HOUSE BILL REPORT

HB 1531

BYRepresentatives Silver, H. Sommers, Anderson, Walk, Fuhrman, Chandler, Brough, Sanders, Moyer, K. Wilson, D. Sommers, Betrozoff and Butterfield

Revising the criteria for sunset review and extending the program.

House Committe on State Government

Majority Report:  Do pass.  (8)

      Signed by Representatives H. Sommers, Chair; Anderson, Vice Chair; Baugher, Chandler, Hankins, O'Brien, Peery and Walk.

House Staff:Ken Conte (786-7135)

AS PASSED HOUSE FEBRUARY 8, 1988

BACKGROUND:

Sunset Review Criteria - Regulatory Entities.  State law sets forth a number of specific factors that are to be considered by the Legislative Budget Committee when it conducts a sunset review of a regulatory entity.  These factors are as follows:

            oThe extent to which the regulatory entity has permitted qualified applicants to serve the public;

            oThe extent to which the regulatory entity restricts or inhibits competition or otherwise adversely affects the state's economic climate;

            oThe extent to which the system of regulation has contributed directly or indirectly to increasing or decreasing the costs of any goods or services involved;

            oThe duties of the regulatory entity and the costs incurred in carrying out such duties;

            oWhether the regulatory entity has operated in the public interest, including the extent to which the regulatory entity has: (a) sought public participation in rule and decision making activities, (b) handled complaints in an efficient manner, (c) effectively evaluated its impact on the public, (d) initiated administrative procedures or legislative activities that would benefit the public, and (e) identified the needs and problems of the recipients of goods and services provided by those regulated;

            oThe extent to which persons regulated by the regulatory entity have been encouraged to participate in assessing problems in their profession, occupation, or industry which affect the public;

            oThe impact and effectiveness of the regulatory entity with respect to the problems or needs the entity was intended to address;

            oThe consequences of eliminating or modifying the program of the regulatory entity;

            oThe extent to which the regulatory entity duplicates the activities of other regulatory entities or of the private sector, where appropriate; and

            oThe extent to which the absence or modification of regulation would adversely affect the public health, safety, or welfare.

Sunset Act - Expiration Date.  The Sunset Act, first established in 1977 is scheduled to expire on June 30, 1990 unless the Legislature extends it for an additional period of time.

SUMMARY:

Sunset Review Criteria Modified - Regulatory Entities.  Eight of the ten existing review criteria are deleted and replaced with the following, more general, review criteria:

            oThe extent to which the regulatory entity has operated in the public interest and fulfilled its statutory obligations;

            oThe duties of the regulatory entity and the costs incurred in carrying out those duties;

            oThe extent to which the regulatory entity is operating in an efficient, effective, and economical manner; and

            oThe extent to which the regulatory entity inhibits competition or otherwise adversely affects the state's economic climate.

The existing requirement that the LBC consider the extent to which the absence or modification of the regulatory activity would adversely affect the public is expanded to include consideration of whether the absence or modification of the activity would have either no effect or a positive affect on the public.

Sunset Act - Expiration Date Extended.  The Sunset Act is extended until June 30, 2000 at which time it is to expire unless extended again by the Legislature.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Representative Jean Silver, prime sponsor.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The purpose of this bill is to make the LBC reviews more efficient and effective and to extend the Sunset Act.  Sunset keeps agencies on their toes and encourages compliance.  It provides for a neutral review of an agency's activities and responsibilities.

House Committee - Testimony Against:      None Presented.