40728.9.
(a) For purposes of this section, the following terms have the following meanings:(1) “Assessment” means the assessment of socioeconomic impacts of a proposed adoption, amendment, or repeal of a rule or regulation required to be conducted by the state board pursuant to subdivision (a) of Section 40728.7.
(2) “Proposed action” means the proposed adoption, amendment, or repeal of a rule or regulation being contemplated by the state board.
(3) “Third-party contractor” means a third party with whom the state board contracts, consistent with state and local laws, rules, and regulations, to conduct an assessment, or
portion thereof.
(b) (1) This section outlines the minimum standards applicable to the state board when it is required to conduct an assessment of socioeconomic impacts required pursuant to subdivision (a) of Section 40728.7. Nothing in this section prohibits the state board from creating or imposing additional requirements on a third-party contractor relating to an assessment.
(2) The state board shall not approve an assessment pursuant to Section 40728.7 if the assessment does not comply with the requirements of this section.
(3) Nothing in this section shall be construed to supersede, modify, or otherwise affect, or exempt the state board from, applicable state or local laws, rules, or regulations relating to the ability or authority of the state board to contract with an outside third party
to conduct the assessment, including, but not limited to, the State Contract Act (Chapter 1 (commencing with Section 10100) of Part 2 of Division 2 of the Public Contract Code).
(c) (1) A state board may contract with a third-party contractor, consistent with applicable state laws, rules, and regulations, to conduct an assessment, or portion thereof, and shall require the prospective third-party contractor to include all of the following in the prospective third-party contractor’s proposal for the assessment:
(A) A conflicts statement that includes both of the following:
(i) A description of all work performed by the prospective third-party contractor in the last five years that potentially relates to or could potentially be directly impacted by the proposed action.
(ii) All financial, personal, or familial relationships of any person employed by the prospective third-party contractor with either of the following:
(I) An employee of the state board that holds a designated position listed in Appendix A of Section 95000 of Title 17 of the Code of Regulations.
(II) An executive officer of any business or corporation that could potentially be directly impacted by the proposed action.
(B) A statement of the prospective third-party contractor’s experience and key staff’s expertise in conducting socioeconomic impact studies, or similar studies that involve cost analysis of environmental rules and regulations and their economic and demographic impacts, that includes both of the following:
(i) A list of socioeconomic impact studies or similar studies conducted by the prospective third-party contractor in the last five years.
(ii) The curriculum vitae of the team leader and key professional team members whom the prospective third-party contractor proposes to conduct the assessment that includes the relevant expertise, education, and certifications, if any, of the proposed team leader and key professional team members.
(C) A proposed schedule for the assessment that includes the date by which the prospective third-party contractor will provide a draft assessment to the state board for review.
(D) A proposed budget for the assessment.
(2) The state board may disqualify a
prospective third-party contractor if the state board determines either of the following:
(A) The prospective third-party contractor’s conflicts statement submitted pursuant to subparagraph (A) of paragraph (1) reveals a material conflict of interest that violates Section 18730 of Title 2 of the California Code of Regulations.
(B) The experience and qualifications of the prospective third-party contractor or its employees identified pursuant to subparagraph (B) of paragraph (1) are insufficient to conduct the assessment.
(d) The state board shall include, or require a third-party contractor with whom the state board contracts to include, at a minimum, all of the following in the assessment:
(1) All of the information and analysis required pursuant to
subdivision (e) of Section 40728.7.
(2) (A) A description of the specific methodologies employed by the state board or the third-party contractor to conduct the assessment.
(B) The state board and the third-party contractor shall comply with the Department of Finance’s methodological standards for state agencies outlined in Chapter 1 (commencing with Section 2000) of Division 3 of Title 1 of the California Code of Regulations in conducting the assessment.
(3) An analysis of the disproportionate impact, if any, of the proposed action on Black, African American, Hispanic, Latino, Asian, Pacific Islander, Native American, Native Hawaiian, Alaska Native, gay, lesbian, bisexual, and transgender individuals and women. If no disproportionate impact is identified, the state board or the third-party
contractor shall describe the basis for its conclusion that there is no disproportionate impact.
(4) An econometric analysis that includes all of the following:
(A) A baseline estimate of the costs, revenues, income, and other relevant economic factors for businesses and consumers affected by the proposed action. The baseline estimate shall take into account economic and regulatory factors based on data available to the state board.
(B) A detailed description of the assumptions supporting the baseline estimate required pursuant to subparagraph (A), and which assumptions shall be based on the conditions specific to the region affected by the proposed action.
(C) An estimate of the impacts of the proposed action on the baseline estimate developed pursuant
to subparagraph (A).
(D) An estimate of the impact that the proposed action will have on state revenues.
(5) A citation to each data source relied on in the assessment so that any person can view the original data source.
(6) Identification of the key assumptions and inputs entered into any model created or used for the assessment, including, but not limited to, assumptions regarding the responsiveness of labor supply to changes in wage rates and the responsiveness of consumer spending to changes in product or service prices.
(7) (A) Except as provided in subparagraph (B), a detailed description of any manipulation, calculation, interpolation, or extrapolation of original source data so that any person can reproduce the same
estimates presented in the assessment.
(B) Complex calculations using generally accepted and publicly available input-output econometric models, such as the Regional Input-Output Modeling System (RIMS II) published by the Bureau of Economic Analysis of the United States Department of Commerce and the proprietary Economic Impact Analysis for Planning (IMPLAN), are exempt from the requirement in subparagraph (A) if the state board or the third-party contractor documents all inputs.
(e) In developing the estimate of the impacts of the proposed actions on baseline estimates pursuant to subparagraph (C) of paragraph (4) of subdivision (d), the state board or the third-party contractor shall do all of the following:
(1) Identify the direct cost of the proposed action on the entities impacted by the proposed action,
including separately identifying the costs for permitting, planning, purchasing, installation, and ongoing operations associated with any major investment needed to comply with the proposed action.
(2) Identify the basis for each component of the estimate.
(3) Consider input from entities affected by the proposed action in developing the estimate.
(4) Ensure that the estimate reflects statewide market conditions.
(5) Include the basis for the assumptions used for the estimate, develop a reasonable range surrounding the estimate, and describe in detail the impacts of the range on the costs and benefits of the proposed action.
(6) Analyze the likely behavioral changes by affected entities
and individuals in response to the proposed action, including, but not limited to, the extent to which costs or benefits are retained by the affected entities or are passed on to others, including customers and employees.
(7) Take into account the types of occupations that would be impacted by job cutbacks or increases associated with the proposed action.
(8) Estimate direct, indirect, and induced impacts on consumers by income level.
(f) The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.