Preproposal statement of inquiry was filed as WSR 98-09-075.

Title of Rule: WAC 308-33-011 Fees, 308-33-020 Director's review of fees and contracts, 308-33-030 Manner of setting forth fees in agency contracts, 308-33-060 Informing applicants of agency fee after employment gained, 308-33-071 Signing of contracts, 308-33-080 Contract term guidelines, 308-33-090 Branch office--Defined, 308-33-095 Examination, and 308-33-105 Employment agency fees.

Purpose: To adjust fees in order to defray the cost of administration of the employment agency program and assist in reducing the revenue deficit. Also to clarify and simplify the language and requirements with no major changes to content or the intent of the rules.

Other Identifying Information: The exception to Initiative 601 (chapter 346, Laws of 1998) will reduce the revenue deficit.

Statutory Authority for Adoption: Chapter 19.31 RCW, RCW 43.24.086 and chapter 346, Laws of 1998.

Statute Being Implemented: RCW 43.24.086.

Summary: The proposed amendment adjusts fees to cover the actual cost of doing business as required under RCW 43.24.086 which states that all business and profession programs be self-supporting. Also proposes minor housekeeping changes to clarify and simplify the language and requirements.

Reasons Supporting Proposal: The fee adjustment will assist in reducing the revenue deficit in administering the employment agency program and issuance of licenses.

Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Harumi Tucker Tolbert, Department of Licensing, Olympia, Washington, (360) 586-2369.

Name of Proponent: Department of Licensing, Business and Professions Division, P.O. Box 9649, Olympia, WA 98507-9649, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: WAC 308-33-105, the amendment to this rule proposes to adjust fees to cover the actual cost of doing business as required by RCW 43.24.086, which requires that all business and profession programs be self-supporting.

Housekeeping: WAC 308-33-011, change title to better reflect subject, delete items already covered in RCW, amending language for clarity without changing requirements; WAC 308-33-020, repeal, duplication of what is outlined in RCW; WAC 308-33-030, 308-33-060, and 308-33-071, change title to better reflect subject, amend language for clarity without changing requirements; WAC 308-33-080 repeal, contents incorporated into WAC 308-33-030; WAC 308-33-090, change title, amend language for clarity without changing requirements; and 308-33-095, change title to better reflect subject, amend language for clarity without changing requirements.

Proposal Changes the Following Existing Rules: Adjusts fees charged for original applications and renewals for main and branch employment agency locations, repeals WAC 308-33-020 and 308-33-080 which are duplicates of what is already covered in the law, and amends WAC 308-33-011, 308-33-030, 308-33-060, 308-33-071, 308-33-090, 308-33-095, and 308-33-105. These amendments are housekeeping in nature and are to clarify and simplify the language and requirements with no major changes to content or the intent of the rules.

A small business economic impact statement has been prepared under chapter 19.85 RCW.

Small Business Economic Impact Statement

Proposed amendments WAC 308-33-105 Employment agency fees. Other rules being considered in the CR-102 are not deemed to have economic impact and, therefore, are not included in the small business economic impact statement.

Background: The Department of Licensing, Business and Professions Division, is proposing an increase of the license and renewal fees for employment agencies.

RCW 43.24.086 states that all professional licensing programs must be self-supporting by the fees they collect. Over the last five years there has been a steady decline in the licensee base and revenue which supports the employment agency program to the point that it is no longer self-supporting and unable to provide adequate regulatory response to consumer complaints.

Summary of Amendments: Currently, there are thirty-five main office and twelve branch office licensees that fall within the definition of "employment agency" per RCW 19.31.020. The definition requires licensure of those agencies that accept fees from applicants looking for work. If an agency only accepts fees from potential employers, they are exempt from licensing.

All new businesses will pay an additional $100 application and licensing fee for their first location (main) and an additional $100 application and licensing fee for each additional location (branch). Existing and future licensees will pay an additional $350 annual renewal fee for their main location and an additional $350 annual renewal fee for each branch location.

Professional Services Possibly Needed: None.

Costs of Compliance: The gross business income for all thirty-five licensees is $20,407,528.96. The average cost per $100 of sales is $0.32.

Employment Agency - SBEIS Worksheet

* Additional cost of annual renewal: Main office = $350; branch office = $350

* Formula:	Cost
	$ of sales/100

Note: Gross business income data provided by the Washington State Department of Revenue.

Comparison of Cost - Small versus Large Employers and Mitigation of Disproportionate Costs to Small Employers: Since the current licensee base of thirty-five licensees are all small business with less than fifty employees, there is no comparison of cost or disproportionate costs to small employers.

Description of How Agency will Involve Small Businesses in the Development of the Proposed Rule: The department held a public rules review meeting on March 19, 1998. Also, all current employment agency licensees will be provided with a copy of the proposed rules. Employment agencies are encouraged to contact the department to comment on the rules.

A copy of the statement may be obtained by writing to Harumi Tucker Tolbert, Department of Licensing, Business and Professions Division, Employment Agency Section, P.O. Box 9649, Olympia, WA 98507-9649, phone (360) 586-2369, FAX (360) 664-2550.

RCW 34.05.328 does not apply to this rule adoption. This rule is exempt from RCW 34.05.328.

Hearing Location: Department of Licensing, Business and Professions Division, Conference Room #1, 405 Black Lake Boulevard, Olympia, WA 98501, on July 21, 1998, at 2:00 p.m.

Assistance for Persons with Disabilities: Contact Harumi Tucker Tolbert by July 17, 1998, TDD (360) 586-2788, or (360) 586-2369.

Submit Written Comments to: Harumi Tucker Tolbert, Department of Licensing, Business and Professions Division, P.O. Box 9649, Olympia, WA 98507-9649, FAX (360) 664-2550, by July 17, 1998.

Date of Intended Adoption: July 22, 1998.

June 3, 1998

Mary L. Jelvik, Administrator

Business and Professions Division

AMENDATORY SECTION (Amending Order PM 658, filed 10/21/87)

WAC 308-33-011  ((Fees.)) Are the fees charged by employment agencies regulated? (((1) The fees which employment agencies may contract to charge applicants shall not be regulated. However, no agency shall use a fee schedule or contract which has not been approved for use by the director as provided for in RCW 19.31.050.

(2))) Although fees are not regulated, ((no)) employment ((agency shall)) agencies cannot require by contract or otherwise that an applicant ((make payments)) pay in any one month period ((in)) an amount which exceeds ((the applicant's)) their gross earnings for that period.

(((3) In the event of termination an applicant shall be required to pay no more than twenty percent of the gross earnings actually received, or the full placement fee set forth in the contract with the agency, whichever is less, if the applicant was employed for sixty days or less.

If the employment is terminated after sixty days, the applicant shall be obligated for the full placement fee set forth in the contract with the agency.

(4) The applicant may submit payroll information to the agency within seventy days after reporting to work for reevaluation to reflect a fee based on actual gross earnings for the first sixty days.)) Employment termination: How much does an applicant owe the employment agency?

Employed sixty days or less - An applicant must pay up to twenty percent of the gross earnings received, or the full placement fee established in the employment agency contract, whichever is less.

Employed over sixty days - An applicant must pay the full placement fee established in the employment agency contract. Within seventy days after reporting to work, an applicant may submit payroll information to the agency to reevaluate the fee due based on the actual gross earnings for the first sixty days of employment.

[Statutory Authority: RCW 19.31.070. 87-21-088 (Order PM 658), § 308-33-011, filed 10/21/87; 81-02-031 (Order PL 359), § 308-33-011, filed 1/5/81; Order PL 272, § 308-33-011, filed 7/26/77, effective 9/21/77; Order PL 243, § 308-33-011, filed 4/1/76; Order PL-142, § 308-33-011, filed 1/24/73. Formerly WAC 308-33-010.]

AMENDATORY SECTION (Amending Order PM 658, filed 10/21/87)

WAC 308-33-030  ((Manner of setting forth fees in agency contracts.)) What are the guidelines for establishing fees in employment agency contracts? (1) The contract must list the fee ((to be)) charged to an applicant((, under usual circumstances, must be set forth in the employment agency contract)) under the following headings:

(a) Monthly salary((.));

(b) ((The)) Range of agency's fee expressed in dollars((.)); and

(c) Agency's fee as a percentage of the expected monthly ((compensation)) salary.

(3) ((An agency must set forth additional information concerning its fees within its contract)) The contract must contain any additional information concerning fees as required by law ((and the rules in support thereof)).

(4) Agencies ((may not)) cannot indicate, ((either)) orally or in writing, that their contract and fee schedules ((have been)) are "approved" or in any way "recommended" by the state. However, ((a licensee may)) they can indicate ((that)) their contracts are "approved for use."

(5) An example of contract terms acceptable to the director are available upon request.

[Statutory Authority: RCW 19.31.070. 87-21-088 (Order PM 658), § 308-33-030, filed 10/21/87; 81-02-031 (Order PL 359), § 308-33-030, filed 1/5/81; Order PL-142, § 308-33-030, filed 1/24/73; Order 337001, § 308-33-030, filed 2/26/70, effective 4/1/70.]

AMENDATORY SECTION (Amending Order PM 658, filed 10/21/87)

WAC 308-33-060  ((Informing applicants of agency fee after employment gained.)) Does an employment agency have to notify the applicant of their fee in writing once a job has been accepted? ((As soon as practicable after an applicant has accepted employment)) If an applicant accepts a job through the efforts of an employment agency, ((the applicant shall be notified of the amount of the agency fee in a form containing at least)) the agency must notify the applicant of their fee in writing. The document must contain the following ((information)):

(1) Amount of fee expressed in dollars;

(2) Expected monthly or annual salary (whichever the fee is based upon); ((and))

(3) Date applicant began or ((is to)) will begin ((employment)) working; and

(4) Date payment is due to the agency.

[Statutory Authority: RCW 19.31.070. 87-21-088 (Order PM 658), § 308-33-060, filed 10/21/87; Order PL 118, § 308-33-060, filed 3/22/72, effective 4/21/72.]

AMENDATORY SECTION (Amending Order PL 272, filed 7/26/77, effective 9/21/77)

WAC 308-33-071  Signing of contracts--Applicant's rights. (1) ((Before a contract shall be signed by an applicant the applicant)) You must have an opportunity to discuss the contract and its terms with an authorized representative of the agency before signing.

(2) ((The applicant)) You must be given a signed carbon or duplicate copy of the contract immediately after signing.

(3) ((In the event an applicant seeks only positions in which the fee is paid by the employer)) If you request only jobs in which the employer pays the agency fee, the agency ((shall)) must note ((such fact)) that on all contracts prior to ((signature by the applicant)) your signing the contract.

(4) ((The provisions of subsection (3) above shall not preclude)) If you accept a job and the fee is paid by the employer, the agency ((from having an applicant)) can request that you sign a contract obligating ((him or her for a fee in the event the applicant)) you to pay the agency fee if the job terminates within sixty days and the employer is reimbursed by the agency. All such contracts must contain the necessary information required by RCW 19.13.040 and must be approved by the director prior to their use.

(((5) Any contracts in accordance with subsection (4) shall contain the necessary information required by RCW 19.31.040 and shall be approved by the director prior to its use by an agency.))

[Order PL 272, § 308-33-071, filed 7/26/77, effective 9/21/77; Order PL-142, § 308-33-071, filed 1/24/73. Formerly WAC 308-33-070.]

AMENDATORY SECTION (Amending Order PL-142, filed 1/24/73)

WAC 308-33-090  Definition of a branch office((--Defined)). A branch office is ((defined to mean)) any location physically separated from the principal place of business of a licensee ((from which)) where the licensee or his employees conduct any activity meeting the criteria of an employment agency ((under the definition of that term)) as defined in RCW 19.31.020.

[Order PL-142, § 308-33-090, filed 1/24/73.]

AMENDATORY SECTION (Amending Order PM 658, filed 10/21/87)

WAC 308-33-095  General manager examination((s)). (1) Examinations for general managers ((shall be)) are written and ((shall)) consist of multiple choice questions covering the subject matter set forth in RCW 19.31.100((, as now or hereafter amended)).

(2) The minimum passing grade ((for the examination shall be)) is seventy-five percent.

(3) Examinations ((will be)) are conducted ((before the fifteenth of each)) at least once per month at locations specified by the director.

(4) The application((s)) and fee((s for examination)) must be received by the department by the first of each month to be scheduled for the examination ((to be held)) the following month. The fee is not refundable.

(5) Applicants failing the examination ((shall)) must submit a new application and fee ((on each occasion of application for reexamination)).

(6) General managers who have passed the examination and ((do not remain active)) become inactive in the employment agency business ((shall, if not so actively engaged for longer than one year, be)) for more than one year are required to retake and pass the examination prior to being qualified to serve as a general manager.

(((7) Examination fees are not refundable.

(8) This section shall take effect June 1, 1987.))

[Statutory Authority: RCW 19.31.070. 87-21-088 (Order PM 658), § 308-33-095, filed 10/21/87; Order PL 272, § 308-33-095, filed 7/26/77, effective 9/21/77.]

AMENDATORY SECTION (Amending WSR 90-06-052, filed 3/2/90, effective 4/2/90)

WAC 308-33-105  Employment agency fees. The following fees shall be charged by the ((professional licensing)) business and professions division of the department of licensing:

[Statutory Authority: RCW 43.24.086. 90-06-052, § 308-33-105, filed 3/2/90, effective 4/2/90; 87-10-028 (Order PM 650), § 308-33-105, filed 5/1/87. Statutory Authority: 1983 c 168 § 12. 83-22-060 (Order PL 446), § 308-33-105, filed 11/2/83; 83-17-031 (Order PL 442), § 308-33-105, filed 8/10/83. Formerly WAC 308-33-100.]

REPEALER

The following sections of the Washington Administrative Code are repealed:

WAC 308-33-020 Director's review of fees and contracts.

WAC 308-33-080 Contract term guidelines.