California 2021-2022 Regular Session

California Senate Bill SB1095 Compare Versions

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1-Amended IN Senate March 29, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 1095Introduced by Senator DurazoFebruary 16, 2022 An act to amend Section 40728.5 of, and to add Section Sections 40728.7 and 40728.9 to, the Health and Safety Code, relating to air quality. LEGISLATIVE COUNSEL'S DIGESTSB 1095, as amended, Durazo. Air quality: rules and regulations: socioeconomic impacts assessment. Existing law requires a local air pollution control district or an air quality management district (local air district) that intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations to perform, except as specified, an assessment of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation, as provided. Existing law defines socioeconomic impact impacts to include, among other things, the type of industries or business, including small business, affected by the rule or regulation, the impact of the rule or regulation on employment and the economy of the region affected by the adoption of the rule or regulation, and the range of probable costs, including costs to industry or business, including small business, of the rule or regulation.This bill would authorize a local air district to contract with a third party to conduct the required assessment of socioeconomic impacts, or portion thereof, as provided. The bill would require a local air district to ensure that a prospective third-party contractor include in its proposal for the assessment specified information, including, among other things, a conflicts statement and a proposed schedule and budget for the assessment. This bill would expand the definition of socioeconomic impacts to include the disproportionate impact, if any, of the proposed adoption, amendment, or repeal of the rule or regulation on Black, African American, Hispanic, Latino, Asian, Pacific Islander, Native American, Native Hawaiian, Alaska Native, gay, lesbian, bisexual, and transgender individuals and women. The bill would require a local air district or the third-party contractor, if no disproportionate impact is identified, to describe the basis for its conclusion that there is no disproportionate impact. By expanding the definition of socioeconomic impact for purposes of a socioeconomic impacts assessment conducted by a local air district, this bill would increase the requirements on local officials, thereby imposing a state-mandated program.This bill would additionally require the State Air Resources Board Board, except as specified, to conduct an assessment of the socioeconomic impacts impacts, as defined, of a proposed adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, as provided. The bill would expressly provided, and similarly authorize the state board and local air districts to contract with a third party to conduct the required assessment of socioeconomic impacts, or portion thereof. The bill would provide that the state board or a local air district require the prospective third-party contractor to include in its proposal for the assessment specified information, including, among other things, a conflicts statement and a proposed schedule and budget for the assessment. thereof, as provided. The bill would specify minimum standards for the assessment of socioeconomic impacts, and would require the state board, a local air district, board or a third-party contractor to include in the assessment of socioeconomic impacts, among other things, an econometric analysis of the proposed adoption, amendment, or repeal of the rule or regulation, as provided. specified information and analysis, including, but not limited to, the disproportionate impacts analysis described above. The bill would prohibit the state board or a local air district from approving an assessment of socioeconomic impacts that fails to meet those requirements. By increasing the requirements for assessments of socioeconomic impacts required to be conducted by local air districts, this bill would impose a state-mandated program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 40728.5 of the Health and Safety Code is amended to read:40728.5. (a) Whenever the state board or a district intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, the state board or the district board shall, to the extent data are available, perform an assessment, consistent with Section 40728.7, assessment of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation. The state board or the district board shall actively consider the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation and make a good faith effort to minimize adverse socioeconomic impacts. This section does not apply to the adoption, amendment, or repeal of a rule or regulation that results in a less restrictive emissions limit if the action does not interfere with the districts adopted plan to attain ambient air quality standards, or does not result in any significant increase in emissions.(b) To the extent that information on the socioeconomic impacts of the proposed adoption, amendment, or repeal of a rule or regulation is required to be developed by the state board or a district pursuant to other provisions of this division, the state board or the district board may use or reference that information in the assessment of socioeconomic impacts required pursuant to subdivision (a) to comply with the requirements of this section.(c) Upon the approval by a majority vote of the district board, a county district is not required to include in its assessment of socioeconomic impacts required pursuant to subdivision (a) the analysis specified in paragraphs (2) and (4) of subdivision (f) for a rule or regulation that only adopts a requirement that is substantially similar to, or is required by, a state or federal statute, regulation, or applicable formal guidance document. Examples of state and federal formal guidance documents include, but are not limited to, federal Control Techniques Guidelines, state and federal reasonably available control technology determinations, state best available retrofit control technology determinations, and state air toxic control measures.(d)The state board or a district board may contract with a third party, consistent with Section 40728.7 and with applicable state and local laws, rules, and regulations, to conduct the assessment of socioeconomic impacts, or a portion thereof, required pursuant to subdivision (a). Nothing in this section, however, requires the state board or a district board to contract with a third party to conduct the assessment. (e)(d) This section does not apply to either of the following: a district with a population of less than 500,000 persons.(1)The proposed adoption, amendment, or repeal of any rule or regulation that results in any less restrictive emissions limit if the proposed action does not interfere with the state boards or a districts adopted plan to attain ambient air quality standards or does not result in any significant increase in emissions.(2)A district with a population of less than 500,000 persons.(e) (1) A district board may contract with a third-party contractor, consistent with applicable state and local laws, rules, and regulations, to conduct a socioeconomic impacts assessment, or portion thereof, and shall require the prospective third-party contractor to include all of the following in the prospective third-party contractors 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 district 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 contractors experience and key staffs 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 district board for review.(D) A proposed budget for the assessment.(2) The district board may disqualify a prospective third-party contractor if the district board determines either of the following:(A) The prospective third-party contractors 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.(f) For purposes of this chapter, socioeconomic impacts means all of the following:(1) The type types of industries industry and business, including small business, affected by the rule or regulation proposed to be adopted, amended, or repealed.(2) The impact of the proposed adoption, amendment, or repeal of the rule or regulation on employment and the economy of the region affected by the proposed action.(3) The range of probable costs, including costs to industry and business, including small business, of the rule or regulation proposed to be adopted, amended, or repealed.(4) The availability and cost-effectiveness of alternatives to the rule or regulation proposed to be adopted, amended, or repealed.(5) The emissions reduction potential of the rule or regulation proposed to be adopted, amended, or repealed.(6) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).(7) 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 district board or the third-party contractor shall describe the basis for its conclusion that there is no disproportionate impact.SEC. 2. Section 40728.7 is added to the Health and Safety Code, to read:40728.7. (a) Whenever the state board intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, the state board shall, to the extent data are available and, consistent with Section 40728.9, perform an assessment of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation. The state board shall actively consider the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation and make a good faith effort to minimize adverse socioeconomic impacts.(b) To the extent that information on the socioeconomic impacts of the proposed adoption, amendment, or repeal of a rule or regulation is required to be developed by the state board pursuant to other provisions of this division, the state board may use or reference that information in the assessment of socioeconomic impacts required pursuant to subdivision (a) to comply with the requirements of this section.(c) The state board may contract with a third party, consistent with Section 40728.9 and with applicable state and local laws, rules, and regulations, to conduct the assessment of socioeconomic impacts, or a portion thereof, required pursuant to subdivision (a). Nothing in this section, however, requires the state board to contract with a third party to conduct the assessment.(d) This section does not apply to either of the following:(1) The proposed adoption, amendment, or repeal of a rule or regulation that results in a less restrictive emissions limit if the proposed action does not interfere with the state boards adopted plan to attain ambient air quality standards or does not result in any significant increase in emissions.(2) The proposed adoption, amendment, or repeal by the state board of a rule or regulation that has an economic impact of less than ten million dollars ($10,000,000).(e) For purposes of this chapter, socioeconomic impacts means all of the following:(1) The type of industry and business, including small business, affected by the rule or regulation proposed to be adopted, amended, or repealed.(2) The impact of the proposed adoption, amendment, or repeal of the rule or regulation on employment and the economy of the region affected by the proposed action.(3) The range of probable costs, including costs to industry and business, including small business, of the rule or regulation proposed to be adopted, amended, or repealed.(4) The availability and cost-effectiveness of alternatives to the rule or regulation proposed to be adopted, amended, or repealed.(5) The emissions reduction potential of the rule or regulation proposed to be adopted, amended, or repealed.(6) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).SEC. 2.Section 40728.7 is added to the Health and Safety Code, to read:40728.7.SEC. 3. Section 40728.9 is added to the Health and Safety Code, to read: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 or a district pursuant to subdivision (a) of Section 40728.5. 40728.7.(2) Proposed action means the proposed adoption, amendment, or repeal of a rule or regulation being contemplated by the state board or a district. board.(3) Third-party contractor means a third party with whom the state board or a district contracts, consistent with state and local laws, rules, and regulations, to conduct an assessment of socioeconomic impacts assessment, or portion thereof, required pursuant to subdivision (a) of Section 40728.5. thereof.(b) (1) This section outlines the minimum standards applicable to the state board or a district that when it is required to conduct an assessment of socioeconomic impacts required pursuant to subdivision (a) of Section 40728.5. 40728.7. Nothing in this section shall prohibit prohibits the state board or a district from creating additional requirements or imposing additional requirements on a third-party contractor relating to the an assessment. (2) Neither the The state board nor a district shall not approve an assessment pursuant to Section 40728.5 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 or a district from, applicable state or local laws, rules, or regulations relating to the ability or authority of the state board or a district 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 or a district may contract with a third-party contractor 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 contractors 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 or a district 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 contractors experience and key staffs 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 or a district for review.(D) A proposed budget for the assessment.(2) The state board or a district may disqualify a prospective third-party contractor if the state board or a district determines either of the following:(A) The prospective third-party contractors 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 or a district shall include, or require a third-party contractor with whom the state board or a district contracts to include, at a minimum, all of the following in the assessment:(1) All of the information and analysis required pursuant to subdivision (f) (e) of Section 40728.5. 40728.7.(2) (A) A description of the specific methodologies employed by the state board, a district, board or the third-party contractor to conduct the assessment.(B) The state board, a district, board and the third-party contractor shall comply with the Department of Finances 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 any racial, ethnic, or gender subgroup. 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, a district, 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 all economic and regulatory factors, including, but not limited to, relevant rules or regulations that have been enacted or are under active consideration by the state board or a district. 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 and local revenues, including corporate, personal, sales, and property tax revenues. revenues.(5) A hyperlink or 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, a district, 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, a district, 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 local statewide market conditions.(5) If there is uncertainty regarding the estimate, indicate 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)(A)If the proposed action will require significant expenditures by affected entities, include an estimate of the impacts of the proposed action on affected entities' profits and cash flows.(B)In developing the estimate required pursuant to subparagraph (A), the state board, a district, or a third-party contractor shall do all of the following:(i)Estimate the impacts on the affected entities profits and cash flows over a multiple-year period, as necessary, to capture the proposed actions impacts over time.(ii)Include information regarding sources and costs of financing for necessary equipment and infrastructure investments.(iii)Consider whether installation of necessary equipment and infrastructure will significantly disrupt the output of affected entities and, if so, the impacts of those disruptions on the marketplace. (7)(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 individuals or are passed on to others, including, but not limited to, customers, employees, suppliers, and owners. including customers and employees.(8)(7) Take into account specific market conditions for the industry and the location where the proposed action will have an impact, including, but not limited to, the degree of competition from outside suppliers, price elasticity of demand for products and services provided by the affected entities, and labor market conditions specific to the types of occupations that would be impacted by job cutbacks or increases associated with the proposed action.(9)(8) Estimate direct, indirect, and induced impacts within the region impacted by the proposed action of both the cost of the proposed action on affected entities and, if relevant, the cost-shifting that is assumed to occur, including, but not limited to, the impacts on consumer prices, employment, wages, household discretionary income of employees and consumers by income level, consumer spending, and output in the region affected by the proposed action. 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.SEC. 3.SEC. 4. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
1+CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 1095Introduced by Senator DurazoFebruary 16, 2022 An act to amend Section 40728.5 of, and to add Section 40728.7 to, the Health and Safety Code, relating to air quality. LEGISLATIVE COUNSEL'S DIGESTSB 1095, as introduced, Durazo. Air quality: rules and regulations: socioeconomic impacts assessment. Existing law requires a local air pollution control district or an air quality management district (local air district) that intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations to perform, except as specified, an assessment of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation, as provided. Existing law defines socioeconomic impact to include, among other things, the type of industries or business, including small business, affected by the rule or regulation, the impact of the rule or regulation on employment and the economy of the region affected by the adoption of the rule or regulation, and the range of probable costs, including costs to industry or business, including small business, of the rule or regulation.This bill would additionally require the State Air Resources Board to conduct an assessment of the socioeconomic impacts of a proposed adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, as provided. The bill would expressly authorize the state board and local air districts to contract with a third party to conduct the required assessment of socioeconomic impacts, or portion thereof. The bill would provide that the state board or a local air district require the prospective third-party contractor to include in its proposal for the assessment specified information, including, among other things, a conflicts statement and a proposed schedule and budget for the assessment. The bill would specify minimum standards for the assessment of socioeconomic impacts, and would require the state board, a local air district, or a third-party contractor to include in the assessment of socioeconomic impacts, among other things, an econometric analysis of the proposed adoption, amendment, or repeal of the rule or regulation, as provided. The bill would prohibit the state board or a local air district from approving an assessment of socioeconomic impacts that fails to meet those requirements. By increasing the requirements for assessments of socioeconomic impacts required to be conducted by local air districts, this bill would impose a state-mandated program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 40728.5 of the Health and Safety Code is amended to read:40728.5. (a) Whenever the state board or a district intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, that agency the state board or the district board shall, to the extent data are available, perform an assessment assessment, consistent with Section 40728.7, of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation. The state board or the district board shall actively consider the socioeconomic impact impacts of regulations the proposed adoption, amendment, or repeal of the rule or regulation and make a good faith effort to minimize adverse socioeconomic impacts, as defined below. This section does not apply to the adoption, amendment, or repeal of any rule or regulation that results in any less restrictive emissions limit if the action does not interfere with the districts adopted plan to attain ambient air quality standards, or does not result in any significant increase in emissions. impacts.(b) For purposes of this section, socioeconomic impact means the following:(1) The type of industries or business, including small business, affected by the rule or regulation.(2) The impact of the rule or regulation on employment and the economy of the region affected by the adoption of the rule or regulation.(3) The range of probable costs, including costs to industry or business, including small business, of the rule or regulation.(4) The availability and cost-effectiveness of alternatives to the rule or regulation being proposed or amended.(5) The emission reduction potential of the rule or regulation.(6) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).(c)(b) To the extent that information on the socioeconomic impact impacts of a the proposed adoption, amendment, or repeal of a rule or regulation is required to be developed by the state board or a district pursuant to other provisions of this division, that the state board or the district may use or reference that information may be used or referenced in the assessment in order of socioeconomic impacts required pursuant to subdivision (a) to comply with the requirements of this section.(d) This section does not apply to any district with a population of less than 500,000 persons.(e)(c) Upon the approval by a majority vote of the district board, a county district is not required to include in its assessment of socioeconomic impacts required pursuant to subdivision (a) the analysis specified in paragraphs (2) and (4) of subdivision (b) in any assessment of socioeconomic impacts (f) for any a rule or regulation that only adopts a requirement that is substantially similar to, or is required by, a state or federal statute, regulation, or applicable formal guidance document. Examples of state or and federal formal guidance documents include, but are not limited to, federal Control Techniques Guidelines, state and federal reasonably available control technology determinations, state best available retrofit control technology determinations, and state air toxic control measures.(d) The state board or a district board may contract with a third party, consistent with Section 40728.7 and with applicable state and local laws, rules, and regulations, to conduct the assessment of socioeconomic impacts, or a portion thereof, required pursuant to subdivision (a). Nothing in this section, however, requires the state board or a district board to contract with a third party to conduct the assessment.(e) This section does not apply to either of the following:(1) The proposed adoption, amendment, or repeal of any rule or regulation that results in any less restrictive emissions limit if the proposed action does not interfere with the state boards or a districts adopted plan to attain ambient air quality standards or does not result in any significant increase in emissions.(2) A district with a population of less than 500,000 persons.(f) For purposes of this chapter, socioeconomic impacts means all of the following:(1) The type of industries and business, including small business, affected by the rule or regulation proposed to be adopted, amended, or repealed.(2) The impact of the proposed adoption, amendment, or repeal of the rule or regulation on employment and the economy of the region affected by the proposed action.(3) The range of probable costs, including costs to industry and business, including small business, of the rule or regulation proposed to be adopted, amended, or repealed.(4) The availability and cost-effectiveness of alternatives to the rule or regulation proposed to be adopted, amended, or repealed.(5) The emissions reduction potential of the rule or regulation proposed to be adopted, amended, or repealed.(6) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).SEC. 2. Section 40728.7 is added to the Health and Safety Code, to read:40728.7. (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 or a district pursuant to subdivision (a) of Section 40728.5.(2) Proposed action means the proposed adoption, amendment, or repeal of a rule or regulation being contemplated by the state board or a district.(3) Third-party contractor means a third party with whom the state board or a district contracts, consistent with state and local laws, rules, and regulations, to conduct an assessment of socioeconomic impacts, or portion thereof, required pursuant to subdivision (a) of Section 40728.5.(b) (1) This section outlines the minimum standards applicable to the state board or a district that is required to conduct an assessment of socioeconomic impacts required pursuant to subdivision (a) of Section 40728.5. Nothing in this section shall prohibit the state board or a district from creating additional requirements or imposing additional requirements on a third-party contractor relating to the assessment. (2) Neither the state board nor a district shall approve an assessment pursuant to Section 40728.5 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 or a district from, applicable state or local laws, rules, or regulations relating to the ability or authority of the state board or a district 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 or a district may contract with a third-party contractor 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 contractors 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 or a district 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 contractors experience and key staffs 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 or a district for review.(D) A proposed budget for the assessment.(2) The state board or a district may disqualify a prospective third-party contractor if the state board or a district determines either of the following:(A) The prospective third-party contractors 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 or a district shall include, or require a third-party contractor with whom the state board or a district contracts to include, at a minimum, all of the following in the assessment:(1) All of the information and analysis required pursuant to subdivision (f) of Section 40728.5.(2) (A) A description of the specific methodologies employed by the state board, a district, or the third-party contractor to conduct the assessment.(B) The state board, a district, and the third-party contractor shall comply with the Department of Finances 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 any racial, ethnic, or gender subgroup. If no disproportionate impact is identified, the state board, a district, 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 all economic and regulatory factors, including, but not limited to, relevant rules or regulations that have been enacted or are under active consideration by the state board or a district. (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 and local revenues, including corporate, personal, sales, and property tax revenues.(5) A hyperlink or 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, a district, 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, a district, 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 local market conditions.(5) If there is uncertainty regarding the estimate, indicate 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) (A) If the proposed action will require significant expenditures by affected entities, include an estimate of the impacts of the proposed action on affected entities' profits and cash flows.(B) In developing the estimate required pursuant to subparagraph (A), the state board, a district, or a third-party contractor shall do all of the following:(i) Estimate the impacts on the affected entities profits and cash flows over a multiple-year period, as necessary, to capture the proposed actions impacts over time.(ii) Include information regarding sources and costs of financing for necessary equipment and infrastructure investments.(iii) Consider whether installation of necessary equipment and infrastructure will significantly disrupt the output of affected entities and, if so, the impacts of those disruptions on the marketplace. (7) 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 individuals or are passed on to others, including, but not limited to, customers, employees, suppliers, and owners.(8) Take into account specific market conditions for the industry and the location where the proposed action will have an impact, including, but not limited to, the degree of competition from outside suppliers, price elasticity of demand for products and services provided by the affected entities, and labor market conditions specific to the types of occupations that would be impacted by job cutbacks or increases associated with the proposed action.(9) Estimate direct, indirect, and induced impacts within the region impacted by the proposed action of both the cost of the proposed action on affected entities and, if relevant, the cost-shifting that is assumed to occur, including, but not limited to, the impacts on consumer prices, employment, wages, household discretionary income of employees and consumers by income level, consumer spending, and output in the region affected by the proposed action.(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.SEC. 3. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
22
3- Amended IN Senate March 29, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 1095Introduced by Senator DurazoFebruary 16, 2022 An act to amend Section 40728.5 of, and to add Section Sections 40728.7 and 40728.9 to, the Health and Safety Code, relating to air quality. LEGISLATIVE COUNSEL'S DIGESTSB 1095, as amended, Durazo. Air quality: rules and regulations: socioeconomic impacts assessment. Existing law requires a local air pollution control district or an air quality management district (local air district) that intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations to perform, except as specified, an assessment of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation, as provided. Existing law defines socioeconomic impact impacts to include, among other things, the type of industries or business, including small business, affected by the rule or regulation, the impact of the rule or regulation on employment and the economy of the region affected by the adoption of the rule or regulation, and the range of probable costs, including costs to industry or business, including small business, of the rule or regulation.This bill would authorize a local air district to contract with a third party to conduct the required assessment of socioeconomic impacts, or portion thereof, as provided. The bill would require a local air district to ensure that a prospective third-party contractor include in its proposal for the assessment specified information, including, among other things, a conflicts statement and a proposed schedule and budget for the assessment. This bill would expand the definition of socioeconomic impacts to include the disproportionate impact, if any, of the proposed adoption, amendment, or repeal of the rule or regulation on Black, African American, Hispanic, Latino, Asian, Pacific Islander, Native American, Native Hawaiian, Alaska Native, gay, lesbian, bisexual, and transgender individuals and women. The bill would require a local air district or the third-party contractor, if no disproportionate impact is identified, to describe the basis for its conclusion that there is no disproportionate impact. By expanding the definition of socioeconomic impact for purposes of a socioeconomic impacts assessment conducted by a local air district, this bill would increase the requirements on local officials, thereby imposing a state-mandated program.This bill would additionally require the State Air Resources Board Board, except as specified, to conduct an assessment of the socioeconomic impacts impacts, as defined, of a proposed adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, as provided. The bill would expressly provided, and similarly authorize the state board and local air districts to contract with a third party to conduct the required assessment of socioeconomic impacts, or portion thereof. The bill would provide that the state board or a local air district require the prospective third-party contractor to include in its proposal for the assessment specified information, including, among other things, a conflicts statement and a proposed schedule and budget for the assessment. thereof, as provided. The bill would specify minimum standards for the assessment of socioeconomic impacts, and would require the state board, a local air district, board or a third-party contractor to include in the assessment of socioeconomic impacts, among other things, an econometric analysis of the proposed adoption, amendment, or repeal of the rule or regulation, as provided. specified information and analysis, including, but not limited to, the disproportionate impacts analysis described above. The bill would prohibit the state board or a local air district from approving an assessment of socioeconomic impacts that fails to meet those requirements. By increasing the requirements for assessments of socioeconomic impacts required to be conducted by local air districts, this bill would impose a state-mandated program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
3+ CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 1095Introduced by Senator DurazoFebruary 16, 2022 An act to amend Section 40728.5 of, and to add Section 40728.7 to, the Health and Safety Code, relating to air quality. LEGISLATIVE COUNSEL'S DIGESTSB 1095, as introduced, Durazo. Air quality: rules and regulations: socioeconomic impacts assessment. Existing law requires a local air pollution control district or an air quality management district (local air district) that intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations to perform, except as specified, an assessment of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation, as provided. Existing law defines socioeconomic impact to include, among other things, the type of industries or business, including small business, affected by the rule or regulation, the impact of the rule or regulation on employment and the economy of the region affected by the adoption of the rule or regulation, and the range of probable costs, including costs to industry or business, including small business, of the rule or regulation.This bill would additionally require the State Air Resources Board to conduct an assessment of the socioeconomic impacts of a proposed adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, as provided. The bill would expressly authorize the state board and local air districts to contract with a third party to conduct the required assessment of socioeconomic impacts, or portion thereof. The bill would provide that the state board or a local air district require the prospective third-party contractor to include in its proposal for the assessment specified information, including, among other things, a conflicts statement and a proposed schedule and budget for the assessment. The bill would specify minimum standards for the assessment of socioeconomic impacts, and would require the state board, a local air district, or a third-party contractor to include in the assessment of socioeconomic impacts, among other things, an econometric analysis of the proposed adoption, amendment, or repeal of the rule or regulation, as provided. The bill would prohibit the state board or a local air district from approving an assessment of socioeconomic impacts that fails to meet those requirements. By increasing the requirements for assessments of socioeconomic impacts required to be conducted by local air districts, this bill would impose a state-mandated program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
44
5- Amended IN Senate March 29, 2022
65
7-Amended IN Senate March 29, 2022
6+
7+
88
99 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION
1010
1111 Senate Bill
1212
1313 No. 1095
1414
1515 Introduced by Senator DurazoFebruary 16, 2022
1616
1717 Introduced by Senator Durazo
1818 February 16, 2022
1919
20- An act to amend Section 40728.5 of, and to add Section Sections 40728.7 and 40728.9 to, the Health and Safety Code, relating to air quality.
20+ An act to amend Section 40728.5 of, and to add Section 40728.7 to, the Health and Safety Code, relating to air quality.
2121
2222 LEGISLATIVE COUNSEL'S DIGEST
2323
2424 ## LEGISLATIVE COUNSEL'S DIGEST
2525
26-SB 1095, as amended, Durazo. Air quality: rules and regulations: socioeconomic impacts assessment.
26+SB 1095, as introduced, Durazo. Air quality: rules and regulations: socioeconomic impacts assessment.
2727
28-Existing law requires a local air pollution control district or an air quality management district (local air district) that intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations to perform, except as specified, an assessment of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation, as provided. Existing law defines socioeconomic impact impacts to include, among other things, the type of industries or business, including small business, affected by the rule or regulation, the impact of the rule or regulation on employment and the economy of the region affected by the adoption of the rule or regulation, and the range of probable costs, including costs to industry or business, including small business, of the rule or regulation.This bill would authorize a local air district to contract with a third party to conduct the required assessment of socioeconomic impacts, or portion thereof, as provided. The bill would require a local air district to ensure that a prospective third-party contractor include in its proposal for the assessment specified information, including, among other things, a conflicts statement and a proposed schedule and budget for the assessment. This bill would expand the definition of socioeconomic impacts to include the disproportionate impact, if any, of the proposed adoption, amendment, or repeal of the rule or regulation on Black, African American, Hispanic, Latino, Asian, Pacific Islander, Native American, Native Hawaiian, Alaska Native, gay, lesbian, bisexual, and transgender individuals and women. The bill would require a local air district or the third-party contractor, if no disproportionate impact is identified, to describe the basis for its conclusion that there is no disproportionate impact. By expanding the definition of socioeconomic impact for purposes of a socioeconomic impacts assessment conducted by a local air district, this bill would increase the requirements on local officials, thereby imposing a state-mandated program.This bill would additionally require the State Air Resources Board Board, except as specified, to conduct an assessment of the socioeconomic impacts impacts, as defined, of a proposed adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, as provided. The bill would expressly provided, and similarly authorize the state board and local air districts to contract with a third party to conduct the required assessment of socioeconomic impacts, or portion thereof. The bill would provide that the state board or a local air district require the prospective third-party contractor to include in its proposal for the assessment specified information, including, among other things, a conflicts statement and a proposed schedule and budget for the assessment. thereof, as provided. The bill would specify minimum standards for the assessment of socioeconomic impacts, and would require the state board, a local air district, board or a third-party contractor to include in the assessment of socioeconomic impacts, among other things, an econometric analysis of the proposed adoption, amendment, or repeal of the rule or regulation, as provided. specified information and analysis, including, but not limited to, the disproportionate impacts analysis described above. The bill would prohibit the state board or a local air district from approving an assessment of socioeconomic impacts that fails to meet those requirements. By increasing the requirements for assessments of socioeconomic impacts required to be conducted by local air districts, this bill would impose a state-mandated program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
28+Existing law requires a local air pollution control district or an air quality management district (local air district) that intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations to perform, except as specified, an assessment of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation, as provided. Existing law defines socioeconomic impact to include, among other things, the type of industries or business, including small business, affected by the rule or regulation, the impact of the rule or regulation on employment and the economy of the region affected by the adoption of the rule or regulation, and the range of probable costs, including costs to industry or business, including small business, of the rule or regulation.This bill would additionally require the State Air Resources Board to conduct an assessment of the socioeconomic impacts of a proposed adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, as provided. The bill would expressly authorize the state board and local air districts to contract with a third party to conduct the required assessment of socioeconomic impacts, or portion thereof. The bill would provide that the state board or a local air district require the prospective third-party contractor to include in its proposal for the assessment specified information, including, among other things, a conflicts statement and a proposed schedule and budget for the assessment. The bill would specify minimum standards for the assessment of socioeconomic impacts, and would require the state board, a local air district, or a third-party contractor to include in the assessment of socioeconomic impacts, among other things, an econometric analysis of the proposed adoption, amendment, or repeal of the rule or regulation, as provided. The bill would prohibit the state board or a local air district from approving an assessment of socioeconomic impacts that fails to meet those requirements. By increasing the requirements for assessments of socioeconomic impacts required to be conducted by local air districts, this bill would impose a state-mandated program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
2929
30-Existing law requires a local air pollution control district or an air quality management district (local air district) that intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations to perform, except as specified, an assessment of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation, as provided. Existing law defines socioeconomic impact impacts to include, among other things, the type of industries or business, including small business, affected by the rule or regulation, the impact of the rule or regulation on employment and the economy of the region affected by the adoption of the rule or regulation, and the range of probable costs, including costs to industry or business, including small business, of the rule or regulation.
30+Existing law requires a local air pollution control district or an air quality management district (local air district) that intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations to perform, except as specified, an assessment of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation, as provided. Existing law defines socioeconomic impact to include, among other things, the type of industries or business, including small business, affected by the rule or regulation, the impact of the rule or regulation on employment and the economy of the region affected by the adoption of the rule or regulation, and the range of probable costs, including costs to industry or business, including small business, of the rule or regulation.
3131
32-This bill would authorize a local air district to contract with a third party to conduct the required assessment of socioeconomic impacts, or portion thereof, as provided. The bill would require a local air district to ensure that a prospective third-party contractor include in its proposal for the assessment specified information, including, among other things, a conflicts statement and a proposed schedule and budget for the assessment. This bill would expand the definition of socioeconomic impacts to include the disproportionate impact, if any, of the proposed adoption, amendment, or repeal of the rule or regulation on Black, African American, Hispanic, Latino, Asian, Pacific Islander, Native American, Native Hawaiian, Alaska Native, gay, lesbian, bisexual, and transgender individuals and women. The bill would require a local air district or the third-party contractor, if no disproportionate impact is identified, to describe the basis for its conclusion that there is no disproportionate impact. By expanding the definition of socioeconomic impact for purposes of a socioeconomic impacts assessment conducted by a local air district, this bill would increase the requirements on local officials, thereby imposing a state-mandated program.
33-
34-This bill would additionally require the State Air Resources Board Board, except as specified, to conduct an assessment of the socioeconomic impacts impacts, as defined, of a proposed adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, as provided. The bill would expressly provided, and similarly authorize the state board and local air districts to contract with a third party to conduct the required assessment of socioeconomic impacts, or portion thereof. The bill would provide that the state board or a local air district require the prospective third-party contractor to include in its proposal for the assessment specified information, including, among other things, a conflicts statement and a proposed schedule and budget for the assessment. thereof, as provided. The bill would specify minimum standards for the assessment of socioeconomic impacts, and would require the state board, a local air district, board or a third-party contractor to include in the assessment of socioeconomic impacts, among other things, an econometric analysis of the proposed adoption, amendment, or repeal of the rule or regulation, as provided. specified information and analysis, including, but not limited to, the disproportionate impacts analysis described above. The bill would prohibit the state board or a local air district from approving an assessment of socioeconomic impacts that fails to meet those requirements. By increasing the requirements for assessments of socioeconomic impacts required to be conducted by local air districts, this bill would impose a state-mandated program.
32+This bill would additionally require the State Air Resources Board to conduct an assessment of the socioeconomic impacts of a proposed adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, as provided. The bill would expressly authorize the state board and local air districts to contract with a third party to conduct the required assessment of socioeconomic impacts, or portion thereof. The bill would provide that the state board or a local air district require the prospective third-party contractor to include in its proposal for the assessment specified information, including, among other things, a conflicts statement and a proposed schedule and budget for the assessment. The bill would specify minimum standards for the assessment of socioeconomic impacts, and would require the state board, a local air district, or a third-party contractor to include in the assessment of socioeconomic impacts, among other things, an econometric analysis of the proposed adoption, amendment, or repeal of the rule or regulation, as provided. The bill would prohibit the state board or a local air district from approving an assessment of socioeconomic impacts that fails to meet those requirements. By increasing the requirements for assessments of socioeconomic impacts required to be conducted by local air districts, this bill would impose a state-mandated program.
3533
3634 The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
3735
3836 This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
3937
4038 ## Digest Key
4139
4240 ## Bill Text
4341
44-The people of the State of California do enact as follows:SECTION 1. Section 40728.5 of the Health and Safety Code is amended to read:40728.5. (a) Whenever the state board or a district intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, the state board or the district board shall, to the extent data are available, perform an assessment, consistent with Section 40728.7, assessment of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation. The state board or the district board shall actively consider the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation and make a good faith effort to minimize adverse socioeconomic impacts. This section does not apply to the adoption, amendment, or repeal of a rule or regulation that results in a less restrictive emissions limit if the action does not interfere with the districts adopted plan to attain ambient air quality standards, or does not result in any significant increase in emissions.(b) To the extent that information on the socioeconomic impacts of the proposed adoption, amendment, or repeal of a rule or regulation is required to be developed by the state board or a district pursuant to other provisions of this division, the state board or the district board may use or reference that information in the assessment of socioeconomic impacts required pursuant to subdivision (a) to comply with the requirements of this section.(c) Upon the approval by a majority vote of the district board, a county district is not required to include in its assessment of socioeconomic impacts required pursuant to subdivision (a) the analysis specified in paragraphs (2) and (4) of subdivision (f) for a rule or regulation that only adopts a requirement that is substantially similar to, or is required by, a state or federal statute, regulation, or applicable formal guidance document. Examples of state and federal formal guidance documents include, but are not limited to, federal Control Techniques Guidelines, state and federal reasonably available control technology determinations, state best available retrofit control technology determinations, and state air toxic control measures.(d)The state board or a district board may contract with a third party, consistent with Section 40728.7 and with applicable state and local laws, rules, and regulations, to conduct the assessment of socioeconomic impacts, or a portion thereof, required pursuant to subdivision (a). Nothing in this section, however, requires the state board or a district board to contract with a third party to conduct the assessment. (e)(d) This section does not apply to either of the following: a district with a population of less than 500,000 persons.(1)The proposed adoption, amendment, or repeal of any rule or regulation that results in any less restrictive emissions limit if the proposed action does not interfere with the state boards or a districts adopted plan to attain ambient air quality standards or does not result in any significant increase in emissions.(2)A district with a population of less than 500,000 persons.(e) (1) A district board may contract with a third-party contractor, consistent with applicable state and local laws, rules, and regulations, to conduct a socioeconomic impacts assessment, or portion thereof, and shall require the prospective third-party contractor to include all of the following in the prospective third-party contractors 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 district 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 contractors experience and key staffs 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 district board for review.(D) A proposed budget for the assessment.(2) The district board may disqualify a prospective third-party contractor if the district board determines either of the following:(A) The prospective third-party contractors 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.(f) For purposes of this chapter, socioeconomic impacts means all of the following:(1) The type types of industries industry and business, including small business, affected by the rule or regulation proposed to be adopted, amended, or repealed.(2) The impact of the proposed adoption, amendment, or repeal of the rule or regulation on employment and the economy of the region affected by the proposed action.(3) The range of probable costs, including costs to industry and business, including small business, of the rule or regulation proposed to be adopted, amended, or repealed.(4) The availability and cost-effectiveness of alternatives to the rule or regulation proposed to be adopted, amended, or repealed.(5) The emissions reduction potential of the rule or regulation proposed to be adopted, amended, or repealed.(6) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).(7) 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 district board or the third-party contractor shall describe the basis for its conclusion that there is no disproportionate impact.SEC. 2. Section 40728.7 is added to the Health and Safety Code, to read:40728.7. (a) Whenever the state board intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, the state board shall, to the extent data are available and, consistent with Section 40728.9, perform an assessment of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation. The state board shall actively consider the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation and make a good faith effort to minimize adverse socioeconomic impacts.(b) To the extent that information on the socioeconomic impacts of the proposed adoption, amendment, or repeal of a rule or regulation is required to be developed by the state board pursuant to other provisions of this division, the state board may use or reference that information in the assessment of socioeconomic impacts required pursuant to subdivision (a) to comply with the requirements of this section.(c) The state board may contract with a third party, consistent with Section 40728.9 and with applicable state and local laws, rules, and regulations, to conduct the assessment of socioeconomic impacts, or a portion thereof, required pursuant to subdivision (a). Nothing in this section, however, requires the state board to contract with a third party to conduct the assessment.(d) This section does not apply to either of the following:(1) The proposed adoption, amendment, or repeal of a rule or regulation that results in a less restrictive emissions limit if the proposed action does not interfere with the state boards adopted plan to attain ambient air quality standards or does not result in any significant increase in emissions.(2) The proposed adoption, amendment, or repeal by the state board of a rule or regulation that has an economic impact of less than ten million dollars ($10,000,000).(e) For purposes of this chapter, socioeconomic impacts means all of the following:(1) The type of industry and business, including small business, affected by the rule or regulation proposed to be adopted, amended, or repealed.(2) The impact of the proposed adoption, amendment, or repeal of the rule or regulation on employment and the economy of the region affected by the proposed action.(3) The range of probable costs, including costs to industry and business, including small business, of the rule or regulation proposed to be adopted, amended, or repealed.(4) The availability and cost-effectiveness of alternatives to the rule or regulation proposed to be adopted, amended, or repealed.(5) The emissions reduction potential of the rule or regulation proposed to be adopted, amended, or repealed.(6) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).SEC. 2.Section 40728.7 is added to the Health and Safety Code, to read:40728.7.SEC. 3. Section 40728.9 is added to the Health and Safety Code, to read: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 or a district pursuant to subdivision (a) of Section 40728.5. 40728.7.(2) Proposed action means the proposed adoption, amendment, or repeal of a rule or regulation being contemplated by the state board or a district. board.(3) Third-party contractor means a third party with whom the state board or a district contracts, consistent with state and local laws, rules, and regulations, to conduct an assessment of socioeconomic impacts assessment, or portion thereof, required pursuant to subdivision (a) of Section 40728.5. thereof.(b) (1) This section outlines the minimum standards applicable to the state board or a district that when it is required to conduct an assessment of socioeconomic impacts required pursuant to subdivision (a) of Section 40728.5. 40728.7. Nothing in this section shall prohibit prohibits the state board or a district from creating additional requirements or imposing additional requirements on a third-party contractor relating to the an assessment. (2) Neither the The state board nor a district shall not approve an assessment pursuant to Section 40728.5 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 or a district from, applicable state or local laws, rules, or regulations relating to the ability or authority of the state board or a district 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 or a district may contract with a third-party contractor 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 contractors 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 or a district 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 contractors experience and key staffs 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 or a district for review.(D) A proposed budget for the assessment.(2) The state board or a district may disqualify a prospective third-party contractor if the state board or a district determines either of the following:(A) The prospective third-party contractors 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 or a district shall include, or require a third-party contractor with whom the state board or a district contracts to include, at a minimum, all of the following in the assessment:(1) All of the information and analysis required pursuant to subdivision (f) (e) of Section 40728.5. 40728.7.(2) (A) A description of the specific methodologies employed by the state board, a district, board or the third-party contractor to conduct the assessment.(B) The state board, a district, board and the third-party contractor shall comply with the Department of Finances 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 any racial, ethnic, or gender subgroup. 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, a district, 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 all economic and regulatory factors, including, but not limited to, relevant rules or regulations that have been enacted or are under active consideration by the state board or a district. 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 and local revenues, including corporate, personal, sales, and property tax revenues. revenues.(5) A hyperlink or 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, a district, 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, a district, 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 local statewide market conditions.(5) If there is uncertainty regarding the estimate, indicate 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)(A)If the proposed action will require significant expenditures by affected entities, include an estimate of the impacts of the proposed action on affected entities' profits and cash flows.(B)In developing the estimate required pursuant to subparagraph (A), the state board, a district, or a third-party contractor shall do all of the following:(i)Estimate the impacts on the affected entities profits and cash flows over a multiple-year period, as necessary, to capture the proposed actions impacts over time.(ii)Include information regarding sources and costs of financing for necessary equipment and infrastructure investments.(iii)Consider whether installation of necessary equipment and infrastructure will significantly disrupt the output of affected entities and, if so, the impacts of those disruptions on the marketplace. (7)(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 individuals or are passed on to others, including, but not limited to, customers, employees, suppliers, and owners. including customers and employees.(8)(7) Take into account specific market conditions for the industry and the location where the proposed action will have an impact, including, but not limited to, the degree of competition from outside suppliers, price elasticity of demand for products and services provided by the affected entities, and labor market conditions specific to the types of occupations that would be impacted by job cutbacks or increases associated with the proposed action.(9)(8) Estimate direct, indirect, and induced impacts within the region impacted by the proposed action of both the cost of the proposed action on affected entities and, if relevant, the cost-shifting that is assumed to occur, including, but not limited to, the impacts on consumer prices, employment, wages, household discretionary income of employees and consumers by income level, consumer spending, and output in the region affected by the proposed action. 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.SEC. 3.SEC. 4. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
42+The people of the State of California do enact as follows:SECTION 1. Section 40728.5 of the Health and Safety Code is amended to read:40728.5. (a) Whenever the state board or a district intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, that agency the state board or the district board shall, to the extent data are available, perform an assessment assessment, consistent with Section 40728.7, of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation. The state board or the district board shall actively consider the socioeconomic impact impacts of regulations the proposed adoption, amendment, or repeal of the rule or regulation and make a good faith effort to minimize adverse socioeconomic impacts, as defined below. This section does not apply to the adoption, amendment, or repeal of any rule or regulation that results in any less restrictive emissions limit if the action does not interfere with the districts adopted plan to attain ambient air quality standards, or does not result in any significant increase in emissions. impacts.(b) For purposes of this section, socioeconomic impact means the following:(1) The type of industries or business, including small business, affected by the rule or regulation.(2) The impact of the rule or regulation on employment and the economy of the region affected by the adoption of the rule or regulation.(3) The range of probable costs, including costs to industry or business, including small business, of the rule or regulation.(4) The availability and cost-effectiveness of alternatives to the rule or regulation being proposed or amended.(5) The emission reduction potential of the rule or regulation.(6) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).(c)(b) To the extent that information on the socioeconomic impact impacts of a the proposed adoption, amendment, or repeal of a rule or regulation is required to be developed by the state board or a district pursuant to other provisions of this division, that the state board or the district may use or reference that information may be used or referenced in the assessment in order of socioeconomic impacts required pursuant to subdivision (a) to comply with the requirements of this section.(d) This section does not apply to any district with a population of less than 500,000 persons.(e)(c) Upon the approval by a majority vote of the district board, a county district is not required to include in its assessment of socioeconomic impacts required pursuant to subdivision (a) the analysis specified in paragraphs (2) and (4) of subdivision (b) in any assessment of socioeconomic impacts (f) for any a rule or regulation that only adopts a requirement that is substantially similar to, or is required by, a state or federal statute, regulation, or applicable formal guidance document. Examples of state or and federal formal guidance documents include, but are not limited to, federal Control Techniques Guidelines, state and federal reasonably available control technology determinations, state best available retrofit control technology determinations, and state air toxic control measures.(d) The state board or a district board may contract with a third party, consistent with Section 40728.7 and with applicable state and local laws, rules, and regulations, to conduct the assessment of socioeconomic impacts, or a portion thereof, required pursuant to subdivision (a). Nothing in this section, however, requires the state board or a district board to contract with a third party to conduct the assessment.(e) This section does not apply to either of the following:(1) The proposed adoption, amendment, or repeal of any rule or regulation that results in any less restrictive emissions limit if the proposed action does not interfere with the state boards or a districts adopted plan to attain ambient air quality standards or does not result in any significant increase in emissions.(2) A district with a population of less than 500,000 persons.(f) For purposes of this chapter, socioeconomic impacts means all of the following:(1) The type of industries and business, including small business, affected by the rule or regulation proposed to be adopted, amended, or repealed.(2) The impact of the proposed adoption, amendment, or repeal of the rule or regulation on employment and the economy of the region affected by the proposed action.(3) The range of probable costs, including costs to industry and business, including small business, of the rule or regulation proposed to be adopted, amended, or repealed.(4) The availability and cost-effectiveness of alternatives to the rule or regulation proposed to be adopted, amended, or repealed.(5) The emissions reduction potential of the rule or regulation proposed to be adopted, amended, or repealed.(6) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).SEC. 2. Section 40728.7 is added to the Health and Safety Code, to read:40728.7. (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 or a district pursuant to subdivision (a) of Section 40728.5.(2) Proposed action means the proposed adoption, amendment, or repeal of a rule or regulation being contemplated by the state board or a district.(3) Third-party contractor means a third party with whom the state board or a district contracts, consistent with state and local laws, rules, and regulations, to conduct an assessment of socioeconomic impacts, or portion thereof, required pursuant to subdivision (a) of Section 40728.5.(b) (1) This section outlines the minimum standards applicable to the state board or a district that is required to conduct an assessment of socioeconomic impacts required pursuant to subdivision (a) of Section 40728.5. Nothing in this section shall prohibit the state board or a district from creating additional requirements or imposing additional requirements on a third-party contractor relating to the assessment. (2) Neither the state board nor a district shall approve an assessment pursuant to Section 40728.5 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 or a district from, applicable state or local laws, rules, or regulations relating to the ability or authority of the state board or a district 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 or a district may contract with a third-party contractor 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 contractors 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 or a district 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 contractors experience and key staffs 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 or a district for review.(D) A proposed budget for the assessment.(2) The state board or a district may disqualify a prospective third-party contractor if the state board or a district determines either of the following:(A) The prospective third-party contractors 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 or a district shall include, or require a third-party contractor with whom the state board or a district contracts to include, at a minimum, all of the following in the assessment:(1) All of the information and analysis required pursuant to subdivision (f) of Section 40728.5.(2) (A) A description of the specific methodologies employed by the state board, a district, or the third-party contractor to conduct the assessment.(B) The state board, a district, and the third-party contractor shall comply with the Department of Finances 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 any racial, ethnic, or gender subgroup. If no disproportionate impact is identified, the state board, a district, 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 all economic and regulatory factors, including, but not limited to, relevant rules or regulations that have been enacted or are under active consideration by the state board or a district. (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 and local revenues, including corporate, personal, sales, and property tax revenues.(5) A hyperlink or 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, a district, 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, a district, 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 local market conditions.(5) If there is uncertainty regarding the estimate, indicate 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) (A) If the proposed action will require significant expenditures by affected entities, include an estimate of the impacts of the proposed action on affected entities' profits and cash flows.(B) In developing the estimate required pursuant to subparagraph (A), the state board, a district, or a third-party contractor shall do all of the following:(i) Estimate the impacts on the affected entities profits and cash flows over a multiple-year period, as necessary, to capture the proposed actions impacts over time.(ii) Include information regarding sources and costs of financing for necessary equipment and infrastructure investments.(iii) Consider whether installation of necessary equipment and infrastructure will significantly disrupt the output of affected entities and, if so, the impacts of those disruptions on the marketplace. (7) 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 individuals or are passed on to others, including, but not limited to, customers, employees, suppliers, and owners.(8) Take into account specific market conditions for the industry and the location where the proposed action will have an impact, including, but not limited to, the degree of competition from outside suppliers, price elasticity of demand for products and services provided by the affected entities, and labor market conditions specific to the types of occupations that would be impacted by job cutbacks or increases associated with the proposed action.(9) Estimate direct, indirect, and induced impacts within the region impacted by the proposed action of both the cost of the proposed action on affected entities and, if relevant, the cost-shifting that is assumed to occur, including, but not limited to, the impacts on consumer prices, employment, wages, household discretionary income of employees and consumers by income level, consumer spending, and output in the region affected by the proposed action.(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.SEC. 3. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
4543
4644 The people of the State of California do enact as follows:
4745
4846 ## The people of the State of California do enact as follows:
4947
50-SECTION 1. Section 40728.5 of the Health and Safety Code is amended to read:40728.5. (a) Whenever the state board or a district intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, the state board or the district board shall, to the extent data are available, perform an assessment, consistent with Section 40728.7, assessment of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation. The state board or the district board shall actively consider the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation and make a good faith effort to minimize adverse socioeconomic impacts. This section does not apply to the adoption, amendment, or repeal of a rule or regulation that results in a less restrictive emissions limit if the action does not interfere with the districts adopted plan to attain ambient air quality standards, or does not result in any significant increase in emissions.(b) To the extent that information on the socioeconomic impacts of the proposed adoption, amendment, or repeal of a rule or regulation is required to be developed by the state board or a district pursuant to other provisions of this division, the state board or the district board may use or reference that information in the assessment of socioeconomic impacts required pursuant to subdivision (a) to comply with the requirements of this section.(c) Upon the approval by a majority vote of the district board, a county district is not required to include in its assessment of socioeconomic impacts required pursuant to subdivision (a) the analysis specified in paragraphs (2) and (4) of subdivision (f) for a rule or regulation that only adopts a requirement that is substantially similar to, or is required by, a state or federal statute, regulation, or applicable formal guidance document. Examples of state and federal formal guidance documents include, but are not limited to, federal Control Techniques Guidelines, state and federal reasonably available control technology determinations, state best available retrofit control technology determinations, and state air toxic control measures.(d)The state board or a district board may contract with a third party, consistent with Section 40728.7 and with applicable state and local laws, rules, and regulations, to conduct the assessment of socioeconomic impacts, or a portion thereof, required pursuant to subdivision (a). Nothing in this section, however, requires the state board or a district board to contract with a third party to conduct the assessment. (e)(d) This section does not apply to either of the following: a district with a population of less than 500,000 persons.(1)The proposed adoption, amendment, or repeal of any rule or regulation that results in any less restrictive emissions limit if the proposed action does not interfere with the state boards or a districts adopted plan to attain ambient air quality standards or does not result in any significant increase in emissions.(2)A district with a population of less than 500,000 persons.(e) (1) A district board may contract with a third-party contractor, consistent with applicable state and local laws, rules, and regulations, to conduct a socioeconomic impacts assessment, or portion thereof, and shall require the prospective third-party contractor to include all of the following in the prospective third-party contractors 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 district 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 contractors experience and key staffs 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 district board for review.(D) A proposed budget for the assessment.(2) The district board may disqualify a prospective third-party contractor if the district board determines either of the following:(A) The prospective third-party contractors 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.(f) For purposes of this chapter, socioeconomic impacts means all of the following:(1) The type types of industries industry and business, including small business, affected by the rule or regulation proposed to be adopted, amended, or repealed.(2) The impact of the proposed adoption, amendment, or repeal of the rule or regulation on employment and the economy of the region affected by the proposed action.(3) The range of probable costs, including costs to industry and business, including small business, of the rule or regulation proposed to be adopted, amended, or repealed.(4) The availability and cost-effectiveness of alternatives to the rule or regulation proposed to be adopted, amended, or repealed.(5) The emissions reduction potential of the rule or regulation proposed to be adopted, amended, or repealed.(6) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).(7) 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 district board or the third-party contractor shall describe the basis for its conclusion that there is no disproportionate impact.
48+SECTION 1. Section 40728.5 of the Health and Safety Code is amended to read:40728.5. (a) Whenever the state board or a district intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, that agency the state board or the district board shall, to the extent data are available, perform an assessment assessment, consistent with Section 40728.7, of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation. The state board or the district board shall actively consider the socioeconomic impact impacts of regulations the proposed adoption, amendment, or repeal of the rule or regulation and make a good faith effort to minimize adverse socioeconomic impacts, as defined below. This section does not apply to the adoption, amendment, or repeal of any rule or regulation that results in any less restrictive emissions limit if the action does not interfere with the districts adopted plan to attain ambient air quality standards, or does not result in any significant increase in emissions. impacts.(b) For purposes of this section, socioeconomic impact means the following:(1) The type of industries or business, including small business, affected by the rule or regulation.(2) The impact of the rule or regulation on employment and the economy of the region affected by the adoption of the rule or regulation.(3) The range of probable costs, including costs to industry or business, including small business, of the rule or regulation.(4) The availability and cost-effectiveness of alternatives to the rule or regulation being proposed or amended.(5) The emission reduction potential of the rule or regulation.(6) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).(c)(b) To the extent that information on the socioeconomic impact impacts of a the proposed adoption, amendment, or repeal of a rule or regulation is required to be developed by the state board or a district pursuant to other provisions of this division, that the state board or the district may use or reference that information may be used or referenced in the assessment in order of socioeconomic impacts required pursuant to subdivision (a) to comply with the requirements of this section.(d) This section does not apply to any district with a population of less than 500,000 persons.(e)(c) Upon the approval by a majority vote of the district board, a county district is not required to include in its assessment of socioeconomic impacts required pursuant to subdivision (a) the analysis specified in paragraphs (2) and (4) of subdivision (b) in any assessment of socioeconomic impacts (f) for any a rule or regulation that only adopts a requirement that is substantially similar to, or is required by, a state or federal statute, regulation, or applicable formal guidance document. Examples of state or and federal formal guidance documents include, but are not limited to, federal Control Techniques Guidelines, state and federal reasonably available control technology determinations, state best available retrofit control technology determinations, and state air toxic control measures.(d) The state board or a district board may contract with a third party, consistent with Section 40728.7 and with applicable state and local laws, rules, and regulations, to conduct the assessment of socioeconomic impacts, or a portion thereof, required pursuant to subdivision (a). Nothing in this section, however, requires the state board or a district board to contract with a third party to conduct the assessment.(e) This section does not apply to either of the following:(1) The proposed adoption, amendment, or repeal of any rule or regulation that results in any less restrictive emissions limit if the proposed action does not interfere with the state boards or a districts adopted plan to attain ambient air quality standards or does not result in any significant increase in emissions.(2) A district with a population of less than 500,000 persons.(f) For purposes of this chapter, socioeconomic impacts means all of the following:(1) The type of industries and business, including small business, affected by the rule or regulation proposed to be adopted, amended, or repealed.(2) The impact of the proposed adoption, amendment, or repeal of the rule or regulation on employment and the economy of the region affected by the proposed action.(3) The range of probable costs, including costs to industry and business, including small business, of the rule or regulation proposed to be adopted, amended, or repealed.(4) The availability and cost-effectiveness of alternatives to the rule or regulation proposed to be adopted, amended, or repealed.(5) The emissions reduction potential of the rule or regulation proposed to be adopted, amended, or repealed.(6) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).
5149
5250 SECTION 1. Section 40728.5 of the Health and Safety Code is amended to read:
5351
5452 ### SECTION 1.
5553
56-40728.5. (a) Whenever the state board or a district intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, the state board or the district board shall, to the extent data are available, perform an assessment, consistent with Section 40728.7, assessment of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation. The state board or the district board shall actively consider the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation and make a good faith effort to minimize adverse socioeconomic impacts. This section does not apply to the adoption, amendment, or repeal of a rule or regulation that results in a less restrictive emissions limit if the action does not interfere with the districts adopted plan to attain ambient air quality standards, or does not result in any significant increase in emissions.(b) To the extent that information on the socioeconomic impacts of the proposed adoption, amendment, or repeal of a rule or regulation is required to be developed by the state board or a district pursuant to other provisions of this division, the state board or the district board may use or reference that information in the assessment of socioeconomic impacts required pursuant to subdivision (a) to comply with the requirements of this section.(c) Upon the approval by a majority vote of the district board, a county district is not required to include in its assessment of socioeconomic impacts required pursuant to subdivision (a) the analysis specified in paragraphs (2) and (4) of subdivision (f) for a rule or regulation that only adopts a requirement that is substantially similar to, or is required by, a state or federal statute, regulation, or applicable formal guidance document. Examples of state and federal formal guidance documents include, but are not limited to, federal Control Techniques Guidelines, state and federal reasonably available control technology determinations, state best available retrofit control technology determinations, and state air toxic control measures.(d)The state board or a district board may contract with a third party, consistent with Section 40728.7 and with applicable state and local laws, rules, and regulations, to conduct the assessment of socioeconomic impacts, or a portion thereof, required pursuant to subdivision (a). Nothing in this section, however, requires the state board or a district board to contract with a third party to conduct the assessment. (e)(d) This section does not apply to either of the following: a district with a population of less than 500,000 persons.(1)The proposed adoption, amendment, or repeal of any rule or regulation that results in any less restrictive emissions limit if the proposed action does not interfere with the state boards or a districts adopted plan to attain ambient air quality standards or does not result in any significant increase in emissions.(2)A district with a population of less than 500,000 persons.(e) (1) A district board may contract with a third-party contractor, consistent with applicable state and local laws, rules, and regulations, to conduct a socioeconomic impacts assessment, or portion thereof, and shall require the prospective third-party contractor to include all of the following in the prospective third-party contractors 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 district 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 contractors experience and key staffs 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 district board for review.(D) A proposed budget for the assessment.(2) The district board may disqualify a prospective third-party contractor if the district board determines either of the following:(A) The prospective third-party contractors 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.(f) For purposes of this chapter, socioeconomic impacts means all of the following:(1) The type types of industries industry and business, including small business, affected by the rule or regulation proposed to be adopted, amended, or repealed.(2) The impact of the proposed adoption, amendment, or repeal of the rule or regulation on employment and the economy of the region affected by the proposed action.(3) The range of probable costs, including costs to industry and business, including small business, of the rule or regulation proposed to be adopted, amended, or repealed.(4) The availability and cost-effectiveness of alternatives to the rule or regulation proposed to be adopted, amended, or repealed.(5) The emissions reduction potential of the rule or regulation proposed to be adopted, amended, or repealed.(6) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).(7) 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 district board or the third-party contractor shall describe the basis for its conclusion that there is no disproportionate impact.
54+40728.5. (a) Whenever the state board or a district intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, that agency the state board or the district board shall, to the extent data are available, perform an assessment assessment, consistent with Section 40728.7, of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation. The state board or the district board shall actively consider the socioeconomic impact impacts of regulations the proposed adoption, amendment, or repeal of the rule or regulation and make a good faith effort to minimize adverse socioeconomic impacts, as defined below. This section does not apply to the adoption, amendment, or repeal of any rule or regulation that results in any less restrictive emissions limit if the action does not interfere with the districts adopted plan to attain ambient air quality standards, or does not result in any significant increase in emissions. impacts.(b) For purposes of this section, socioeconomic impact means the following:(1) The type of industries or business, including small business, affected by the rule or regulation.(2) The impact of the rule or regulation on employment and the economy of the region affected by the adoption of the rule or regulation.(3) The range of probable costs, including costs to industry or business, including small business, of the rule or regulation.(4) The availability and cost-effectiveness of alternatives to the rule or regulation being proposed or amended.(5) The emission reduction potential of the rule or regulation.(6) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).(c)(b) To the extent that information on the socioeconomic impact impacts of a the proposed adoption, amendment, or repeal of a rule or regulation is required to be developed by the state board or a district pursuant to other provisions of this division, that the state board or the district may use or reference that information may be used or referenced in the assessment in order of socioeconomic impacts required pursuant to subdivision (a) to comply with the requirements of this section.(d) This section does not apply to any district with a population of less than 500,000 persons.(e)(c) Upon the approval by a majority vote of the district board, a county district is not required to include in its assessment of socioeconomic impacts required pursuant to subdivision (a) the analysis specified in paragraphs (2) and (4) of subdivision (b) in any assessment of socioeconomic impacts (f) for any a rule or regulation that only adopts a requirement that is substantially similar to, or is required by, a state or federal statute, regulation, or applicable formal guidance document. Examples of state or and federal formal guidance documents include, but are not limited to, federal Control Techniques Guidelines, state and federal reasonably available control technology determinations, state best available retrofit control technology determinations, and state air toxic control measures.(d) The state board or a district board may contract with a third party, consistent with Section 40728.7 and with applicable state and local laws, rules, and regulations, to conduct the assessment of socioeconomic impacts, or a portion thereof, required pursuant to subdivision (a). Nothing in this section, however, requires the state board or a district board to contract with a third party to conduct the assessment.(e) This section does not apply to either of the following:(1) The proposed adoption, amendment, or repeal of any rule or regulation that results in any less restrictive emissions limit if the proposed action does not interfere with the state boards or a districts adopted plan to attain ambient air quality standards or does not result in any significant increase in emissions.(2) A district with a population of less than 500,000 persons.(f) For purposes of this chapter, socioeconomic impacts means all of the following:(1) The type of industries and business, including small business, affected by the rule or regulation proposed to be adopted, amended, or repealed.(2) The impact of the proposed adoption, amendment, or repeal of the rule or regulation on employment and the economy of the region affected by the proposed action.(3) The range of probable costs, including costs to industry and business, including small business, of the rule or regulation proposed to be adopted, amended, or repealed.(4) The availability and cost-effectiveness of alternatives to the rule or regulation proposed to be adopted, amended, or repealed.(5) The emissions reduction potential of the rule or regulation proposed to be adopted, amended, or repealed.(6) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).
5755
58-40728.5. (a) Whenever the state board or a district intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, the state board or the district board shall, to the extent data are available, perform an assessment, consistent with Section 40728.7, assessment of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation. The state board or the district board shall actively consider the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation and make a good faith effort to minimize adverse socioeconomic impacts. This section does not apply to the adoption, amendment, or repeal of a rule or regulation that results in a less restrictive emissions limit if the action does not interfere with the districts adopted plan to attain ambient air quality standards, or does not result in any significant increase in emissions.(b) To the extent that information on the socioeconomic impacts of the proposed adoption, amendment, or repeal of a rule or regulation is required to be developed by the state board or a district pursuant to other provisions of this division, the state board or the district board may use or reference that information in the assessment of socioeconomic impacts required pursuant to subdivision (a) to comply with the requirements of this section.(c) Upon the approval by a majority vote of the district board, a county district is not required to include in its assessment of socioeconomic impacts required pursuant to subdivision (a) the analysis specified in paragraphs (2) and (4) of subdivision (f) for a rule or regulation that only adopts a requirement that is substantially similar to, or is required by, a state or federal statute, regulation, or applicable formal guidance document. Examples of state and federal formal guidance documents include, but are not limited to, federal Control Techniques Guidelines, state and federal reasonably available control technology determinations, state best available retrofit control technology determinations, and state air toxic control measures.(d)The state board or a district board may contract with a third party, consistent with Section 40728.7 and with applicable state and local laws, rules, and regulations, to conduct the assessment of socioeconomic impacts, or a portion thereof, required pursuant to subdivision (a). Nothing in this section, however, requires the state board or a district board to contract with a third party to conduct the assessment. (e)(d) This section does not apply to either of the following: a district with a population of less than 500,000 persons.(1)The proposed adoption, amendment, or repeal of any rule or regulation that results in any less restrictive emissions limit if the proposed action does not interfere with the state boards or a districts adopted plan to attain ambient air quality standards or does not result in any significant increase in emissions.(2)A district with a population of less than 500,000 persons.(e) (1) A district board may contract with a third-party contractor, consistent with applicable state and local laws, rules, and regulations, to conduct a socioeconomic impacts assessment, or portion thereof, and shall require the prospective third-party contractor to include all of the following in the prospective third-party contractors 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 district 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 contractors experience and key staffs 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 district board for review.(D) A proposed budget for the assessment.(2) The district board may disqualify a prospective third-party contractor if the district board determines either of the following:(A) The prospective third-party contractors 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.(f) For purposes of this chapter, socioeconomic impacts means all of the following:(1) The type types of industries industry and business, including small business, affected by the rule or regulation proposed to be adopted, amended, or repealed.(2) The impact of the proposed adoption, amendment, or repeal of the rule or regulation on employment and the economy of the region affected by the proposed action.(3) The range of probable costs, including costs to industry and business, including small business, of the rule or regulation proposed to be adopted, amended, or repealed.(4) The availability and cost-effectiveness of alternatives to the rule or regulation proposed to be adopted, amended, or repealed.(5) The emissions reduction potential of the rule or regulation proposed to be adopted, amended, or repealed.(6) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).(7) 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 district board or the third-party contractor shall describe the basis for its conclusion that there is no disproportionate impact.
56+40728.5. (a) Whenever the state board or a district intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, that agency the state board or the district board shall, to the extent data are available, perform an assessment assessment, consistent with Section 40728.7, of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation. The state board or the district board shall actively consider the socioeconomic impact impacts of regulations the proposed adoption, amendment, or repeal of the rule or regulation and make a good faith effort to minimize adverse socioeconomic impacts, as defined below. This section does not apply to the adoption, amendment, or repeal of any rule or regulation that results in any less restrictive emissions limit if the action does not interfere with the districts adopted plan to attain ambient air quality standards, or does not result in any significant increase in emissions. impacts.(b) For purposes of this section, socioeconomic impact means the following:(1) The type of industries or business, including small business, affected by the rule or regulation.(2) The impact of the rule or regulation on employment and the economy of the region affected by the adoption of the rule or regulation.(3) The range of probable costs, including costs to industry or business, including small business, of the rule or regulation.(4) The availability and cost-effectiveness of alternatives to the rule or regulation being proposed or amended.(5) The emission reduction potential of the rule or regulation.(6) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).(c)(b) To the extent that information on the socioeconomic impact impacts of a the proposed adoption, amendment, or repeal of a rule or regulation is required to be developed by the state board or a district pursuant to other provisions of this division, that the state board or the district may use or reference that information may be used or referenced in the assessment in order of socioeconomic impacts required pursuant to subdivision (a) to comply with the requirements of this section.(d) This section does not apply to any district with a population of less than 500,000 persons.(e)(c) Upon the approval by a majority vote of the district board, a county district is not required to include in its assessment of socioeconomic impacts required pursuant to subdivision (a) the analysis specified in paragraphs (2) and (4) of subdivision (b) in any assessment of socioeconomic impacts (f) for any a rule or regulation that only adopts a requirement that is substantially similar to, or is required by, a state or federal statute, regulation, or applicable formal guidance document. Examples of state or and federal formal guidance documents include, but are not limited to, federal Control Techniques Guidelines, state and federal reasonably available control technology determinations, state best available retrofit control technology determinations, and state air toxic control measures.(d) The state board or a district board may contract with a third party, consistent with Section 40728.7 and with applicable state and local laws, rules, and regulations, to conduct the assessment of socioeconomic impacts, or a portion thereof, required pursuant to subdivision (a). Nothing in this section, however, requires the state board or a district board to contract with a third party to conduct the assessment.(e) This section does not apply to either of the following:(1) The proposed adoption, amendment, or repeal of any rule or regulation that results in any less restrictive emissions limit if the proposed action does not interfere with the state boards or a districts adopted plan to attain ambient air quality standards or does not result in any significant increase in emissions.(2) A district with a population of less than 500,000 persons.(f) For purposes of this chapter, socioeconomic impacts means all of the following:(1) The type of industries and business, including small business, affected by the rule or regulation proposed to be adopted, amended, or repealed.(2) The impact of the proposed adoption, amendment, or repeal of the rule or regulation on employment and the economy of the region affected by the proposed action.(3) The range of probable costs, including costs to industry and business, including small business, of the rule or regulation proposed to be adopted, amended, or repealed.(4) The availability and cost-effectiveness of alternatives to the rule or regulation proposed to be adopted, amended, or repealed.(5) The emissions reduction potential of the rule or regulation proposed to be adopted, amended, or repealed.(6) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).
5957
60-40728.5. (a) Whenever the state board or a district intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, the state board or the district board shall, to the extent data are available, perform an assessment, consistent with Section 40728.7, assessment of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation. The state board or the district board shall actively consider the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation and make a good faith effort to minimize adverse socioeconomic impacts. This section does not apply to the adoption, amendment, or repeal of a rule or regulation that results in a less restrictive emissions limit if the action does not interfere with the districts adopted plan to attain ambient air quality standards, or does not result in any significant increase in emissions.(b) To the extent that information on the socioeconomic impacts of the proposed adoption, amendment, or repeal of a rule or regulation is required to be developed by the state board or a district pursuant to other provisions of this division, the state board or the district board may use or reference that information in the assessment of socioeconomic impacts required pursuant to subdivision (a) to comply with the requirements of this section.(c) Upon the approval by a majority vote of the district board, a county district is not required to include in its assessment of socioeconomic impacts required pursuant to subdivision (a) the analysis specified in paragraphs (2) and (4) of subdivision (f) for a rule or regulation that only adopts a requirement that is substantially similar to, or is required by, a state or federal statute, regulation, or applicable formal guidance document. Examples of state and federal formal guidance documents include, but are not limited to, federal Control Techniques Guidelines, state and federal reasonably available control technology determinations, state best available retrofit control technology determinations, and state air toxic control measures.(d)The state board or a district board may contract with a third party, consistent with Section 40728.7 and with applicable state and local laws, rules, and regulations, to conduct the assessment of socioeconomic impacts, or a portion thereof, required pursuant to subdivision (a). Nothing in this section, however, requires the state board or a district board to contract with a third party to conduct the assessment. (e)(d) This section does not apply to either of the following: a district with a population of less than 500,000 persons.(1)The proposed adoption, amendment, or repeal of any rule or regulation that results in any less restrictive emissions limit if the proposed action does not interfere with the state boards or a districts adopted plan to attain ambient air quality standards or does not result in any significant increase in emissions.(2)A district with a population of less than 500,000 persons.(e) (1) A district board may contract with a third-party contractor, consistent with applicable state and local laws, rules, and regulations, to conduct a socioeconomic impacts assessment, or portion thereof, and shall require the prospective third-party contractor to include all of the following in the prospective third-party contractors 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 district 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 contractors experience and key staffs 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 district board for review.(D) A proposed budget for the assessment.(2) The district board may disqualify a prospective third-party contractor if the district board determines either of the following:(A) The prospective third-party contractors 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.(f) For purposes of this chapter, socioeconomic impacts means all of the following:(1) The type types of industries industry and business, including small business, affected by the rule or regulation proposed to be adopted, amended, or repealed.(2) The impact of the proposed adoption, amendment, or repeal of the rule or regulation on employment and the economy of the region affected by the proposed action.(3) The range of probable costs, including costs to industry and business, including small business, of the rule or regulation proposed to be adopted, amended, or repealed.(4) The availability and cost-effectiveness of alternatives to the rule or regulation proposed to be adopted, amended, or repealed.(5) The emissions reduction potential of the rule or regulation proposed to be adopted, amended, or repealed.(6) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).(7) 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 district board or the third-party contractor shall describe the basis for its conclusion that there is no disproportionate impact.
58+40728.5. (a) Whenever the state board or a district intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, that agency the state board or the district board shall, to the extent data are available, perform an assessment assessment, consistent with Section 40728.7, of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation. The state board or the district board shall actively consider the socioeconomic impact impacts of regulations the proposed adoption, amendment, or repeal of the rule or regulation and make a good faith effort to minimize adverse socioeconomic impacts, as defined below. This section does not apply to the adoption, amendment, or repeal of any rule or regulation that results in any less restrictive emissions limit if the action does not interfere with the districts adopted plan to attain ambient air quality standards, or does not result in any significant increase in emissions. impacts.(b) For purposes of this section, socioeconomic impact means the following:(1) The type of industries or business, including small business, affected by the rule or regulation.(2) The impact of the rule or regulation on employment and the economy of the region affected by the adoption of the rule or regulation.(3) The range of probable costs, including costs to industry or business, including small business, of the rule or regulation.(4) The availability and cost-effectiveness of alternatives to the rule or regulation being proposed or amended.(5) The emission reduction potential of the rule or regulation.(6) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).(c)(b) To the extent that information on the socioeconomic impact impacts of a the proposed adoption, amendment, or repeal of a rule or regulation is required to be developed by the state board or a district pursuant to other provisions of this division, that the state board or the district may use or reference that information may be used or referenced in the assessment in order of socioeconomic impacts required pursuant to subdivision (a) to comply with the requirements of this section.(d) This section does not apply to any district with a population of less than 500,000 persons.(e)(c) Upon the approval by a majority vote of the district board, a county district is not required to include in its assessment of socioeconomic impacts required pursuant to subdivision (a) the analysis specified in paragraphs (2) and (4) of subdivision (b) in any assessment of socioeconomic impacts (f) for any a rule or regulation that only adopts a requirement that is substantially similar to, or is required by, a state or federal statute, regulation, or applicable formal guidance document. Examples of state or and federal formal guidance documents include, but are not limited to, federal Control Techniques Guidelines, state and federal reasonably available control technology determinations, state best available retrofit control technology determinations, and state air toxic control measures.(d) The state board or a district board may contract with a third party, consistent with Section 40728.7 and with applicable state and local laws, rules, and regulations, to conduct the assessment of socioeconomic impacts, or a portion thereof, required pursuant to subdivision (a). Nothing in this section, however, requires the state board or a district board to contract with a third party to conduct the assessment.(e) This section does not apply to either of the following:(1) The proposed adoption, amendment, or repeal of any rule or regulation that results in any less restrictive emissions limit if the proposed action does not interfere with the state boards or a districts adopted plan to attain ambient air quality standards or does not result in any significant increase in emissions.(2) A district with a population of less than 500,000 persons.(f) For purposes of this chapter, socioeconomic impacts means all of the following:(1) The type of industries and business, including small business, affected by the rule or regulation proposed to be adopted, amended, or repealed.(2) The impact of the proposed adoption, amendment, or repeal of the rule or regulation on employment and the economy of the region affected by the proposed action.(3) The range of probable costs, including costs to industry and business, including small business, of the rule or regulation proposed to be adopted, amended, or repealed.(4) The availability and cost-effectiveness of alternatives to the rule or regulation proposed to be adopted, amended, or repealed.(5) The emissions reduction potential of the rule or regulation proposed to be adopted, amended, or repealed.(6) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).
6159
6260
6361
64-40728.5. (a) Whenever the state board or a district intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, the state board or the district board shall, to the extent data are available, perform an assessment, consistent with Section 40728.7, assessment of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation. The state board or the district board shall actively consider the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation and make a good faith effort to minimize adverse socioeconomic impacts. This section does not apply to the adoption, amendment, or repeal of a rule or regulation that results in a less restrictive emissions limit if the action does not interfere with the districts adopted plan to attain ambient air quality standards, or does not result in any significant increase in emissions.
62+40728.5. (a) Whenever the state board or a district intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, that agency the state board or the district board shall, to the extent data are available, perform an assessment assessment, consistent with Section 40728.7, of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation. The state board or the district board shall actively consider the socioeconomic impact impacts of regulations the proposed adoption, amendment, or repeal of the rule or regulation and make a good faith effort to minimize adverse socioeconomic impacts, as defined below. This section does not apply to the adoption, amendment, or repeal of any rule or regulation that results in any less restrictive emissions limit if the action does not interfere with the districts adopted plan to attain ambient air quality standards, or does not result in any significant increase in emissions. impacts.
6563
66-(b) To the extent that information on the socioeconomic impacts of the proposed adoption, amendment, or repeal of a rule or regulation is required to be developed by the state board or a district pursuant to other provisions of this division, the state board or the district board may use or reference that information in the assessment of socioeconomic impacts required pursuant to subdivision (a) to comply with the requirements of this section.
64+(b) For purposes of this section, socioeconomic impact means the following:
6765
68-(c) Upon the approval by a majority vote of the district board, a county district is not required to include in its assessment of socioeconomic impacts required pursuant to subdivision (a) the analysis specified in paragraphs (2) and (4) of subdivision (f) for a rule or regulation that only adopts a requirement that is substantially similar to, or is required by, a state or federal statute, regulation, or applicable formal guidance document. Examples of state and federal formal guidance documents include, but are not limited to, federal Control Techniques Guidelines, state and federal reasonably available control technology determinations, state best available retrofit control technology determinations, and state air toxic control measures.
6966
70-(d)The state board or a district board may contract with a third party, consistent with Section 40728.7 and with applicable state and local laws, rules, and regulations, to conduct the assessment of socioeconomic impacts, or a portion thereof, required pursuant to subdivision (a). Nothing in this section, however, requires the state board or a district board to contract with a third party to conduct the assessment.
67+
68+(1) The type of industries or business, including small business, affected by the rule or regulation.
69+
70+
71+
72+(2) The impact of the rule or regulation on employment and the economy of the region affected by the adoption of the rule or regulation.
73+
74+
75+
76+(3) The range of probable costs, including costs to industry or business, including small business, of the rule or regulation.
77+
78+
79+
80+(4) The availability and cost-effectiveness of alternatives to the rule or regulation being proposed or amended.
81+
82+
83+
84+(5) The emission reduction potential of the rule or regulation.
85+
86+
87+
88+(6) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).
89+
90+
91+
92+(c)
93+
94+
95+
96+(b) To the extent that information on the socioeconomic impact impacts of a the proposed adoption, amendment, or repeal of a rule or regulation is required to be developed by the state board or a district pursuant to other provisions of this division, that the state board or the district may use or reference that information may be used or referenced in the assessment in order of socioeconomic impacts required pursuant to subdivision (a) to comply with the requirements of this section.
97+
98+(d) This section does not apply to any district with a population of less than 500,000 persons.
7199
72100
73101
74102 (e)
75103
76104
77105
78-(d) This section does not apply to either of the following: a district with a population of less than 500,000 persons.
106+(c) Upon the approval by a majority vote of the district board, a county district is not required to include in its assessment of socioeconomic impacts required pursuant to subdivision (a) the analysis specified in paragraphs (2) and (4) of subdivision (b) in any assessment of socioeconomic impacts (f) for any a rule or regulation that only adopts a requirement that is substantially similar to, or is required by, a state or federal statute, regulation, or applicable formal guidance document. Examples of state or and federal formal guidance documents include, but are not limited to, federal Control Techniques Guidelines, state and federal reasonably available control technology determinations, state best available retrofit control technology determinations, and state air toxic control measures.
107+
108+(d) The state board or a district board may contract with a third party, consistent with Section 40728.7 and with applicable state and local laws, rules, and regulations, to conduct the assessment of socioeconomic impacts, or a portion thereof, required pursuant to subdivision (a). Nothing in this section, however, requires the state board or a district board to contract with a third party to conduct the assessment.
109+
110+(e) This section does not apply to either of the following:
79111
80112 (1) The proposed adoption, amendment, or repeal of any rule or regulation that results in any less restrictive emissions limit if the proposed action does not interfere with the state boards or a districts adopted plan to attain ambient air quality standards or does not result in any significant increase in emissions.
81113
82-
83-
84114 (2) A district with a population of less than 500,000 persons.
85-
86-
87-
88-(e) (1) A district board may contract with a third-party contractor, consistent with applicable state and local laws, rules, and regulations, to conduct a socioeconomic impacts assessment, or portion thereof, and shall require the prospective third-party contractor to include all of the following in the prospective third-party contractors proposal for the assessment:
89-
90-(A) A conflicts statement that includes both of the following:
91-
92-(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.
93-
94-(ii) All financial, personal, or familial relationships of any person employed by the prospective third-party contractor with either of the following:
95-
96-(I) An employee of the district that holds a designated position listed in Appendix A of Section 95000 of Title 17 of the Code of Regulations.
97-
98-(II) An executive officer of any business or corporation that could potentially be directly impacted by the proposed action.
99-
100-(B) A statement of the prospective third-party contractors experience and key staffs 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:
101-
102-(i) A list of socioeconomic impact studies or similar studies conducted by the prospective third-party contractor in the last five years.
103-
104-(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.
105-
106-(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 district board for review.
107-
108-(D) A proposed budget for the assessment.
109-
110-(2) The district board may disqualify a prospective third-party contractor if the district board determines either of the following:
111-
112-(A) The prospective third-party contractors 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.
113-
114-(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.
115115
116116 (f) For purposes of this chapter, socioeconomic impacts means all of the following:
117117
118-(1) The type types of industries industry and business, including small business, affected by the rule or regulation proposed to be adopted, amended, or repealed.
118+(1) The type of industries and business, including small business, affected by the rule or regulation proposed to be adopted, amended, or repealed.
119119
120120 (2) The impact of the proposed adoption, amendment, or repeal of the rule or regulation on employment and the economy of the region affected by the proposed action.
121121
122122 (3) The range of probable costs, including costs to industry and business, including small business, of the rule or regulation proposed to be adopted, amended, or repealed.
123123
124124 (4) The availability and cost-effectiveness of alternatives to the rule or regulation proposed to be adopted, amended, or repealed.
125125
126126 (5) The emissions reduction potential of the rule or regulation proposed to be adopted, amended, or repealed.
127127
128128 (6) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).
129129
130-(7) 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 district board or the third-party contractor shall describe the basis for its conclusion that there is no disproportionate impact.
131-
132-SEC. 2. Section 40728.7 is added to the Health and Safety Code, to read:40728.7. (a) Whenever the state board intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, the state board shall, to the extent data are available and, consistent with Section 40728.9, perform an assessment of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation. The state board shall actively consider the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation and make a good faith effort to minimize adverse socioeconomic impacts.(b) To the extent that information on the socioeconomic impacts of the proposed adoption, amendment, or repeal of a rule or regulation is required to be developed by the state board pursuant to other provisions of this division, the state board may use or reference that information in the assessment of socioeconomic impacts required pursuant to subdivision (a) to comply with the requirements of this section.(c) The state board may contract with a third party, consistent with Section 40728.9 and with applicable state and local laws, rules, and regulations, to conduct the assessment of socioeconomic impacts, or a portion thereof, required pursuant to subdivision (a). Nothing in this section, however, requires the state board to contract with a third party to conduct the assessment.(d) This section does not apply to either of the following:(1) The proposed adoption, amendment, or repeal of a rule or regulation that results in a less restrictive emissions limit if the proposed action does not interfere with the state boards adopted plan to attain ambient air quality standards or does not result in any significant increase in emissions.(2) The proposed adoption, amendment, or repeal by the state board of a rule or regulation that has an economic impact of less than ten million dollars ($10,000,000).(e) For purposes of this chapter, socioeconomic impacts means all of the following:(1) The type of industry and business, including small business, affected by the rule or regulation proposed to be adopted, amended, or repealed.(2) The impact of the proposed adoption, amendment, or repeal of the rule or regulation on employment and the economy of the region affected by the proposed action.(3) The range of probable costs, including costs to industry and business, including small business, of the rule or regulation proposed to be adopted, amended, or repealed.(4) The availability and cost-effectiveness of alternatives to the rule or regulation proposed to be adopted, amended, or repealed.(5) The emissions reduction potential of the rule or regulation proposed to be adopted, amended, or repealed.(6) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).
130+SEC. 2. Section 40728.7 is added to the Health and Safety Code, to read:40728.7. (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 or a district pursuant to subdivision (a) of Section 40728.5.(2) Proposed action means the proposed adoption, amendment, or repeal of a rule or regulation being contemplated by the state board or a district.(3) Third-party contractor means a third party with whom the state board or a district contracts, consistent with state and local laws, rules, and regulations, to conduct an assessment of socioeconomic impacts, or portion thereof, required pursuant to subdivision (a) of Section 40728.5.(b) (1) This section outlines the minimum standards applicable to the state board or a district that is required to conduct an assessment of socioeconomic impacts required pursuant to subdivision (a) of Section 40728.5. Nothing in this section shall prohibit the state board or a district from creating additional requirements or imposing additional requirements on a third-party contractor relating to the assessment. (2) Neither the state board nor a district shall approve an assessment pursuant to Section 40728.5 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 or a district from, applicable state or local laws, rules, or regulations relating to the ability or authority of the state board or a district 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 or a district may contract with a third-party contractor 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 contractors 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 or a district 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 contractors experience and key staffs 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 or a district for review.(D) A proposed budget for the assessment.(2) The state board or a district may disqualify a prospective third-party contractor if the state board or a district determines either of the following:(A) The prospective third-party contractors 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 or a district shall include, or require a third-party contractor with whom the state board or a district contracts to include, at a minimum, all of the following in the assessment:(1) All of the information and analysis required pursuant to subdivision (f) of Section 40728.5.(2) (A) A description of the specific methodologies employed by the state board, a district, or the third-party contractor to conduct the assessment.(B) The state board, a district, and the third-party contractor shall comply with the Department of Finances 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 any racial, ethnic, or gender subgroup. If no disproportionate impact is identified, the state board, a district, 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 all economic and regulatory factors, including, but not limited to, relevant rules or regulations that have been enacted or are under active consideration by the state board or a district. (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 and local revenues, including corporate, personal, sales, and property tax revenues.(5) A hyperlink or 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, a district, 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, a district, 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 local market conditions.(5) If there is uncertainty regarding the estimate, indicate 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) (A) If the proposed action will require significant expenditures by affected entities, include an estimate of the impacts of the proposed action on affected entities' profits and cash flows.(B) In developing the estimate required pursuant to subparagraph (A), the state board, a district, or a third-party contractor shall do all of the following:(i) Estimate the impacts on the affected entities profits and cash flows over a multiple-year period, as necessary, to capture the proposed actions impacts over time.(ii) Include information regarding sources and costs of financing for necessary equipment and infrastructure investments.(iii) Consider whether installation of necessary equipment and infrastructure will significantly disrupt the output of affected entities and, if so, the impacts of those disruptions on the marketplace. (7) 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 individuals or are passed on to others, including, but not limited to, customers, employees, suppliers, and owners.(8) Take into account specific market conditions for the industry and the location where the proposed action will have an impact, including, but not limited to, the degree of competition from outside suppliers, price elasticity of demand for products and services provided by the affected entities, and labor market conditions specific to the types of occupations that would be impacted by job cutbacks or increases associated with the proposed action.(9) Estimate direct, indirect, and induced impacts within the region impacted by the proposed action of both the cost of the proposed action on affected entities and, if relevant, the cost-shifting that is assumed to occur, including, but not limited to, the impacts on consumer prices, employment, wages, household discretionary income of employees and consumers by income level, consumer spending, and output in the region affected by the proposed action.(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.
133131
134132 SEC. 2. Section 40728.7 is added to the Health and Safety Code, to read:
135133
136134 ### SEC. 2.
137135
138-40728.7. (a) Whenever the state board intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, the state board shall, to the extent data are available and, consistent with Section 40728.9, perform an assessment of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation. The state board shall actively consider the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation and make a good faith effort to minimize adverse socioeconomic impacts.(b) To the extent that information on the socioeconomic impacts of the proposed adoption, amendment, or repeal of a rule or regulation is required to be developed by the state board pursuant to other provisions of this division, the state board may use or reference that information in the assessment of socioeconomic impacts required pursuant to subdivision (a) to comply with the requirements of this section.(c) The state board may contract with a third party, consistent with Section 40728.9 and with applicable state and local laws, rules, and regulations, to conduct the assessment of socioeconomic impacts, or a portion thereof, required pursuant to subdivision (a). Nothing in this section, however, requires the state board to contract with a third party to conduct the assessment.(d) This section does not apply to either of the following:(1) The proposed adoption, amendment, or repeal of a rule or regulation that results in a less restrictive emissions limit if the proposed action does not interfere with the state boards adopted plan to attain ambient air quality standards or does not result in any significant increase in emissions.(2) The proposed adoption, amendment, or repeal by the state board of a rule or regulation that has an economic impact of less than ten million dollars ($10,000,000).(e) For purposes of this chapter, socioeconomic impacts means all of the following:(1) The type of industry and business, including small business, affected by the rule or regulation proposed to be adopted, amended, or repealed.(2) The impact of the proposed adoption, amendment, or repeal of the rule or regulation on employment and the economy of the region affected by the proposed action.(3) The range of probable costs, including costs to industry and business, including small business, of the rule or regulation proposed to be adopted, amended, or repealed.(4) The availability and cost-effectiveness of alternatives to the rule or regulation proposed to be adopted, amended, or repealed.(5) The emissions reduction potential of the rule or regulation proposed to be adopted, amended, or repealed.(6) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).
136+40728.7. (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 or a district pursuant to subdivision (a) of Section 40728.5.(2) Proposed action means the proposed adoption, amendment, or repeal of a rule or regulation being contemplated by the state board or a district.(3) Third-party contractor means a third party with whom the state board or a district contracts, consistent with state and local laws, rules, and regulations, to conduct an assessment of socioeconomic impacts, or portion thereof, required pursuant to subdivision (a) of Section 40728.5.(b) (1) This section outlines the minimum standards applicable to the state board or a district that is required to conduct an assessment of socioeconomic impacts required pursuant to subdivision (a) of Section 40728.5. Nothing in this section shall prohibit the state board or a district from creating additional requirements or imposing additional requirements on a third-party contractor relating to the assessment. (2) Neither the state board nor a district shall approve an assessment pursuant to Section 40728.5 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 or a district from, applicable state or local laws, rules, or regulations relating to the ability or authority of the state board or a district 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 or a district may contract with a third-party contractor 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 contractors 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 or a district 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 contractors experience and key staffs 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 or a district for review.(D) A proposed budget for the assessment.(2) The state board or a district may disqualify a prospective third-party contractor if the state board or a district determines either of the following:(A) The prospective third-party contractors 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 or a district shall include, or require a third-party contractor with whom the state board or a district contracts to include, at a minimum, all of the following in the assessment:(1) All of the information and analysis required pursuant to subdivision (f) of Section 40728.5.(2) (A) A description of the specific methodologies employed by the state board, a district, or the third-party contractor to conduct the assessment.(B) The state board, a district, and the third-party contractor shall comply with the Department of Finances 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 any racial, ethnic, or gender subgroup. If no disproportionate impact is identified, the state board, a district, 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 all economic and regulatory factors, including, but not limited to, relevant rules or regulations that have been enacted or are under active consideration by the state board or a district. (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 and local revenues, including corporate, personal, sales, and property tax revenues.(5) A hyperlink or 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, a district, 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, a district, 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 local market conditions.(5) If there is uncertainty regarding the estimate, indicate 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) (A) If the proposed action will require significant expenditures by affected entities, include an estimate of the impacts of the proposed action on affected entities' profits and cash flows.(B) In developing the estimate required pursuant to subparagraph (A), the state board, a district, or a third-party contractor shall do all of the following:(i) Estimate the impacts on the affected entities profits and cash flows over a multiple-year period, as necessary, to capture the proposed actions impacts over time.(ii) Include information regarding sources and costs of financing for necessary equipment and infrastructure investments.(iii) Consider whether installation of necessary equipment and infrastructure will significantly disrupt the output of affected entities and, if so, the impacts of those disruptions on the marketplace. (7) 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 individuals or are passed on to others, including, but not limited to, customers, employees, suppliers, and owners.(8) Take into account specific market conditions for the industry and the location where the proposed action will have an impact, including, but not limited to, the degree of competition from outside suppliers, price elasticity of demand for products and services provided by the affected entities, and labor market conditions specific to the types of occupations that would be impacted by job cutbacks or increases associated with the proposed action.(9) Estimate direct, indirect, and induced impacts within the region impacted by the proposed action of both the cost of the proposed action on affected entities and, if relevant, the cost-shifting that is assumed to occur, including, but not limited to, the impacts on consumer prices, employment, wages, household discretionary income of employees and consumers by income level, consumer spending, and output in the region affected by the proposed action.(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.
139137
140-40728.7. (a) Whenever the state board intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, the state board shall, to the extent data are available and, consistent with Section 40728.9, perform an assessment of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation. The state board shall actively consider the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation and make a good faith effort to minimize adverse socioeconomic impacts.(b) To the extent that information on the socioeconomic impacts of the proposed adoption, amendment, or repeal of a rule or regulation is required to be developed by the state board pursuant to other provisions of this division, the state board may use or reference that information in the assessment of socioeconomic impacts required pursuant to subdivision (a) to comply with the requirements of this section.(c) The state board may contract with a third party, consistent with Section 40728.9 and with applicable state and local laws, rules, and regulations, to conduct the assessment of socioeconomic impacts, or a portion thereof, required pursuant to subdivision (a). Nothing in this section, however, requires the state board to contract with a third party to conduct the assessment.(d) This section does not apply to either of the following:(1) The proposed adoption, amendment, or repeal of a rule or regulation that results in a less restrictive emissions limit if the proposed action does not interfere with the state boards adopted plan to attain ambient air quality standards or does not result in any significant increase in emissions.(2) The proposed adoption, amendment, or repeal by the state board of a rule or regulation that has an economic impact of less than ten million dollars ($10,000,000).(e) For purposes of this chapter, socioeconomic impacts means all of the following:(1) The type of industry and business, including small business, affected by the rule or regulation proposed to be adopted, amended, or repealed.(2) The impact of the proposed adoption, amendment, or repeal of the rule or regulation on employment and the economy of the region affected by the proposed action.(3) The range of probable costs, including costs to industry and business, including small business, of the rule or regulation proposed to be adopted, amended, or repealed.(4) The availability and cost-effectiveness of alternatives to the rule or regulation proposed to be adopted, amended, or repealed.(5) The emissions reduction potential of the rule or regulation proposed to be adopted, amended, or repealed.(6) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).
138+40728.7. (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 or a district pursuant to subdivision (a) of Section 40728.5.(2) Proposed action means the proposed adoption, amendment, or repeal of a rule or regulation being contemplated by the state board or a district.(3) Third-party contractor means a third party with whom the state board or a district contracts, consistent with state and local laws, rules, and regulations, to conduct an assessment of socioeconomic impacts, or portion thereof, required pursuant to subdivision (a) of Section 40728.5.(b) (1) This section outlines the minimum standards applicable to the state board or a district that is required to conduct an assessment of socioeconomic impacts required pursuant to subdivision (a) of Section 40728.5. Nothing in this section shall prohibit the state board or a district from creating additional requirements or imposing additional requirements on a third-party contractor relating to the assessment. (2) Neither the state board nor a district shall approve an assessment pursuant to Section 40728.5 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 or a district from, applicable state or local laws, rules, or regulations relating to the ability or authority of the state board or a district 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 or a district may contract with a third-party contractor 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 contractors 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 or a district 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 contractors experience and key staffs 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 or a district for review.(D) A proposed budget for the assessment.(2) The state board or a district may disqualify a prospective third-party contractor if the state board or a district determines either of the following:(A) The prospective third-party contractors 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 or a district shall include, or require a third-party contractor with whom the state board or a district contracts to include, at a minimum, all of the following in the assessment:(1) All of the information and analysis required pursuant to subdivision (f) of Section 40728.5.(2) (A) A description of the specific methodologies employed by the state board, a district, or the third-party contractor to conduct the assessment.(B) The state board, a district, and the third-party contractor shall comply with the Department of Finances 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 any racial, ethnic, or gender subgroup. If no disproportionate impact is identified, the state board, a district, 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 all economic and regulatory factors, including, but not limited to, relevant rules or regulations that have been enacted or are under active consideration by the state board or a district. (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 and local revenues, including corporate, personal, sales, and property tax revenues.(5) A hyperlink or 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, a district, 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, a district, 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 local market conditions.(5) If there is uncertainty regarding the estimate, indicate 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) (A) If the proposed action will require significant expenditures by affected entities, include an estimate of the impacts of the proposed action on affected entities' profits and cash flows.(B) In developing the estimate required pursuant to subparagraph (A), the state board, a district, or a third-party contractor shall do all of the following:(i) Estimate the impacts on the affected entities profits and cash flows over a multiple-year period, as necessary, to capture the proposed actions impacts over time.(ii) Include information regarding sources and costs of financing for necessary equipment and infrastructure investments.(iii) Consider whether installation of necessary equipment and infrastructure will significantly disrupt the output of affected entities and, if so, the impacts of those disruptions on the marketplace. (7) 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 individuals or are passed on to others, including, but not limited to, customers, employees, suppliers, and owners.(8) Take into account specific market conditions for the industry and the location where the proposed action will have an impact, including, but not limited to, the degree of competition from outside suppliers, price elasticity of demand for products and services provided by the affected entities, and labor market conditions specific to the types of occupations that would be impacted by job cutbacks or increases associated with the proposed action.(9) Estimate direct, indirect, and induced impacts within the region impacted by the proposed action of both the cost of the proposed action on affected entities and, if relevant, the cost-shifting that is assumed to occur, including, but not limited to, the impacts on consumer prices, employment, wages, household discretionary income of employees and consumers by income level, consumer spending, and output in the region affected by the proposed action.(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.
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142-40728.7. (a) Whenever the state board intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, the state board shall, to the extent data are available and, consistent with Section 40728.9, perform an assessment of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation. The state board shall actively consider the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation and make a good faith effort to minimize adverse socioeconomic impacts.(b) To the extent that information on the socioeconomic impacts of the proposed adoption, amendment, or repeal of a rule or regulation is required to be developed by the state board pursuant to other provisions of this division, the state board may use or reference that information in the assessment of socioeconomic impacts required pursuant to subdivision (a) to comply with the requirements of this section.(c) The state board may contract with a third party, consistent with Section 40728.9 and with applicable state and local laws, rules, and regulations, to conduct the assessment of socioeconomic impacts, or a portion thereof, required pursuant to subdivision (a). Nothing in this section, however, requires the state board to contract with a third party to conduct the assessment.(d) This section does not apply to either of the following:(1) The proposed adoption, amendment, or repeal of a rule or regulation that results in a less restrictive emissions limit if the proposed action does not interfere with the state boards adopted plan to attain ambient air quality standards or does not result in any significant increase in emissions.(2) The proposed adoption, amendment, or repeal by the state board of a rule or regulation that has an economic impact of less than ten million dollars ($10,000,000).(e) For purposes of this chapter, socioeconomic impacts means all of the following:(1) The type of industry and business, including small business, affected by the rule or regulation proposed to be adopted, amended, or repealed.(2) The impact of the proposed adoption, amendment, or repeal of the rule or regulation on employment and the economy of the region affected by the proposed action.(3) The range of probable costs, including costs to industry and business, including small business, of the rule or regulation proposed to be adopted, amended, or repealed.(4) The availability and cost-effectiveness of alternatives to the rule or regulation proposed to be adopted, amended, or repealed.(5) The emissions reduction potential of the rule or regulation proposed to be adopted, amended, or repealed.(6) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).
140+40728.7. (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 or a district pursuant to subdivision (a) of Section 40728.5.(2) Proposed action means the proposed adoption, amendment, or repeal of a rule or regulation being contemplated by the state board or a district.(3) Third-party contractor means a third party with whom the state board or a district contracts, consistent with state and local laws, rules, and regulations, to conduct an assessment of socioeconomic impacts, or portion thereof, required pursuant to subdivision (a) of Section 40728.5.(b) (1) This section outlines the minimum standards applicable to the state board or a district that is required to conduct an assessment of socioeconomic impacts required pursuant to subdivision (a) of Section 40728.5. Nothing in this section shall prohibit the state board or a district from creating additional requirements or imposing additional requirements on a third-party contractor relating to the assessment. (2) Neither the state board nor a district shall approve an assessment pursuant to Section 40728.5 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 or a district from, applicable state or local laws, rules, or regulations relating to the ability or authority of the state board or a district 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 or a district may contract with a third-party contractor 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 contractors 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 or a district 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 contractors experience and key staffs 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 or a district for review.(D) A proposed budget for the assessment.(2) The state board or a district may disqualify a prospective third-party contractor if the state board or a district determines either of the following:(A) The prospective third-party contractors 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 or a district shall include, or require a third-party contractor with whom the state board or a district contracts to include, at a minimum, all of the following in the assessment:(1) All of the information and analysis required pursuant to subdivision (f) of Section 40728.5.(2) (A) A description of the specific methodologies employed by the state board, a district, or the third-party contractor to conduct the assessment.(B) The state board, a district, and the third-party contractor shall comply with the Department of Finances 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 any racial, ethnic, or gender subgroup. If no disproportionate impact is identified, the state board, a district, 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 all economic and regulatory factors, including, but not limited to, relevant rules or regulations that have been enacted or are under active consideration by the state board or a district. (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 and local revenues, including corporate, personal, sales, and property tax revenues.(5) A hyperlink or 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, a district, 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, a district, 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 local market conditions.(5) If there is uncertainty regarding the estimate, indicate 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) (A) If the proposed action will require significant expenditures by affected entities, include an estimate of the impacts of the proposed action on affected entities' profits and cash flows.(B) In developing the estimate required pursuant to subparagraph (A), the state board, a district, or a third-party contractor shall do all of the following:(i) Estimate the impacts on the affected entities profits and cash flows over a multiple-year period, as necessary, to capture the proposed actions impacts over time.(ii) Include information regarding sources and costs of financing for necessary equipment and infrastructure investments.(iii) Consider whether installation of necessary equipment and infrastructure will significantly disrupt the output of affected entities and, if so, the impacts of those disruptions on the marketplace. (7) 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 individuals or are passed on to others, including, but not limited to, customers, employees, suppliers, and owners.(8) Take into account specific market conditions for the industry and the location where the proposed action will have an impact, including, but not limited to, the degree of competition from outside suppliers, price elasticity of demand for products and services provided by the affected entities, and labor market conditions specific to the types of occupations that would be impacted by job cutbacks or increases associated with the proposed action.(9) Estimate direct, indirect, and induced impacts within the region impacted by the proposed action of both the cost of the proposed action on affected entities and, if relevant, the cost-shifting that is assumed to occur, including, but not limited to, the impacts on consumer prices, employment, wages, household discretionary income of employees and consumers by income level, consumer spending, and output in the region affected by the proposed action.(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.
143141
144142
145143
146-40728.7. (a) Whenever the state board intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, the state board shall, to the extent data are available and, consistent with Section 40728.9, perform an assessment of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation. The state board shall actively consider the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation and make a good faith effort to minimize adverse socioeconomic impacts.
144+40728.7. (a) For purposes of this section, the following terms have the following meanings:
147145
148-(b) To the extent that information on the socioeconomic impacts of the proposed adoption, amendment, or repeal of a rule or regulation is required to be developed by the state board pursuant to other provisions of this division, the state board may use or reference that information in the assessment of socioeconomic impacts required pursuant to subdivision (a) to comply with the requirements of this section.
146+(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 or a district pursuant to subdivision (a) of Section 40728.5.
149147
150-(c) The state board may contract with a third party, consistent with Section 40728.9 and with applicable state and local laws, rules, and regulations, to conduct the assessment of socioeconomic impacts, or a portion thereof, required pursuant to subdivision (a). Nothing in this section, however, requires the state board to contract with a third party to conduct the assessment.
148+(2) Proposed action means the proposed adoption, amendment, or repeal of a rule or regulation being contemplated by the state board or a district.
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152-(d) This section does not apply to either of the following:
150+(3) Third-party contractor means a third party with whom the state board or a district contracts, consistent with state and local laws, rules, and regulations, to conduct an assessment of socioeconomic impacts, or portion thereof, required pursuant to subdivision (a) of Section 40728.5.
153151
154-(1) The proposed adoption, amendment, or repeal of a rule or regulation that results in a less restrictive emissions limit if the proposed action does not interfere with the state boards adopted plan to attain ambient air quality standards or does not result in any significant increase in emissions.
152+(b) (1) This section outlines the minimum standards applicable to the state board or a district that is required to conduct an assessment of socioeconomic impacts required pursuant to subdivision (a) of Section 40728.5. Nothing in this section shall prohibit the state board or a district from creating additional requirements or imposing additional requirements on a third-party contractor relating to the assessment.
155153
156-(2) The proposed adoption, amendment, or repeal by the state board of a rule or regulation that has an economic impact of less than ten million dollars ($10,000,000).
157-
158-(e) For purposes of this chapter, socioeconomic impacts means all of the following:
159-
160-(1) The type of industry and business, including small business, affected by the rule or regulation proposed to be adopted, amended, or repealed.
161-
162-(2) The impact of the proposed adoption, amendment, or repeal of the rule or regulation on employment and the economy of the region affected by the proposed action.
163-
164-(3) The range of probable costs, including costs to industry and business, including small business, of the rule or regulation proposed to be adopted, amended, or repealed.
165-
166-(4) The availability and cost-effectiveness of alternatives to the rule or regulation proposed to be adopted, amended, or repealed.
167-
168-(5) The emissions reduction potential of the rule or regulation proposed to be adopted, amended, or repealed.
169-
170-(6) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).
171-
172-
173-
174-
175-
176-SEC. 3. Section 40728.9 is added to the Health and Safety Code, to read: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 or a district pursuant to subdivision (a) of Section 40728.5. 40728.7.(2) Proposed action means the proposed adoption, amendment, or repeal of a rule or regulation being contemplated by the state board or a district. board.(3) Third-party contractor means a third party with whom the state board or a district contracts, consistent with state and local laws, rules, and regulations, to conduct an assessment of socioeconomic impacts assessment, or portion thereof, required pursuant to subdivision (a) of Section 40728.5. thereof.(b) (1) This section outlines the minimum standards applicable to the state board or a district that when it is required to conduct an assessment of socioeconomic impacts required pursuant to subdivision (a) of Section 40728.5. 40728.7. Nothing in this section shall prohibit prohibits the state board or a district from creating additional requirements or imposing additional requirements on a third-party contractor relating to the an assessment. (2) Neither the The state board nor a district shall not approve an assessment pursuant to Section 40728.5 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 or a district from, applicable state or local laws, rules, or regulations relating to the ability or authority of the state board or a district 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 or a district may contract with a third-party contractor 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 contractors 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 or a district 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 contractors experience and key staffs 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 or a district for review.(D) A proposed budget for the assessment.(2) The state board or a district may disqualify a prospective third-party contractor if the state board or a district determines either of the following:(A) The prospective third-party contractors 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 or a district shall include, or require a third-party contractor with whom the state board or a district contracts to include, at a minimum, all of the following in the assessment:(1) All of the information and analysis required pursuant to subdivision (f) (e) of Section 40728.5. 40728.7.(2) (A) A description of the specific methodologies employed by the state board, a district, board or the third-party contractor to conduct the assessment.(B) The state board, a district, board and the third-party contractor shall comply with the Department of Finances 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 any racial, ethnic, or gender subgroup. 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, a district, 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 all economic and regulatory factors, including, but not limited to, relevant rules or regulations that have been enacted or are under active consideration by the state board or a district. 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 and local revenues, including corporate, personal, sales, and property tax revenues. revenues.(5) A hyperlink or 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, a district, 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, a district, 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 local statewide market conditions.(5) If there is uncertainty regarding the estimate, indicate 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)(A)If the proposed action will require significant expenditures by affected entities, include an estimate of the impacts of the proposed action on affected entities' profits and cash flows.(B)In developing the estimate required pursuant to subparagraph (A), the state board, a district, or a third-party contractor shall do all of the following:(i)Estimate the impacts on the affected entities profits and cash flows over a multiple-year period, as necessary, to capture the proposed actions impacts over time.(ii)Include information regarding sources and costs of financing for necessary equipment and infrastructure investments.(iii)Consider whether installation of necessary equipment and infrastructure will significantly disrupt the output of affected entities and, if so, the impacts of those disruptions on the marketplace. (7)(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 individuals or are passed on to others, including, but not limited to, customers, employees, suppliers, and owners. including customers and employees.(8)(7) Take into account specific market conditions for the industry and the location where the proposed action will have an impact, including, but not limited to, the degree of competition from outside suppliers, price elasticity of demand for products and services provided by the affected entities, and labor market conditions specific to the types of occupations that would be impacted by job cutbacks or increases associated with the proposed action.(9)(8) Estimate direct, indirect, and induced impacts within the region impacted by the proposed action of both the cost of the proposed action on affected entities and, if relevant, the cost-shifting that is assumed to occur, including, but not limited to, the impacts on consumer prices, employment, wages, household discretionary income of employees and consumers by income level, consumer spending, and output in the region affected by the proposed action. 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.
177-
178-SEC. 3. Section 40728.9 is added to the Health and Safety Code, to read:
179-
180-### SEC. 3.
181-
182-40728.9. (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 or a district pursuant to subdivision (a) of Section 40728.5. 40728.7.(2) Proposed action means the proposed adoption, amendment, or repeal of a rule or regulation being contemplated by the state board or a district. board.(3) Third-party contractor means a third party with whom the state board or a district contracts, consistent with state and local laws, rules, and regulations, to conduct an assessment of socioeconomic impacts assessment, or portion thereof, required pursuant to subdivision (a) of Section 40728.5. thereof.(b) (1) This section outlines the minimum standards applicable to the state board or a district that when it is required to conduct an assessment of socioeconomic impacts required pursuant to subdivision (a) of Section 40728.5. 40728.7. Nothing in this section shall prohibit prohibits the state board or a district from creating additional requirements or imposing additional requirements on a third-party contractor relating to the an assessment. (2) Neither the The state board nor a district shall not approve an assessment pursuant to Section 40728.5 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 or a district from, applicable state or local laws, rules, or regulations relating to the ability or authority of the state board or a district 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 or a district may contract with a third-party contractor 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 contractors 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 or a district 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 contractors experience and key staffs 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 or a district for review.(D) A proposed budget for the assessment.(2) The state board or a district may disqualify a prospective third-party contractor if the state board or a district determines either of the following:(A) The prospective third-party contractors 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 or a district shall include, or require a third-party contractor with whom the state board or a district contracts to include, at a minimum, all of the following in the assessment:(1) All of the information and analysis required pursuant to subdivision (f) (e) of Section 40728.5. 40728.7.(2) (A) A description of the specific methodologies employed by the state board, a district, board or the third-party contractor to conduct the assessment.(B) The state board, a district, board and the third-party contractor shall comply with the Department of Finances 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 any racial, ethnic, or gender subgroup. 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, a district, 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 all economic and regulatory factors, including, but not limited to, relevant rules or regulations that have been enacted or are under active consideration by the state board or a district. 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 and local revenues, including corporate, personal, sales, and property tax revenues. revenues.(5) A hyperlink or 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, a district, 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, a district, 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 local statewide market conditions.(5) If there is uncertainty regarding the estimate, indicate 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)(A)If the proposed action will require significant expenditures by affected entities, include an estimate of the impacts of the proposed action on affected entities' profits and cash flows.(B)In developing the estimate required pursuant to subparagraph (A), the state board, a district, or a third-party contractor shall do all of the following:(i)Estimate the impacts on the affected entities profits and cash flows over a multiple-year period, as necessary, to capture the proposed actions impacts over time.(ii)Include information regarding sources and costs of financing for necessary equipment and infrastructure investments.(iii)Consider whether installation of necessary equipment and infrastructure will significantly disrupt the output of affected entities and, if so, the impacts of those disruptions on the marketplace. (7)(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 individuals or are passed on to others, including, but not limited to, customers, employees, suppliers, and owners. including customers and employees.(8)(7) Take into account specific market conditions for the industry and the location where the proposed action will have an impact, including, but not limited to, the degree of competition from outside suppliers, price elasticity of demand for products and services provided by the affected entities, and labor market conditions specific to the types of occupations that would be impacted by job cutbacks or increases associated with the proposed action.(9)(8) Estimate direct, indirect, and induced impacts within the region impacted by the proposed action of both the cost of the proposed action on affected entities and, if relevant, the cost-shifting that is assumed to occur, including, but not limited to, the impacts on consumer prices, employment, wages, household discretionary income of employees and consumers by income level, consumer spending, and output in the region affected by the proposed action. 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.
183-
184-40728.9. (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 or a district pursuant to subdivision (a) of Section 40728.5. 40728.7.(2) Proposed action means the proposed adoption, amendment, or repeal of a rule or regulation being contemplated by the state board or a district. board.(3) Third-party contractor means a third party with whom the state board or a district contracts, consistent with state and local laws, rules, and regulations, to conduct an assessment of socioeconomic impacts assessment, or portion thereof, required pursuant to subdivision (a) of Section 40728.5. thereof.(b) (1) This section outlines the minimum standards applicable to the state board or a district that when it is required to conduct an assessment of socioeconomic impacts required pursuant to subdivision (a) of Section 40728.5. 40728.7. Nothing in this section shall prohibit prohibits the state board or a district from creating additional requirements or imposing additional requirements on a third-party contractor relating to the an assessment. (2) Neither the The state board nor a district shall not approve an assessment pursuant to Section 40728.5 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 or a district from, applicable state or local laws, rules, or regulations relating to the ability or authority of the state board or a district 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 or a district may contract with a third-party contractor 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 contractors 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 or a district 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 contractors experience and key staffs 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 or a district for review.(D) A proposed budget for the assessment.(2) The state board or a district may disqualify a prospective third-party contractor if the state board or a district determines either of the following:(A) The prospective third-party contractors 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 or a district shall include, or require a third-party contractor with whom the state board or a district contracts to include, at a minimum, all of the following in the assessment:(1) All of the information and analysis required pursuant to subdivision (f) (e) of Section 40728.5. 40728.7.(2) (A) A description of the specific methodologies employed by the state board, a district, board or the third-party contractor to conduct the assessment.(B) The state board, a district, board and the third-party contractor shall comply with the Department of Finances 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 any racial, ethnic, or gender subgroup. 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, a district, 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 all economic and regulatory factors, including, but not limited to, relevant rules or regulations that have been enacted or are under active consideration by the state board or a district. 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 and local revenues, including corporate, personal, sales, and property tax revenues. revenues.(5) A hyperlink or 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, a district, 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, a district, 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 local statewide market conditions.(5) If there is uncertainty regarding the estimate, indicate 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)(A)If the proposed action will require significant expenditures by affected entities, include an estimate of the impacts of the proposed action on affected entities' profits and cash flows.(B)In developing the estimate required pursuant to subparagraph (A), the state board, a district, or a third-party contractor shall do all of the following:(i)Estimate the impacts on the affected entities profits and cash flows over a multiple-year period, as necessary, to capture the proposed actions impacts over time.(ii)Include information regarding sources and costs of financing for necessary equipment and infrastructure investments.(iii)Consider whether installation of necessary equipment and infrastructure will significantly disrupt the output of affected entities and, if so, the impacts of those disruptions on the marketplace. (7)(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 individuals or are passed on to others, including, but not limited to, customers, employees, suppliers, and owners. including customers and employees.(8)(7) Take into account specific market conditions for the industry and the location where the proposed action will have an impact, including, but not limited to, the degree of competition from outside suppliers, price elasticity of demand for products and services provided by the affected entities, and labor market conditions specific to the types of occupations that would be impacted by job cutbacks or increases associated with the proposed action.(9)(8) Estimate direct, indirect, and induced impacts within the region impacted by the proposed action of both the cost of the proposed action on affected entities and, if relevant, the cost-shifting that is assumed to occur, including, but not limited to, the impacts on consumer prices, employment, wages, household discretionary income of employees and consumers by income level, consumer spending, and output in the region affected by the proposed action. 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.
185-
186-40728.9. (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 or a district pursuant to subdivision (a) of Section 40728.5. 40728.7.(2) Proposed action means the proposed adoption, amendment, or repeal of a rule or regulation being contemplated by the state board or a district. board.(3) Third-party contractor means a third party with whom the state board or a district contracts, consistent with state and local laws, rules, and regulations, to conduct an assessment of socioeconomic impacts assessment, or portion thereof, required pursuant to subdivision (a) of Section 40728.5. thereof.(b) (1) This section outlines the minimum standards applicable to the state board or a district that when it is required to conduct an assessment of socioeconomic impacts required pursuant to subdivision (a) of Section 40728.5. 40728.7. Nothing in this section shall prohibit prohibits the state board or a district from creating additional requirements or imposing additional requirements on a third-party contractor relating to the an assessment. (2) Neither the The state board nor a district shall not approve an assessment pursuant to Section 40728.5 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 or a district from, applicable state or local laws, rules, or regulations relating to the ability or authority of the state board or a district 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 or a district may contract with a third-party contractor 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 contractors 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 or a district 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 contractors experience and key staffs 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 or a district for review.(D) A proposed budget for the assessment.(2) The state board or a district may disqualify a prospective third-party contractor if the state board or a district determines either of the following:(A) The prospective third-party contractors 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 or a district shall include, or require a third-party contractor with whom the state board or a district contracts to include, at a minimum, all of the following in the assessment:(1) All of the information and analysis required pursuant to subdivision (f) (e) of Section 40728.5. 40728.7.(2) (A) A description of the specific methodologies employed by the state board, a district, board or the third-party contractor to conduct the assessment.(B) The state board, a district, board and the third-party contractor shall comply with the Department of Finances 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 any racial, ethnic, or gender subgroup. 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, a district, 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 all economic and regulatory factors, including, but not limited to, relevant rules or regulations that have been enacted or are under active consideration by the state board or a district. 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 and local revenues, including corporate, personal, sales, and property tax revenues. revenues.(5) A hyperlink or 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, a district, 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, a district, 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 local statewide market conditions.(5) If there is uncertainty regarding the estimate, indicate 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)(A)If the proposed action will require significant expenditures by affected entities, include an estimate of the impacts of the proposed action on affected entities' profits and cash flows.(B)In developing the estimate required pursuant to subparagraph (A), the state board, a district, or a third-party contractor shall do all of the following:(i)Estimate the impacts on the affected entities profits and cash flows over a multiple-year period, as necessary, to capture the proposed actions impacts over time.(ii)Include information regarding sources and costs of financing for necessary equipment and infrastructure investments.(iii)Consider whether installation of necessary equipment and infrastructure will significantly disrupt the output of affected entities and, if so, the impacts of those disruptions on the marketplace. (7)(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 individuals or are passed on to others, including, but not limited to, customers, employees, suppliers, and owners. including customers and employees.(8)(7) Take into account specific market conditions for the industry and the location where the proposed action will have an impact, including, but not limited to, the degree of competition from outside suppliers, price elasticity of demand for products and services provided by the affected entities, and labor market conditions specific to the types of occupations that would be impacted by job cutbacks or increases associated with the proposed action.(9)(8) Estimate direct, indirect, and induced impacts within the region impacted by the proposed action of both the cost of the proposed action on affected entities and, if relevant, the cost-shifting that is assumed to occur, including, but not limited to, the impacts on consumer prices, employment, wages, household discretionary income of employees and consumers by income level, consumer spending, and output in the region affected by the proposed action. 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.
187-
188-
189-
190-40728.9. (a) For purposes of this section, the following terms have the following meanings:
191-
192-(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 or a district pursuant to subdivision (a) of Section 40728.5. 40728.7.
193-
194-(2) Proposed action means the proposed adoption, amendment, or repeal of a rule or regulation being contemplated by the state board or a district. board.
195-
196-(3) Third-party contractor means a third party with whom the state board or a district contracts, consistent with state and local laws, rules, and regulations, to conduct an assessment of socioeconomic impacts assessment, or portion thereof, required pursuant to subdivision (a) of Section 40728.5. thereof.
197-
198-(b) (1) This section outlines the minimum standards applicable to the state board or a district that when it is required to conduct an assessment of socioeconomic impacts required pursuant to subdivision (a) of Section 40728.5. 40728.7. Nothing in this section shall prohibit prohibits the state board or a district from creating additional requirements or imposing additional requirements on a third-party contractor relating to the an assessment.
199-
200-(2) Neither the The state board nor a district shall not approve an assessment pursuant to Section 40728.5 40728.7 if the assessment does not comply with the requirements of this section.
154+(2) Neither the state board nor a district shall approve an assessment pursuant to Section 40728.5 if the assessment does not comply with the requirements of this section.
201155
202156 (3) Nothing in this section shall be construed to supersede, modify, or otherwise affect, or exempt the state board or a district from, applicable state or local laws, rules, or regulations relating to the ability or authority of the state board or a district 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).
203157
204-(c) (1) A state board or a district may contract with a third-party contractor 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 contractors proposal for the assessment:
158+(c) (1) A state board or a district may contract with a third-party contractor 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 contractors proposal for the assessment:
205159
206160 (A) A conflicts statement that includes both of the following:
207161
208162 (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.
209163
210164 (ii) All financial, personal, or familial relationships of any person employed by the prospective third-party contractor with either of the following:
211165
212166 (I) An employee of the state board or a district that holds a designated position listed in Appendix A of Section 95000 of Title 17 of the Code of Regulations.
213167
214168 (II) An executive officer of any business or corporation that could potentially be directly impacted by the proposed action.
215169
216170 (B) A statement of the prospective third-party contractors experience and key staffs 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:
217171
218172 (i) A list of socioeconomic impact studies or similar studies conducted by the prospective third-party contractor in the last five years.
219173
220174 (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.
221175
222176 (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 or a district for review.
223177
224178 (D) A proposed budget for the assessment.
225179
226180 (2) The state board or a district may disqualify a prospective third-party contractor if the state board or a district determines either of the following:
227181
228182 (A) The prospective third-party contractors 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.
229183
230184 (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.
231185
232186 (d) The state board or a district shall include, or require a third-party contractor with whom the state board or a district contracts to include, at a minimum, all of the following in the assessment:
233187
234-(1) All of the information and analysis required pursuant to subdivision (f) (e) of Section 40728.5. 40728.7.
188+(1) All of the information and analysis required pursuant to subdivision (f) of Section 40728.5.
235189
236-(2) (A) A description of the specific methodologies employed by the state board, a district, board or the third-party contractor to conduct the assessment.
190+(2) (A) A description of the specific methodologies employed by the state board, a district, or the third-party contractor to conduct the assessment.
237191
238-(B) The state board, a district, board and the third-party contractor shall comply with the Department of Finances 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.
192+(B) The state board, a district, and the third-party contractor shall comply with the Department of Finances 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.
239193
240-(3) An analysis of the disproportionate impact, if any, of the proposed action on any racial, ethnic, or gender subgroup. 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, a district, board or the third-party contractor shall describe the basis for its conclusion that there is no disproportionate impact.
194+(3) An analysis of the disproportionate impact, if any, of the proposed action on any racial, ethnic, or gender subgroup. If no disproportionate impact is identified, the state board, a district, or the third-party contractor shall describe the basis for its conclusion that there is no disproportionate impact.
241195
242196 (4) An econometric analysis that includes all of the following:
243197
244-(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 all economic and regulatory factors, including, but not limited to, relevant rules or regulations that have been enacted or are under active consideration by the state board or a district. factors based on data available to the state board.
198+(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 all economic and regulatory factors, including, but not limited to, relevant rules or regulations that have been enacted or are under active consideration by the state board or a district.
245199
246200 (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.
247201
248202 (C) An estimate of the impacts of the proposed action on the baseline estimate developed pursuant to subparagraph (A).
249203
250-(D) An estimate of the impact that the proposed action will have on state and local revenues, including corporate, personal, sales, and property tax revenues. revenues.
204+(D) An estimate of the impact that the proposed action will have on state and local revenues, including corporate, personal, sales, and property tax revenues.
251205
252206 (5) A hyperlink or citation to each data source relied on in the assessment so that any person can view the original data source.
253207
254208 (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.
255209
256210 (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.
257211
258-(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, a district, board or the third-party contractor documents all inputs.
212+(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, a district, or the third-party contractor documents all inputs.
259213
260-(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, a district, board or the third-party contractor shall do all of the following:
214+(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, a district, or the third-party contractor shall do all of the following:
261215
262216 (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.
263217
264218 (2) Identify the basis for each component of the estimate.
265219
266220 (3) Consider input from entities affected by the proposed action in developing the estimate.
267221
268-(4) Ensure that the estimate reflects local statewide market conditions.
222+(4) Ensure that the estimate reflects local market conditions.
269223
270-(5) If there is uncertainty regarding the estimate, indicate 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.
224+(5) If there is uncertainty regarding the estimate, indicate 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.
271225
272226 (6) (A) If the proposed action will require significant expenditures by affected entities, include an estimate of the impacts of the proposed action on affected entities' profits and cash flows.
273227
274-
275-
276228 (B) In developing the estimate required pursuant to subparagraph (A), the state board, a district, or a third-party contractor shall do all of the following:
277-
278-
279229
280230 (i) Estimate the impacts on the affected entities profits and cash flows over a multiple-year period, as necessary, to capture the proposed actions impacts over time.
281231
282-
283-
284232 (ii) Include information regarding sources and costs of financing for necessary equipment and infrastructure investments.
285-
286-
287233
288234 (iii) Consider whether installation of necessary equipment and infrastructure will significantly disrupt the output of affected entities and, if so, the impacts of those disruptions on the marketplace.
289235
236+(7) 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 individuals or are passed on to others, including, but not limited to, customers, employees, suppliers, and owners.
290237
238+(8) Take into account specific market conditions for the industry and the location where the proposed action will have an impact, including, but not limited to, the degree of competition from outside suppliers, price elasticity of demand for products and services provided by the affected entities, and labor market conditions specific to the types of occupations that would be impacted by job cutbacks or increases associated with the proposed action.
291239
292-(7)
293-
294-
295-
296-(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 individuals or are passed on to others, including, but not limited to, customers, employees, suppliers, and owners. including customers and employees.
297-
298-(8)
299-
300-
301-
302-(7) Take into account specific market conditions for the industry and the location where the proposed action will have an impact, including, but not limited to, the degree of competition from outside suppliers, price elasticity of demand for products and services provided by the affected entities, and labor market conditions specific to the types of occupations that would be impacted by job cutbacks or increases associated with the proposed action.
303-
304-(9)
305-
306-
307-
308-(8) Estimate direct, indirect, and induced impacts within the region impacted by the proposed action of both the cost of the proposed action on affected entities and, if relevant, the cost-shifting that is assumed to occur, including, but not limited to, the impacts on consumer prices, employment, wages, household discretionary income of employees and consumers by income level, consumer spending, and output in the region affected by the proposed action. on consumers by income level.
240+(9) Estimate direct, indirect, and induced impacts within the region impacted by the proposed action of both the cost of the proposed action on affected entities and, if relevant, the cost-shifting that is assumed to occur, including, but not limited to, the impacts on consumer prices, employment, wages, household discretionary income of employees and consumers by income level, consumer spending, and output in the region affected by the proposed action.
309241
310242 (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.
311243
312-SEC. 3.SEC. 4. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
244+SEC. 3. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
313245
314-SEC. 3.SEC. 4. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
246+SEC. 3. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
315247
316-SEC. 3.SEC. 4. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
248+SEC. 3. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
317249
318-### SEC. 3.SEC. 4.
250+### SEC. 3.