Title of Rule: WAC 468-100-306 Reestablishment expenses -- Nonresidential moves.
Purpose: To amend WAC 468-100-306 to reflect the recent change to RCW 8.26.035 (1)(d) pertaining to actual reasonable expenses necessary to reestablish a displaced farm, nonprofit organization, or small business at its new site.
Other Identifying Information: Changes statutory limit from $10,000 to $50,000.
Statutory Authority for Adoption: RCW 8.26.035.
Statute Being Implemented: WAC 4681-100-306 [468-100-306].
Summary: The Washington State Department of Transportation, based on authority granted in RCW 8.26.035, is using the expedited process to amend the statutory limit to reflect the new amount of $50,000.
Reasons Supporting Proposal: The Washington State Department of Transportation must comply with legislation passed as supported in RCW 8.26.035.
Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Dianna Ayers, Real Estate Services, P.O. Box 47338, Olympia, WA 98504-7338, (360) 705-7329.
Name of Proponent: Washington State Department of Transportation, governmental.
Agency Comments or Recommendations, if any, as to Statutory Language, Implementation, Enforcement, and Fiscal Matters: Dianna Ayers, Washington State Department of Transportation, Real Estate Services, Relocation Assistance, P.O. Box 47338, Olympia, WA 98504-7338.
Rule is not necessitated by federal law, federal or state court decision.
Explanation of Rule, its Purpose, and Anticipated Effects: The new state law removes the statutorily established $10,000 maximum payment for reestablishment expenses for relocating a farm, nonprofit organization, or small business that is impacted by public projects and provides for a new maximum payment of $50,000. The old amount was inadequate to provide real assistance to a displaced business. The new state law will reduce the financial burden taken on by a displaced small business, farm or nonprofit organization that is required to relocate. As lead agency, this state law impacts local public agencies and other governmental agencies displacing businesses as a result of public projects involving federal assistance.
Proposal Changes the Following Existing Rules: The
existing rule will be changed by replacing the current stated
$10,000 to $50,000. This change must be made to comply with
state law as amended by the 2003 legislature.
THIS RULE IS BEING PROPOSED UNDER AN EXPEDITED RULE-MAKING PROCESS THAT WILL ELIMINATE THE NEED FOR THE AGENCY TO HOLD PUBLIC HEARINGS, PREPARE A SMALL BUSINESS ECONOMIC IMPACT STATEMENT, OR PROVIDE RESPONSES TO THE CRITERIA FOR A SIGNIFICANT LEGISLATIVE RULE. IF YOU OBJECT TO THE USE OF THE EXPEDITED RULE-MAKING PROCESS, YOU MUST EXPRESS YOUR OBJECTIONS IN WRITING AND THEY MUST BE SENT TO Gerald L. Gallinger, Director, Real Estate Services, Washington State Department of Transportation, P.O. Box 47338, Olympia, WA 98504-7338, e-mail firstname.lastname@example.org, fax (360) 705-6811 , AND RECEIVED BY January 19, 2004.
November 17, 2003
John F. Conrad
AMENDATORY SECTION(Amending WSR 01-02-027, filed 12/22/00, effective 1/22/01)
WAC 468-100-306 Reestablishment expenses -- Nonresidential moves. In addition to the payments available under WAC 468-100-303, a small business, as defined in WAC 468-100-002((
(16)[(17)])) (17), farm or
nonprofit organization may be eligible to receive a payment,
not to exceed (( ten)) fifty thousand dollars, for expenses
actually incurred in relocating and reestablishing such small
business, farm, or nonprofit organization at a replacement
(1) Eligible expenses. Reestablishment expenses must be reasonable and necessary, as determined by the agency. They may include, but are not limited to, the following:
(a) Repairs or improvements to the replacement real property as required by federal, state, or local law, code, or ordinance.
(b) Modifications to the replacement property to accommodate the business operation or make replacement structures suitable for conducting the business.
(c) Construction and installation costs for exterior signing to advertise the business.
(d) Provision of utilities from right of way to improvements on the replacement site.
(e) Redecoration or replacement of soiled or worn surfaces at the replacement site, such as paint, panelling, or carpeting.
(f) Licenses, fees, and permits when not paid as part of moving expenses.
(g) Feasibility surveys, soil testing and marketing studies.
(h) Advertisement of replacement location.
(i) Professional services in connection with the purchase or lease of a replacement site.
(j) Increased costs of operation during the first two years at the replacement site for such items as:
(i) Lease or rental charges;
(ii) Personal or real property taxes;
(iii) Insurance premiums; and
(iv) Utility charges, excluding impact fees.
(k) Impact fees or one-time assessments for anticipated heavy utility usage.
(l) Other items that the agency considers essential to the reestablishment of the business.
(m) Expenses in excess of the regulatory maximums set forth in (c), (h) and (j) of this subsection may be considered eligible if large and legitimate disparities exist between costs of operation at the displacement site and costs of operation at an otherwise similar replacement site. In such cases the regulatory limitation for reimbursement of such costs may, at the request of the agency, be waived by the agency funding the program or project, but in no event shall total costs payable under this section exceed the ten thousand dollar statutory maximum.
(2) Ineligible expenses. The following is a nonexclusive listing of reestablishment expenditures not considered to be reasonable, necessary, or otherwise eligible:
(a) Purchase of capital assets, such as, office furniture, filing cabinets, machinery, or trade fixtures.
(b) Purchase of manufacturing materials, production supplies, product inventory, or other items used in the normal course of the business operation.
(c) Interior or exterior refurbishments at the replacement site which are for aesthetic purposes, except as provided in WAC 468-100-306 (1)(e).
(d) Interest on money borrowed to make the move or purchase the replacement property.
(e) Payment to a part-time business in the home which does not contribute materially to the household income.
[Statutory Authority: Chapter 8.26 RCW and WSR 89-17-048 (Order 121). 01-02-027, § 468-100-306, filed 12/22/00, effective 1/22/01. Statutory Authority: Chapter 8.26 RCW. 89-17-048 (Order 121), § 468-100-306, filed 8/14/89, effective 9/14/89.]