Today,
SB 287 (Nielsen) unanimously passed out of the Senate Governance and Finance Committee. The bill amends Government Code Section 17551(c) to include language that was in the California Code of Regulations until just last year. Specifically, the language would state that: “for purposes of claiming based on the date of first incurring costs, "within 12 months" means by June 30 of the fiscal year following the fiscal year in which increased costs were first incurred by the test claimant.”
In December 2017, the Commission on State Mandates approved amendments to California Code of Regulation Section 1183.1(c), effective April 1, 2018. The amendments effectively changed the filing period for test claims from conforming to the fiscal calendar year, ending on June 30, to the calendar year, ending December 31. In testimony during the rulemaking process, the Commission Staff stated that “[t]his change is intended to make the regulation consistent with the plain language of Government Code section 17551(c).” However, it is important to note that the commission had operated out of line with the plain language of Section 17551 for 13 years without issue.
The amended regulations shortened the filing period for an agency to submit a test claim to the Commission by six months, making the requirements much more difficult for local governments to meet. The previous filing period that tracked with the fiscal year properly reflected an understanding of the local agency budgeting process that permits local agencies enough time to gather the relevant information and submit well-prepared test claims. The newly adopted filing period, however, hinders a local government’s ability to adequately track associated costs and submit accurate test claims. SB 287 looks to rectify the recent regulatory changes at the Commission.
Should you have any questions about SB 287, please contact CSDA’s Senior Legislative Representative, Dillon Gibbons, at
dillong@csda.net.