SENATE BILL REPORT

HB 1531

BYRepresentatives Silver, H. Sommers, Anderson, Walk, Fuhrman, Chandler, Brough, Sanders, Moyer, K. Wilson, D. Sommers, Betrozoff and Butterfield

Revising the criteria for sunset review and extending the program.

House Committe on State Government

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 22, 1988

Majority Report:  Do pass.

      Signed by Senators McCaslin, Chairman; Zimmerman, Vice Chairman; DeJarnatt, Garrett, Halsan.

Senate Staff:Barbara Howard (786-7410)

                  February 23, 1988

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, FEBRUARY 22, 1988

BACKGROUND:

Sunset Review Criteria - Regulatory Entities.  The Washington Sunset Act sets forth a detailed list of ten specific factors to be considered by the Legislative Budget Committee (LBC) when it conducts a sunset review of a regulatory entity.  Some of these factors include :

            oThe extent to which the regulatory entity has permitted qualified applicants to serve the public, inhibits competition, or otherwise adversely affects the state's economic climate;

            oThe extent to which the system of regulation has contributed to increasing or decreasing costs;

            oThe duties of the regulatory entity and the costs incurred in carrying out such duties;

            oWhether the regulatory entity has operated in the public interest, based on specified performance measures;

            oThe consequences of eliminating or modifying the program of the regulatory entity;

            oThe extent to which the regulatory entity duplicates the activities of other regulatory entities or of the private sector, where appropriate; and

            oThe extent to which the absence or modification of regulation would adversely affect the public health, safety, or welfare.

Sunset Act - Expiration Date.  The Sunset Act, first established in 1977 is scheduled to expire on June 30, 1990 unless the Legislature extends it for an additional period of time.

SUMMARY:

Sunset Review Criteria Modified - Regulatory Entities.  Eight of the ten existing review are replaced with the following, more general, criteria:

            oThe extent to which the regulatory entity has operated in the public interest and fulfilled its statutory obligations;

            oThe duties of the regulatory entity and the costs incurred in carrying out those duties;

            oThe extent to which the regulatory entity is operating in an efficient, effective, and economical manner; and

            oThe extent to which the regulatory entity inhibits competition or otherwise adversely affects the state's economic climate.

The existing requirement that LBC consider the extent to which the absence or modification of the regulatory activity would adversely affect the public is expanded to include consideration of whether the absence or modification of the activity would have either no effect or a positive effect on the public.

Sunset Act - Expiration Date Extended.  The Sunset Act is extended until June 30, 2000 at which time expires unless extended again by the Legislature.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: No one