finance
, the local agency test claimant, or the school district test
claim advisory committee may notify the executive director at
any time that the claimant , advisory committee,
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 a local
agency test claim , and paragraph (2) of subdivision (a)
of Section 17553.1 and Section 17557 shall apply for a school
district test claim . Upon receipt of this notification, the
executive director shall notify the local agency test
claimant or the school district test claim advisory committee,
as appropriate, of the duty to submit proposed parameters and
guidelines within 30 days under subdivision (a) of Section 17557.
SEC. 7. Section 17557.2 of the Government Code is amended to read:
17557.2. (a) A reasonable reimbursement methodology developed
pursuant to Section 17557.1 or a joint request for early termination
of a reasonable reimbursement methodology shall have broad support
from a wide range of local agencies or school districts. The
test claimant and Department of Finance and the local
agency test claimant or the school district test claim advisory
committee may demonstrate broad support from a wide range of
local agencies or school districts in different ways, including, but
not limited to, obtaining endorsement by one or more statewide
associations of local agencies or school districts and securing
letters of approval from local agencies or school districts.
(b) No later than 60 days before a commission hearing,
the test claimant and Department t he
Department of Finance and the local agency test claimant
or the school district test claim advisory committee shall
submit to the commission a joint proposal that shall include all of
the following:
(1) The draft reasonable reimbursement methodology.
(2) The proposed statewide estimate of costs for the initial
claiming period and budget year.
(3) A description of the steps the test claimant and
the Department of Finance and the local agency test
claimant or the school district test claim advisory committee
undertook to determine the level of support by local agencies or
school districts for the draft reasonable reimbursement methodology.
(4) An agreement that the reasonable reimbursement methodology
developed and approved under this section shall be in effect for a
period of five years unless a different term is approved by the
commission, or upon submission to the commission of a letter
indicating the Department of Finance and the local agency
test claimant's or school district test claim advisory committee'
s joint interest in early termination of the reasonable
reimbursement methodology.
(5) An agreement that, at the conclusion of the period established
in paragraph (4), the Department of Finance and the test
claimant and the local agency test claimant or the
school district test claim advisory committee will consider
jointly whether amendments to the methodology are necessary.
(c) The commission shall approve the draft reasonable
reimbursement methodology if review of the information submitted
pursuant to Section 17557.1 and subdivision (b) of this section
demonstrates that the draft reasonable reimbursement methodology and
statewide estimate of costs for the initial claiming period and
budget year have been developed in accordance with Section 17557.1
and meet the requirements of subdivision (a). The commission
thereafter shall adopt the proposed statewide estimate of costs for
the initial claiming period and budget year. Statewide cost estimates
adopted under this section shall be included in the report to the
Legislature required under Section 17600 and shall be reported by the
commission to the appropriate Senate and Assembly policy and fiscal
committees, the Legislative Analyst, and the Department of Finance
not later than 30 days after adoption.
(d) Unless amendments are proposed pursuant to this subdivision,
the reasonable reimbursement methodology approved by the commission
pursuant to this section shall expire after either five years, any
other term approved by the commission, or upon submission to the
commission of a letter indicating the Department of Finance's and
the local agency test claimant's or school
district test claim advisory committee's joint interest in
early termination of the reasonable reimbursement methodology.
(e) The commission shall approve a joint request for early
termination of a reasonable reimbursement methodology if the request
meets the requirements of subdivision (a). If the commission approves
a joint request for early termination, the commission shall notify
the local agency test claimant or school district
test claim advisory committee of the duty to submit proposed
parameters and guidelines to the commission pursuant to subdivision
(a) of Section 17557.
(f) At least one year before the expiration of a reasonable
reimbursement methodology, the commission shall notify the Department
of Finance and the test claimant or school district test claim
advisory committee that they may do one of the following:
(1) Jointly propose amendments to the reasonable reimbursement
methodology by submitting the information described in paragraphs
(1), (3), and (4) of subdivision (b), and providing an estimate of
the mandate's annual cost for the subsequent budget year.
(2) Jointly propose that the reasonable reimbursement methodology
remain in effect.
(3) Allow the reasonable reimbursement methodology to expire and
notify the commission that the local agency test claimant
or school district test claim advisory committee will
submit proposed parameters and guidelines to the commission pursuant
to subdivision (a) of Section 17557 to replace the reasonable
reimbursement methodology.
(g) The commission
shall either approve the continuation of the reasonable reimbursement
methodology or approve the jointly proposed amendments to the
reasonable reimbursement methodology if the information submitted in
accordance with paragraph (1) of subdivision (d)
(f) demonstrates that the proposed amendments were
developed in accordance with Section 17557.1 and meet the
requirements of subdivision (a) of this section.
SEC. 8. 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 the initiation of an audit by the Controller no
later than three years after the date that the actual reimbursement
claim is filed or last amended, whichever is later. However, if no
funds are appropriated or no payment is made to a local agency
claimant for the program for the fiscal year for which the
claim is filed, the time for the Controller to initiate an audit
shall commence to run from the date of initial payment of the claim.
A reimbursement claim filed by a school district pursuant to
this chapter is subject to the initiation of an audit by the
Controller no later than four years after the date that the actual
reimbursement claim is filed or last amended, whichever is later.
In any case, an audit shall be completed not later than two
years after the date that the audit is commenced.
(b) The Controller may conduct a field review of any claim after
the claim has been submitted, prior to the reimbursement of the
claim.
(c) 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, interest charges on claims adjusted to reduce the overall
reimbursement to the local agency or school district, 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.
(d) The interest rate charged by the Controller on reduced claims
shall be set at the Pooled Money Investment Account rate and shall be
imposed on the dollar amount of the overpaid claim from the time the
claim was paid until overpayment is satisfied.
(e) 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.
SEC. 9. Section 17558.55 is added to the Government Code, to read:
17558.55. The Controller shall adopt regulations that establish
professional standards and internal controls for private companies
that provide mandate claim preparation or filing services for school
district test claims. Any private company that provides mandate claim
preparation or filing services for a school district shall comply
with regulations adopted by the Controller and shall contract every
three years to have an independent auditor verify that the company
has implemented, and remains in ongoing compliance with, these
regulations.
SEC. 10. Section 17574 of the Government Code is amended to read:
17574. (a) A local agency or school district agrees to the
following terms and conditions when it accepts reimbursement for a
legislatively determined mandate pursuant to Section17573
Section 17573 :
(1) Any unpaid reimbursement claims the local agency or school
district has previously filed with the Controller pursuant to Section
17561 and derived from parameters and guidelines or reasonable
reimbursement methodology shall be deemed withdrawn if they are on
the same statute or executive order of a legislatively determined
mandate and for the same period of reimbursement.
(2) The payment of the amount agreed upon pursuant to Section
17573 constitutes full reimbursement of its costs for that mandate
for the applicable period of reimbursement.
(3) The methodology upon which the payment is calculated is an
appropriate reimbursement methodology for the term specified in
subdivision (e) of Section 17573.
(4) A test claim filed with the commission by a local agency or
school district on the same statute or executive order as a
legislatively determined mandate shall be withdrawn.
(5) A test claim on the same statute or executive order as a
legislatively determined mandate will not be filed with the
commission except as provided in subdivision (c).
(b) If a local agency or school district rejects reimbursement for
a legislatively determined mandate pursuant to Section 17573, a
local agency or school district may take over a withdrawn test claim
within six months after the date the test claim is withdrawn, by
substitution of parties and compliance with the filing requirements
in subdivision (b) of Section 17553 or subdivision (b) of
Section 17553.1 , as specified in the commission's notice of
withdrawal.
(c) (1) Notwithstanding Section 17551 and subdivision (b) of
Section 17573, a local agency or school district may file a test
claim on the same statute or executive order as a legislatively
determined mandate if one of the following applies:
(A) The Legislature amends the reimbursement methodology and the
local agency or school district rejects reimbursement.
(B) The term of the legislatively determined mandate, as defined
in subdivision (e) of Section 17573, has expired.
(C) The term of the legislatively determined mandate, as defined
in subdivision (e) of Section 17573, is amended and the local agency
or school district rejects reimbursement under the new term.
(D) The mandate is subject to subdivision (b) of Section 6 of
Article XIII B and the Legislature does both of the following:
(i) Fails to appropriate in the Budget Act funds to reimburse
local agencies for the full payable amount that has not been
previously paid based on the reimbursement methodology enacted by the
Legislature.
(ii) Does not repeal or suspend the mandate pursuant to Section
17581.
(2) A test claim filed pursuant to the authority granted by this
subdivision shall be filed within six months of the date an action
described in subparagraph (A), (B), (C), or (D) of paragraph (1)
occurs.
(d) Notwithstanding any other provision of this section, a local
agency or school district shall not file a test claim pursuant to
this section if the statute of limitations specified in subdivision
(c) of Section 17551 expired before the date a legislatively
determined mandate was adopted by the Legislature pursuant to Section
17573.
(e) Notwithstanding the period of reimbursement specified in
subdivision (e) of Section 17557, a test claim filed pursuant to this
section shall establish eligibility for reimbursement beginning with
the fiscal year of an action described in subparagraph (A), (B),
(C), or (D) of paragraph (1) of subdivision (c).