AAV of Item 12 Attachment 4

This page is the Accessible Alternative Version (AAV) of Item 12 Attachment 4 from the California State Board of Education (SBE) Meeting Agenda for July 2017. The scanned Item 12 Attachment 4 (PDF) version is considered to be the official version of the document.

Economic and Fiscal Impact Statement

(REGULATIONS AND ORDERS). User entries from the STD. 399 (REV. 12/2013) Form.

Department Name: California Department of Education

Contact Person: Carolyn Nealon

E-mail Address: cnealon@cde.ca.gov

Telephone Number: 916-319-0658

Descriptive Title From Notice Register Or From 400: Curriculum Frameworks & Instructional Resources Division (CFIRD) Instructional Materials Adoptions

Notice File Number: Z

Economic Impact Statement

Section A. ESTIMATED PRIVATE SECTOR COST IMPACTS (Include calculations and assumptions in the rulemaking record.)

Section A.1. Check the appropriate box(es) below to indicate whether this regulation:

• Selected option is A: Impacts business and/or employees

If any box in Items 1a through g is checked, complete this Economic Impact Statement. If box in Item 1h is checked, complete the Fiscal Impact Statement as appropriate.

Section A.2. The California Department of Education estimates that the economic impact of this regulation (which includes the fiscal impact) is:

• Selected option is Below $10 million.

(If the economic impact is over $50 million, agencies are required to submit a Standardized Regulatory Impact Assessment as specified in Government Code Section 11346.3(c))

Section A.3. Enter the total number of businesses impacted: answer is, Varies (see D-2)

• Describe the types of businesses (include non-profits): entry is Textbook publishers

Section A.4. Enter the number of businesses that will be created: entry is 0, eliminated: entry is 0

Section A.5. Indicate the geographic extent of impacts:

• Selected option is Statewide

Section A.6. Enter the number of jobs created: entry is 0, and eliminated: entry is 0

Section A.7. Will the regulation affect the ability of California businesses to compete with other states by making it more costly to produce goods or services here?

• Selected answer is No

Section B. ESTIMATED COSTS (Include calculations and assumptions in the rulemaking record.)

Section B.1. What are the total statewide dollar costs that businesss and individuals may incur to comply with this regulation over its lifetime? entry is $2-3 million

Section B.1.A. Initial costs for a small business: entry is $0; Annual ongoing costs: entry is $0; Years: entry is 8

Section B.1.B. Initial costs for a typical business: entry is Vary - $8K/grade and program; Annual ongoing costs: entry is $8K/grade and program; Years: entry is 8

Section B.1.C. Initial costs for an individual: entry is $0; Annual ongoing costs: entry is 0; Years: entry is 8

Section B.1.D. Describe other economic costs that may occur:

• Entry is - Instructional materials are to be adopted at least once every eight years in each of the seven content areas. The statewide cost of these regulations assumes one complete adoption cycle, though there is no sunset date in the regulations.

Section B.4. Will this regulation directly impact housing costs?

• Selected answer is No

Section B.5. Are there comparable Federal regulations?

• Selected answer is No

Section C. ESTIMATED BENEFITS (Estimation of the dollar value of benefits is not specifically required by rulemaking law, but encouraged.)

Section C.1. Briefly summarize the benefits of the regulation, which may include among others, the health and welfare of California residents, worker safety and the State's environment:

• Answer is: Regulations establish a uniform publisher fee methodolgy; providing the necessary resources to support the timely adoption of accurate, up-to-date and relevant instructional materials.

Section C.2. Are the benefits the result of specific statutory requirements or goals developed by the agency based on broad statutory authority? Explain.

• Selected option is: specific statutory requirements

Section C.3. What are the total statewide benefits from this regulation over its lifetime?

• Entry is: see C1

Section D. ALTERNATIVES TO THE REGULATION (Include calculations and assumptions in the rulemaking record. Estimation of the dollar value of benefits is not specifically required by rulemaking law, but encouraged.)

Section D.1. List alternatives considered and describe them below. If no alternatives were considered, explain why not:

• Anser is: No alternatives were anaylzed; fee is based on historical costs of instructional materials adoptions. Statutory changes prohibit future use of general fund revenues to support adoptions.

Section D.2. Summarize the total statewide costs and benefits from this regulation and each alternative considered:

• Regulation Benefit: see C1; Regulation Cost: $2-3 million

Section D.4. Rulemaking law requires agencies to consider performance standards as an alternative, if a regulation mandates the use of specific technologies or equipment, or prescribes specific actions or procedures. Were performance standards considered to lower compliance costs?

• Entry in the Explain field is N/A

Section E. MAJOR REGULATIONS (Include calculations and assumptions in the rulemaking record.)

California Environmental Protection Agency (Cal/EPA) boards, offices and departments are required to submit the following (per Health and Safety Code section 57005). Otherwise, skip to E4.

Section E.1. Will the estimated costs of this regulation to California business enterprise exceed $10 million?

• Selected answer is No. (If YES, complete E2 and E3. If NO, skip to E4)

Section E.4. Will the regulation subject to OAL review have an estimated economic impact to business enterprises and individuals located in or doing business in California exceeding $50 million in any 12-month period between the date the major regulation is estimated to be filed with the Secretary of State through12 months after the major regulation is estimated to be fully implemented?

• Entered answer is No. (If YES, agencies are required to submit a Standardized Regulatory Impact Assessment (SRIA) as specified in Government Code Section 11346.3(c) and to include the SRIA in the Initial Statement of Reasons.)

Section E.5. Briefly describe the following -- The benefits of the regulations, including, but not limited to, benefits to the health, safety, and welfare of California residents, worker safety, and the state's environment and quality of life, among any other benefits identified by the agency:

• Answer is: Ensures adequate resources to support the timely adoption of accurate, up-to-date and relevant instructional materials in public schools.

Fiscal Impact Statement

Section A. FISCAL EFFECT ON LOCAL GOVERNMENT (Indicate appropriate boxes1 through 6 and attach calculations and assumptions of fiscal impact for the current year and two subsequent Fiscal Years.)

• Selected option is 5: No fiscal impact exists. This regulation does not affect any local entity or program.

Section B. FISCAL EFFECT ON STATE GOVERNMENT (Indicate appropriate boxes 1 through 4 and attach calculations and assumptions of fiscal impact for the current year and two subsequent Fiscal Years.)

• Selected option is 1: Additional expenditures in the current State Fiscal Year. (Approximate). Entry is $320K - $370K
• It is anticipated that State agencies will -- Selected option is 1.b. Increase the currently authorized budget level for the Fiscal Year. Entry is 2017-18 through 2024-25 Fiscal Year.

Section C. FISCAL EFFECT ON FEDERAL FUNDING OF STATE PROGRAMS (Indicate appropriate boxes1 through 4 and attach calculations and assumptions of fiscal impact for the current year and two subsequent Fiscal Years.)

• Selected option is 3: No fiscal impact exists. This regulation does not affect any federally funded State agency or program.

Fiscal Officer Signature: Signed by Carolyn Nealon dated June 12, 2017

The signature attests that the agency has completed the STD. 399 according to the instructions in the State Administrative Manual (SAM) sections 6601-6616, and understands the impacts of the proposed rulemaking. State boards, offices, or department not under an Agency Secretary must have the form signed by the highest ranking official in the organization.

Agency Secretary: Contains signature dated June 19, 2017

Finance approval and signature is required when SAM sections 6601-6616 require completion of Fiscal Impact Statement in the STD. 399.

Department of Finance Program Budget Manager: No signature.