BILL ANALYSIS
AB 2684
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Date of Hearing: May 10, 2000
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
John Longville, Chair
AB 2684 (Bock) - As Amended: April 24, 2000
SUBJECT : State-mandated local costs.
SUMMARY : Creates a mechanism for allocation of savings
realized in the implementation of state-mandated local programs.
Specifically, this bill :
1)Authorizes local agencies and school districts filing claims
for reimbursement for state-mandated local costs to submit
findings identifying savings realized by the agency or
district in implementation of the state-mandated program.
2)Requires the Controller, upon determination by the Commission
on State Mandates (Commission) that savings were in fact
realized, to allocate those savings on the basis of one-third
each to the local agency or school district, the state agency
administering the program, and the General Fund.
3)Becomes operative on January 1, 2003.
EXISTING LAW :
1)Requires the state to reimburse local agencies and school
districts for costs incurred in the implementation of
state-mandated programs.
2)Establishes procedures for local agencies and school districts
to file claims with the Commission for reimbursement of
state-mandated costs.
FISCAL EFFECT : Unknown costs.
COMMENTS :
1)AB 2684 currently fails to reflect many of the complex factors
that would be involved in establishing a savings allocation
program. One of the primary issues the bill fails to address
is the difference between mandates involving Proposition 98
funds and other mandates. Proposition 98 and local agency
reimbursement claims follow the same procedure up to the point
AB 2684
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where the first payment of the claim is made. This first
payment is retroactive, since several years have usually
passed from the time the costs were initially incurred, and is
made out of the General Fund. At that point, Proposition 98
claims and local agency claims diverge. While the local
agency's annual reimbursement continues to be made out of the
General Fund, the Proposition 98 claim is paid for with Prop.
98 funds. Other complications arise when programs are
transferred to or from local agencies and Proposition
98-funded entities. This and other differences in state costs
needs to be factored into any calculation of savings. AB 2684
also fails to state how savings would be identified.
2)The author has indicated an interest in shifting the
responsibility for determining whether savings have been
realized from the Commission to the Controller. The author
has also indicated an interest in reducing the amount of
savings that would be allocated to the state agency overseeing
the mandated program and increasing the amount that would go
to the General Fund.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : J. Stacey Sullivan / L. GOV. / (916)
319-3958