Welf. & Inst. Code, § 16521.7

(a) It is the intent of the Legislature in enacting this section to establish a methodology for reconciling the state’s and each county’s costs and savings resulting from implementation of the Continuum of Care Reform (CCR), as directed through legislation and administrative directives, in light of the requirements of Section 36 of Article XIII of the California Constitution, which pertains to state or federal legislation enacted after September 30, 2012, that has an overall effect of increasing the costs already borne by a local agency for certain programs or levels of service.

(b) The Department of Finance, in consultation with the State Department of Social Services, the County Welfare Directors Association of California, the Chief Probation Officers of California, and the California State Association of Counties, shall develop and implement a methodology for determining the state’s and each county’s overall actual costs and savings resulting from the CCR initiative. The methodology shall take into account the CCR-related assistance and administration costs and savings of the state and each county associated with the implementation of the CCR initiative, based on the best available data.

(c) (1) The overall CCR-related assistance and administration costs and savings for each county shall be reconciled at least once for each fiscal year, beginning in the 2018–19 fiscal year, to determine the amount of state funding, if any, that is owed to each county or the amount of county savings, if any, that are available to offset state funding from the General Fund. The Department of Finance, in collaboration with the entities listed in subdivision (b), shall determine the process by which any state funding owed to counties is provided or any county savings offsets state funding.

(2) If any state funding owed is not provided to the county, the county is not obligated to continue implementation of the CCR initiative beyond the level of state funding provided.

(3) The overall CCR-related assistance and administration costs and savings of each county incurred since July 1, 2016, shall be included in the first reconciliation done pursuant to this section.