H-2243

AN ACT Relating to agricultural activities; amending RCW 19.85.020 and 19.85.060; reenacting and amending RCW 19.85.030 and 19.85.040; and creating a new section.

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

NEW SECTION. Sec. 1. The legislature finds that the history, economy, culture, and future of Washington state largely involves agriculture, which is vital to the economic well-being of the state. Farmers and ranchers are responsible stewards of the land and managers of the state's natural resources. They engage in a variety of diverse business practices and operations. As a result, farm and ranch activities are likely to fall within the purview of a larger number of state regulatory programs than other small businesses. These programs, taken individually, may not cause economic harm to agricultural operations but, when considered cumulatively, may encourage or even force the premature removal of lands from agricultural use.

Sec. 2. RCW 19.85.020 and 1989 c 374 s 1 are each amended to read as follows:

Unless the context clearly indicates otherwise, the definitions in this section apply through this chapter.

(1) "Small business" has the meaning given in RCW 43.31.025(4).

(2) "Small business economic impact statement" means a statement meeting the requirements of RCW 19.85.040 prepared by a state agency pursuant to RCW 19.85.030.

(3) "Industry" means all of the businesses in this state in any one three-digit standard industrial classification as published by the United States department of commerce.

(4) "Agricultural activity" means the commercial production of: (a) Private sector cultured aquatic products as such products are defined in RCW 15.85.020, including, but not limited to, the production of fish and fish products by aquatic farmers; or (b) food and fiber consistent with the principles of instruction of Washington State University, including, but not limited to, the production of agricultural, horticultural, viticultural, floricultural, dairy, poultry, apiary, vegetable, herb, or animal products or of berries, grain, hay, straw, turf, seed, Christmas trees, or livestock.

(5) "Agricultural economic impact statement" means a statement meeting the requirements of RCW 19.85.040 prepared by a state agency pursuant to RCW 19.85.030.

Sec. 3. RCW 19.85.030 and 1989 c 374 s 2 and 1989 c 175 s 72 are each reenacted and amended to read as follows:

In the adoption of any rule pursuant to RCW 34.05.320 that will have an economic impact on more than twenty percent of all industries, or more than ten percent of any one industry, or any agricultural activity the adopting agency:

(1) Shall reduce the economic impact of the rule on small business or agricultural activities by doing one or more of the following when it is legal and feasible in meeting the stated objective of the statutes which are the basis of the proposed rule:

(a) Establish differing compliance or reporting requirements or timetables for small businesses or agricultural activities;

(b) Clarify, consolidate, or simplify the compliance and reporting requirements under the rule for small businesses;

(d) Exempt small businesses or agricultural activities from any or all requirements of the rule;

(2) Shall prepare a small business economic impact statement or, for an agricultural activity, a separate agricultural economic impact statement in accordance with RCW 19.85.040 and file such statement with the code reviser along with the notice required under RCW 34.05.320;

(3) May request assistance from the business assistance center in the preparation of the small business economic impact statement; and

(4) May request assistance from the department of agriculture in the preparation of the agricultural economic impact statement.

Sec. 4. RCW 19.85.040 and 1989 c 374 s 3 and 1989 c 175 s 73 are each reenacted and amended to read as follows:

A small business economic impact statement or an agricultural economic impact statement must include a brief description of the reporting, recordkeeping, and other compliance requirements of the rule, and the kinds of professional services that a small business is likely to need in order to comply with such requirements and the kinds of professional services or capital improvements or operating changes that are likely for an agricultural activity in order to comply with such requirements. ((~~A small business~~)) An economic impact statement shall analyze, based on existing data, the costs of compliance for businesses or agricultural activities required to comply with the provisions of a rule adopted pursuant to RCW 34.05.320, including costs of equipment, supplies, labor, and increased administrative costs((~~, and~~)).

A small business economic impact statement shall compare to the greatest extent possible the cost of compliance for small business with the cost of compliance for the ten percent of firms which are the largest businesses required to comply with the proposed new or amendatory rules. The small business economic impact statement shall use one or more of the following as a basis for comparing costs:

(1) Cost per employee;

(2) Cost per hour of labor;

(3) Cost per one hundred dollars of sales;

(4) Any combination of subsection (1), (2), or (3) of this section.

Sec. 5. RCW 19.85.060 and 1989 c 374 s 5 are each amended to read as follows:

An agency is not required to prepare a small business economic impact statement or an agricultural economic impact statement if the agency files a statement that:

(1) The rule is being adopted solely for the purpose of conformity or compliance, or both, with federal law or regulations; or

(2) The rule will have a minor or negligible economic impact. The business assistance center shall develop guidelines for determining whether a proposed rule will have minor or negligible impacts on small businesses and the department of agriculture shall develop guidelines for determining whether a proposed rule will have minor or negligible impacts on agricultural activities. The business assistance center may review a proposed rule that indicates that there is only a minor or negligible economic impact on small businesses to determine if the agency's finding is within the guidelines developed by the business assistance center and the department may similarly review a proposed rule that indicates there is only a minor or negligible economic impact on agricultural activities. The business assistance center ((is)) and the department are authorized to advise the joint administrative rules review committee on disputes involving agency determinations under this section.