Existing law creates, within the Government Operations Agency, a Chief Equity Officer, who is appointed by, and serves at the pleasure of, the Governor. Existing law requires the Chief Equity Officer to improve equity and inclusion throughout state government operations and authorizes the Chief Equity Officer to engage with state entities for these purposes.

This bill would require state agencies and departments, in carrying out their duties, to consider the use of more inclusive practices to advance equity, as specified.

Existing law creates, within the Government Operations Agency, a Chief Equity Officer, who is appointed by, and serves at the pleasure of, the Governor. Existing law requires the Chief Equity Officer to improve equity and inclusion throughout state government operations and authorizes the Chief Equity Officer to engage with state entities for these purposes.

This bill would require state agencies to ensure that their policies, allocation of resources, and systemic practices are equitable and would define various terms for this purpose. and departments, in carrying out their duties, to consider the use of more inclusive practices to advance equity, as specified.

Existing law creates, within the Government Operations Agency, a Chief Equity Officer, who is appointed by, and serves at the pleasure of, the Governor. Existing law requires the Chief Equity Officer to improve equity and inclusion throughout state government operations and authorizes the Chief Equity Officer to engage with state entities for these purposes.

This bill would require state agencies to ensure that their policies, allocation of resources, and systemic practices are equitable and would define various terms for this purpose.

Existing law creates, within the Government Operations Agency, a Chief Equity Officer, who is appointed by, and serves at the pleasure of, the Governor. Existing law requires the Chief Equity Officer to improve equity and inclusion throughout state government operations and authorizes the Chief Equity Officer to engage with state entities for these purposes.

This bill would state the intent of the Legislature to enact legislation to establish a statewide definition of equity require state agencies to ensure that legislation, their policies, allocation of resources, and systemic practices empower and meet the unique needs of diverse and underserved populations or ensure that communities facing the greatest inequities are not negatively affected or left behind in the allocation of resources in a fair and just way. are equitable and would define various terms for this purpose.

Existing law creates, within the Government Operations Agency, a Chief Equity Officer, who is appointed by, and serves at the pleasure of, the Governor. Existing law requires the Chief Equity Officer to improve equity and inclusion throughout state government operations and authorizes the Chief Equity Officer to engage with state entities for these purposes.

This bill would state the intent of the Legislature to enact legislation to establish a statewide definition of equity to ensure that legislation, policies, allocation of resources, and systemic practices empower and meet the unique needs of diverse and underserved populations or ensure that communities facing the greatest inequities are not negatively affected or left behind in the allocation of resources in a fair and just way.

 THIRD READING  

Bill No: AB 437

Author: Jackson (D)

Amended: 9/1/23 in Senate

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 10-3, 7/11/23

AYES: Dodd, Alvarado-Gil, Archuleta, Ashby, Bradford, Glazer, Padilla, Portantino, Roth, Rubio

NOES: Wilk, Jones, Seyarto

NO VOTE RECORDED: Grove, Ochoa Bogh

SENATE APPROPRIATIONS COMMITTEE: 5-2, 9/1/23

AYES: Portantino, Ashby, Bradford, Wahab, Wiener

NOES: Jones, Seyarto

ASSEMBLY FLOOR: 61-8, 5/25/23 - See last page for vote

SUBJECT: State government: equity

SOURCE: Author

DIGEST: This bill requires state agencies and departments, in carrying out their duties, to consider the use of more inclusive practices to advance equity, as specified.

ANALYSIS:

Existing law:

1. Creates, within the Government Operations Agency (GovOps), a Chief Equity Officer, who is appointed by, and serves at the pleasure of, the Governor. The Chief Equity Officer is required to improve equity and inclusion throughout state government operations and authorizes the Chief Equity Officer to engage with state entities for these purposes.
2. Requires, pursuant to Executive Order (EO) N-16-22, state agencies and departments to develop or update their strategic plans to reflect the use of data analysis and inclusive practices to more effectively advance equity and to respond to identified disparities with changes to the organization’s mission, vision, goals, data tools, policies, programs, operations, community engagement, tribal consultation policies and practices, and other actions necessary to serve all Californians.
3. Establishes the Office of Health Equity (OHE), in the State Department of Public Health (DPH), for purposes of aligning state resources, decision-making, and programs to accomplish certain goals related to health equity and protecting vulnerable communities.
4. Requires OHE to develop department-wide plans to close the gaps in health status and access to care among the state’s diverse racial and ethnic communities; women; persons with disabilities; and the lesbian, gay, bisexual, transgender, queer, and questioning communities, as specified.
5. Establishes the Strategic Growth Council (SGC) in state government, to among other things, identify and review activities and funding programs of state agencies that may be coordinated to improve air and water quality, improve natural resource protection, increase the availability of affordable housing, improve transportation, meet the goals of the California Global Warming Solutions Act of 2006, encourage sustainable land use planning, and revitalize urban and community centers in a sustainable manner, as specified.

This bill:

1. Requires, to the extent allowed by law, every state agency, in carrying out its duties under law, to consider the use of more inclusive practices to advance equity in the agency’s or department’s mission, vision, goals, data tools, policies, programs, operations, community engagement, tribal consultation policies and practices, and other actions as necessary to better serve all Californians.
2. Defines “equity” to mean addressing the disparities in opportunities and outcomes of undeserved populations, empowering and meeting the unique needs of diverse and undeserved populations, to ensure that communities facing the greatest inequities are not left behind, in a fair and just way.

Background

1. Author Statement. According to the author’s office, “to ensure that California is equitable for all of its diverse communities, it is imperative to define equity. The Golden State cannot chart a course to equity for all if there is no defined goal, and no way to empirically measure progress towards that goal. AB 437 will ensure that something as integral to good governance as equity is no longer left up to interpretation. It will also create guardrails for California in its mission to become the first truly equitable state.”
2. Executive Order N-16-22. On September 13, 2022, Governor Newsom issued EO N-16-22 directing state agencies to take additional steps to embed equity analysis and considerations in their mission, policies, and practices. Among other directives, the EO requires state agencies and departments to develop or update their strategic plans to reflect the use of data analysis and inclusive practices to more effectively advance equity and to respond to identified disparities with changes to the organization’s mission, vision, goals, data tools, policies, programs, operations, community engagement, tribal consultation policies and practices, and other actions necessary to serve all Californians.

The EO also required the Governor’s Office of Planning and Research to create a Racial Equity Commission (Commission) which was tasked with developing resources, best practices, and tools for advancing racial equity. The Commission is also required to develop a statewide Racial Equity Framework, which should include methodologies and tools that can be employed in California to advance racial equity and address structural racism. Upon request by a state agency, the Commission was tasked with providing technical assistance on implementing strategies for racial equity consistent with the framework.

The EO additionally requires the Commission to prepare an annual report, beginning on December 1, 2025, that summarizes feedback from public engagement with communities of color, provides data on racial inequities and disparities in the State, and recommends best practices on tools, methodologies, and opportunities to advance racial equity.

This bill builds upon goals of the EO by requiring state agencies to consider the use of more inclusive practices to advance equity in the agency’s mission, mission, goals, data tools, policies, programs, operations, community engagement, tribal consultation policies and practices, and other actions as necessary to better serve all Californians.

1. Presidential Order on Advancing Racial Equity and Support for Underserved Communities Through the Federal Government. On January 20, 2021, President Biden signed an executive order on Advancing Racial Equity and Support for Underserved Communities Through the Federal Government. The executive order states, in part, that:

“Equal opportunity is the bedrock of American democracy, and our diversity is one of our country’s greatest strengths. But for too many, the American Dream remains out of reach. Entrenched disparities in our laws and public policies, and in our public and private institutions, have often denied that equal opportunity to individuals and communities. Our country faces converging economic, health, and climate crises that have exposed and exacerbated inequities, while a historic movement for justice has highlighted the unbearable human costs of systemic racism. Our Nation deserves an ambitious whole-of-government equity agenda that matches the scale of the opportunities and challenges that we face.”

1. California Office of Health Equity. Existing law establishes the OHE, within DPH, in order to provide a leadership role in reducing health and mental health disparities experienced by vulnerable communities in California. AB 1467 (Committee on Budget, Chapter 23, Statutes of 2012) among other things, established the OHE as a consolidation of functions of the Office of Women’s Health at the Department of Health Care Services (DHCS); the Office of Multicultural Services at the Department of Mental Health (DMH); and, the Office of Multicultural Health, the California’s Health in All Policies (HiAP) Task Force, and the Healthy Places Team at DPH.

Specifically, OHE is required to assist in aligning state resources, decision-making, and programs to, among other things, achieve the highest level of health and mental health for all people, with special attention focused on those who have experienced socioeconomic disadvantage and historical injustice; work collaboratively with the HiAP Task Force to promote work to prevent injury and illness through improved social and environmental factors that promote health and mental health; advise and assist other state departments in their mission to increase access to, and the quality of, culturally and linguistically competent health and mental health care and services; and, improve the health status of all populations and places, with a priority on eliminating health and mental health disparities and inequities.

1. Capitol Collaborative on Race & Equity. In order to advance racial equity, the SGC works in collaboration with the Public Health Institute to support the Capitol Collaborative on Race & Equity (CCORE) – a racial equity capacity building program for California State employees. According to SGC’s internet website, “CCORE offers two cohorts for participants to receive training to learn about, plan for, and implement activities that embed racial equity approaches into institutional culture, policies, and practices. Teams of up to 16 State employees represent their affiliated state departments, agencies, and offices, participate in the curriculum, and contribute to advancing racial equity in their organization. The Learning Cohort is for State entities that do not yet have Racial Equity Action Plans and the Advanced Implementation Cohort supports state entities in implementing advanced actions and system changes for racial equity.”
2. How Have Other Jurisdictions Worked to Embed Equity? In August 2019, the California Research Bureau (CRB) released their results of a literature review on racial equity and organizational change. The CRB identified a number of examples of other states working to embed equity, including Vermont, which had recently established a Racial Equity Advisory Panel, and appointed its first executive director for racial equity. Additionally, Michigan has created a Racial Equity Toolkit to provide guidance to government, organizations, and communities to guide a longer-term capacity building effort that includes an interagency workgroup, a council for government on equity and inclusion, a truth and racial healing transformation initiative, and equity and inclusion training.

In San Francisco, they created the San Francisco Office of Racial Equity (SFORE). SFORE has authority to enact a citywide Racial Equity Framework, to direct the Departments of the City and County of San Francisco to develop and implement mandated Racial Equity Action Plans, and to analyze the disparate impacts of pending ordinances, as well as various other policy and reporting functions. In addition, San Francisco City departments are required to designate employees as racial equity leaders acting as a liaison to SFORE, and requires the San Francisco Department of Human Resources to assess and prioritize racial equity with the city’s workforce. Lastly, SFORE centers racial equity within the city’s budget process, and can make recommendations on funding of departments should certain racial equity metrics not be met.

Examples of state agencies that have developed and implemented their own Racial Equity Action Plans include the Department of Transportation (Caltrans). The Caltrans Race & Equity Action Plan was developed over the course of two years, with collaboration and input from the Caltrans Alliance on Race and Equity Solutions team and its executive sponsors. The plan is intended to be a two-year plan, with priorities and strategies maintaining alignment with the administration’s and department’s goals. The plan identifies three primary areas of focus: Communication - including training and resources delivered to staff; Pilot Projects - to begin implementing equity solutions in areas where data can be collected and tracked over time; and, Policy - beginning to institutionalize changes by creating an equity policy and an internal structure to support the work.

Related/Prior Legislation

SB 189 (Committee on Budget and Fiscal Review, Chapter 48, Statutes of 2022) created the Chief Equity Officer within GovOps to improve equity and inclusion throughout state government operations and engage with state entities for this purpose. The Chief Equity Officer was also authorized to create, update, or publish policies, standards, and procedures regarding equity and inclusion for state entities in specified state manuals.

SB 17 (Pan, 2022) would have established the Racial Equity Commission within the Governor’s Office of Planning and Research to evaluate and recommend strategies for advancing racial equity across state agencies and departments. (Died on the Assembly Inactive File)

AB 3121 (Weber, Chapter 319, Statutes of 2020) established an eight-member task force to study the issue of reparations for African Americans, propose ways to educate the California public about its findings, make recommendations on the forms that reparations might take, and submit a report of its findings to the Legislature, as specified.

AB 656 (Garcia, 2019) would have created the Office of Healthy and Safe Communities within DPH, which would have developed, implemented, and monitored a statewide violence prevention strategy. (Held on the Senate Appropriations Committee Suspense File)

AB 887 (Kalra, 2019) would have codified the role of state surgeon general and placed the OHE, currently located within DPH, under the surgeon general’s office. (Held on the Assembly Appropriations Committee Suspense File)

AB 2434 (Bloom, 2018) would have codified the existing HiAP Program within the SGC and in collaboration with DPH, for the purposes of incorporating health, equity, and sustainability considerations into decision-making across sectors and policy areas.

AB 1467 (Committee on Budget, Chapter 23, Statutes of 2012) established the OHE as a consolidation of functions of the Office of Women’s Health at the Department of Health Care Services, the Office of Multicultural Services at the Department of Mental Health, the Office of Multicultural Health at DPH, the HiAP Task Force at DPH, and the Healthy Places Team at DPH.

SB 732 (Steinberg, Chapter 729, Statutes of 2008) established the SGC and required the SGC to take certain actions with regard to coordinating specified programs of member state agencies, and required the SGC to manage and award grants and loans to support the planning and development of sustainable communities.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee, unknown, potentially significant costs across all state agencies and departments to revise policies, data tools, programs, operations, community engagement, tribal consultations and practices, and other actions as necessary to advance equity (General Fund and various special funds).

SUPPORT: (Verified 9/1/23)

Agee Global Solutions

Association of California State Employees with Disabilities

Fresno Metro Black Chamber of Commerce

Health Officers Association of California

OPPOSITION: (Verified 9/1/23)

None received

ARGUMENTS IN SUPPORT: According to the Fresno Metro Black Chamber of Commerce, “when considering the importance of the work done by California’s state legislature, state agencies, and local governments, equity must play a vital role in public services. To achieve this aim, there must be a transparent and verifiable means to measure whether a policy, practice, or program is equitable. This bill would define ‘equity’ as addressing the disparities in opportunities and outcomes of underserved populations. By adequately defining equity, California will be able to directly measure the performance of practices, programs, and policies through an equity lens, and use those metrics to improve and promote equity in California using data-driven best practices.”

ASSEMBLY FLOOR: 61-8, 5/25/23

AYES: Addis, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Connolly, Mike Fong, Friedman, Gabriel, Garcia, Gipson, Grayson, Haney, Hart, Holden, Irwin, Jackson, Jones-Sawyer, Kalra, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Santiago, Schiavo, Soria, Ting, Valencia, Villapudua, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon

NOES: Megan Dahle, Essayli, Vince Fong, Gallagher, Hoover, Joe Patterson, Ta, Wallis

NO VOTE RECORDED: Aguiar-Curry, Chen, Davies, Dixon, Flora, Lackey, Mathis, Papan, Jim Patterson, Sanchez, Waldron

Prepared by: Felipe Lopez / G.O. / (916) 651-1530

9/2/23 14:57:32

**** END ****

SENATE COMMITTEE ON

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

AB 437 (Jackson) - State government: equity

Bill Summary:

AB 437 requires every state agency and department, in carrying out its duties and to the extent allowed by law, to consider the use of more inclusive practices to advance equity, as specified.

*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********

The following information is revised to reflect amendments

adopted by the committee on September 1, 2023

Fiscal Impact:

Unknown, potentially significant costs across all state agencies and departments to revise policies, data tools, programs, operations, community engagement, tribal consultation policies and practices, and other actions as necessary to advance equity (General Fund and various special funds).

Author Amendments:

• Strike legislative intent.
• Revise the definition of “equity.”

-- END --

SENATE COMMITTEE ON

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

AB 437 (Jackson) - State government: equity

Bill Summary:

AB 437 requires every state agency and department, in carrying out its duties and to the extent allowed by law, to consider the use of more inclusive practices to advance equity, as specified.

Fiscal Impact:

Unknown, potentially significant costs across all state agencies and departments to revise policies, data tools, programs, operations, community engagement, tribal consultation policies and practices, and other actions as necessary to advance equity (General Fund and various special funds).

Background:

Executive Order (EO) N-16-22 was issued on September 13, 2022 and directed state agencies to take additional steps to embed equity analysis and considerations in their mission, policies, and practices. Among other things, the EO required state agencies and departments to develop or update their strategic plans to reflect the use of data analysis and inclusive practices to more effectively advance equity and to respond to identified disparities with changes to the organization’s mission, vision, goals, data tools, policies, programs, operations, community engagement, tribal consultation policies and practices, and other actions necessary to serve all Californians.

The EO also required the Governor’s Office of Planning and Research to create a Racial Equity Commission (Commission) which was tasked with developing resources, best practices, and tools for advancing racial equity. The Commission is also required to develop a statewide Racial Equity Framework, which should include methodologies and tools that can be employed in California to advance racial equity and address structural racism. Upon request by a state agency, the Commission was tasked with providing technical assistance on implementing strategies for racial equity consistent with the framework.

The EO additionally requires the Commission to prepare an annual report, beginning on December 1, 2025, that summarizes feedback from public engagement with communities of color, provides data on racial inequities and disparities in the State, and recommends best practices on tools, methodologies, and opportunities to advance racial equity.

The 2023-24 Budget provides $2.90 million General Fund and 8.0 positions to support the Racial Equity Commission established by EO N-16-22 and the Youth Empowerment Commission.

Proposed Law:

• To the extent allowed by law, requires every state agency and department to carry out its duties under law considering the use of more inclusive practices to advance equity in the agency’s or department’s mission, vision, goals, data tools, policies, programs, operations, community engagement, tribal consultation policies and practices, and other actions necessary to better serve all Californians.
• Defines “equity” to mean addressing the disparities in opportunities and outcomes of underserved populations.
• States legislative intent to implement the provisions of EO N-16-22 to require state agencies and departments to more effectively advance equity in state actions.

Staff Comments:

Total costs to all state agencies are unknown, but likely variable and depend on, among other things, the extent to which an agency or department may already have policies or other tools in place to promote equity in carrying out the entity’s various activities and duties. The bill does not specify what activities may constitute the consideration of “more inclusive practices.” To the extent that these activities may be extensive (including but not limited to, conducting public outreach, collecting and analyzing data, coordinating with other state agencies or the Commission, and updating policies), the fiscal impact across all state agencies may be significant. For example:

• The California Department of Veterans Affairs estimates the need for three positions at a cost of approximately $356,000 the first year and $339,000 ongoing (General Fund).
• The California Air Resources Board (CARB) reports costs of approximately $1.34 million in Fiscal Year (FY) 2023-24 and $1.33 million in FY 2024-25 and ongoing for five additional positions and other contracting costs (Air Pollution Control Fund).

While not all state agencies would require additional resources to comply with the bill’s requirements, to the extent that other agencies may experience similar workload impacts, the fiscal impact of the bill may total into the hundreds of thousands to millions of dollars.

-- END --

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Bill Dodd

Chair

2023 - 2024 Regular

Bill No: AB Hearing Date: 7/11/2023

SUBJECT:

DIGEST: This bill requires state agencies and departments, in carrying out their duties, to consider the use of more inclusive practices to advance equity, as specified.

ANALYSIS:

Existing law:

1. Creates, within the Government Operations Agency (GovOps), a Chief Equity Officer, who is appointed by, and serves at the pleasure of, the Governor. The Chief Equity Officer is required to improve equity and inclusion throughout state government operations and authorizes the Chief Equity Officer to engage with state entities for these purposes.
2. Executive Order (EO) N-16-22, among other thing, requires state agencies and departments to develop or update their strategic plans to reflect the use of data analysis and inclusive practices to more effectively advance equity and to respond to identified disparities with changes to the organization’s mission, vision, goals, data tools, policies, programs, operations, community engagement, tribal consultation policies and practices, and other actions necessary to serve all Californians.
3. Establishes the Office of Health Equity (OHE), in the State Department of Public Health, for purposes of aligning state resources, decision-making, and programs to accomplish certain goals related to health equity and protecting vulnerable communities.
4. Requires OHE to develop department-wide plans to close the gaps in health status and access to care among the state’s diverse racial and ethnic communities, women, persons with disabilities, and the lesbian, gay, bisexual, transgender, queer, and questioning communities, as specified.
5. Establishes the Strategic Growth Council (SGC) in state government, to among other things, identify and review activities and funding programs of state agencies that may be coordinated to improve air and water quality, improve natural resource protection, increase the availability of affordable housing, improve transportation, meet the goals of the California Global Warming Solutions Act of 2006, encourage sustainable land use planning, and revitalize urban and community centers in a sustainable manner, as specified.

This bill:

1. Requires, to the extent allowed by law, every state agency, in carrying out its duties under law, to consider the use of more inclusive practices to advance equity in the agency’s or department’s mission, vision, goals, data tools, policies, programs, operations, community engagement, tribal consultation policies and practices, and other actions as necessary to better serve all Californians.
2. Defines “equity” to mean addressing the disparities in opportunities and outcomes of undeserved populations.
3. Specifies that it is the intent of the Legislature to implement provisions of Executive Order No. N-16-22 to require state agencies and departments to more effectively advance equity in the actions undertaken by the state to serve all Californians.

Background

Author Statement. According to the author’s office, “to ensure that California is equitable for all of its diverse communities, it is imperative to define equity. The Golden State cannot chart a course to equity for all if there is no defined goal, and no way to empirically measure progress towards that goal. AB 437 will ensure that something as integral to good governance as equity is no longer left up to interpretation. It will also create guardrails for California in its mission to become the first truly equitable state.”

Executive Order N-16-22. On September 13, 2022, Governor Newsom issued EO N-16-22 directing state agencies to take additional steps to embed equity analysis and considerations in their mission, policies, and practices. Among other directives, the EO requires state agencies and departments to develop or update their strategic plans to reflect the use of data analysis and inclusive practices to more effectively advance equity and to respond to identified disparities with changes to the organization’s mission, vision, goals, data tools, policies, programs, operations, community engagement, tribal consultation policies and practices, and other actions necessary to serve all Californians.

The EO also required the Governor’s Office of Planning and Research to create a Racial Equity Commission (Commission) which was tasked with developing resources, best practices, and tools for advancing racial equity. The Commission is also required to develop a statewide Racial Equity Framework, which should include methodologies and tools that can be employed in California to advance racial equity and address structural racism. Upon request by a state agency, the Commission was tasked with providing technical assistance on implementing strategies for racial equity consistent with the framework.

The EO additionally requires the Commission to prepare an annual report, beginning on December 1, 2025, that summarizes feedback from public engagement with communities of color, provides data on racial inequities and disparities in the State, and recommends best practices on tools, methodologies, and opportunities to advance racial equity.

This bill builds upon goals of the EO by requiring state agencies to consider the use of more inclusive practices to advance equity in the agency’s mission, mission, goals, data tools, policies, programs, operations, community engagement, tribal consultation policies and practices, and other actions as necessary to better serve all Californians.

Presidential Order On Advancing Racial Equity and Support for Underserved Communities Through the Federal Government. On January 20, 2021, President Biden signed an executive order on Advancing Racial Equity and Support for Underserved Communities Through the Federal Government. The executive order states, in part, that:

“Equal opportunity is the bedrock of American democracy, and our diversity is one of our country’s greatest strengths. But for too many, the American Dream remains out of reach. Entrenched disparities in our laws and public policies, and in our public and private institutions, have often denied that equal opportunity to individuals and communities. Our country faces converging economic, health, and climate crises that have exposed and exacerbated inequities, while a historic movement for justice has highlighted the unbearable human costs of systemic racism. Our Nation deserves an ambitious whole-of-government equity agenda that matches the scale of the opportunities and challenges that we face.”

California Office of Health Equity. Existing law establishes the OHE, within DPH, in order to provide a leadership role in reducing health and mental health disparities experienced by vulnerable communities in California. AB 1467 (Committee on Budget, Chapter 23, Statutes of 2012) among other things, established the OHE as a consolidation of functions of the Office of Women’s Health at the Department of Health Care Services (DHCS); the Office of Multicultural Services at the Department of Mental Health (DMH); and, the Office of Multicultural Health, the HiAP Task Force, and the Healthy Places Team at DPH.

Specifically, OHE is required to assist in aligning state resources, decision-making, and programs to, among other things, achieve the highest level of health and mental health for all people, with special attention focused on those who have experienced socioeconomic disadvantage and historical injustice; work collaboratively with the HiAP Task Force to promote work to prevent injury and illness through improved social and environmental factors that promote health and mental health; advise and assist other state departments in their mission to increase access to, and the quality of, culturally and linguistically competent health and mental health care and services; and, improve the health status of all populations and places, with a priority on eliminating health and mental health disparities and inequities.

Capitol Collaborative on Race & Equity. In order to advance racial equity, the SGC works in collaboration with the Public Health Institute to support the Capitol Collaborative on Race & Equity (CCORE) – a racial equity capacity building program for California State employees. According to SGC’s internet website, “CCORE offers two cohorts for participants to receive training to learn about, plan for, and implement activities that embed racial equity approaches into institutional culture, policies, and practices. Teams of up to 16 State employees represent their affiliated state departments, agencies, and offices, participate in the curriculum, and contribute to advancing racial equity in their organization. The Learning Cohort is for State entities that do not yet have Racial Equity Action Plans and the Advanced Implementation Cohort supports state entities in implementing advanced actions and system changes for racial equity.”

How Have Other Jurisdictions Worked to Embed Equity? In August 2019, the California Research Bureau (CRB) released their results of a literature review on racial equity and organizational change. The CRB identified a number of examples of other states working to embed equity, including Vermont, which had recently established a Racial Equity Advisory Panel, and appointed its first executive director for racial equity. Additionally, Michigan has created a Racial Equity Toolkit to provide guidance to government, organizations, and communities to guide a longer-term capacity building effort that includes an interagency workgroup, a council for government on equity and inclusion, a truth and racial healing transformation initiative, and equity and inclusion training.

Here in California, in 2019 San Francisco created the San Francisco Office of Racial Equity (SFORE). SFORE has authority to enact a citywide Racial Equity Framework, to direct the Departments of the City and County of San Francisco to develop and implement mandated Racial Equity Action Plans, and to analyze the disparate impacts of pending ordinances, as well as various other policy and reporting functions. In addition, San Francisco City departments are required to designate employees as racial equity leaders acting as a liaison to SFORE, and requires the San Francisco Department of Human Resources to assess and prioritize racial equity with the city’s workforce. Lastly, SFORE centers racial equity within the city’s budget process, and can make recommendations on funding of departments should certain racial equity metrics not be met.

Examples of state agencies that have developed and implemented their own Racial Equity Action Plans include the Department of Transportation (Caltrans). The Caltrans Race & Equity Action Plan was developed over the course of two years, with collaboration and input from the Caltrans Alliance on Race and Equity Solutions team and its executive sponsors. The plan is intended to be a two-year plan, with priorities and strategies maintaining alignment with the administration’s and department’s goals. The plan identifies three primary areas of focus: Communication - including training and resources delivered to staff; Pilot Projects - to begin implementing equity solutions in areas where data can be collected and tracked over time; and, Policy - beginning to institutionalize changes by creating an equity policy and an internal structure to support the work.

Prior/Related Legislation

SB 17 (Pan, 2022) would have established the Racial Equity Commission within the Governor’s Office of Planning and Research to evaluate and recommend strategies for advancing racial equity across state agencies and departments. (Died on the Assembly Inactive File)

SB 189 (Committee on Budget and Fiscal Review, Chapter 48, Statutes of 2022) creates the Chief Equity Officer within GovOps to improve equity and inclusion throughout state government operations and engage with state entities for this purpose. The Chief Equity Officer is also authorized to create, update, or publish policies, standards, and procedures regarding equity and inclusion for state entities in specified state manuals.

AB 3121 (Weber, Chapter 319, Statutes of 2020) established an eight-member task force to study the issue of reparations for African Americans, propose ways to educate the California public about its findings, make recommendations on the forms that reparations might take, and submit a report of its findings to the Legislature, as specified.

AB 656 (E. Garcia, 2019) would have created the Office of Healthy and Safe Communities within DPH, which would have developed, implemented, and monitored a statewide violence prevention strategy. (Held on the Senate Appropriations Committee Suspense File)

AB 887 (Kalra, 2019) would have codified the role of state surgeon general and placed the OHE, currently located within DPH, under the surgeon general’s office. (Held on the Assembly Appropriations Committee Suspense File)

AB 2434 (Bloom, 2018) would have codified the existing HiAP Program within the SGC and in collaboration with DPH, for the purposes of incorporating health, equity, and sustainability considerations into decision-making across sectors and policy areas.

AB 1467 (Committee on Budget, Chapter 23, Statutes of 2012) among other things, established the OHE as a consolidation of functions of the Office of Women’s Health at the Department of Health Care Services, the Office of Multicultural Services at the Department of Mental Health, the Office of Multicultural Health at DPG, the HiAP Task Force at DPH, and the Healthy Places Team at DPH.

SB 732 (Steinberg, Chapter 729, Statutes of 2008) established the SGC, and required the SGC to take certain actions with regard to coordinating specified programs of member state agencies, and required the SGC to manage and award grants and loans to support the planning and development of sustainable communities.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

SUPPORT:

Agee Global Solutions

Association of California State Employees with Disabilities

Fresno Metro Black Chamber of Commerce

Health Officers Association of California

OPPOSITION:

None received

ARGUMENTS IN SUPPORT: According to the Fresno Metro Black Chamber of Commerce, “when considering the importance of the work done by California’s state legislature, state agencies, and local governments, equity must play a vital role in public services. To achieve this aim, there must be a transparent and verifiable means to measure whether a policy, practice, or program is equitable. This bill would define ‘equity’ as addressing the disparities in opportunities and outcomes of underserved populations. By adequately defining equity, California will be able to directly measure the performance of practices, programs, and policies through an equity lens, and use those metrics to improve and promote equity in California using data-driven best practices.”

ASSEMBLY THIRD READING

ATR Bill Id:AB 437

Author:(Jackson)

As Amended Ver:May 18, 2023

Majority vote

SUMMARY

Requires state agencies and departments, in carrying out their duties, to consider the use of more inclusive practices to advance equity.

Major Provisions

1. Declares it is the intent of the Legislature to implement the provisions of Section 1 of Executive Order N-16-22 to require state agencies and departments to more effectively advance equity in the actions undertaken by the state to serve all Californians.
2. Requires every state agency and department to consider the use of more inclusive practices to advance equity in the agency's or department's mission, vision, goals, data tools, policies, programs, operations, community engagement, tribal consultation policies and practices, and other actions necessary to better serve all Californians.
3. For purposes of this section, defines "equity" to mean addressing the disparities in opportunities and outcomes of underserved populations.

COMMENTS

On September 13, 2022, Governor Newsom issued Executive Order (EO) N-16-22 directing state agencies to take additional actions to embed equity analysis and considerations in their mission, policies, and practices. Amongst other directives, the EO requires every state agency to incorporate more inclusive public engagement and data analysis, tasks specified agencies to develop recommendations to improve language and communications access to state government services and programs, and establishes the state's first Racial Equity Commission to produce a Racial Equity Framework of resources and tools to promote racial equity and address structural racism. On August 3, 2022, Governor Newsom also appointed the state's first Chief Equity Officer at the Government Operations Agency (GovOps) to oversee these priorities in relation to state operations, procurement information technology, and human resources.

Prior Legislation. SB 189 (Committee on Budget and Fiscal Review), Chapter 48, Statutes of 2022, created the Chief Equity Officer within GovOps to improve equity and inclusion throughout state government operations and engage with state entities for this purpose. The Chief Equity Officer is also authorized to create, update, or publish policies, standards, and procedures regarding equity and inclusion for state entities in specified state manuals.

According to the Author

"To ensure that California is equitable for all of its diverse communities, it is imperative to define equity. The Golden State cannot chart a course to equity for all if there is no defined goal, and no way to empirically measure progress towards that goal. AB 437 will ensure that something as integral to good governance as equity is no longer left up to interpretation, and create guardrails for California in its mission to become the first truly equitable state."

Arguments in Support

According to the Fresno Metro Black Chamber of Commerce:

"When considering the importance of the work done by California's state legislature, state agencies, and local governments, equity must play a vital role in public service. To achieve this aim, there must be a transparent and verifiable means to measure whether a policy, practice, or program is equitable."

Arguments in Opposition

None on file.

FISCAL COMMENTS

Costs of an unknown amount for each state agency and department to consider the use of more inclusive practices to advance equity.

VOTES

ASM ACCOUNTABILITY AND ADMINISTRATIVE REVIEW: 4-0-3

YES: Petrie-Norris, Stephanie Nguyen, Rodriguez, Wilson

ABS, ABST OR NV: Dixon, Bains, Davies

ASM APPROPRIATIONS: 11-1-4

YES: Holden, Bryan, Calderon, Wendy Carrillo, Mike Fong, Hart, Lowenthal, Papan, Pellerin, Weber, Ortega

NO: Megan Dahle

ABS, ABST OR NV: Dixon, Mathis, Robert Rivas, Sanchez

UPDATED

VERSION: May 18, 2023

CONSULTANT: Bernie Orozco / A. & A.R. / (916) 319-3600 FN: 0000730

Date of Hearing: May 3, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

ABPCA Bill Id:AB 437

Author:(Jackson) – As Amended Ver:April 13, 2023

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill requires every state agency to ensure its policies, allocation of resources, and practices are equitable.

Specifically, this bill applies the following definitions:

1. “Equitable” means that legislation, policies, allocation of resources, and systemic practices empower and meet the unique needs of diverse and underserved populations to ensure communities facing the greatest inequities are not left behind in the allocation of resources in a fair and just way.
2. “Inequities” means the factors and conditions that shape disparities that are systemic and avoidable, and, therefore, considered unjust or unfair.
3. “Disparities” means the differences in the quality and longevity of life among distinct segments of the population, including differences that occur by gender, age, race or ethnicity, sexual orientation, gender identity, education or income, disability or functional impairment, or geographic location, or the combination of any of these factors.

FISCAL EFFECT:

Costs of an unknown, but potentially significant, amount to the state. Costs ultimately depend on each state agency’s current practices in relation to how the agency will comply with this bill’s mandate. For example, an agency may need to hire more bilingual staff or enter into a third-party contract for translation services. This bill also requires every state agency to reevaluate its allocation of resources to be more equitable, which is, in itself, a significant fiscal effect.

COMMENTS:

1. Purpose. According to the author:

To ensure that California is equitable for all of its diverse communities, it is imperative to define equity. The Golden State cannot chart a court to equity for all if there is no defined goal, and no way to empirically measure progress towards that goal. AB 437 will ensure that something as integral to good governance as equity is no longer left up to interpretation, and create guardrails for California in its mission to become the first truly equitable state.

This bill is supported by the Fresno Metro Black Chamber of Commerce and Agee Global Solutions.

1. Executive Order (EO) N-16-22. On September 13, 2022, Governor Newsom issued EO N-16-22 directing state agencies to take additional actions to embed equity analysis and considerations in their mission, policies, and practices. Amongst other directives, the EO requires every state agency to incorporate more inclusive public engagement and data analysis, tasks specified agencies to develop recommendations to improve language and communications access to state government services and programs, and establishes the state’s first Racial Equity Commission to produce a Racial Equity Framework of resources and tools to promote racial equity and address structural racism. On August 3, 2022, Governor Newsom also appointed the state’s first Chief Equity Officer at the Government Operations Agency (GovOps) to oversee these priorities in relation to state operations, procurement information technology, and human resources. This bill requires every state agency to ensure its policies, allocation of resources, and practices are “equitable,” as defined.
2. Prior Legislation. SB 189 (Committee on Budget and Fiscal Review), Chapter 48, Statutes of 2022, created the Chief Equity Officer within GovOps to improve equity and inclusion throughout state government operations and engage with state entities for this purpose. The Chief Equity Officer is also authorized to create, update, or publish policies, standards, and procedures regarding equity and inclusion for state entities in specified state manuals.

SB 17 (Pan), of the 2021-22 Legislative Session, would have created the Racial Equity Commission to develop a statewide Racial Equity Framework, amongst other responsibilities. SB 17 was ordered to the Assembly Inactive File without further action.

Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081

Date of Hearing: April 19, 2023

ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW

Cottie Petrie-Norris, Chair

ABPCA Bill Id:AB 437 (

Author:Jackson) – As Amended Ver:March 20, 2023

SUBJECT: State government: equity

SUMMARY: This bill would require every state agency, in carrying out its duties under law, to ensure that its “policies, allocation of resources, and practices” are equitable. For purposes of this bill, the following definitions would apply:

1. “Equitable” means that legislation, policies, allocations of resources, and systemic practices empower and meet the unique needs of diverse and underserved populations or ensure that communities facing the greatest inequities are not negatively affected or left behind in the allocation of resources in a fair and just way.
2. “Inequities” are the factors and conditions that shape disparities that are systemic and avoidable and, therefore, considered unjust or fair.
3. “Disparities” means the difference in the quality and longevity of life among distinct segments of the population, including differences that occur by gender, age, race or ethnicity, sexual orientation, gender identity, education or income, disability or functional impairment, or geographic location, or the combination of any of these factors.

ACCORDING TO THE AUTHOR:

“To ensure that California is equitable for all of its diverse communities, it is imperative to define equity. The Golden State cannot chart a course to equity for all if there is no defined goal, and no way to empirically measure progress towards that goal. AB 437 will ensure that something as integral to good governance as equity is no longer left up to interpretation, and create guardrails for California in its mission to become the first truly equitable state.”

EXISTING LAW: Creates, within the Government Operations Agency, a Chief Equity Officer, who is appointed by, and serves at the pleasure of, the Governor. The Chief Equity Officer shall engage with state entities to improve equity and inclusion throughout state government operations. (Government Code Section 12816.5)

FISCAL EFFECT: Unknown, this bill has not been analyzed by a fiscal committee.

COMMENTS:

“Equity” is the state of being just and fair. In terms of providing government services, equitable public policies are intended to address the disparate treatment, ensuring fair treatment for all.

In 2022, Governor Gavin Newsom directed his state agencies and departments to “take additional actions to embed equity analysis and considerations in their mission, policies and practices.” The Governor’s Executive Order N-16-22 requires state agencies and departments to develop analytical tools to identify and effectively respond to disparate treatment.

More specifically, for all strategic plans for the next three fiscal years, state agencies and departments must do the following:

“Develop or update the strategic plan to reflect the use of data analysis and inclusive practices to more effectively advance equity and to respond to identified disparities with changes to the organization's mission, vision, goals, data tools, policies, programs, operations, community engagement, tribal consultation policies and practices, and other actions as necessary to serve all Californians; and,

As part of the development or updating of the strategic plans, engage and gather input from California communities that have been historically disadvantaged and underserved within the scope of policies or programs administered or implemented by the agency or department, and make the plans publicly available.”

By June 30, 2023, the executive order requires the Office of Data and Innovation to develop a set of statewide data and service standards and practices to support agencies and departments to identify and address disparities in government operations and services.

The Governor’s executive order, among several other actions, also created the Racial Equity Commission to prepare an annual report that provides data on racial inequities and disparities in the state and recommends best practices on tools, methodologies, and opportunities to advance racial equity.

The Governor has also appointed a Chief Equity Officer at the Government Operations Agency to see this vision is implemented in state operations, procurement, information technology and human resources. He has also directed the Department of Finance to require agencies and departments to “analyze equity considerations when making requests for new resources, including assessments of how proposed changes address inequities.”

PREVIOUS LEGISLATION:

SB 189 (Budget Committee), Chapter 48, Statutes of 2022, Section 28, established the Chief Equity Officer at the Government Operations Agency with the responsibility of improving equity and inclusion throughout state government operations.

SB 17 (Pan) would have established the Racial Equity Commission (REC) within the Governor's Office of Planning and Research to evaluate and recommend strategies for advancing racial equity across state agencies and departments. The REC would have developed a statewide Racial Equity Framework for the state, offered technical assistance to departments and local governments, engaged in community outreach via quarterly stakeholder meetings, and published annual reports on racial disparities in the state and recommendations to reduce such disparities. Measure was moved to the Inactive File on the Assembly Floor and failed passage.

AB 316 (Cooper), Chapter 312, Statutes of 2002, requires the California Department of Human Resources to prepare a report on gender and ethnicity pay equity in certain classifications where there is an underrepresentation of women and minorities.

AB 1957 (Wilson), Chapter 314, Statutes of 2002, updates the information that the Department of Developmental Services and regional centers are required to compile and report on the purchase of services for individuals with developmental disabilities to better identify disparities in race, ethnicity and languages.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file.

Opposition

None on file.

Analysis Prepared by: Bernie Orozco / A. & A.R. / (916) 319-3600