BILL REQ. #: H-0640.1
State of Washington | 62nd Legislature | 2011 Regular Session |
Read first time 01/13/11. Referred to Committee on State Government & Tribal Affairs.
AN ACT Relating to extending the time in which a small business may correct a violation without a penalty; and amending RCW 34.05.110.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 34.05.110 and 2010 c 194 s 1 are each amended to read
as follows:
(1) Agencies must provide to a small business a copy of the state
law or agency rule that a small business is violating and a period of
at least ((two business)) seven calendar days 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. If no correction is possible or if an agency is
acting in response to a complaint made by a third party and the third
party would be disadvantaged by the application of this subsection, the
requirements in this subsection do not apply.
(2) Except as provided in subsection (4) of this section, agencies
shall waive any fines, civil penalties, or administrative sanctions for
first-time paperwork violations by a small business.
(3) When an agency waives a fine, penalty, or sanction under this
section, when possible it shall require the small business to correct
the violation within a reasonable period of time, in a manner specified
by the agency. If correction is impossible, no correction may be
required and failure to correct is not grounds for reinstatement of
fines, penalties, or sanctions under subsection (5)(b) of this section.
(4) Exceptions to requirements of subsection (1) of this section
and the waiver requirement in subsection (2) of this section may be
made for any of the following reasons:
(a) The agency head determines that the effect of the violation or
waiver 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 knowing or willful violation;
(c) The violation is of a requirement concerning the assessment,
collection, or administration of any tax, tax program, debt, revenue,
receipt, a regulated entity's financial filings, or insurance rate or
form filing;
(d) The requirements of this section are 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;
(e) The small business committing the violation previously violated
a substantially similar requirement; or
(f) 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 a substantially similar requirement.
(5)(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 a substantially
similar paperwork requirement, or failure to correct the previous
violation as required by the agency under subsection (3) of this
section.
(6) 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.
(7) Nothing in this section shall be construed to apply to small
businesses required to provide accurate and complete information and
documentation in relation to any claim for payment of state or federal
funds or who are licensed or certified to provide care and services to
vulnerable adults or children.
(8) Nothing in this section affects the attorney general's
authority to impose fines, civil penalties, or administrative sanctions
as otherwise authorized by law; nor shall this section affect the
attorney general's authority to enforce the consumer protection act,
chapter 19.86 RCW.
(9) As used in this section:
(a) "Small business" means a business with two hundred fifty or
fewer employees or a gross revenue of less than seven million dollars
annually as reported on its most recent federal income tax return or
its most recent return filed with the department of revenue.
(b) "Paperwork violation" means the violation of any statutory or
regulatory requirement that mandates the collection of information by
an agency, or the collection, posting, or retention of information by
a small business. This includes but is not limited to requirements in
the Revised Code of Washington, the Washington Administrative Code, the
Washington State Register, or any other agency directive.
(c) "First-time paperwork violation" means the first instance of a
particular or substantially similar paperwork violation.