Bill Text: CA AB1471 | 2019-2020 | Regular Session | Amended

California Assembly Bill 1471 (Prior Session Legislation)

Bill Title: State-mandated local costs: preventable loss revenue.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2020-02-03 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1471 Detail]

Download: California-2019-AB1471-Amended.html

Amended IN Assembly March 14, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill

No. 1471

Introduced by Assembly Member Gray

February 22, 2019

An act to ~~amend Section 17555 of the Government Code, relating to state government.~~ add Sections 17514.5 and 17550.5 to the Government Code, relating to local government finance.

LEGISLATIVE COUNSEL'S DIGEST

AB 1471, as amended, Gray. ~~State-mandated local costs: notification.~~ State-mandated local costs: preventable loss revenue.

Under the California Constitution, whenever the Legislature or a state agency mandates a new program or higher level of service on any local agency the state is required to provide a subvention of funds to reimburse the local agency, with specified exceptions, including if, among other things, a statute or executive order imposes duties that are necessary to implement, or are expressly included in, a ballot measure approved by the voters in a statewide or local election. Existing law establishes a procedure for local agencies to file a test claim for reimbursement of these costs with the Commission on State Mandates.
This bill would provide that reimbursement to an underprivileged or disadvantaged local agency for preventable lost revenue sustained as a result of the delayed implementation of a state action shall be provided pursuant to the same procedures described above. The bill would exempt this provision from the exceptions to the requirement that the state provide a subvention of funds to local agencies.
Under the California Constitution, whenever the Legislature or a state agency mandates a new program or higher level of service on any local agency the state is required to provide a subvention of funds to reimburse the local agency, with certain exceptions. Existing law establishes a procedure for local agencies to file a test claim for reimbursement of these costs with the Commission on State Mandates. Existing law requires the commission, no later than 30 days after hearing and deciding upon a test claim where the decision determines the amount to be reimbursed to a local agency or school district, to notify the appropriate Senate and Assembly policy and fiscal committees, the Legislative Analyst, the Department of Finance, and the Controller of that decision.
~~This bill would also require the commission to notify the Treasurer of the decision.~~

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.
The Legislature finds and declares all of the following:
(a) The Legislature enacted Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code titled “State-Mandated Local Costs” to provide for the implementation of Section 6 of Article XIII B of the California Constitution.
(b) These provisions provide for the reimbursement of costs mandated by the state, which includes costs incurred by a local agency as a result of any statute enacted on or after January 1, 1975.
(c) These provisions provide for the reimbursement of indirect costs mandated by the state.
(d) In addition to indirect costs, local agencies, including those that lack opportunities to generate adequate or additional revenue to support necessary governmental services and benefits, also lose other revenue, including lost tax revenue, as a result of the delayed implementation of statutes enacted on or after January 1, 1975.
(e) That lost revenue may constrain the ability of certain underprivileged or disadvantaged local agencies to generate adequate or additional revenue to support necessary governmental services and benefits.
(f) These losses of revenue are preventable losses that should be reimbursed.

SEC. 2.

Section 17514.5 is added to the Government Code, to read:

17514.5.
(a) “Delayed implementation of a state action” means the failure of a state agency to fully perform an action during a period of time prescribed for that action by statute, regulation, executive order, or other law or mandate.
(b) “Preventable lost revenue” means a revenue loss that an underprivileged or disadvantaged local agency sustains after January 1, 2020, as a result of the delayed implementation of a state action.
(c) “State action” means either:
(1) A failure of a state agency to issue a license or other similar authorization required as a prerequisite to the performance of a certain activity performed or authorized by a local agency, prior to the expiration of the state agency’s statutorily prescribed deadline to issue the license or similar authorization.
(2) A failure to advise, consult, instruct, or otherwise provide comments to a local agency on subject matter within the scope of the state agency’s expertise prior to the expiration of the statutorily prescribed opportunity or deadline to provide those comments.
(d) “Underprivileged or disadvantaged local agency” means either:
(1) Any city, county, or city and county with a median household income that is below that of the county with the highest median household income by 25 percent or more, based on the most recent edition of the American Community Survey 5-year estimates prepared by the United States Census Bureau.
(2) Any city, county, or city and county with an average life expectancy that is below that of the county with the highest average life expectancy by three years or more, based on the most recent edition of the Institute for Health Metrics and Evaluation.

SEC. 3.

Section 17550.5 is added to the Government Code, to read:

17550.5.
(a) Reimbursement to an underprivileged or disadvantaged local agency for preventable lost revenue sustained as a result of the delayed implementation of a state action shall be provided pursuant to claims made under this chapter.
(b) Claims by an underprivileged or disadvantaged local agency for preventable lost revenue sustained as a result of the delayed implementation of a state action are exempt from the provisions of Section 17556.

SECTION 1.Section 17555 of the Government Code is amended to read:
17555.
(a)Not later than 30 days after hearing and deciding upon a test claim pursuant to subdivision (a) of Section 17551, and determining the amount to be subvened to local agencies and school districts for reimbursement pursuant to subdivision (a) of Section 17557, the commission shall notify the appropriate Senate and Assembly policy and fiscal committees, the Legislative Analyst, the Department of Finance, the Controller, and the Treasurer of that decision.
(b)For purposes of this section, the “appropriate policy committee” means the policy committee that has jurisdiction over the subject matter of the statute, regulation, or executive order, and in which bills relating to that subject matter would have been heard.