6610 DEFINITIONS
(Revised 2/98)
For the purposes of implementing these guidelines, the following definitions apply:
Agency, Local. Any city, county, special district, authority, or other political subdivision of the state.
Agency, State. Every office, officer, department, division, bureau, board, council, or commission in state government. Unless otherwise specifically indicated, “state agency” does not include an agency in the judicial or legislative branches of state government.
Costs. All additional expenses for which either supplemental financing or the redirection of existing staff and/or resources (with or without the need for supplemental funding) is required.
Direct Costs
- Personnel needed to perform a line function or activity prescribed (expressed or implied) in the regulation.
- Fringe benefits associated with those personnel, e.g., retirement, OASDI, workers’ compensation, etc.
- Operating expenses associated with those personnel, e.g., if compliance is achieved by contracting with a private vendor.
- Any additional equipment which will have to be purchased or leased in order to comply with the regulation.
- Allocation of other personnel-related costs if not otherwise allocated through an indirect cost system. Some agencies may allocate the costs of rent, space, utilities, etc., directly to the personnel involved.
Indirect Costs. Any costs related to the additional personnel or operating expenses described in the preceding which are not directly allocated or assigned to those personnel. They do not include a pro rata share of the costs of any manager or supervisor above the first line supervisors since it is assumed that any such supervisors would be in place whether or not the personnel hired to comply with the regulations were there. For example, if a regulation necessitated the hiring of additional staff in a county welfare department, it would not be appropriate to assign, through an indirect cost system, a portion of the costs of the county welfare director to those new personnel since the director would exist to perform his/her functions even if the new personnel were not hired.
Mandate. A requirement with a consequence of noncompliance of either:
- A criminal penalty,
- A civil liability, or
- An administrative penalty.
Public Agency. Any state agency, city, county, special district, school district, community college district, county superintendent of schools, or federal agency.
Reasonable Compliance. No universal definition is available. However, the “prudent person” test can be utilized to arrive at an appropriate definition of the term. For example, if an agency is required by regulation to provide transportation for certain persons, it clearly would not be appropriate to purchase limousine-type luxury automobiles to do so. On the other hand, it would not be appropriate to provide the service by purchasing tandem bicycles. Reasonable compliance can be achieved with some mode of transportation between the two extremes cited. The issuing agency should evaluate each instance separately and determine what “reasonable compliance” would be. The estimate developed should clearly indicate the mode or level of activity it has assumed would achieve such compliance
Since “compliance” connotes that the regulation involves a requirement, costs incurred by state or local agencies in exercising any authority granted by a regulation which is permissive or optional are not germane and need not be estimated.
Revenues. Any changes in the amounts of operating income received by state and local agencies as the result of an executive regulation should also be identified. In this context, “revenue” includes taxes, state and/or federal assistance, fees, licenses, and so forth.
Savings. Are both actual budget reductions and the “freeing up” of staff and/or resources for reassignment to other areas of legitimate concern of the agency.
School District. Any school district, community college district, or county superintendent of schools.
Special District. Any agency of the state which performs governmental or proprietary functions within limited boundaries. Special district includes a redevelopment agency, a joint powers agency or entity, a county service area, a maintenance district or area, an improvement district or improvement zone, or any other zone or area. Special district does not include a city, a county, a school district, or a community college district.
County free libraries established pursuant to Chapter 6 (commencing with Section 19100) of Part II of Division 1, Title 1 of the Education Code, areas receiving county fire protection services pursuant to Section 25643 of the Government Code, and county road districts established pursuant to Chapter 7 (commencing with Section 1550) of Division 2 of the Streets and Highways Code shall be considered special districts for all purposes of this section.
