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SB 112
THIRD READING
Bill No:
Author:
Amended:
Vote:
SB 112
Liu (D)
3/7/11
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 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.
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SB 112
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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 statemandated 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 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
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SB 112
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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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