BILL REQ. #:  H-0959.1 

Read first time 01/27/09.   Referred to Committee on State Government & Tribal Affairs.

     AN ACT Relating to first-time paperwork violations by small businesses; and adding a new section to chapter 34.05 RCW.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 34.05 RCW to read as follows:
     (1) Except as provided in subsection (3) of this section, agencies shall waive any fines, civil penalties, or administrative sanctions for first-time paperwork violations by a small business.
     (2) When an agency waives a fine, penalty, or sanction under this section, it shall require the small business to correct the violation within a reasonable period of time as specified by the agency.
     (3) Exceptions to the waiver requirement of this section may be made for any of the following reasons:
     (a) The violation has the potential to cause serious harm to the public interest as determined by the agency head;
     (b) The violation involves a small business knowingly or willfully engaging in conduct that may result in a felony conviction;
     (c) The violation is of a law concerning the assessment or collection of any tax, debt, revenue, or receipt;
     (d) The violation presents a direct danger to the public health or safety, results in a loss of income or benefits to an employee, or presents the risk of severe environmental harm, as determined by the agency head;
     (e) When a program has been delegated to the state from the federal government, the violation is a failure to comply with a federal requirement and federal regulations mandate the imposition of a fine or civil penalty;
     (f) The small business violating a statutory or regulatory requirement mandating the collection of information by a state regulatory agency previously violated any similar requirement mandating the collection of information; or
     (g) The owner or operator of the small business violating a statutory or regulatory requirement mandating the collection of information by an agency owned or operated a different small business which previously violated any similar requirement mandating the collection of information.
     (4)(a) Nothing in this section prohibits an agency from waiving fines, civil penalties, or administrative sanctions incurred by a small business for a paperwork violation that is not a first-time offense.
     (b) Any fine, civil penalty, or administrative sanction that is waived under this section may be reinstated and imposed in addition to any additional fines, penalties, or administrative sanctions associated with a subsequent violation for noncompliance with the same paperwork requirement.
     (5) Nothing in this section may be construed to diminish the responsibility for any citizen or business to apply for and obtain a permit, license, or authorizing document that is required to engage in a regulated activity, or otherwise comply with state or federal law.
     (6) As used in this section:
     (a) "Small business" means a business with two hundred fifty or fewer employees.
     (b) "Paperwork violation" means the violation of any statutory or regulatory requirement in the Revised Code of Washington, the Washington Administrative Code, the Washington State Register, or any other agency directive mandating the collection of information by an agency.
     (c) "First-time paperwork violation" means the first instance of a paperwork violation.