SENATE BILL REPORT

SB 6431

As Reported By Senate Committee On:

State & Local Government, February 4, 2002

Title:  An act relating to providing businesses with notice of administrative rules.

Brief Description:  Providing businesses with notice of administrative rules.

Sponsors:  Senators Hale, Snyder, West, B. Sheldon, Sheahan, Johnson, Gardner, Hewitt, Oke, Winsley and Horn.

Brief History:

Committee Activity:  State & Local Government:  1/30/02, 2/4/02 [DPS].

SENATE COMMITTEE ON STATE & LOCAL GOVERNMENT

Majority Report:  That Substitute Senate Bill No. 6431 be substituted therefor, and the substitute bill do pass.

Signed by Senators Gardner, Chair; Fairley, Vice Chair; Hale, Haugen, Horn, Keiser, McCaslin, Roach, T. Sheldon and Swecker.

Staff:  Diane Smith (786‑7410)

Background:  The primary institutional means for providing notice to the public of the agencies' rulemaking activities is the Washington Administrative Code that is published by the Code Reviser in the Washington State Register.  Persons interested in receiving only copies of rulemaking activity that is of interest to them may request them from the relevant agency's rules coordinator.  There are some sections of the Administrative Procedure Act that state that all persons who request a rulemaking document from an agency shall be provided with one.

All rules proposed by an agency must either provide a Small Business Economic Impact Statement (SBEIS) or provide an explanation why the SBEIS was not prepared.  The SBEIS process requires the agency to provide notice of a proposed rule to small business either by direct notification to known interested small businesses or trade organizations or by notification to relevant trade journals.

Summary of Substitute Bill:  For some newly effective rules, agencies must make a good faith effort to notify businesses affected by the rule of the rule's requirements and how the business can get help with complying.  This requirement applies up to 200 days after the rule's effective date and only applies to rules that impose additional requirements, with penalties or sanctions for violations and does not apply to emergency rules.

Substitute Bill Compared to Original Bill:  The substitute bill exempts emergency rules from the good faith notification requirement.

Appropriation:  None.

Fiscal Note:  Requested on January 28, 2002.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This is a very common sense measure.  The 200 days were chosen so that two state publications regarding taxes would be going out regardless and these rule notices could be included with the tax forms.  This will also answer small newspapers' questions about regulatory changes.  It also reinforces the mind-set that agencies should educate before they regulate.

Testimony Against:  This is a lopsided measure that gives more input to business.  Because it will cost money, agencies' other good works will need to be set aside.  Because of trade associations, the information gets out to businesses.

Testified:  PRO:  Gary Smith, IBA and NFIB; Michaele Thompson, IBA, MOWPA; Mac Johnson, NFIB; Rowland Thompson, Allied Dailies; Amber Balch, AWB; CON:  Bruce Wishart, People for Puget Sound; Evan Jacoby, Fish and Wildlife (concerns).