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HomeMy WebLinkAboutMINUTES - 03211995 - 1.35 TO: BOARD OF SUPERVISORS 5....... Contra FROM: Phil Batchelor, County Administrator ;;� '��►` Costa .< County DATE: March 16 1995 cdVU SUBJECT: LEGISLATION: ACA 7 (Pringle, et al) RE STATE MANDATED LOCAL PROGRAMS SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: ADOPT a position in SUPPORT of Assembly Constitutional Amendment # 7 (ACA 7 ) by Assemblyman Curt Pringle, as introduced, which would amend the State Constitution and tighten up the requirements relating to providing funding for state-mandated programs . Assemblyman Rainey is one of 25 Assembly and Senate co-authors of ACA 7 . BACKGROUND: The State Constitution presently requires that whenever the Legislature or any State agency mandates a new program or higher level, of service on any local government, the State must reimburse the local government for the cost of the program or increased level of service, with certain specified exceptions . Assemblyman Curt Pringle has introduced ACA 7 which, as introduced, would do all of the following: ❑ Add to the requirement for reimbursement any time the Legislature or a State agency mandates an increased cost on any local government. Current language does not include "increased cost ❑ Require that the State provide a subvention of funds to pay the local government for the cost of the program, higher level of service or increased cost. The current language does not include "increased cost" . CONTINUED ON ATTACHMENT: YES SIGNATURE: _yX_RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGN^TURE(S) yd" / G&�� ACTION OF BOARD ON March 21, 1995 APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE 4—UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. ATTESTED MAR 21 1995 Contact: PHIL BATCHELOR.CLERK OF THE BOARD OF cc: See Page 3 SUPERVISORS AND COUNTY ADMINISTRATOR BV- DEPUTY -2- ❑ Require a subvention regardless of whether the mandate applies to public or private entities other than local government. The courts have interpreted the current language as not requiring reimbursement to a local government if the requirement also applies to public or private entities other than local government. ❑ Continue the current exemption for statutes requested by the affected local agency. ❑ Limit the exemption for legislation defining a new crime or changing an existing definition of a crime by providing that the exemption applies only "to the extent that the increased cost relates directly to law enforcement" . ❑ Broaden the "prior to January 1, 1975" exemption to include "any adjustments for changes in cost of living or population" . ❑ Add a Constitutional exemption which is already partially provided for in statute (Revenue and Taxation Code S 2206) relating to requirements by the Federal Government, but limits the exemption "to the extent that the Federal law or regulation specifically requires the State without discretion to mandate a new program, higher level of service, or increased cost on any local government" . ❑ Add a Constitutional exemption which is already partially provided for in statute (Revenue and Taxation Code S 2206 .5) relating to requirements imposed by an initiative measure approved by the voters in a statewide election. ❑ Add a Constitutional exemption which is already partially provided for in statute relating to mandates which include authority for the imposition of a charge, fee, assessment, or tax sufficient to fully reimburse local government for any increased cost arising from the mandate. ❑ Add to the Constitution the existing statutory provisions which define the membership of the Commission on State Mandates (Government Code § 17525) . ❑ Define in the Constitution the duties of the Commission on State Mandates . ❑ Provide that, with certain exceptions, no statute, executive order or regulation which mandates a new program, higher level of service or increased cost on local government shall become operative sooner than 90 days after the Commission on State Mandates determines either that the State is not required to reimburse the local government for the mandate or that sufficient funds have been appropriated to pay local government for the cost. ❑ Require the Commission on State Mandates to make this determination within 90 days of the effective date of any statute, executive order or regulation and defines the process which is to be followed by the Commission. ❑ Require the Commission to continually monitor whether sufficient funds continue to be appropriated for all such mandates where the State is required to reimburse local governments . Indicates that a mandate becomes permissive after the Commission determines that the available funding is no longer adequate to reimburse local governments for the mandated costs of the program. ❑ Provide that the Legislature may override any decision of the Commission by a 2/3 vote in both Houses of the Legislature. ❑ Declare that any statute that contains a disclaimer or waiver to these Constitutional provisions is invalid. -3- ❑ Provide that whenever the Legislature or any State agency mandates a limitation on or exemption from a charge, fee, assessment or tax levied by local government or a decrease or redistribution of state subventions or other state funds to local government that is not offset by an equivalent reduction in the mandated costs of the local government, the State must reimburse the local government for the amount of the revenue loss . ❑ Provides that these amendments are, except as provided, prospective only and apply to new programs or costs imposed after the operative date of the measure. Assemblyman Rainey has asked the Board of Supervisors to indicate its support of ACA 7 . The enactment of ACA 7 would certainly assist in protecting the rights of local governments and in protecting local government revenues . It places substantially more power in the hands of the Commission on State Mandates . In view of the overall thrust of ACA 7, it appears appropriate for the Board of Supervisors to indicate its support for ACA 7 . cc: County Administrator Kenneth J. Corcoran, Auditor-Controller Victor J. Westman, County Counsel Tony Enea, Senior Deputy County Administrator George Roemer, Senior Deputy County Administrator Sara Hoffman, Senior Deputy County Administrator Les Spahnn Heim, Noack, Kelly & Spahnn Bank of California Center 770 L Street, Suite 960 Sacramento, CA 95814 l CALIFORNIA LEGISLATURE-1995-96 REGULAR SESSION Assembly Constitutional Amendment No. 7 Introduced by Assembly Members Pringle and McPherson (Principal coauthors: Assembly Members Aguiar, Alby, and r Bordonaro) (Coauthors: Assembly Members Baldwin, Boland, Conroy, Cunneen, Goldsmith, Harvey, House, Kuykendall, Morrissey, Morrow, Rainey, Richter, Rogan, and Setencich) (Coauthors: Senators Haynes, Hurtt, Johannessen, Lewis, Monteith, Peace, and Rogers) February 6, 1995 Assembly Constitutional Amendment No. 7—A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by amending Section 6 of, and by adding Section 6.5 to, Article XIII B thereof, relating to state-mandated local costs. LEGISLATIVE COUNSEL'S DIGEST g ACA 7 as introduced Pringle. State-mandated local � programs. Existing provisions of the California Constitution require that, whenever the Legislature or any state agency mandates a new program. or higher level of service on any local government, the state shall reimburse the local government for the cost of the program or increased level of service, except for specified exemptions. This measure would, instead, provide that whenever the Legislature or any state agency mandates any new program, higher level of service, or increased cost on any local 99 I -+ I I , I ACA 7 '— 2 — government, the state would be required to provide a subvention of funds to pay j the local government for the cost. It would modify and add to the existing constitutional exemptions. This measure would further provide that no statute, other than certain specified statutes, and no executive order or regulation, that mandates a new program, higher level of service, or increased cost on local government would become operative sooner than 90 days after the Commission on State Mandates determines either that the state is not required pursuant to the measure to provide a subvention of funds for the cost arising from the new program, higher level of service, or increased cost or that sufficient funds have . been appropriated to pay local government for the cost. This measure would provide that whenever the Legislature or any state agency mandates a limitation on, or exemption from, a charge, fee, assessment, or tax: levied by local government or a decrease or redistribution of state subventions or other state funds to local government that is not offset by an equivalent reduction in the mandated costs of the local government, the state would be required to reimburse the local government for the amount of the revenue loss to the local government arising from the mandate. Existing provisions ;of statutory law prescribe the membership of the Commission on State Mandates and prescribe the powers and duties of the Commission on State Mandates with regard to the administration and implementation of the statutory procedure for the disposition i of claims by local governmental entities for the reimbursement of state-'mandated local costs. This measure would add to the Constitution the provisions that prescribe the membership of the commission. It would require the commission to investigate and monitor all programs, higher levels iof service, or increased costs enacted or adopted after July . 1, 1975, to determine if they are sufficiently funded, as specified, and if not, would provide that the duty of the local entities to carry out the program or service would be suspended and further compliance would be voluntary if funding is not provided by the next succeeding i � 99 I I - 3 — ACA 7 fiscal year. This measure would provide that if such a duty is suspended for 2 consecutive years, the statutory duty to incur the cost shall be deemed permissive and the commission shall not be required to further investigate and monitor the I requirement. i This provision would not apply to school districts, county offices of education, or, community college districts. 0 This measure would provide that any determination by the commission pursuant to the measure may be set aside or superseded by a resolution introduced in the Assembly and j approved by 2/3 of the membership of each house of the Legislature. Vote: 2/3. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. 1 Resolved by the Assembly, the Senate concurring, That 2 the Legislature of the State of California at its 1995-96 3 Regular Session commencing- on the fifth day of 4 December 1994, two-thirds of the membership of each 5' house concurring, hereby proposes to the people of the �tt> 6 State of California that the Constitution of the State be 7 amended as follows: 8 First—That Section 6 of Article XIII B is amended to 9 read: y 10 SEC. 6. (a) Whenever the Legislature .or any state �- 11 agency mandates a new program e -, higher level of 12 service, or increased cost on any local government, the I 13 state shall provide a subvention of funds to '-eiffibu--s ` 14 sue pay the local government for the Bests of stteh cost 15 of that program of higher level of service, 16 emeept that, the T eg sl a t_.t:= fftay,L bjarlul Meed met; previde i 17p seen of � � the ...,a a t 19 ageney etf..�d 20 -(-b•} Imegislati de€ittifig ff eew ewe of air 21emistiftg '4 f eriffte; of 22 je} 1 _o_„l„ .-. t_., .a e to s eftereted p ie to JG&XICrCrrT 23 1975- eT- ---- -tA_., er-Elet:s e - latiefts, initidly 24 liar- to jaftuarry 4 25 1975.or increased cost regardless of whether the mandate 99 99 I ACA 7 1 applies top ublic or private entities other than local 2 government. However, the Legislature may, but need 3 not, provide a subvention of funds for any cost arising 4 from a newprogram, higher level ofservice, orincreased 5 cost imposed by any of the following: 6 (1) A statute requested by the local agency affected. 7 (2) A statute defining a new crime or changing an u 8 existing definition of a i crime, to the extent that the : 9 increased cost relates directly to law enforcement. 10 (3) A statute enacted prior to January 1, 1975, or an 11 executive order or regulation initially implementing a 12 statute enacted prior to ,january 1, 1975, including any 13 adjustments for changes in cost of living or population. 14 (4) A statute, executive order, or regulation 15 implementing a federal;law or regulation, to the extent 16 that th e fe deral la w or regula tion sp e cifically re q uires the 17 state without discretion to mandate a new program, 18 higher level of service, or increased cost on any local 19 government. j 20 (5) A statute, executive order, or regulation 21 implem en ting an initiative measure approved by the 22 voters in a statewide election. 23 (6) A statute, executive order, or regulation that 24 specifically authorizes or requires the imposition of a 25 charge, fee, assessment, or tax sufficient to fully _ ;. 26 reimburse local government for any increased cost 27 arising from the mandate. 28 (b) There is h ereby j crea ted the Commission on State 29 Mandates, which shall consist off ve members as follows. 30 (1) The Controller, 31 (2) The Treasurer. 32 (3) The Director of Finance. 33 (4) The Director of the Office of Planning and 34 Research. 35 (5) A public member with experience in public t 36 finance, appointed by the Governor and confirmed by 37 the Senate. 38 The public member,�shall serve for a term offour years 39 and may be reappointed, may receive per diem as 40 provided by the Legislature by statute for each day 99 ACA 7 — 6 - 1 6 -1 thereafter, unless a later time is otherwise provided by 2 la w. 3 (2) If the commission determines that the state is 4 required to provide a subvention of funds but sufficient 5 funds have not been provided, it shall so declare and the 6 statute, executive order, or regulation shall not become 7 operative unti190daysafter the commission subsequently 1 8 determines that sufficient funds have been provided. t, 9 Any determination made by the commission pursuant 10 to. this subdivision shall be filed with 'the Secretary of 11 State. 12 (f) The Commission on State -Mandates shall 13 investigate and monitor all statutes, executive orders, or 14 regulations imposing a new program; higher level of 15 service, orincreased cost on local government enacted or 16 adopted after July 1, 1975, for which the state is required j 17 by subdivision (a) to provide a subvention of funds, to 18 determine whether the costs of the new program, higher 19 level of service, or increased cost imposed has been 20 funded and, if so, whether the funding has been and 21 continues to be sufficient to pay for the costs. If the 22 commission determines. that funding has become 23 insufficient to pay for the cost, the commission shall so 24 declare and shall calculate the current amount of the cost, 25 and shall report that amount to the Legislature. If, by the 26 commencement of the next succeeding fiscal year, the 27 Legislature has not appropriated an amount sufficient to 28 pay the current amount of the identified cost imposed on 29 local government, the duty oflocal government to incur i 30 the increased cost shall be suspended and any cost 31 incurred shall be voluntary until the commission 32. determines that sufficient funds have been appropriated. 33 If any duty to incur a cost is suspended pursuant to this . 34 subdivision forr two consecutive years, the statutory j 35 requirement to incur the cost shall be deemed j 36 permissive. A local government entity may voluntarily 37 continue to perform duties and incur costs if a duty is 38 suspended for two consecutive years pursuant to this . 39 subdivision, but the commission shall not be required to 40 further investigate and monitor the requirement. i 99 ,W 7, I 1 f I I � I — 5 — ACA 7 1 actually spent in the discharge of official duties, and shall 2 be reimbursed for any actual and necessary expenses 3 incurred in connection with the performance of duties as 4 a member of the commission. I5 (c) The commission shall hear and decide upon a claim 6 byanylocalagency or school district that the local agency 7 or school districtis or to be paid by the state for costs ® ® 8 mandated by the state as required by subdivision (a). In 9 carrying out its responsibilities under this section, the 1 10 commission; may exercise those powers, shall perform 11 those duties, and shall operate under those procedures, 12 provided bylaw. 13 (d) No statute, other than an urgency statute, a statute 14 calling an election, a statute providing for a tax levy, or a 15 statute containing an appropriation for the usual current 16 expenses of the state, and no executive order or 17 regulation,;thatmandates a newprogram, higherlevel of 18 service, or increased cost on local government shall 19 become operative sooner than 90 days after the 20 Commission on State Mandates determines either that 21 the state is not required pursuant to subdivision (a) to 22 provide a subvention offundsfor-the cost arising from the 23 newprogram, higherlevel ofservice, orincreased cost or 24 that sufficient funds have been appropriated to pay local 025 government for the cost. 26 (e) Within 90 days of the effective date of any statute, 27 executive order, or regulation that is subject to 28 subdivision (d), the Commission on State Mandates shall 29 determine whether the state is required pursuant to 30 subdivision (a) to provide a subvention of funds for the 31 cost, arising from the new program, higher level of 32 service, ; or increased cost mandated by the statute, 33 executive order, or regulation and, if so, . whether 34 sufficient funds have been appropriated to pay local 35 government for the estimated cost. 36 (1) If the commission determines that the state is not 37 required to provide a subvention of funds pursuant to 38 subdivision (a) or that sufficient funds have been 39 provided, it shall so declare and the statute, executive 40 order, or regulation shall become operative 90 days 99 99 � I I 1 — 7 — ACA 7 efn� 1 For purposes of this subdivision, "local government" 2 does not include school districts, county offices of 3 education, or community college districts. 4 (g) Any determination by the Commission on State 5 Mandates pursuant to this section may be set aside or 6 superseded by a resolution introduced in the Assembly 7 and approved by two-thirds of the membership of each 8 house of the Legislature. The state or any local 9 government may bring an action in the courts bypetition 10 for administrative mandamus to appeal any 11 determination by the commission. 12 (h) Any statute that disclaims or waives any obligation 13 imposed on the state by this section is invalid, Any statute 14 that requires any local government to waive its right to 15 reimbursement under this section or its right to decline 16 performance of any mandate because of insufficient 17 funding as provided by this section is invalid. 18 Second—That Section 6.5 is added to Article XIII B 19 thereof, to read: 20 SEC. 6.5. Whenever the Legislature or any state 21 agency mandates a limitation on, or exemption from, a 22 charge, fee, assessment, or tax levied by local government 23 or a decrease or redistribution of state subventions or 24 other state funds to local government that is not offset by 25 an equivalent reduction in the mandated costs of the local 26 government, the state shall reimburse the local 27 government for the amount of the revenue loss to the 28 local government.arising from the mandate. 29 Third—That the amendments to Section 6 of Article 30 XIII B proposed by this measure, except as otherwise 31 expressly provided in subdivision (f) , shall apply only to 32 costs arising from a new program, a higher level of 33 service, or increased cost imposed on or after the -�,,.,Iw 34 operative date of this measure. 35 Fourth—That this measure shall be interpreted r 36 liberally to carry out the intent to preserve .the limited 37 financial resources of local government by requiring the 38 state to pay for every new program, higher level of 39 service, increased cost or revenue loss mandated by the .............! I' 40 Legislature or a state agency. 9 99 9 t I j ACA 7 -- 8 — 1 Fifth—That if any provision of this measure, or the 2 application thereof to any person or circumstance is held 3 invalid, that invalidity shall not affect other provisions or 4 applications of the measure which can be. given effect 5 without the invalid provision or application, and to this 6 end the provisions of this measure are severable.. f i I I i i ffi I I i I r i i I i s i I i i 0 II - r I 99