County of San Diego v. Commission on State Mandates

7 Cal. App. 5th 12, 212 Cal. Rptr. 3d 259, 2016 Cal. App. LEXIS 1134
CourtCalifornia Court of Appeal
DecidedDecember 28, 2016
DocketD068657
StatusPublished
Cited by7 cases

This text of 7 Cal. App. 5th 12 (County of San Diego v. Commission on State Mandates) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
County of San Diego v. Commission on State Mandates, 7 Cal. App. 5th 12, 212 Cal. Rptr. 3d 259, 2016 Cal. App. LEXIS 1134 (Cal. Ct. App. 2016).

Opinion

Opinion

HUFFMAN, J.

In 1998 the Commission on State Mandates (Commission), established by the Legislature to determine when the state is constitutionally required to reimburse local governments and school districts for state-mandated costs, concluded costs associated with eight activities required of local governments by the then-newly passed Sexually Violent Predators Act (SVPA; Welf. & Inst. Code, § 6600 et seq.) were eligible for reimbursement. Fifteen years later, at the request of the Department of Finance (DOF), the *18 Commission revisited that decision based on the passage of Proposition 83 in 2006. The Commission concluded that six of the duties it deemed state mandated in 1998 were instead mandated by the ballot initiative and, therefore, the costs of those activities to local governments were no longer eligible for reimbursement. The Counties of San Diego, Los Angeles, Orange, Sacramento and San Bernardino (Counties) challenged the Commission’s decision by filing a petition for writ of administrative mandamus in San Diego County Superior Court.

The Counties now appeal the trial court’s judgment upholding the Commission’s decision. Our review of the relevant constitutional and statutory provisions lead us to reach the opposite conclusion. For the reasons set forth below, we reverse the trial court’s decision and direct the court to modify its judgment to issue a writ of mandate directing the Commission to set aside the decisions challenged in this action and reconsider the DOF’s request in a manner consistent with this opinion.

BACKGROUND

A. Constitutional Subvention Requirement and Implementing Legislation

When the Legislature mandates a new program or higher level of service on a local government, the state is constitutionally required to reimburse the locality for the costs of the mandate. (Cal. Const., art. XIII B, § 6, subd. (a).) This requirement was the result of the passage of two related ballot initiatives, Proposition 13 in 1978 and Proposition 4 in 1979. Proposition 13 added article XIII A to the Constitution, which was “aimed at controlling ad valorem property taxes and the imposition of new ‘special taxes’ ” on the citizens of California. (County of Fresno v. State of California (1991) 53 Cal.3d 482, 486 [280 Cal.Rptr. 92, 808 P.2d 235] (County of Fresno).) Proposition 4 added article XIII B, placing “limitations on the ability of both state and local governments to appropriate funds for expenditures.” (County of Fresno, at p. 486.) “ ‘Articles XIII A and XIII B work in tandem, together restricting California governments’ power both to levy and to spend [taxes] for public purposes.’ (City of Sacramento [v. State of California (1990)] 50 Cal.3d [51,] 59, fn. 1 [266 Cal.Rptr. 139, 785 P.2d 522].)” (Ibid.) The initiatives’ goals “were to protect residents from excessive taxation and government spending.” (County of Los Angeles v. State of California (1987) 43 Cal.3d 46, 61 [233 Cal.Rptr. 38, 729 P.2d 202] (County of Los Angeles).)

Section 6 of article XIII B of the State Constitution (article XIII B, section 6) “had the additional purpose of precluding a shift of financial responsibility for carrying out governmental functions from the state to local agencies which had had their taxing powers restricted by the enactment of article XIIIA *19 in the preceding year and were ill equipped to take responsibility for any new programs.” (County of Los Angeles, supra, 43 Cal.3d at p. 61; see Department of Finance v. Commission on State Mandates (2016) 1 Cal.5th 749, 758-759 [207 Cal.Rptr.3d 44, 378 P.3d 356] (Department of Finance).) Section 6 ‘“was designed to protect the tax revenues of local governments from state mandates that would require expenditure of such revenues.” (County of Fresno, supra, 53 Cal.3d at p. 487.) The provision states ‘“[wjhenever the Legislature or any state agency mandates a new program or higher level of service on any local government, the State shall provide a subvention of funds to reimburse that local government for the costs of the program or increased level of service . . . .” (Art. XIII B, § 6, subd. (a).)

“In 1984, the Legislature enacted a comprehensive statutory and administrative scheme for implementing article XIII B, section 6. ([Gov. Code, 1 ] § 17500 et seq.; [citations].) In so doing, the Legislature created the Commission ... to resolve questions as to whether a statute imposes ‘state-mandated costs on a local agency within the meaning of section 6.' ” (California School Bds. Assn. v. State of California (2011) 192 Cal.App.4th 770, 780 [121 Cal.Rptr.3d 696].) The legislation directs “the Commission not to find local government costs reimbursable if, among other things, ‘[t]he statute or executive order imposed duties which were expressly included in a ballot measure approved by the voters in a statewide election’ (ballot measure mandates).” (California School Boards Assn. v. State of California (2009) 171 Cal.App.4th 1183, 1191 [90 Cal.Rptr.3d 501] (California School Boards).)

Under this regulatory scheme, when the Legislature enacts a statute imposing obligations on a local agency or a school district without providing additional funding, the local entity may file a test claim with the Commission. (§§ 17551, 17555.) After a public hearing, the Commission must then determine whether the statute requires a new program or increased level of service. 2 (§§ 17551, 17555.) “If the Commission determines the statute meets this criterion, [it] must determine the cost of the mandated program or service and then notify specified legislative entities and executive officers of this decision. (§§ 17557, 17555.)” California School Bds. Assn. v. State of California, supra, 192 Cal.App.4th at p. 781.)

*20 Multiple claimants may join together to pursue a test claim, and the Commission’s decision applies statewide to all similarly situated local agencies or school districts. (Cal. Code Regs., tit. 2, § 1183.1.) A test claim is the “exclusive procedure” for claiming and obtaining reimbursement for costs mandated by the state. (§ 17552.) “A local agency or school district may challenge the Commission’s findings by administrative mandate proceedings. (§ 17559; Code Civ. Proc., § 1094.5.)” (California School Bds. Assn. v. State of California, supra, 192 Cal.App.4th at p. 781.)

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Bluebook (online)
7 Cal. App. 5th 12, 212 Cal. Rptr. 3d 259, 2016 Cal. App. LEXIS 1134, Counsel Stack Legal Research, https://law.counselstack.com/opinion/county-of-san-diego-v-commission-on-state-mandates-calctapp-2016.