AB 964 California Assembly · 2025-2026 Regular Session

Commission on State Mandates: state mandates.

Summary
Existing law creates the Commission on State Mandates and establishes procedures for implementing the requirement in the California Constitution that the state reimburse local agencies and school districts for certain costs mandated by the state. Existing law makes a reimbursement claim for actual costs filed by a local agency or school district subject to the initiation of an audit by the Controller, and authorizes the Controller to make a field review of a claim after it has been submitted but before it has been reimbursed. Existing law requires the Controller to notify the claimant in writing within 30 days after issuance of a remittance advice of any adjustment to a claim for reimbursement that results from an audit or review. This bill would, instead, require the Controller to notify the claimant in writing within 30 days of any adjustment that results from an audit or review. The bill would also require the Controller to allow a local agency or school district, at the sole discretion of the local agency or school district, to offset any reduced reimbursement, as prescribed, or to remit funds to the Controller.
Bill status failed 1 of 4 stages cleared
Introduction
Feb 2025
Committee Review
Floor Vote
Governor
Introduced Feb 20, 2025 Last action Feb 2, 2026
Maddy AI version diff · 3 comparisons

What changed between versions

03/27/25 - Amended Assembly 04/23/25 - Amended Assembly · 2 edits · Apr 23, 2025
MINOR
The April 23 amendment shifts decision-making authority from the Controller to local agencies and school districts regarding how to handle reduced reimbursement after an audit or review. Previously the Controller could choose whether to allow an offset or require remittance; now the Controller must allow the agency or district to decide for itself. The amendment also narrows which claims can be used for offset, limiting them to those attributed to that specific agency or district and determined by the Controller to exist.
REQUIREMENT

The Controller no longer has sole discretion over whether a local agency or school district may offset reduced reimbursement against other unpaid claims. The Controller is now required to allow the agency or district to make that choice at its own sole discretion.

ELIGIBILITY

Offset of reduced reimbursement is now limited to unpaid reimbursement claims attributed to that specific local agency or school district, and only to the extent the Controller determines sufficient unpaid claims exist. Previously the language was broader, referencing 'other any unpaid reimbursement claims' without requiring attribution to the same entity.

Floor votes

How they voted

No floor votes recorded yet.
Full legislative history

Actions timeline

Total actions
13
Key actions
5
Committee
9
Amendments
2
Feb 2, 2026
Lower · Passed
From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
lower
May 23, 2025
Lower · Passed
In committee: Held under submission.
lower
May 14, 2025
Committee
In committee: Set, first hearing. Referred to APPR. suspense file.
lower
May 1, 2025
Lower · Passed
From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 9. Noes 0.) (April 30). Re-referred to Com. on APPR.
lower
Apr 24, 2025
Committee
Re-referred to Com. on ED.
lower
Apr 23, 2025
Introduced
From committee chair, with author's amendments: Amend, and re-refer to Com. on ED. Read second time and amended.
lower
Apr 23, 2025
Lower · Passed
From committee: Do pass and re-refer to Com. on ED. (Ayes 10. Noes 0.) (April 23). Re-referred to Com. on ED.
lower
Mar 28, 2025
Committee
Re-referred to Com. on L. GOV.
lower
Mar 27, 2025
Introduced
From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended.
lower
Mar 10, 2025
Committee
Referred to Coms. on L. GOV. and ED.
lower
Feb 21, 2025
Lower · Passed
From printer. May be heard in committee March 23.
lower
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Heather Hadwick
Heather Hadwick
RRepublican
CA
1