S-4668.2  _______________________________________________

                         SENATE BILL 6702

          _______________________________________________

State of Washington      54th Legislature     1996 Regular Session

By Senators Fraser, McCaslin, Sheldon, West, Winsley and Hale

Read first time 01/24/96.  Referred to Committee on Government Operations.

Clarifying and streamlining of the joint administrative rules review committee.

    AN ACT Relating to clarifying and streamlining procedures of the joint administrative rules review committee; amending RCW 34.05.330, 34.05.620, 34.05.630, 34.05.640, and 34.05.655; and repealing RCW 34.05.645.

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

    Sec. 1.  RCW 34.05.330 and 1995 c 403 s 703 are each amended to read as follows:

    (1) Any person may petition an agency requesting the adoption, amendment, or repeal of any rule.  The office of financial management shall prescribe by rule the format for such petitions and the procedure for their submission, consideration, and disposition and provide a standard form that may be used to petition any agency.  Within sixty days after submission of a petition, the agency shall either (a) deny the petition in writing, stating (i) its reasons for the denial, specifically addressing the concerns raised by the petitioner, and, where appropriate, (ii) the alternative means by which it will address the concerns raised by the petitioner, or (b) initiate rule-making proceedings in accordance with this chapter.

    (2) If an agency denies a petition to repeal or amend a rule submitted under subsection (1) of this section, and the petition alleges that the rule is not within the intent of the legislature or was not adopted in accordance with all applicable provisions of law, the person may petition for review of the rule by the joint administrative rules review committee under RCW 34.05.655.

(3) If an agency denies a petition to repeal or amend a rule submitted under subsection (1) of this section, the petitioner, within thirty days of the denial, may appeal the denial to the governor.  The governor shall immediately file notice of the appeal with the code reviser for publication in the Washington state register.  Within forty-five days after receiving the appeal, the governor shall either (a) deny the petition in writing, stating (i) his or her reasons for the denial, specifically addressing the concerns raised by the petitioner, and, (ii) where appropriate, the alternative means by which he or she will address the concerns raised by the petitioner; (b) for agencies listed in RCW 43.17.010, direct the agency to initiate rule-making proceedings in accordance with this chapter; or (c) for agencies not listed in RCW 43.17.010, recommend that the agency initiate rule-making proceedings in accordance with this chapter.  The governor's response to the appeal shall be published in the Washington state register and copies shall be submitted to the chief clerk of the house of representatives and the secretary of the senate.

    (((3))) (4) In petitioning for repeal or amendment of a rule under this section, a person is encouraged to address, among other concerns:

    (a) Whether the rule is authorized;

    (b) Whether the rule is needed;

    (c) Whether the rule conflicts with or duplicates other federal, state, or local laws;

    (d) Whether alternatives to the rule exist that will serve the same purpose at less cost;

    (e) Whether the rule applies differently to public and private entities;

    (f) Whether the rule serves the purposes for which it was adopted;

    (g) Whether the costs imposed by the rule are unreasonable;

    (h) Whether the rule is clearly and simply stated; ((and))

    (i) Whether the rule is different than a federal law applicable to the same activity or subject matter without adequate justification; and

(j) Whether the rule was adopted according to all applicable provisions of law.

    (((4))) (5) The business assistance center and the office of financial management shall coordinate efforts among agencies to inform the public about the existence of this rules review process.

    (((5))) (6) The office of financial management shall initiate the rule making required by subsection (1) of this section by September 1, 1995.

    Sec. 2.  RCW 34.05.620 and 1994 c 249 s 17 are each amended to read as follows:

    ((Whenever a majority of the members of the rules review committee determines)) If the rules review committee finds by a majority vote of its members that a proposed rule is not within the intent of the legislature as expressed in the statute which the rule implements, or that an agency may not be adopting a proposed rule in accordance with all applicable provisions of law, ((including section 4 of this act and chapter 19.85 RCW,)) the committee shall give the affected agency written notice of its decision.  The notice shall be given at least seven days prior to any hearing scheduled for consideration of or adoption of the proposed rule pursuant to RCW 34.05.320.  The notice shall include a statement of the review committee's findings and the reasons therefor.  When the agency holds a hearing on the proposed rule, the agency shall consider the review committee's decision.

    Sec. 3.  RCW 34.05.630 and 1994 c 249 s 18 are each amended to read as follows:

    (1) All rules required to be filed pursuant to RCW 34.05.380, and emergency rules adopted pursuant to RCW 34.05.350, are subject to selective review by the legislature.

    (2) ((The rules review committee may review an agency's use of policy statements, guidelines, and issuances that are of general applicability, or their equivalents to determine whether or not an agency has failed to adopt a rule or whether they are within the intent of the legislature as expressed by the governing statute)) All agency policy and interpretive statements are subject to selective review by the legislature.

    (3) If the rules review committee finds by a majority vote of its members:  (a) That an existing rule is not within the intent of the legislature as expressed by the statute which the rule implements, (b) that the rule has not been adopted in accordance with all applicable provisions of law, ((including section 4 of this act if the rule was adopted after the effective date of section 4 of this act and chapter 19.85 RCW,)) or (c) that an agency is using a policy or interpretive statement((, guideline, or issuance)) in place of a rule, ((or (d) that the policy statement, guideline, or issuance is outside of legislative intent,)) the agency affected shall be notified of such finding and the reasons therefor.  Within thirty days of the receipt of the rules review committee's notice, the agency shall file notice of a hearing on the rules review committee's finding with the code reviser and mail notice to all persons who have made timely request of the agency for advance notice of its rule-making proceedings as provided in RCW 34.05.320.  The agency's notice shall include the rules review committee's findings and reasons therefor, and shall be published in the Washington state register in accordance with the provisions of chapter 34.08 RCW.

    (4) The agency shall consider fully all written and oral submissions regarding (a) whether the rule in question is within the intent of the legislature as expressed by the statute which the rule implements, (b) whether the rule was adopted in accordance with all applicable provisions of law, ((including section 4 of this act if the rule was adopted after the effective date of section 4 of this act and chapter 19.85 RCW,)) or (c) whether the agency is using a policy or interpretive statement((, guideline, or issuance)) in place of a rule((, or (d) whether the policy statement, guideline, or issuance is within the legislative intent)).

    Sec. 4.  RCW 34.05.640 and 1994 c 249 s 19 are each amended to read as follows:

    (1) Within seven days of an agency hearing held after notification of the agency by the rules review committee pursuant to RCW 34.05.620 or 34.05.630, the affected agency shall notify the committee of its intended action on a proposed or existing rule to which the committee objected or on a committee finding of the agency's failure to adopt rules.  ((If the rules review committee determines, by a majority vote of its members, that the agency has failed to provide for the required hearings or notice of its action to the committee, the committee may file notice of its objections, together with a concise statement of the reasons therefor, with the code reviser within thirty days of such determination.))

    (2) If the rules review committee finds((,)) by a majority vote of its members:  (a) That the proposed or existing rule in question ((has not been)) will not be modified, amended, withdrawn, or repealed by the agency so as to conform with the intent of the legislature, ((or)) (b) that an existing rule was not adopted in accordance with all applicable provisions of law, ((including section 4 of this act if the rule was adopted after the effective date of section 4 of this act and chapter 19.85 RCW,)) or (c) that the agency ((is using a policy statement, guideline, or issuance in place of a rule, or that the policy statement, guideline, or issuance is outside of the legislative intent)) will not replace the policy or interpretive statement with a rule, the rules review committee may, within thirty days from notification by the agency of its intended action, file with the code reviser notice of its objections together with a concise statement of the reasons therefor.  Such notice and statement shall also be provided to the agency by the rules review committee.

    (3) If the rules review committee makes an adverse finding regarding an existing rule under subsection (2) (a) or (b) of this section, the committee may, by a majority vote of its members, recommend suspension of ((an existing)) the rule.  Within seven days of such vote the committee shall transmit to the appropriate standing committees of the legislature, the governor, the code reviser, and the agency written notice of its objection and recommended suspension and the concise reasons therefor.  Within thirty days of receipt of the notice, the governor shall transmit to the committee, the code reviser, and the agency written approval or disapproval of the recommended suspension.  If the suspension is approved by the governor, it is effective from the date of that approval and continues until ninety days after the expiration of the next regular legislative session.

    (4) ((If the governor disapproves the recommendation of the rules review committee to suspend the rule, the transmittal of such decision, along with the findings of the rules review committee, shall be treated by the agency as a petition by the rules review committee to repeal the rule under RCW 34.05.330.

    (5))) The code reviser shall publish transmittals from the rules review committee or the governor issued pursuant to subsection (((1),)) (2)((,)) or (3) of this section in the Washington state register and shall publish in the next supplement and compilation of the Washington Administrative Code a reference to the committee's objection or recommended suspension and the governor's action on it and to the issue of the Washington state register in which the full text thereof appears.

    (((6))) (5) The reference shall be removed from a rule published in the Washington Administrative Code if a subsequent adjudicatory proceeding determines that the rule is within the intent of the legislature or was adopted in accordance with all applicable laws, whichever was the objection of the rules review committee.

NEW SECTION. Sec. 5.  RCW 34.05.645 and 1995 c 403 s 501 are each repealed.

    Sec. 6.  RCW 34.05.655 and 1995 c 403 s 502 are each amended to read as follows:

    (1) Any person may petition the rules review committee for a review of ((that rule)) a proposed or existing rule or a policy or interpretive statement.  Within thirty days of the receipt of the petition, the rules review committee shall acknowledge receipt of the petition and describe any initial action taken.  If the rules review committee rejects the petition, a written statement of the reasons for rejection shall be included.

    (2) A person may petition the rules review committee under subsection (1) of this section requesting review of an existing rule only if the person has petitioned the agency to amend or repeal the rule under RCW 34.05.330(1) and such petition was denied.

(3) A petition for review of a rule under subsection (1) of this section shall:

(a) Identify with specificity the proposed or existing rule to be reviewed;

(b) Identify the specific statute identified by the agency as authorizing the rule, the specific statute which the rule interprets or implements, and, if applicable, the specific statute the department is alleged not to have followed in adopting the rule;

(c) State the reasons why the petitioner believes that the rule is not within the intent of the legislature, or that its adoption was not or is not in accordance with law, and provide documentation to support these statements;

(d) Identify any known judicial action regarding the rule or statutes identified in the petition.

A petition to review an existing rule shall also include a copy of the agency's denial of a petition to amend or repeal the rule issued under RCW 34.05.330(1) and, if available, a copy of the governor's denial issued under RCW 34.05.330(3).

(4) A petition for review of a policy or interpretive statement under subsection (1) of this section shall:

(a) Identify the specific statement to be reviewed;

(b) Identify the specific statute which the rule interprets or implements;

(c) State the reasons why the petitioner believes that the statement meets the definition of a rule under RCW 34.05.010 and should have been adopted according to the procedures of this chapter;

(d) Identify any known judicial action regarding the statement or statutes identified in the petition.

(5) Within ninety days of receipt of the petition, the rules review committee shall make a final decision on the rule for which the petition for review was not previously rejected.

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