BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 532 (McCarty) - State agencies: collection of data: race or ethnic origin ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: May 20, 2015 |Policy Vote: G.O. 10 - 2 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 17, 2015 |Consultant: Mark McKenzie | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 532 would require state entities that collect demographic information on ethnicity and race to provide forms that offer respondents the option of identifying as multiracial and to select one or more ethnic or racial designations, by January 1, 2022. Fiscal Impact: Unknown, but significant overall costs to comply with the bill's mandates. Many state entities report minor and absorbable costs to comply by 2022, and many others are unaffected by the bill because they don't collect demographic data. The following AB 532 (McCarty) Page 1 of ? entities that provided information would have significant costs: The Employment Development Department (EDD) estimates costs of up to $6.5 million (General Fund) to reprogram the Unemployment Insurance program's Single Client Database and the Workforce Services CalJOBS systems. EDD identified over 600 programs that would need updates, and the CalJOBS system would need to be updated through vendor contracts. Some of these costs could be mitigated to the extent they are made in conjunction with other updates between now and 2022, although none are planned at this time. The Department of Human Resources and the State Personnel Board (CalHR) estimates costs in the range of $250,000 (General Fund), primarily associated with programming duties to update systems. The Administrative Office of the Courts (Judicial Council) indicates that several of the mandated duties of the courts require the collection of demographic data. Some of these procedures either currently allow for multiple racial or ethnic designations, or could be updated in the normal course of business by 2022. Courts also collect race data on criminal defendants through case management systems, most of which offer the option to identify as "multiracial" or "other," but not to select more than one designation. Costs to update 58 separate case management systems are unknown, but likely significant. (Trial Court Trust Fund) Background: Existing state law requires state agencies, boards, or commissions that directly or by contract collect demographic data as to the ancestry or ethnic origin of Californians to use separate collection categories for each major Asian and Pacific Islander group, as specified. Existing federal regulations require federal agencies to ensure respondents have the option of selecting one or more ethnic or racial designations on federal government forms requesting such information. [Standards for Maintaining, Collecting, and Presenting Federal Data on Race and Ethnicity (62 FR 58782-58790)] There is no current requirement in state law for agencies to provide respondents with an option to identify as multiracial or AB 532 (McCarty) Page 2 of ? to indicate more than one racial or ethnic designation. Proposed Law: AB 532 would require any state agency, board, or commission that collects demographic data on ethnic origin, ethnicity, or race to provide forms that offer respondents the option of identifying as multiracial and selecting one or more ethnic or racial designations. The bill would require data on race or ethnicity that is reported to other state agencies, boards, or commissions to be tabulated and reported with all of the following: The number or percentage of respondents who identify with each ethnic or racial designation alone and not in combination with other racial or ethnic designations. The number or percentage of respondents who identify with each ethnic or racial designation, whether alone or in combination with other racial or ethnic designations. The number or percentage of respondents who identify with multiple ethnic or racial designations. The data must be reported and tabulated in compliance with specified federal rules in cases of state or federally mandated actions related to an ethnic or racial community, or in assessing disparate impact or discriminatory patterns. Each affected state agency, board, and commission must comply as early as reasonably feasible, and no later than January 1, 2022. State entities that collect demographic data from a local agency would be authorized to continue to collect and report that data in the form that the data is submitted. Related Legislation: Both SB 26 (Simitian), which was held on the Assembly Appropriations Suspense File in 2007, and SB 1615 (Simitian), which was held on this Committee's Suspense File in 2006, contained provisions that were nearly identical to this bill. A key distinction between this bill and previous versions is that this bill requires agencies to provide the option of identifying as multiracial and selecting one or more ethnic or racial designations, while the previous versions did not require forms to include the added field of multiracial but did require AB 532 (McCarty) Page 3 of ? the selection of one or more designation. Staff Comments: There are over 200 state departments, boards, commissions and agencies in state government. Many departments and agencies do not collect racial or ethnic data, and would therefore be unaffected by this bill. Some others currently offer the option to collect more than one racial or ethnic designation on forms that collect demographic information, and would also be unaffected by the bill, while others are able to comply by 2022, as specified in the bill. Several entities reported significant costs, as noted above, and some others that are likely to collect demographic information, such as the Department of Public Health and the Department of Social Services, were unable to provide information for purposes of this analysis. Overall state costs are unknown, but likely in the millions of dollars over several fiscal years. -- END --