6601 GENERAL
(Revised 5/98)
This and the following sections comply with the requirements of Government Code Section 11357, as added by Chapter 327, Statutes of 1982, by prescribing procedures to be followed by state agencies when developing estimates of the potential costs and/or savings which any local, state, and/or federal agency may incur as the result of a regulation which a state agency proposes to issue. Sections 11346.5 (a) (5) and (6) respectively require that, prior to the issuance of an executive regulation, the following information be prepared by the state agency proposing to issue the regulation:
- A determination as to whether the regulation imposes a mandate on local agencies or school districts and, if so, whether the mandate requires state reimbursement pursuant to Part 7 (commencing with Section 17500 of Division 4).
- An estimate, prepared in accordance with instructions adopted by DOF, of the cost or savings to any state agency, the cost to any local agency or school district that is required to be reimbursed under Part 7 (commencing with Section 17500) of Division 4, other nondiscretionary costs or savings imposed on local agencies, and the cost or savings in federal funding to the state.
For purposes of this paragraph, “cost or savings” means additional costs or savings, both direct and indirect, that a public agency necessarily incurs or realizes in reasonable compliance with a regulation.
This estimate, which is summarized on Fiscal Impact Statement form, STD. 399, is required to be included in the “notice of proposed adoption” for routine regulations or in the “finding of an emergency” for proposed emergency regulations. The calculations and assumptions of fiscal impact for the current year and two subsequent fiscal years must be attached to STD. 399.
If the state agency finds that the mandate is not reimbursable, it must state the reasons for that finding in the “Final Statement of Reasons” for adopting the regulation, as required by Section 11346.9 (a) 2.
