S-1894               _______________________________________________

                                         SUBSTITUTE SENATE BILL NO. 5542

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Senate Committee on Economic Development & Labor (originally sponsored by Senator Lee)

Read first time 2/15/89.

AN ACT Relating to the nonprofit/for profit regulatory uniformity act; adding new sections to chapter 43.31 RCW; and creating a new section.

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

NEW SECTION. Sec. 1.     The legislature finds that nonprofit corporations and for profit corporations are of vital importance to the state.  The vitality of Washington's economy depends on a healthy business climate that does not unduly favor one business sector over another, either for profit or nonprofit.  It is the intent of the legislature to ensure that a process is established that provides equitable treatment for both sectors with regard to state government rules.

NEW SECTION. Sec. 2.     The business assistance center within the department of trade and economic development shall act as the primary agency of state government to respond to complaints regarding administrative rules adopted under chapter 34.05 RCW that unduly favor either the for profit or nonprofit business sectors.

NEW SECTION. Sec. 3.     Any party who believes that a rule or proposed rule adopted by a state agency unduly favors either for profit corporations or nonprofit corporations may submit a complaint in writing to the center outlining the rule and the pertinent issues concerning the manner in which it unduly favors either the for profit or nonprofit business sectors.

NEW SECTION. Sec. 4.     The center is authorized to:  (1) Conduct background research and rules under review; (2) request information from agencies under which a proposed rule has been promulgated or is intended to be promulgated; and (3) arrange meetings with interested parties.

NEW SECTION. Sec. 5.     Upon determining a case of preferential treatment by an agency between a for profit and nonprofit business, the center shall notify the affecting agency requesting modification of the rule.  If the state agency does not begin remedial action within thirty days, the center may refer the issue to the joint administrative rules committee.

NEW SECTION. Sec. 6.     The center may adopt rules to administer this act.

NEW SECTION. Sec. 7.     If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 8.     Sections 2 through 6 of this act are added to chapter 43.31 RCW.