HomeMy WebLinkAboutMINUTES - 04202004 - C40 CONTRA
TO: BOARD OF SUPERVISORS J
COSTA
FROM: Jahn Sweeten,County Administrator "" COUNTY
DATE: April 20,2004
SUBJECT: Oppose, Unless Amended, AB 2224—State Mandate Reimbursements
SPECIFIC REQUESTS) OR RECOMMENDATION(S)& BACKGROUND AND JUSTIFICATION
RECOMMENDATION(S)
OPPOSE, unless amended, AB 2224 (Cohn) which would retroactively amend the parameters and guidelines for
reimbursement of the animal adoptions mandate; as recommended by the Animal. Services Director.
BACKGROUND/REASON(S)FOR.RECOMMENDATION(S):
Contra Costa County's 2004 Legislative Program includes the following policy position:
SUPPORT efforts to erasure full funding of State Animal Services mandates, including defense of the
State Department of Finance's lawsuit against the State Commission on Mandates regarding the State's
obligation for reimbursement of local costs for animal services incurred in compliance of SB 1785.
AB 2224 (Cohn) would require the State Commission on Mandates to amend their parameters and guidelines on
reimbursements to cities and counties that built new animal shelters or added to existing shelters in compliance
with SB 1785 (Hayden 1998). The Commission would be required to amend the formula for determining
reimbursability to exclude any casts incurred to address pre-existing shelter overcrowding or animal population
growth, specify the calculation methodology for the costs of care and maintenance, and provide details on
necessary documentation to support reimbursement claims. Furthermore, cities and counties would need to
resubmit theiir claims under these new guidelines.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
,.-�RECOMMENDATION OF COUNTY ADMINISTRATOR—RECOMMENDATION OF BOTD COMMITTEE
-_6,-APPROVE —OTHER
SIGNATURE(S):
ACTION OF t TA N ri APPROVED AS RECOMMENDED_X OTHER
�fY
L
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
X UNANIMOUS(ASSENT None } TRUE AND CORRECT COPY OF AN
AYES- NOES: ACTION TAKEN AND ENTERED
ABSENT: ABSTAIN: - ON MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
Contact:Sara Hoffman,336-1098 ATTESTED April 20, 2004
cc: CAO JOHN SWEETEN,CLERK OF
Animal Services THE BOARD OF SUPERVISORS
State Lobbyist(via CAO) AND COUNTY ADMINISTRATOR
4ty
BACKGROUND/REASON(S) FOR RECOMMENDATION(eont'd):
Compliance with SB 1785 required that the County build two new animal shelters at a cast of$13 million_ The
County, in compliance with State law, submitted their claim to the State Mandates Commission of$5,605,861.
The claire is subject to audit by the State Controllers Office. Submittal of the claim was time consuming and
expensive, consuming approximately 200 hours of staff time.
AB 2224 basically changes the rules for the State Mandates Commission after the fact. The County, in good
faith, complied with SB 1785 and should not be penalized financially for its compliance with State law. If the
State of California wishes to change the rules, it should do so prospectively not retroactively.
Section 5 of AB 2224 addresses the Animal Adoptions Mandate and, unless the bill is amended to eliminate this
section, Contra Costa County should oppose it.
CALIFORhiLA LECaMATURE-200344 REGULAR SESSION.,
ASSEMBLY BILL No. 2224
Introduced by Assembly.Member Cohn
February 18, 2004
An act to amend Sections 17557, 17558, 17558.5, and 17561 of,and
to add Section 17572 to, the Government Code, relating to state
mandates,
LEGISLATIVE COU SEL"S DIGEST
AB 2224, as introduced, Cohn. State mandates:reimbursement.
Existing lain requires the Commission on State Mandates to adopt
parameters and guidelines for reimbursement of claims by local
agencies and school districts for state mandates pursuant to statute.
Existing law authorizes a local agency,school district,or the state to file
a claim asking the commission to amend, modify, or supplement the
paraireters and guidelines.
This bill would require that a claim to change the parameters and
guidelines be in writing and filed within a specified time. It would
authorize the commission to amend, modify, or supplement the
parameters and guidelines after public notice and hearing on the claim
seeking the change.
Existing law provides that a reimbursement claim for actual
state-mandated costs filed by a local agency or school district is subject
to the initiation of an audit by the Controller no later than 3 years after
the date that the actual reimbursement claim is filed or last amended,
whichever is later: If no funds are appropriated or no payment is made
to a claimant For the program for the fiscal year for which the claim is
filed, the time for the Controller to initiate an audit commences to run
from the date of initial payment of the claire.
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AB 2224 —2—
This
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This bill would authorize the Controller to conduct a field review of
any claim after the Maim has been submitted, prior to the
reimbursement of the claim..
Existing law imposes prescribed requirements on public agencies
relative to the impounding, holding, and adoption of stray animals,
which the commission has determined constitute a state-mandated local
program.
This bill would require the commission to amend the parameters and
guidelines for this Animal Adoption mandate,as specified.
This bill would make other technical,conforming changes to these
provisions.
Vote: majority. Appropriation_ no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as.follows:
I SECTION 1. Section 17557 of the Government Code is
2 amended to read:
3 17557. (a) If the commission determines there are costs
4 mandated by the state pursuant to Section 17555,it shall determine
5 the amount to be subvened to local agencies and school districts for
6 reimbursement. In so doing it shall adopt parameters and
7 guidelines for reimbursement of any claims relating to the statute
8 or executive order. The successful test claimants shall submit
9 proposed parameters and guidelines within 30 days of adoption of
10 a statement of decision on a test claim. At the request of a
11 successful test claimant,the commission may provide for one or
12 more extensions of this 30-day period at any time prior to its
13 adoption of the parameters and guidelines.If proposed parameters
14 and guidelines are not submitted within the 30-day period and the
15 commission has not granted an extension, then the commission
16 shall notify the test claimant that the amount of reimbursement the
17 test claimant is entitled to for the first 12 months of incurred costs
18 will be reduced by 20 percent, unless the test claimant can
19 demonstrate to the commission why an extension of the 30-day
20 period is justified.A leeal ageiaey;
21 or
amend, 3
22 S
23 o a i Or stippleffie"t
24
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1 (b) In adopting parameters and guidelines, the commission
2 may adopt an allocation formula or uniform allowance whieh that
3 would provide for reimbursement of each local agency or school
4 district of a specified amount each year.
5 (c) The parameters and guidelines adopted by the commission
6 shall specify the fiscal years for which local agencies and school
r districts shall be reimbursed for costs inc ,
8 fit.However, the commission-shag may not specify therein-in the
9 parameters and guidelines any fiscal year for which payment
10 could be provided in the annual Budget Act.
11 (d) A local agency;school district,or the state mayfile a written
12 request with the commission to amend, modify, or supplement the
13 ,parameters or guidelines. The commission may, after public notice
14 and hearing, amend, modem or supplement the,parameters and
15 guidelines. A parameters and guidelines amendment submitted
16 within 90 days of the claiming deadline for initial claims, as
17 ,specified in the claiming instructions pursuant to,lection 17561,
18 shall apply to all years eligible for reimbursement as defined in the
19 original parameters and guid'el'ines.A parameters and guidelines
20 amendment filed more than 90 days after the claiming deadline for
21 initial claims, as.spewed in the claiming instructions pursuant to
22 Section 17561, and on or before January l5 following a fiscal year;
23 shall establish reimbursement eligibility for thatfiscal year.
24 (e) A test claim shall be submitted on or before .lune 30
25 following a fiscal year in order to establish eligibility for
26 reimbursement for that fiscal year. The claimant may thereafter
27 amend the test claim at any time prior to a commission hearing on
28 the claim without affecting the original filing date as4e tis-ifthe
29 amendment substantially relates to the original test claim.
30 SLC. 2. Section 17558 of the Government Code is amended
31 to read:
32 17558. (a) The commission shall submit the adopted
33 parameters and guidelines to the Controller.All claims relating to
34 a statute or executive order that are filed after the emiinatie €
35 f ter–adoption or amendment of parameters and
36 guidelines pursuant to Section 17557 shall be transferred to the
37 Controller who shall pay and audit the claims from hands made
38 available for that purpose.
39 (b) Not later than 60 days after receiving the adopted
40 parameters and guidelines from the commission, the Controller
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AB 2224 —4-
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1 shall issue claiming instructions for each mandate that requires
2 state reimbursement,to assist local agencies and school districts in
3 claiming costs to be reimbursed. In preparing claiming
4 instructions, the Controller may request the assistance of other
5 state agencies.The claiming instructions shall be derived from the
6 test claim decision
7 and the parameters and guidelines adopted by the commission.
8 (c) The Controller shall,within 60 days after receiving revised
9 adopted parameters and guidelines from the commission or other
10 information necessitating a revision of the claiming instructions,
11 prepare and issue revised claiming instructions for mandates that
12 require state reimbursement that have been established by
13 commission action pursuant to Section 17555 or after any decision
14 or order of the commission pursuant to Section 17551. In
15 preparing revised claiming instructions, the Controller may
16 request the assistance of other state agencies.
17 (d) This seetion shall bee eii Rtly 4 9467
y
18 SEC, 3. Section 17558.5 of the Government Code is amended
19 to read:
20 17558.5. (a) A reimbursement claim for actual casts filed by
21 a local agency or school district pursuant to this chapter is subject
22 to the initiation of an audit by the Controller no later than three
23 years after the date that the actual reimbursement claim is filed or
24 last amended, whichever is later. However, if no funds are
25 appropriated or no payment is made to a claimant for the program
26 for the fiscal year for which the claim is filed, the time for the
27 Controller to initiate an audit shall commence to run from the date
28 of initial payment of the claim.
29 (b) The Controller may conduct afield review ofarty claims after
30 the claim has been submitted prior to the reimbursement of the
31 claim.
32 (c) The Controller shall notify the claimant in writing within 30
33 days after issuance of a remittance advice of any adjustment to a
34 claim for reimbursement that results from an audit or review. The
35 notification shall specify the claim components adjusted, the
36 amounts adjusted,interest charges on claims adjusted to reduce the
37 overall reimbursement to the local agency or school district,and
38 the reason for the adjustment. Remittance advices and other
39 notices of payment action shall not constitute notice of adjustment
40 from an audit or review.
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5— AB 2224
2 (d) The interest rate charged by the Controller on reduced
3 claims shall be set at the .pooled Money investment Account rate
4 and shall be imposed on the dollar amount of the overpaid claim
5 from the time the claim was paid until overpayment is satisfied.
6 f}-
7 (e) Nothing in this section shall be construed to limit the
8 adjustment of payments when inaccuracies are determined to be
9 the result of the intent to defraud,or when a delay in the completion
10 of an audit is the result of willful acts by the claimant or inability
I I to reach agreement on terms of final settlement.
12 SEC. 4. Section 17561 of the Government Cade is amended
13 to read:
14 17561. (a) The state shall reimburse each local agency and
15 school district for all "costs mandated by the state,,' as defined in
16 Section. 17514.
17 (b) (1) For the initial fiscal year during which these costs are
18 incurred,reimbursement funds shall be provided as follows:
19 (A) Any statute mandating these costs shall provide an
20 appropriation therefor.
21 (B) Any executive order mandating these costs shall be
22 accompanied by a bill appropriating the funds therefor, or
23 alternatively,an appropriation for these costs shall be included in
24 the Budget Bill for the next succeeding fiscal year.The executive
25 order shall cite that item of appropriation in the Budget Bill or that
26 appropriation in any other bill-whieh that is intended to serve as
27 the source from which the Controller may pay the claims of local
8 agencies and school districts.
29 (2) in subsequent fiscal years appropriations for these costs
30 shall be included in the annual Governor's Budget and in the
31 accompanying Budget Bill. In addition, appropriations to
32 reimburse local agencies and school districts for continuing costs
33 resulting from chaptered bills or executive orders for which claims
34 have been awarded pursuant to subdivision (a) of Section 17551
35 shall be, included in the annual Governor's Budget and in the
36 accompanying Budget Bill subsequent to the enactment of the
37 local government claims bill pursuant to Section 17600 that
38 includes the amounts awarded relating to these chaptered bills or
39 executive orders.
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AB 2224 —6-
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1 (c) 'The amount appropriated to reimburse local agencies and
2 school districts for casts mandated by the state shall be
3 appropriated to the Controller for disbursement.
4 (d) The Controller shall pay any eligible claim pursuant to this
5 section within 60 days after the filing deadline for claims for
6 reimbursement or 15 days after the date the appropriation for the
7 claim is effective,whichever is later.The Controller shall disburse
8 reimbursement funds to local agencies or school districts if the
9 costs of these mandates are not payable to state agencies,or to state
10 agencies that would otherwise collect the casts of these mandates
11 from local agencies or school districts in the form of fees,
12 premiums,or payments. When disbursing re mbursement funds to
13 local agencies or school districts, the Controller shall disburse
14 there as follows:
15 (1) For initial reimbursement claims,the Controller shall issue
16 claiming instructions to the relevant local agencies and school
17 districts pursuant to Section 17558. Issuance of the claiming
18 instructions shall constitute a notice of the right of the local
19 agencies and school districts to file reimbursement claims,based
20 upon parameters and guidelines adopted by the commission.
21 (A) When claiming instructions are issued by the Controller
22 pursuant to Section 17558 for each mandate determined pursuant
23 to Section 17555 that requires state reimbursement, each. local
24 agency or school district to which the mandate is applicable shall
25 submit claims for initial fiscal year casts to the Controller within
26 120 days of the issuance date for the claiming instructions.
27 (B) When the commission is requested to review the claiming
28 instructions pursuant to Section 17571, each local agency or
29 school district to which the mandate is applicable shall submit a
30 claim for reimbursement within 120 days after the commission
31 reviews the claiming instructions for reimbursement issued by the
32 Controller.
33 (C) if the local agency or school district sloes not submit a claim
34 for reimbursement within the 120-day period,or submits a claim
35 pursuant to revised claiming instructions,it may submit its claim
36 for reimbursement as specified in Section 17560. The Controller
37 shall pay these claims from the funds appropriated therefor,
38 provided that the Controller(i)may audit the records of any local
39 agency or school district to verify the actual amount of the
-7— AB 2224
1 mandated costs,and(ii)may reduce any clam that the Controller
2 determines is excessive or unreasonable.
3 (2) In subsequent fiscal years each local agency or school
4 district shall submit its,claims as specified in Section 17560.The
5 Controller shall pay these clam from funds appropriated therefor,
6 provided that the Controller(A)may audit the records of any local
7 agency or school district to verify the actual amount of the
8 mandated costs, (B) may reduce any claire that the Controller
9 determines is excessive or unreasonable, and(C)shall adjust the
10 payment to correct for any underpayments or overpayments which
11 occurred in previous fiscal years.
12 (3) When paying a timely filed claim for initial reimbursement,
13 the Controller shall withhold 213 percent of the amount of the claim
14 until the claire is audited to verify the actual amount of the
15 mandated casts. All initial reimbursement claims for all fiscal
16 years required to be filed on their initial filing date for a
17 state-mandated local program shall be considered as one claire.for
18 the purpose of computing any late claire penalty. Any claim for
19 initial reimbursement filed after the filing deadline shall be
20 reduced by 10 percent of the amount drat would.have been allowed
21 had the claim been timely filed. The Controller may withhold
22 payment of any late claire for initial reimbursement until the next
23 deadline for funded claims unless sufficient funds are available to
24 pay the claim after all timely filed claims have been paid.In no case
25 sib may a reimbursement claim be paid if submitted more than
26 one year after the filing deadline specified in the Controller's
27 claiming instructions on funded mandates contained in a clam
28 bill.
29 SEC, 5. Section 17572 is added to the Government Code,to
30 read.
31 17572. (a) The commission shall amend the parameters and
32 guidelines for the state-mandated local program contained in
33 Chapter 752 of the Statutes of 1998, known as the Animal
34 Adoption mandate(Case No.98-TC-11),as specified below:
35 (1) Amend the formula for determining the reimbursable
36 portion of acquiring or building additional shelter space that is
37 larger than needed to comply with the increased holding period to
38 specify that costs incurred to address preexisting shelter
39 overcrowding or animal population growth are not reimbursable.
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AB 2224 --8--
1 (2) Clarify how the costs for care and maintenance shall be
2 calculated.
3 (3) Detail the documentation necessary to support
4 reimbursement claims under this mandate,in consultation with the
5 Bureau of State Audits and the Controller's office.
6 (b) The parameters and guidelines,as amended pursuant to this
7 section, shall apply to claims for costs incurred from January 1,
8 1999,to,August 2,2043,inclusive,and for subsequent fiscal years
9 in which Chapter 752 of the Statutes of 1998 is not suspended
10 pursuant to Section 17581.
11 (c) Before funds are appropriated to reimburse local agencies
12 for claims related to costs incurred from January 1, 1999 to August
13 1,2003,inclusive,pursuant to Sections 1834 and 1846 of the Civil
14 Code, and Sections 31148, 31752, 31752.5, 31753, 32001, and
15 3200.3 of the Food and Agricultural Code, known as the Animal
16 Adoption mandate, local agencies shall file reimbursement claims
17 pursuant to the parameters and guidelines amended pursuant to
18 this section,and the Controller's revised claiming instructions.
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