1032-S2

1032-S2.E AMS PATT S3232.1

E2SHB 1032 - S AMD TO S AMD (S-3173.2/97) - 437

By Senators Patterson and Heavey

WITHDRAWN 4/17/97

On page 25, after line 34 of the amendment, insert the following:

"NEW SECTION. Sec. 214. The legislature finds:

(1) Administrative rules are necessary to implement laws that protect the public health, safety, welfare, and the environment, and to ensure efficient administration of state government.

(2) In recent years, there has been a steady growth in the number and complexity of administrative rules and their impact on businesses and the general public without a systematic review of their need, effectiveness, reasonableness, clarity, potential conflicting requirements, and consistency with legislative intent.

(3) To achieve meaningful regulatory reform, clear goals, timelines, and commitments must be established and adhered to by the state agencies, the committee on management improvement and results, and each agency head.

NEW SECTION. Sec. 215. The purpose of this act is to accomplish the following:

(1) To ensure that state regulations that have significant impact on labor, consumers, businesses, and the environment are reviewed on an open and systematic basis and to ensure that they meet standards of need, reasonableness, effectiveness, clarity, fairness, stakeholder involvement, coordination among regulatory agencies, and consistency with legislative intent and statutory authority.

(2) To ensure that state regulations are consistent with all requirements of chapter 34.05 RCW, the Administrative Procedure Act and that rule making occurs when required by law.

(3) To create a committee on management improvement and results to oversee the regulatory review process and to ensure that state government pursues a fair, effective, and sensible regulatory strategy that emphasizes:

(a) Priorities, whereby rules focus on issues of greatest need;

(b) Partnership, whereby rule making involves participation of business, labor, the environmental community, nonprofit groups, local government, and other stakeholders;

(c) Plain language, whereby rules are written and organized so they may be easily understood and used by people who are affected by them; and

(d) Performance, whereby rules are fair, effective, and achieve maximum public protection with reasonable requirements.

NEW SECTION. Sec. 216. A new section is added to chapter 34.05 RCW to read as follows:

(1) Upon the effective date of this act, each state agency shall begin a review of its rules that have significant effects on businesses, labor, consumers, and the environment. Agencies shall determine if their rules should be (a) retained in their current form, or (b) amended or repealed, if they do not meet the review criteria specified in chapter . . ., Laws of 1997 (this act). Agencies shall concentrate their regulatory review on rules or portions of a rule that have been the subject of petitions filed under RCW 34.05.330 or have been the source of complaints, concerns, or other difficulties that relate to matters other than the specific mandates of the statute on which the rule is based. Agencies that have already established regulatory review processes shall make them consistent with the requirements of chapter . . ., Laws of 1997 (this act). Each agency head shall designate a person responsible for regulatory review who shall serve as the agency's contact for regulatory review with the legislature, the office of the governor, and the office of financial management.

(2) The following criteria shall be used for the review of each rule identified for review:

(a) Need. Is the rule necessary to comply with the statutes that authorize it? Is the rule obsolete, duplicative, or ambiguous to a degree that warrants repeal or revision? Have laws or other circumstances changed so that the rule should be amended or repealed? Is the rule necessary to protect or safeguard the health, welfare, or safety of Washington's citizens?

(b) Effectiveness and efficiency. Is the rule providing the results that it was originally designed to achieve in a reasonable manner? Are there regulatory alternatives or new technologies that could more effectively or efficiently achieve the same objectives?

(c) Clarity. Is the rule written and organized in a clear and concise manner so that it can be readily understood by those to whom it applies?

(d) Intent and statutory authority. Is the rule consistent with the legislative intent of the statutes that authorize it? Is the rule based upon sufficient statutory authority? Is there a need to develop a more specific legislative authorization in order to protect the health, safety, and welfare of Washington's citizens?

(e) Coordination. Could additional consultation and coordination with other governmental jurisdictions and state agencies with similar regulatory authority eliminate or reduce duplication and inconsistency? Agencies should consult with and coordinate with other jurisdictions that have similar regulatory requirements when it is likely that coordination can reduce duplication and inconsistency.

(f) Cost. Have qualitative and quantitative benefits of the rule been considered in relation to its cost?

(g) Fairness. Does the rule result in equitable treatment of those required to comply with it? Should it be modified to eliminate or minimize any disproportionate impacts on the regulated community? Should it be strengthened to provide additional protection?

(3) Unless the context clearly requires otherwise, the definition in this section applies throughout sections 214 through 218 of this act.

"Agency" means any state board, commission, department, institution of higher education, or officer, authorized by law to make rules or to conduct adjudicative proceedings, whose executive or board is appointed by the governor.

NEW SECTION. Sec. 217. A new section is added to chapter 34.05 RCW to read as follows:

(1) Each state agency shall develop a plan for the review of its rules and submit the plan to the legislature and the governor no later than September 1, 1997. The plan must be submitted to the senate government operations committee, the house of representatives government reform and land use committee, and the joint administrative rules review committee. Agencies shall consult with their major stakeholders and constituent groups in the development of the plan. The plan shall: (a) Contain a schedule that identifies which rules will be reviewed and when the review will occur; (b) state the method by which the agency will determine if the rules meet the criteria in section 216 of this act; (c) provide a means of public participation in the review process and specify how interested persons may participate in the review; (d) take into account the need and resources required, if any, to amend significant legislative rules; (e) identify instances where the agency may require an exception to regulatory review requirements; and (f) provide a process for ongoing review of rules after the initial four-year review period provided for in chapter . . ., Laws of 1997 (this act) has expired. Any new rules or significant amendments for which a notice of intent to adopt is filed after the effective date of this act shall be consistent with its principles and objectives and must also be adopted in accordance with applicable laws. Agencies shall provide the plan to any person who has requested notification of agency rule making and shall submit the plan for publication in the Washington State Register.

(2) By October 15, 1997, and on that date in the first year of the biennium, each agency shall report to the legislature as listed in subsection (1) of this section and the governor on the progress made toward completing its regulatory review and other measures taken to improve its regulatory program. The reports shall include, but not be limited to: (a) A summary of the number of rule sections amended or repealed and the number of pages eliminated in the Washington Administrative Code; (b) a summary of rules amended or repealed based on the review criteria in section 216 of this act; (c) a summary of agency actions in response to petitions under RCW 34.05.330; (d) a summary of the results of the agency's review of policy and interpretive statements and similar documents; (e) a summary of the agency's review of reporting requirements imposed on businesses; (f) recommendations for statutory or administrative changes resulting from the regulatory reviews; and (g) other information the agency deems necessary or that may be required by the legislature and the governor. More frequent reports may be requested, as necessary. Agencies shall make the reports available to persons who have requested notification of agency rule making and shall submit them for publication in the Washington State Register.

(3) As part of its regulatory review, each agency shall review its existing policy and interpretive statements or similar documents to determine whether or not they must, by law, be adopted as rules. The review shall include consultation with the attorney general. Agencies shall concentrate their review on those statements and documents that have been the source of complaints, concerns, or other difficulties.

Each agency shall also review its reporting requirements that are applied generally to all businesses or classes of businesses to ensure that they are necessary and consistent with the principles and objectives of chapter . . ., Laws of 1997 (this act). The goals of the review shall be to achieve reporting requirements that, to the extent possible, are coordinated with other state agencies with similar requirements, are economical and easy to understand, and rely on electronic transfer of information.

(4) The office of financial management shall develop procedures to ensure that agencies notify and consult with the legislature and the governor or the legislature's and the governor's staff on the substance of any significant legislative rules upon notice of proposed rule making by the agency. The office of financial management shall report the number of rules mandated by the legislature each session to the legislature and the governor.

(5) The legislature may grant exceptions to regulatory review requirements in those instances where the substance of rules is mandated by federal law or where an agency can demonstrate an unreasonable conflict with established priorities.

NEW SECTION. Sec. 218. A new section is added to chapter 34.05 RCW to read as follows:

(1) There is created the committee on management improvement and results to consist of the heads of the following agencies: Office of financial management, department of labor and industries, department of ecology, department of social and health services, department of revenue, employment security department, and department of health. The chair of the committee is the governor's deputy chief of staff. Staffing for the committee is provided by the office of financial management, with assistance from the member agencies. All state agencies shall provide the committee with periodic reports and other information and assistance as may be requested.

(2) The responsibilities of the committee are:

(a) To study and make recommendations to the legislature and the governor for statutory, administrative, and organizational changes and for special pilot projects that result in regulatory improvements in state government. Recommendations shall be designed to improve service to citizens, provide effective and fair public protection, reduce the complexity of compliance, ensure reasonableness and effectiveness, simplify administrative processes, eliminate unnecessary procedures and paperwork, and reduce costs. The committee shall report to the legislature as listed in section 217 of this act and the governor on these items no later than December 1, 1997. Subsequent reports must be submitted in the first year of the biennium no later than December 1st.

(b) To oversee the regulatory review process established by chapter . . ., Laws of 1997 (this act) and report to the legislature as listed in section 217 of this act and the governor on the progress of state agencies in complying with these requirements. The first such report must be submitted to the legislature and the governor no later than December 1, 1997. Subsequent reports must be submitted in the first year of the biennium no later than December 1st.

(c) To assist the office of financial management in the preparation of reports to the legislature required by RCW 34.05.328(6) and 43.05.900.

(d) To convene work groups and other special committees for the purpose of assisting the committee in the development of recommendations and reports required by chapter . . ., Laws of 1997 (this act) and in the design and implementation of special pilot projects for regulatory improvement. Depending on their purpose, membership of such groups may include representatives from business, labor, environmental organizations, state agencies, local government, nonprofit organizations, citizens, and other interests.

NEW SECTION. Sec. 219. A new section is added to chapter 34.05 RCW to read as follows:

(1) There is created in each of the following agencies a committee on management improvement and results: Office of the attorney general, office of the state auditor, office of the insurance commissioner, department of natural resources, superintendent of public instruction, office of the secretary of state, and office of the state treasurer.

(2) The responsibilities of the committees are:

(a) To study and make recommendations to the legislature, the governor, and their respective agency head for statutory, administrative, and organizational changes and for special pilot projects that result in regulatory improvements in state government. Recommendations shall be designed to improve service to citizens, provide effective and fair public protection, reduce the complexity of compliance, ensure reasonableness and effectiveness, simplify administrative processes, eliminate unnecessary procedures and paperwork, and reduce costs. The committee shall report to the legislature as listed in section 217 of this act, the governor, and their respective agency head on these items no later than December 1, 1997. Subsequent reports must be submitted in the first year of the biennium no later than December 1st.

(b) To oversee the regulatory review process established by chapter . . ., Laws of 1997 (this act) and report to the legislature as listed in section 217 of this act, the governor, and their respective agency head on the progress of state agencies in complying with these requirements. The first such report must be submitted to the legislature and the governor no later than December 1, 1997. Subsequent reports must be submitted in the first year of the biennium no later than December 1st.

(c) To assist the office of financial management in the preparation of reports to the legislature required by RCW 34.05.328(6) and 43.05.900.

(d) To convene work groups and other special committees for the purpose of assisting the committees in the development of recommendations and reports required by chapter . . ., Laws of 1997 (this act) and in the design and implementation of special pilot projects for regulatory improvement. Depending on their purpose, membership of such groups may include representatives from business, labor, environmental organizations, state agencies, local government, nonprofit organizations, citizens, and other interests."

E2SHB 1032 - S AMD TO S AMD (S-3173.2/97) - 437

By Senators Patterson and Heavey

WITHDRAWN 4/17/97

On page 44, line 3 of the amendment, after "Sec. 608." strike "Section 605 of this act is" and insert "Sections 216 through 219 and 605 of this act are"

On page 44, beginning on line 6 of the amendment, after "and" strike "takes" and insert "take"