Title of Rule: WAC 468-100-306 Reestablishment expenses -- Nonresidential moves.
Purpose: To amend WAC 468-100-306 to reflect regulatory changes made by the Federal Highway Administration (FHWA) in April of 1993 to the Federal Regulations 49 C.F.R., Part 24, Section 24.304 pertaining to actual reasonable expenses necessary to reestablish a displaced farm, nonprofit organization, or small business at its new site.
Other Identifying Information: Eliminates regulatory maximums set forth in subsections (1)(c), (h), and (j) of WAC 468-100-306 by eliminating subsection (1)(m) of WAC 468-100-306.
Statutory Authority for Adoption: RCW 8.26.035.
Statute Being Implemented: WAC 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 eliminate subsection (1)(m) of WAC 468-100-306(1) which discusses old regulatory limits removed by the FHWA in 1993. The elimination of this subsection is needed to comply with 49 C.F.R., Part 24, Section 24.304.
Reasons Supporting Proposal: The Washington State Department of Transportation must comply with the federal regulations as supported in 49 C.F.R., Part 24, Section 24.304.
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 necessary because of federal law, 49 C.F.R., Part 24, Section 24.304.
Explanation of Rule, its Purpose, and Anticipated Effects: Back in 1993, the FHWA removed internal federal restrictions placed on three subsections within the provisions of reestablishment expenses for relocating a farm, nonprofit organization, or small business that is impacted by public projects involving federal assistance. Revisions were never made to the Washington Administrative Code to reflect this change. FHWA determined the internal restrictions on these three subsections placed undue burden on displaced businesses. Upon notification of this change in 1993, WSDOT should have taken the necessary steps to eliminate subsection (1)(m) of WAC 468-100-306.
Proposal Changes the Following Existing Rules: The
existing rule will be changed by eliminating subsection (1)(m)
of WAC 468-100-306. This change must be made to comply with
federal regulations as amended by 58 F.R. 26070, April 30,
1993 (effective date June 1, 1993).
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) 705-8611 , AND RECEIVED BY March 22, 2004.
January 16, 2004
John F. Conrad
Engineering and Regional Operations
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.]