Roundup: Latest Actions from the Commission on State Mandates and What It Means for Counties

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By
CSAC Staff
Date Published
April 23, 2026

Since our update last week, the Department of Finance issued a decision for five pending requests for Legislatively Determined Mandates, the State Controller’s Office issued two sets of draft claiming instructions for recently adopted reimbursable state-mandated programs, and staff for the Commission on State Mandates issued a draft proposed decision for an incorrect reduction claim. These matters are described in more detail below.   

Due to an emergency office closure at the Commission on State Mandates’ headquarters resulting from building damage, both the April 10 and May 15 hearings are cancelled and rescheduled for June 12. Several matters relevant to county governments are agendized to be heard, which can be accessed on the Commission’s website..    

A complete list of all matters pending before the Commission and recent actions is available on the pending caseload webpage. To receive updates directly from the Commission, subscribe to their email lists. 

Questions about the Commission on State Mandates or the state mandate reimbursement process in general? Contact Jessica Sankus, Principal Fiscal and Policy Analyst, at jsankus@counties.org.   

DRAFT CLAIMING INSTRUCTIONS CIRCULATED FOR COMMENT 

New Reimbursable State-Mandated Programs
The State Controller’s Office (SCO) has circulated the draft claiming instructions for two newly-adopted test claims for reimbursable state-mandated programs. The draft claiming instructions are open for comment from county governments and other affected parties on or before May 5, 2026:

Internet Websites and Email Addresses 
AB 1637 (Chapter 586, Statutes of 2023) requires cities and counties to ensure that their Internet website utilizes a “.gov” domain or a “.ca.gov” domain, and to ensure that each email address provided to its employees utilizes a “.gov” or a “.ca.gov” domain name by January 1, 2029. 

Criminal Procedure: Discrimination (aka The Racial Justice Act) 
AB 256 (Chapter 739, Statutes of 2022) expanded the provisions of AB 2542 (Chapter 317, Statutes of 2020), the original Racial Justice Act, and made these requirements retroactive as well as prospective. The Racial Justice Act provides that individuals charged with or convicted of a crime may file habeas corpus petitions to raise issues of bias or discrimination based on race, ethnicity, or national origin in their cases. The test claim for reimbursement argues that counties should be reimbursed by the state for the costs of Public Defenders to comply with AB 256, specifically the obligation to represent individuals who allege issues of bias or discrimination in their cases. 

Next Steps: Initial Reimbursement Process  
When the SCO publishes the final claiming instructions for a new state-mandated program, counties must submit claims for costs incurred during the “initial fiscal years” to the SCO within 120 days of the issuance of the claiming instructions (Government Code Section 17561). The “initial reimbursement claim process” is for costs to be reimbursed for the fiscal years specified in the claiming instructions and the program’s Parameters and Guidelines. 

DRAFT PROPOSED DECISION – INCORRECT REDUCTION CLAIM 

Child Abduction and Recovery, 25-4237-I-05 (View Matter) 

Recent developments: Commission staff issued the proposed decision for the Commissioners regarding Los Angeles County’s Incorrect Reduction Claim for previously disallowed claims for reimbursement. The Commission will hear this matter on August 14.   

Background:  The Custody of Minors – Child Abduction and Recovery Program is one of the first programs to be deemed a reimbursable state mandate after Proposition 4 (1979) required the state to reimburse local governments for the costs to comply with state-mandated programs. Since 1979, the state has reimbursed counties for the state-mandated requirement that county district attorneys’ offices actively assist in the resolution of child custody problems, including visitation disputes, enforcement of custody decrees, and any other court order in child custody proceedings. The SCO is authorized to perform audits of counties’ claims for reimbursement for state-mandated programs to verify the actual amount of the mandated costs, to determine whether costs claimed are supported by appropriate documentation, and to ensure that claims are not unreasonable or excessive (Government Code sections 17558.5, 17561, and 12410).    

When the SCO disallows costs previously claimed by counties, the affected county may choose to either remit the disallowed amount to the state, or the SCO offsets (withholds) commensurate amounts from state-mandated costs reimbursements filed by that county in subsequent fiscal years.   

LEGISLATIVELY DETERMINED MANDATES 
As an alternative to the standard test claim process for the Commission on State Mandates to determine whether a new law is a reimbursable state-mandated program, the California Department of Finance and a local agency, school district, or statewide association can jointly request that the Legislature determine that a statute or executive order mandates a new program or higher level of service requiring reimbursement for local governments.  

In October 2025, the Commission on State Mandates published five requests to the Department of Finance to jointly file for Legislatively Determined Mandates. This week, the Commission published response letters from the Department of Finance with their decision to deny all five requests, with the same rationale for all as follows: “After careful consideration, Finance has concluded these mandates should go through the standard test claim process with the Commission. The test claim process allows the claims to be comprehensively reviewed by the Commission, and it affords all interested parties the opportunity to comment on the matters.” More information and the relevant documents are available on the Commission’s website.  

BACKGROUND: THE COMMISSION ON STATE MANDATES AND THE REIMBURSEMENT PROCESS  
While counties are required to comply with all state mandates, counties only receive funding to carry out a select group of state-mandated programs in the form of after-the-fact reimbursement payments from the state. After a bill is signed into law, reimbursement for counties to comply with state-mandated programs is not automatic. Rather, counties initiate the process to receive reimbursement via filing a “test claim” for reimbursement with the Commission on State Mandates. The Commission on State Mandates deliberates and determines whether the new law meets the criteria for reimbursement. If the Commission determines that it does, the Commission begins work on Parameters and Guidelines, which establish a process and rate for reimbursement for the program. For more information about state mandates and the Commission on State Mandates, see CSAC’s Issue Brief on State-Mandated Programs and CSAC’s publication, Meeting the Mandate: Counties Respond to Shifting Costs, Responsibilities, and Outcomes.