HOUSE OF REPRESENTATIVES

                      Olympia, Washington

Bill Analysis      Bill No. HB 1507

Accountability for fees by govt agencies                  Public Hrg: 2/18/97 

Brief Title

Reps. D. Schmidt/Sherstad/Mielke                     Staff Contact: Bill Lynch

Sponsor                                     Comm. on Govt. Admin.

                                           Phone: 786-7092

BACKGROUND:

Fees that may be charged by  state or local governmental agencies are set in different ways.  Some statutes specify the exact amount that may be charged for a service.  Other statutes, such as the one governing license fees for professions, occupations and businesses, require the agency to set the fees at a level sufficient to defray the costs of administering the program.  In other instances, less guidance may be provided on the amount that may be imposed as a fee.  Fees are generally established pursuant to the rulemaking process.  There is no general provision in the law which mandates that the fees collected for a service are actually used for that service.

An agency is generally required to prepare a small business economic impact statement if a proposed rule will impose more than minor costs on businesses in an industry, or if the Joint Administrative Rules Review Committee (JARRC) requests the agency to prepare one. 

The Business Assistance Center was required to develop guidelines to help agencies decide whether a proposed rule would impose more than minor costs on businesses.  The Business Assistance Center was terminated on June 30, 1995.

SUMMARY:

Any fee imposed by a state or local governmental agency must directly relate to the service provided for the fee.  A state or local governmental agency is required to prepare an economic impact statement on a fee proposal.  The economic impact statement must include a standardized checklist prepared by the Business Assistance Center based upon the contents of small business economic impact statements used in most state agency rule making proceedings.

FISCAL NOTE:  Not Requested.

EFFECTIVE DATE:  Ninety days after adjournment of session in which bill is passed.