SHB 1601 -
By Representative Overstreet
NOT CONSIDERED 04/22/2011
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1 This act may be known and cited as the
regulatory fairness act of 2011.
NEW SECTION. Sec. 2 The legislature finds that many citizens,
employers, and local governments are struggling with nonemergency
regulatory burdens resulting in the loss of time, resources, employees,
and the ability to create job growth. At a time when state agencies
should be looking for ways to reduce the negative impacts of
nonemergency rules, they continue to produce a flow of new and
unnecessary changes to the Washington Administrative Code that are
stunting economic recovery in Washington state.
The citizens of Washington elect state lawmakers to represent them
and, in turn, hold them accountable for their actions and the outcomes
of state government. If state agencies are placing costly nonemergency
regulatory burdens on citizens, it is the duty of state lawmakers to
address these problems directly within the legislative process.
The governor has acknowledged, through Executive Order 10-06,
"Suspending Non-Critical Rule Development and Adoption," that "in a
time of severe budget constraints, small businesses and governments
find it more difficult to monitor and respond to proposed changes in
rules and policies" and "a stable and predictable regulatory and policy
environment will conserve resources for small businesses and local
governments and promote economic recovery."
State agencies currently must provide economic impact statements in
a select few instances under the regulatory fairness act. In 2010, an
estimated thirty statements were filed with the code reviser's office
despite the fact that there were thousands of changes to rules. The
system is set up so that even if there are economic and time burdens
placed on citizens, employers, or local governments, state agencies may
still go forward and enact the rules. This is detrimental to the
economic growth of Washington state.
The legislature intends to prevent regulatory bodies from having
the authority to place costly burdens on citizens, employers, and local
governments that will further damage Washington state's economy.
NEW SECTION. Sec. 3 A new section is added to chapter 34.05 RCW
to read as follows:
(1) Before adoption of a rule, an agency must determine whether
compliance with the rule will result in a specified economic impact.
If the agency determines that a rule will result in a specified
economic impact, the agency must provide notification and may not
enforce the rule until the rule is enacted into law by the legislature.
(2) Not later than one hundred eighty days after the effective date
of this section, and annually thereafter, each agency shall determine
whether any of its rules has resulted in a specified economic impact in
the preceding year. If such a determination is made, the agency must
provide notification, and may no longer enforce the rule until the rule
is enacted into law by the legislature.
(3)(a) For purposes of this section, "provide notification" means
transmit the proposed or existing rule determined to result in a
specified economic impact and the findings supporting such a
determination, including relevant public comments in the case of a
proposed rule, to the code reviser for publication in the state
register and to the appropriate committees of the senate and the house
of representatives.
(b) For purposes of this section, "specified economic impact" means
any of the following:
(i) Costs to any individual of one thousand dollars or more in a
year;
(ii) Costs to any business, partnership, corporation, association,
or public or private organization, but not including state government,
of five thousand dollars or more in a year; or
(iii) The loss of one or more existing jobs of a Washington
resident within one year as a direct result of the adoption of a rule.
(4) Any person may commence an action in the superior court either
for an injunction or writ of mandamus for compliance of this section."
Correct the title.
EFFECT: Strikes the underlying bill. Requires agencies to determine whether a proposed administrative rule will result in a specified economic impact, and if it will, to provide notification to the Legislature. Establishes that an administrative rule having a specified economic impact cannot be enforced until enacted into law by the Legislature. Requires an agency to conduct an annual review of its rules to determine whether any existing rules have resulted in a specified economic impact. Defines "specified economic impact" and "provide notification."