A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by amending Section 6 of, and adding Section 6.5 to, Article XIIIB thereof, relating to state finances.

Under the California Constitution, whenever the Legislature or a state agency mandates a new program or higher level of service on any local government, the state is required to provide a subvention of funds to reimburse the local government. With regard to a mandate imposed on a city, county, city and county, or special district, the Legislature is required either to appropriate, in the annual Budget Act, the full payable amount of the mandate, determined as specified, or to suspend the operation of the mandate for the fiscal year. The California Constitution provides that the Legislature is not required to appropriate funds for certain specified mandates. This measure would apply the existing requirement that the Legislature either appropriate the full payable amount of a mandate or suspend the mandate only through the 2010–11 fiscal year. The measure would instead prohibit the Legislature or a state agency from mandating a new program or higher level of service on any local government, except as specified, unless the local government is paid for the costs of that new program or higher level of service. The measure would require, on or after July 1, 2010, that if the Legislature adopts a statute that mandates a new program or higher level of service on any local government, the mandate would not become operative until the operative date of an appropriation, for that purpose, of funds to pay all affected local governments for the costs of the new program or higher level of service for the remainder of the fiscal year in which the mandate becomes operative. The measure would impose parallel requirements with regard to a regulation mandating a new program or higher level of service. On and after July 1, 2011, for a mandate that became operative in a prior fiscal year, the measure would render the mandate inoperative if the Legislature fails to fund the mandate in the current fiscal year. The measure would add, as an additional exemption from the mandates for which the Legislature is required to appropriate funds, a mandate for which the governing body of the local government has express statutory authority to impose a fee, assessment, or other charge that pays for the costs of the program or increased level of service and that is paid to the local government by the person or entity that is subject to, is regulated by, or otherwise benefits from, the new program or higher level of service. The measure would allow a local government to file an action in superior court if the Legislature or a state agency mandates a new program or higher level of service and the amount of the funds appropriated to the local government for that new program or higher level of service does not meet the costs of that new program or higher level of service. The measure would require the superior court to include, within an order upholding a challenge brought by the local government, an order setting the amount the court determines is reasonably necessary to pay the local government for the costs of the new program or higher level of service.