BP BHEAD INT H

AN ACT Relating to regulatory impact notes; amending RCW 43.41.110; and adding a new chapter to Title 43 RCW.

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

Sec. 1. RCW 43.41.110 and 1981 2nd ex.s. c 4 s 13 are each amended to read as follows:

The office of financial management shall:

(1) Provide technical assistance to the governor and the legislature in identifying needs and in planning to meet those needs through state programs and a plan for expenditures.

(2) Perform the comprehensive planning functions and processes necessary or advisable for state program planning and development, preparation of the budget, inter-departmental and inter-governmental coordination and cooperation, and determination of state capital improvement requirements.

(3) Provide assistance and coordination to state agencies and departments in their preparation of plans and programs.

(4) Provide general coordination and review of plans in functional areas of state government as may be necessary for receipt of federal or state funds.

(5) Participate with other states or subdivisions thereof in interstate planning.

(6) Encourage educational and research programs that further planning and provide administrative and technical services therefor.

(7) Carry out the provisions of RCW 43.62.010 through 43.62.050 relating to the state census.

(8) Be the official state participant in the federal-state cooperative program for local population estimates and as such certify all city and county special censuses to be considered in the allocation of state and federal revenues.

(9) Be the official state center for processing and dissemination of federal decennial or quinquennial census data in cooperation with other state agencies.

(10) Be the official state agency certifying annexations, incorporations, or disincorporations to the United States bureau of the census.

(11) Review all United States bureau of the census population estimates used for federal revenue sharing purposes and provide a liaison for local governments with the United States bureau of the census in adjusting or correcting revenue sharing population estimates.

(12) Provide fiscal notes depicting the expected fiscal impact of proposed legislation in accordance with chapter 43.88A RCW.

(13) Provide regulatory impact notes depicting the expected regulatory impact of proposed legislation on businesses in accordance with sections 2 through 6 of this act.

(14) Be the official state agency to estimate and manage the cash flow of all public funds as provided in chapter 43.88 RCW. To this end, the office shall adopt such rules as are necessary to manage the cash flow of public funds.

NEW SECTION. Sec. 2. The legislature hereby recognizes the necessity of developing a uniform and coordinated procedure for determining the expected regulatory impact of bills and resolutions on businesses. The legislature also recognizes that developing the statements of regulatory impact, which shall be known as regulatory impact notes, requires the designation of a state agency to be principally responsible for the notes.

NEW SECTION. Sec. 3. (1) The office of financial management shall, in cooperation with appropriate legislative committees and legislative staff, establish a procedure to provide regulatory impact notes on the expected impact of bills and resolutions that increase or decrease regulations on the operation of businesses subject to the state's business and occupation taxes levied in chapter 82.04 RCW.

(2) A regulatory impact note shall be prepared on the basis of a sample of businesses that are regulated by the bill or resolution. The regulatory impact note shall contain an estimate of the fiscal impact to the affected businesses for the biennium in which the bill or resolution will take effect as well as a cumulative forecast of the fiscal impact for the succeeding two fiscal years. If it is determined that no dollar estimate is possible, the regulatory impact note shall contain a statement to that effect.

(3) In establishing the regulatory impact procedure called for under this chapter, the office of financial management shall coordinate the development of regulatory impact notes with all state agencies affected.

NEW SECTION. Sec. 4. (1) After a regulatory impact note that depicts the expected regulatory impact of a bill or resolution is prepared and approved as to form, accuracy, and completeness by the office of financial management, copies shall be filed immediately with:

(a) The chair of the committee to which the bill or resolution was referred upon introduction in the house of origin;

(b) The senate committee on ways and means, or its successor; and

(2) Whenever possible, the regulatory impact note shall be provided before or at the time the bill or resolution is first heard by the committee of reference in the house of origin.

(3) If a regulatory impact note has been prepared for a bill or resolution, a copy of the regulatory impact note shall be placed in the bill books or otherwise attached to the bill or resolution and shall remain with the bill or resolution throughout the legislative process insofar as possible.

NEW SECTION. Sec. 5. If requested by a legislator, the office of financial management shall also provide a regulatory impact note on a legislative proposal. The regulatory impact note shall be returned to the requesting legislator, and copies shall be filed with the appropriate legislative committees under section 4 of this act at the time the proposed legislation is introduced in either house.

NEW SECTION. Sec. 6. Nothing in this chapter prevents either house of the legislature from acting on a bill or resolution before it as otherwise provided by the state Constitution, by law, and by the rules and joint rules of the senate and house of representatives, nor shall the lack of a regulatory impact note as provided in this chapter or an error in the accuracy of the note affect the validity of a measure otherwise duly passed by the legislature.

NEW SECTION. Sec. 7. Sections 2 through 6 of this act shall constitute a new chapter in Title 43 RCW.