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
          
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          |Version: May 20, 2015           |Policy Vote: G.O. 10 - 2        |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 17, 2015   |Consultant: Mark McKenzie       |
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          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  







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          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  








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          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  








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          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.


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