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HomeGovernment CodeDiv. 4Pt. 7Ch. 4Art. 2§ 17581 Local Mandate Funding Suspension

§ 17581 Local Mandate Funding Suspension

Government Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 17581 Local Mandate Funding Suspension

Key Takeaways

  • •If the state doesn't have enough money, it can pause new rules that cost cities and counties extra money.
  • •The state must tell cities and counties within 30 days if a rule is paused because of money problems.
  • •Cities can still choose to follow the paused rule, but they can charge fees to cover the cost.
  • •Some important rules, like those for courts or school funding, can't be paused this way.

Example

The state passes a new law saying all schools must have a nurse every day, but the state budget is late and doesn't include money for this.

The city can choose not to put a nurse in every school until the state gives them money. If the city still wants a nurse in schools, they can charge parents a small fee to pay for it.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 17581 Local Mandate Funding Suspension

(a) No local agency shall be required to implement or give effect to any statute or executive order, or portion thereof, during any fiscal year and for the period immediately following that fiscal year for which the Budget Act has not been enacted for the subsequent fiscal year if all of the following apply: (1) The statute or executive order, or portion thereof, has been determined by the Legislature, the commission, or any court to mandate a new program or higher level of service requiring reimbursement of local agencies pursuant to Section 6 of Article XIII B of the California Constitution. (2) The statute or executive order, or portion thereof, or the commission’s test claim number, has been specifically identified by the Legislature in the Budget Act for the fiscal year as being one for which reimbursement is not provided for that fiscal year. For purposes of this paragraph, a mandate shall be considered to have been specifically identified by the Legislature only if it has been included within the schedule of reimbursable mandates shown in the Budget Act and it is specifically identified in the language of a provision of the item providing the appropriation for mandate reimbursements. (b) Within 30 days after enactment of the Budget Act, the Department of Finance shall notify local agencies of any statute or executive order, or portion thereof, for which operation of the mandate is suspended because reimbursement is not provided for that fiscal year pursuant to this section and Section 6 of Article XIII B of the California Constitution. (c) Notwithstanding any other provision of law, if a local agency elects to implement or give effect to a statute or executive order described in subdivision (a), the local agency may assess fees to persons or entities which benefit from the statute or executive order. Any fee assessed pursuant to this subdivision shall not exceed the costs reasonably borne by the local agency. (d) This section shall not apply to any state-mandated local program for the trial courts, as specified in Section 77203. (e) This section shall not apply to any state-mandated local program for which the reimbursement funding counts toward the minimum General Fund requirements of Section 8 of Article XVI of the Constitution. (f) All state-mandated local programs suspended in the Budget Act for the 2012–13 fiscal year shall also be suspended in the 2013–14 and 2014–15 fiscal years. (Amended by Stats. 2012, Ch. 32, Sec. 18. (SB 1006) Effective June 27, 2012.)

Last verified: January 22, 2026

Key Terms

local agencystatute or executive orderBudget ActmandatereimbursementDepartment of Financefees

Related Statutes

  • § 17581.5 School District Funding Suspension
  • § 17551 State Mandate Reimbursement Claims
  • § 17552 State Mandate Reimbursement Process
  • § 17573 Local Government Reimbursement Requests
  • § 17576 Mandate Cost Reimbursement Estimates

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Government Code. Section 17581.
View Official Source