BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 112|
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THIRD READING
Bill No: SB 112
Author: Liu (D)
Amended: 3/7/11
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 8-0, 04/06/11
AYES: Wolk, Huff, DeSaulnier, Fuller, Hancock, Hernandez,
La Malfa, Liu
NO VOTE RECORDED: Kehoe
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : State mandates: claiming instructions
SOURCE : State Controller John Chiang
DIGEST : This bill extends the State Controller's time
limit to issue claiming instructions from 60 days to 90
days. This bill tightens the definition of boilerplate
language, referring to language that does not increase or
decrease reimbursable cost. If the parameters and
guidelines are amended, the bill limits the eligible filing
period for local agencies to the fiscal year in which the
parameters and guidelines were adopted, rather than the
fiscal year in which the amendments were proposed.
ANALYSIS : Existing law requires the state to reimburse
local agencies for the costs of new state mandated local
programs or higher levels of service. In 1984, the
Legislature created the Commission on State Mandates, a
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quasi-judicial body that decides local agencies' test
claims for reimbursement. If the Commission identifies a
state-mandated program from the test claim, the Commission
adopts parameters and guidelines, defines what activities
will be reimbursed, and adopts statewide cost estimates.
This bill extends the State Controller's time limit to
issue claiming instructions from 60 days to 90 days. This
bill tightens the definition of boilerplate language,
referring to language that does not increase or decrease
reimbursable cost. If the parameters and guidelines are
amended, the bill limits the eligible filing period for
local agencies to the fiscal year in which the parameters
and guidelines were adopted, rather than the fiscal year in
which the amendments were proposed.
Background
In 2010, the Clovis Unified School District won its court
appeal against the State Controller, who had reduced
reimbursement claims for four state-mandated programs using
a definition of source documents that was not in effect
during the audit period. The District argued that the
Controller could not apply the current definition of source
documents for the years 1998 to 2003.
Before the Clovis case, the Controller requested amendments
to the Commission on State Mandate's parameters and
guidelines to update the boilerplate language. These
changes affected 37 programs: 21 locals, 12 school
districts mandates, and four community colleges.
Currently, if any part of the parameters and guidelines are
amended, the filing period for reimbursement claims
re-opens. Any local government can claim reimbursements
for previously unclaimed expenses. Local government that
may have forgotten to file reimbursement claims for any
previous fiscal year can file claims for costs incurred for
previous years.
Comments
This bill increases the time the State Controller can issue
claiming instructions for a state reimbursable mandate from
60 days to 90 days after the Commission adopts parameters
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and guidelines. The 30-day extension gives the Controller
more time to program e-filing reports, research the claim,
write thorough claiming instructions, and receive public
comments from state agencies and interested parties. In
response to the 37 programs whose parameters and guidelines
have been amended and could retroactively submit claims for
unclaimed expenses, this bill tightens the definition of
boilerplate language to prevent claimants from claiming
costs incurred in previous fiscal years. This bill will
not allow claimants to file new claims after the deadline
has passed or to amend old claims to increase costs when
the parameters and guidelines were used to update
boilerplate language.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 5/3/11)
State Controller John Chiang (source)
AGB:nl 5/3/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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