H-0667

AN ACT Relating to state government; amending RCW 34.05.320; and adding new sections to chapter 34.05 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. A new section is added to chapter 34.05 RCW to read as follows:

The legislature hereby recognized the necessity of providing a uniform and coordinated procedure for determining the fiscal impact of rules proposed to be adopted, amended, or repealed by state agencies. The legislature finds that many rules may be adopted, amended, or repealed without assessment of the direct and indirect costs to consumers and without consideration of these costs in relation to benefits derived from the programs. The purpose of this section is to establish procedures that assure the public that a state agency shall not regulate or restrict the freedom of a person to conduct affairs, utilize property, or deal with others on mutually agreeable terms, without first evaluating, pursuant to established criteria, the fiscal impact of the rule or restriction upon the state agency involved, other subordinate governmental units affected, and the industry or commercial entity regulated.

This section is not intended to replace the substantive objectives of a law of the state of Washington; rather it is intended to establish procedures where the consideration of the fiscal impact of proposed rules is given appropriate consideration along with environmental, social, health, and safety considerations.

NEW SECTION. Sec. 2. A new section is added to chapter 34.05 RCW to read as follows:

(1) The office of financial management shall, in cooperation with appropriate state agencies, establish a procedure for the provision of fiscal impact statements, on the expected impact of rules proposed to be adopted, amended, or repealed, by the state agency promulgating the rules, the subordinate government units affected by the rules, and the industries or commercial entities regulated by the rules. Rules promulgated in response to federal requirements or promulgated for the express purpose of prescribing guidelines for the internal administration of an agency, unless the internal administrative rules are determined to have significant short-term or long-term fiscal consequences or to affect any increased program costs, are not subject to the procedures established pursuant to this section for the provision of fiscal impact statements.

(2) The fiscal impact statement shall include the following information:

(a) A description of the action proposed, the purpose for taking the action, the expected results and desired results, all statutes purporting to authorize the action, and the plan for implementing and enforcing the action;

(b) A determination of the least-cost method for achieving the stated purpose, as compared with actual costs for the proposed action, and an identification of alternative methods to achieve the stated purpose;

(d) A determination whether the proposed action represents the most efficient allocation of public and private resources;

(e) An identification of public and private sector activities with similar objectives and an assessment of the necessity of the proposed action in light of these other activities;

(f) An analysis of the level of services and the quality of program objectives to be achieved if the proposed action were approved;

(g) A determination of the effect of the action on competition and on the overall economic welfare of the state; and

(h) An identification of the state agencies, subordinate governmental units, and industries or commercial entities which might be significantly and adversely affected, either directly or indirectly, by the proposed action, and a conclusion regarding the extent of the impact, including an analysis as to who will bear the costs of the action and who will benefit directly or indirectly from the action.

Sec. 3. RCW 34.05.320 and 1989 c 175 s 7 are each amended to read as follows:

(1) At least twenty days before the rule-making hearing at which the agency receives public comment regarding adoption of a rule, the agency shall cause notice of the hearing to be published in the state register. The publication constitutes the proposal of a rule. The notice shall include all of the following:

(a) A title, a description of the rule's purpose, and any other information which may be of assistance in identifying the rule or its purpose;

(b) Citations of the statutory authority for adopting the rule and the specific statute the rule is intended to implement;

(d) The agency personnel, with their office location and telephone number, who are responsible for the drafting, implementation, and enforcement of the rule;

(e) The name of the person or organization, whether private, public, or governmental, proposing the rule;

(f) Agency comments or recommendations, if any, regarding statutory language, implementation, enforcement, and fiscal matters pertaining to the rule;

(g) Whether the rule is necessary as the result of federal law or federal or state court action, and if so, a copy of such law or court decision shall be attached to the purpose statement;

(h) When, where, and how persons may present their views on the proposed rule;

(i) The date on which the agency intends to adopt the rule;

(j) A short explanation of the rule, its purpose, and anticipated effects, including in the case of a proposal that would modify existing rules, a short description of the changes the proposal would make; ((~~and~~))

(k) A copy of the small business economic impact statement, if applicable; and

(1) A summary of the estimated fiscal impact of the proposed rule, prepared pursuant to section 2 of this act.

(2) Upon filing notice of the proposed rule with the code reviser, the adopting agency shall have copies of the notice on file and available for public inspection and shall forward three copies of the notice to the rules review committee.

(3) No later than three days after its publication in the state register, the agency shall cause a copy of the notice of proposed rule adoption to be mailed to each person who has made a request to the agency for a mailed copy of such notices. An agency may charge for the actual cost of providing individual mailed copies of these notices.

(4) In addition to the notice required by subsections (1) and (2) of this section, an institution of higher education shall cause the notice to be published in the campus or standard newspaper of the institution at least seven days before the rule-making hearing.

NEW SECTION. Sec. 4. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.