Cal. Code Regs. tit. 14 § 18797.2

Current through Register 2024 Notice Reg. No. 49, December 6, 2024
Section 18797.2 - Adjustment Factor Sources

A jurisdiction shall perform the adjustment method using adjustment factor sources as follows:

(a) A jurisdiction shall use the following sources for factor numbers for any given calendar year:
(1) Employment as reported by the California Employment Development Department:

* countywide labor force employment, or

* countywide industry employment, or

* countywide industry employment for the non-residential adjustment factor, and countywide labor force employment for the residential adjustment factor.

(2) Population as reported by the California Department of Finance:

* countywide population, or

* jurisdiction population.

(3) Inflation as represented by the Consumer Price Index reported by the California Department of Industrial Relations:

* statewide Consumer Price Index, or

* metropolitan area Consumer Price Index.

(4) Taxable Sales as reported by the California State Board of Equalization:

* countywide Taxable Sales, or

* jurisdiction Taxable Sales.

(b) Notwithstanding subdivision (a) of this section, if a jurisdiction believes that any of the adjustment factor numbers do not validly represent the jurisdiction's population and/or economy, a jurisdiction may instead perform the adjustment method using one or more countywide or jurisdiction factor numbers from other sources, if the following conditions are met:
(1) A jurisdiction shall select a scientifically reliable, third party source for each of the jurisdiction-supplied adjustment factor numbers used. Possible sources include, but are not limited to, studies by the U.S. Census, State Agencies, Regional Councils of Government, Municipal Chambers of Commerce, accredited Universities or Colleges, or professionally recognized consultants in the field of economics, geography, or demographics. A jurisdiction shall submit a copy of each source document used to the Board at the time of the annual report.
(2) For each factor, the jurisdiction shall use the same source for both the base-year factor number and the reporting-year factor number when performing the calculations. If a base-year factor number for employment is not available, and the factor number for the year following the base-year reflects increased or no employment growth since the base-year, then the factor number for the year following the base-year may be used for the base-year factor number. A jurisdiction shall substantiate increased or no employment growth since the base-year with corroborative data from at least one scientifically reliable, third party source as described in subdivision (b)(1) of this section. A jurisdiction shall submit a copy of each source document used for the corroborative data to the Board at the time of the annual report.
(3) Board approval of the use of alternative sources. In reviewing alternative sources, the Board shall consider any jurisdiction-supplied adjustment factor numbers and sources to determine if they meet the requirements of subdivisions (b)(1) and (b)(2) of this section. If the Board disapproves any adjustment factor numbers and/or sources, a jurisdiction may choose other factor numbers and/or sources for Board consideration.

Cal. Code Regs. Tit. 14, § 18797.2

1. Renumbering of former section 18829 to section 18797.2 filed 6-5-96 as an emergency; operative 6-5-96 (Register 96, No. 23). A Certificate of Compliance must be transmitted to OAL by 9-27-96 or emergency language will be repealed by operation of law on the following day.
2. Renumbering of former section 18829 to section 18797.2 refiled 9-25-96 as an emergency; operative 10-3-96 (Register 96, No. 39). A Certificate of Compliance must be transmitted to OAL by 1-31-97 or emergency language will be repealed by operation of law on the following day.
3. Editorial correction restoring inadvertently omitted subsection (a)(2) (Register 97, No. 3).
4. Certificate of Compliance as to 9-25-96 order transmitted to OAL 11-27-96 and filed 1-13-97 (Register 97, No. 3).
5. Amendment filed 9-21-2005; operative 1-1-2006 (Register 2005, No. 38).

Note: Authority cited: Sections 40502 and 41780.1, Public Resources Code. Reference: Sections 41780.1, 41780.2, 41781 and 41821, Public Resources Code.

1. Renumbering of former section 18829 to section 18797.2 filed 6-5-96 as an emergency; operative 6-5-96 (Register 96, No. 23). A Certificate of Compliance must be transmitted to OAL by 9-27-96 or emergency language will be repealed by operation of law on the following day.
2. Renumbering of former section 18829 to section 18797.2 refiled 9-25-96 as an emergency; operative 10-3-96 (Register 96, No. 39). A Certificate of Compliance must be transmitted to OAL by 1-31-97 or emergency language will be repealed by operation of law on the following day.
3. Editorial correction restoring inadvertently omitted subsection (a)(2) (Register 97, No. 3).
4. Certificate of Compliance as to 9-25-96 order transmitted to OAL 11-27-96 and filed 1-13-97 (Register 97, No. 3).
5. Amendment filed 9-21-2005; operative 1-1-2006 (Register 2005, No. 38).