BILL REQ. #: H-3704.1

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HOUSE BILL 2603
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State of Washington

61st Legislature

2010 Regular Session

By Representatives Smith, Kenney, Bailey, Quall, Morris, Blake, Anderson, Chase, Kelley, Short, Appleton, Sullivan, Dammeier, Upthegrove, Klippert, Chandler, Kristiansen, Rolfes, Pearson, Roach, Parker, Morrell, Haler, Walsh, Orcutt, Johnson, Liias, Hunt, Probst, Ericksen, Moeller, Kretz, Sells, Hope, Herrera, and Warnick

Prefiled 01/08/10. Read first time 01/11/10. Referred to Committee on State Government & Tribal Affairs.

AN ACT Relating to violations of state law or agency rule by small businesses; adding a new section to chapter 34.05 RCW; and adding a new section to chapter 82.32 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 (2) of this section, agencies shall provide to a small business a copy of the state law or agency rule that the small business is violating and a forty-eight hour opportunity to correct the violation before the agency may impose any fines, civil penalties, or administrative sanctions for a violation of a state law or agency rule by a small business.
     (2) Exceptions to the requirements of subsection (1) of this section may be made for any of the following reasons:
     (a) The agency head determines that the effect of the violation presents a direct danger to the public health, results in a loss of income or benefits to an employee, poses a potentially significant threat to human health or the environment, or causes serious harm to the public interest;
     (b) The violation involves a small business knowingly or willfully engaging in conduct that may result in a felony conviction;
     (c) The waiver is in conflict with federal law or program requirements, federal requirements that are a prescribed condition to the allocation of federal funds to the state, or the requirements for eligibility of employers in this state for federal unemployment tax credits, as determined by the agency head;
     (d) The small business committing the violation previously violated the same or a substantially similar state law or agency rule; or
     (e) The owner or operator of the small business committing the violation owns or operates, or owned or operated a different small business which previously violated the same or a substantially similar state law or agency rule.
     (3) As used in this section "small business" means a business with two hundred fifty or fewer employees.

NEW SECTION. Sec. 2 A new section is added to chapter 82.32 RCW to read as follows:
The department may satisfy the requirements of section 1 of this act by providing a taxpayer with notice of an impending violation of state law or agency rule at least forty-eight hours before the date on which such violation would occur.

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