6631     COSTS TO STATE AGENCIES 
(Revised 5/98)

Although there is no specific statutory requirement that a state agency must provide funding for the costs which other state agencies incur as a result of its regulations, it is important to identify any such costs as accurately as possible so that appropriate action to secure any needed additional funding can be taken.  Again, the basic methodology for estimating cost is set forth in SAM Section 6622.  The primary difference, of course, is that the entities contacted for cost data would be state, rather than local agencies.

Each state agency should carefully review the weekly “California Regulatory Notice Register” published by the Office of Administrative Law in order to determine whether any proposed regulation therein would impact that department.  The agency proposing to issue the regulation should be notified of any potential impact.  For permissive regulations, each state agency will have to determine for itself whether it wishes to exercise that authority, taking into account all relevant considerations, including the possible need to obtain additional funding.