6650 FISCAL IMPACT STATEMENT (FIS)
(Revised 5/98)
A state regulation which relates only to the internal management of the issuing agency or which can be described as a form is not a “regulation” for purposes of the requirements herein pertaining to the preparation of fiscal estimates. Similarly, “regulation” does not include any form prescribed by a state agency or any instructions relating to the use of the form, but this provision is not a limitation upon any requirement that a regulation be adjusted pursuant to the Administrative Procedures Act (APA). Every true regulation must include an estimate and/or determination by the issuing agency of its fiscal effect on governmental agencies. The Fiscal Impact Statement form, STD. 399, has been developed for this purpose. A copy of a completed STD. 399 should be included with each “Notice Publication/Regulation Submission form, STD. 400” when submitting regulations to the Office of Administrative Law (OAL).
Copies of the calculations and assumptions leading to dollar estimates should also be attached. Those calculations and assumptions must address the proposed regulation’s fiscal impact in the current fiscal year and in the two subsequent fiscal years. A copy of the local mandate determination and any attachments thereto must be retained by the issuing agency in the rule-making file required by Government Code Section 11347.3. The OAL will not approve regulation filings which do not include a properly completed STD. 399. Instead, OAL is required by Government Code Section 11349.1 (d) to return any regulation to the adopting agency if the adopting agency either:
- Has not prepared the required cost estimate, including the data, assumptions and calculations on which it is based, and included it in the rulemaking file; or
- Has prepared the required estimate and concluded that the costs of the regulation to local government will be reimbursable, but the adopting agency fails to either:
- Cite an appropriate Budget Act item or chaptered bill as a source of reimbursement funding; or
- Attach a letter or other documentation from DOF which states that DOF has approved a request to include funding in the next Governor’s Budget and Budget Bill or has authorized an augmentation of the agency’s Budget Act appropriation in an amount sufficient to reimburse local entities for their cost mandated by the regulation.
