Read first time 01/27/11.   Referred to Committee on Economic Development, Trade & Innovation.

     AN ACT Relating to the rule-making process for state economic policy; and amending RCW 43.21H.020, 19.85.030, and 19.85.070.

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

Sec. 1   RCW 43.21H.020 and 1975-'76 2nd ex.s. c 117 s 2 are each amended to read as follows:
     The legislature finds that agency and local government decisions can have negative economic consequences for businesses, particularly small businesses, as well as for employees of those businesses. All state agencies and local government entities with rule-making authority under state law or local ordinance ((shall)) must adopt methods and procedures which will insure that economic impacts and values will be given appropriate consideration in the rule-making process along with environmental, social, health, and safety considerations.

Sec. 2   RCW 19.85.030 and 2007 c 239 s 3 are each amended to read as follows:
     (1)(a) In the adoption of a rule under chapter 34.05 RCW, an agency shall prepare a small business economic impact statement: (((a))) (i) If the proposed rule will impose more than minor costs on businesses in an industry; or (((b))) (ii) if requested to do so by a majority vote of the joint administrative rules review committee within forty-five days of receiving the notice of proposed rule making under RCW 34.05.320. However, if the agency has completed the pilot rule process as defined by RCW 34.05.313 before filing the notice of a proposed rule, the agency is not required to prepare a small business economic impact statement.
     (b) An agency ((shall)) must prepare the small business economic impact statement in accordance with RCW 19.85.040, and file it with the code reviser along with the notice required under RCW 34.05.320. An agency shall file a statement prepared at the request of the joint administrative rules review committee with the code reviser upon its completion before the adoption of the rule. An agency ((shall)) must provide a copy of the small business economic impact statement to any person requesting it.
     (2) Based upon the extent of disproportionate impact on small business identified in the statement prepared under RCW 19.85.040, the agency shall, where legal and feasible in meeting the stated objectives of the statutes upon which the rule is based, reduce the costs imposed by the rule on small businesses. ((Methods to reduce the costs on small businesses may include)) The agency must consider, without limitation, each of the following methods of reducing the impact of the proposed rule on small businesses:
     (a) Reducing, modifying, or eliminating substantive regulatory requirements;
     (b) Simplifying, reducing, or eliminating recordkeeping and reporting requirements;
     (c) Reducing the frequency of inspections;
     (d) Delaying compliance timetables;
     (e) Reducing or modifying fine schedules for noncompliance; or
     (f) Any other mitigation techniques including those suggested by small businesses or small business advocates.
     (3) If the agency determines it cannot reduce the costs imposed by the rule on small businesses, the agency ((shall)) must provide a clear explanation of why it has made that determination and include that statement with its filing of the proposed rule pursuant to RCW 34.05.320.
     (4)(a) All small business economic impact statements are subject to selective review by the joint administrative rules review committee pursuant to RCW 34.05.630.
     (b) Any person affected by a proposed rule where there is (([a])) a small business economic impact statement may petition the joint administrative rules review committee for review pursuant to the procedure in RCW 34.05.655.

Sec. 3   RCW 19.85.070 and 1992 c 197 s 1 are each amended to read as follows:
     When any rule is proposed for which a small business economic impact statement is required, the adopting agency ((shall)) must provide notice to small businesses of the proposed rule through ((any of the following)):
     (1) Direct notification of known interested small businesses or trade organizations affected by the proposed rule; ((or))
     (2) Providing information of the proposed rule making to publications likely to be obtained by small businesses of the types affected by the proposed rule; and
     (3) Posting on the agency web site.