H-3404.1 _______________________________________________
HOUSE BILL 2656
_______________________________________________
State of Washington 53rd Legislature 1994 Regular Session
By Representatives Sehlin, Lisk, Cooke, Carlson, Silver, Forner, Brumsickle, B. Thomas, Brough, Moak, Fuhrman, Dyer, Tate, Mielke, Backlund, Van Luven, Rayburn and Long
Read first time 01/19/94. Referred to Committee on State Government.
AN ACT Relating to rules; and adding a new section to chapter 34.05 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. A new section is added to chapter 34.05 RCW to read as follows:
(1)(a) Agencies proposing to adopt or amend a rule shall assess the potential for adverse economic impact on Washington business enterprises and individuals, avoiding the imposition of unnecessary or unreasonable rules or reporting, recordkeeping, or compliance requirements. For purposes of this section assessing the potential for adverse economic impact requires agencies, when adopting new rules or reviewing or amending existing rules, to adhere to the following requirements, to the extent that these requirements do not conflict with other state or federal laws:
(i) The rules shall be based on adequate information concerning the need for, and consequences of, proposed governmental action.
(ii) The agency shall consider the impact on business when initiating, processing, and adopting rules with consideration of industries affected.
(b) If an agency, in proposing to adopt or amend an administrative rule, determines that the action may have a significant adverse economic impact on business, including the ability of Washington businesses to compete with businesses in other states, it shall include the following information in the notice of proposed action:
(i) Identification of the types of businesses that would be affected;
(ii) A description of the projected reporting, recordkeeping, and other compliance requirements that would result from the proposed action;
(iii) The following statement: "The (name of agency) finds that the (adoption/amendment) of this rule may have a significant adverse economic impact on businesses, including the ability of Washington businesses to compete with businesses in other states. The (name of agency) (has/has not) considered proposed alternatives that would lessen any adverse economic impact on business and invites you to submit proposals. Submissions may include the following considerations:
(A) The establishment of differing compliance or reporting requirements or timetables that take into account the resources available to businesses;
(B) Consolidation or simplification of compliance and reporting requirements for businesses;
(C) The use of performance standards rather than prescriptive standards;
(D) Exemption or partial exemption from the regulatory requirements for businesses."
(2) The agency proposing to adopt or amend a rule shall refer in the notice to any studies or relevant data that were relied upon in making the determination that the rule has no adverse impact.
(3) If an agency, in adopting or amending an administrative rule, determines that the action will not have a significant adverse economic impact on business, including the ability of Washington businesses to compete with businesses in other states, it shall make a declaration to that effect in the notice of proposed action. In making this finding, the agency shall provide, in the record, facts, evidence, documents, or testimony, or other evidence upon which the agency relies to support that finding.
(4) An agency shall also include in the notice of proposed action a statement of the potential cost impact of the proposed action on private persons or businesses directly affected, as considered by the agency during the rule-making process.
For purposes of this subsection "cost impact" means the reasonable range of costs, or a description of the type and extent of costs, direct or indirect, that a representative private person or business necessarily incurs in reasonable compliance with the proposed action.
(5) No administrative rule which requires a report shall apply to businesses unless the agency adopting the rule makes a finding that it is necessary for the health, safety, or welfare of the people of the state that the rule apply to businesses.
This subsection applies only to administrative rules adopted on or after January 1, 1995.
(6) For purposes of evaluating the impact on the ability of Washington businesses to compete with businesses in other states, an agency shall consider, but not be limited to, information supplied by interested parties.
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