Signed, Sealed… Reimbursed? Become a Mandate Detective!

Newly Chaptered Legislation: What might be eligible for reimbursement from the state? 
As reported by CSAC last week, by the September 30^th deadline to close out the legislative year the Governor had signed 1,040 bills and vetoed 120. Of the newly chaptered laws, how many affect county governments and how can local agencies determine which are potentially eligible for reimbursement from the state if they result in new costs? Let’s find out!  

As counties know all too well; few newly enacted laws that impose new requirements on counties qualify for reimbursement from the state through the Commission on State Mandates. Listed below is a snapshot of the criteria and analysis needed to determine whether a newly chaptered law might be eligible for reimbursement from the state. For a complete catalog of criteria and exemptions, see California Constitution Article XIIIB, Sec.6 and Government Code Sec. 17556. 

• Does this bill require counties to do something new or above-and-beyond an existing level of service?
  • If yes, this bill might be a reimbursable mandate.  

1. Does this bill apply only to local governments, or does it also apply equally to the private sector?
   • If this bill applies equally to the public and private sector, this bill is not a reimbursable mandate.  

• Are the provisions of this law optional/permissible/voluntary, or are they absolutely mandatory?
  • If it is optional/permissible/voluntary, this bill is not a reimbursable mandate.  

• Does the bill create a new crime or penalty or change the definition of an existing crime or penalty?
  • If yes, this bill is not a reimbursable mandate.  

• Is it possible for the county to pay for the new program or higher level of service imposed by this bill with fees or state funds?
  • If yes, this bill is not a reimbursable mandate. 

• Is this bill carrying out a federal requirement?
  • If yes, this bill is not a reimbursable mandate.
  • However – if the bill codified a federal requirement and goes beyond the scope of the federal requirement as well, it may create a reimbursable mandate.  

• Will this bill result in more than $1,000 in costs for the county annually?
  • If not, this bill is not a reimbursable mandate. 

For a list of newly chaptered legislation that CSAC has identified that might meet the criteria for reimbursement from the state, contact Jessica Sankus, Principal Fiscal and Policy Analyst, at jsankus@counties.org. 

Become a bill expert!

The Legislative Counsel’s Digest that accompanies each bill includes indicators for “Local Program: No” or “Local Program: Yes” for each bill. These indicators communicate Legislative Counsel’s assessment of whether a bill may create a new reimbursable state-mandated program for local governments. For some bills, Legislative Counsel will include boilerplate bill language at the bottom of the bill indicating why they believe the bill creates a state mandate, or why they believe the new requirements are not eligible for reimbursement.   

However, the Legislature does not have the authority to determine what bills do or do not create new state-mandated programs for local governments. This authority is exclusive to the Commission on State Mandates. 

If you are curious and would like to learn more, Chris Micheli reported on this issue in the California Globe in October 2020.