WSR 97-09-094

PROPOSED RULES

OFFICE OF MINORITY AND

WOMEN'S BUSINESS ENTERPRISES

[Filed April 23, 1997, 10:34 a.m.]

Original Notice.

Preproposal statement of inquiry was filed as WSR 96-23-002.

Title of Rule: WAC 326-02-034 Political subdivision fees.

Purpose: To establish an equitable and practical procedure for distributing the costs of the state's certification program among the political subdivisions.

Statutory Authority for Adoption: RCW 39.19.030(7).

Statute Being Implemented: RCW 39.19.220.

Summary: Since 1993, the Office of Minority and Women's Business Enterprises is a revolving fund agency dependent upon user fees for its budget.

Reasons Supporting Proposal: The legislature intended that all beneficiaries of the certification program contribute to its costs. This rule governs that portion allocated to the political subdivisions of the state.

Name of Agency Personnel Responsible for Drafting: Juan Huey-Ray, 406 South Water, Olympia, WA 98504, (360) 586-1228; Implementation: Clarence Gillis, 406 South Water, Olympia, WA 98504, (360) 586-6767; and Enforcement: James A. Medina, 406 South Water, Olympia, WA 98504, (360) 586-9679.

Name of Proponent: Office of Minority and Women's Business Enterprises, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: This rule governs the process for determining which political subdivisions will be assessed and how much. It is intended to equitably spread a portion of the state's costs (related to the certification of minority and women's business enterprises) among the public entities that benefit from the program.

Proposal Changes the Following Existing Rules: This amendment establishes classes of political subdivisions and establishes a new formula for accessing each subdivision based on its classification.

No small business economic impact statement has been prepared under chapter 19.85 RCW. Exempt because a nongovernment party cannot violate it, RCW 34.05.310 (4)(b).

Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption. Exempt by subsection (5)(b)(ii) of section 201, chapter 403, Laws of 1995, because the rule applies to internal governmental operations.

Hearing Location: Office of Minority and Women's Business Enterprises, 406 South Water, Olympia, WA 98504, on July 22, 1997, at 1:00 p.m.

Assistance for Persons with Disabilities: Contact Tammi Hazlitt by July 15, 1997, (360) 753-9691.

Submit Written Comments to: Juan Huey-Ray, Rules Coordinator, FAX (360) 586-1228, by July 15, 1997.

Date of Intended Adoption: July 23, 1997.

April 23, 1997

Clarence Gillis

Deputy Director

AMENDATORY SECTION (Amending WSR 94-11-113, filed 5/18/94, effective 6/18/94)

WAC 326-02-034 Political subdivision fees. (1) It is the intent of the state legislature that political subdivisions within the state of Washington contribute to the costs of the state's certification program for minority and women's business enterprises. For the purpose of this section, political subdivisions means any city, town, county, special purpose district, public corporation created by the state, municipal corporation, or quasi-municipal corporation within the state of Washington that administers a policy or program, or funds from whatever source, which requires or encourages the use of certified minority, women, or disadvantaged business enterprises.

(2) Effective July 1, 1993, the office shall allocate a portion of its biennial operational costs to political subdivisions((, to be prorated on the relative benefit to each political subdivision)). Each political subdivision shall pay a percentage of this allocation ((which is equal to its proportionate share calculated pursuant to)) based on the formula set forth in subsection ((5(a))) (3) of this section.

(3) ((The office shall determine whether a political subdivision is subject to the provisions of this section. Factors that will be considered include:

(a) Whether the political subdivision has a policy or program, or administers funds from whatever source, that requires or encourages the use of certified minority, women, or disadvantaged business enterprises;

(b) The beginning or effective date of the policy, program, or acceptance of the relevant funds;

(c) The political subdivision's most recent biennial construction budget;

(d) The value of the political subdivision's construction dollars committed over a two-year period as specified by the office to businesses certified by the office; and

(e) The feasibility and practicality of collecting the amount that would be due.

(4) Each political subdivision, deemed by the office to be subject to this section on or after July 1, 1993, shall report to the office the total dollars committed to certified businesses in construction (including direct awards, subcontracts, and related suppliers) in calendar years 1991-1992 or its fiscal years ending in 1991 and 1992. For each succeeding biennium, each political subdivision shall report the total dollars committed to certified businesses in construction (including direct awards, subcontracts, and suppliers) during the previous biennium or its fiscal years ending in the previous biennium.

(5))) The fee charged to each political subdivision for the period, July 1, ((1993)) 1997 - June 30, ((1995)) 1999, and subsequent bienniums unless revised by rule, will be calculated as follows:

(a)(i) Cities with populations up to one thousand five hundred will not be charged.

(ii) Cities with populations of one thousand five hundred to twenty-five thousand will be charged one hundred dollars each.

(iii) Cities with populations of twenty-five thousand to fifty thousand will be charged two hundred dollars each.

(iv) Cities with populations over fifty thousand will be charged based on the formula set forth in subsection (4) of this section.

(b)(i) Counties with populations up to ten thousand will not be charged.

(ii) Counties with populations of ten thousand to one hundred thousand will be charged one hundred dollars each.

(iii) Counties with populations of one hundred thousand to five hundred thousand will be charged two hundred dollars each.

(iv) Counties with populations over five hundred thousand will be charged based on the formula set forth in subsection (4) of this section.

(c)(i) Ports with revenues up to two million dollars will not be charged.

(ii) Ports with revenues of two million dollars to ten million dollars will be charged two hundred dollars each.

(iii) Ports with revenues over ten million dollars will be charged based on the formula set forth in subsection (4) of this section.

(d)(i) Educational service districts and public school districts with enrollments up to one thousand will not be charged.

(ii) Educational service districts and public school districts with enrollments of one thousand to ten thousand will be charged one hundred dollars each.

(iii) Educational service districts and public school districts with enrollments of ten thousand to twenty thousand will be charged two hundred dollars each.

(iv) Educational service districts and public school districts with enrollments over twenty thousand will be charged based on the formula set forth in subsection (4) of this section.

(e)(i) Transit authorities with capital expenditures less than one hundred thousand dollars will not be charged.

(ii) Transit authorities with capital expenditures of one hundred thousand dollars to one million dollars will be charged one hundred dollars each.

(iii) Transit authorities with capital expenditures of one million dollars to ten million dollars will be charged two hundred dollars each.

(iv) Transit authorities with capital expenditures greater than ten million dollars will be charged based on the formula set forth in subsection (4) of this section.

(4) Each political subdivision not subject to a fixed fee under subsection (3) of this section shall report to the office the total dollars committed to certified businesses in construction (including direct awards, subcontracts, and related suppliers) during the previous biennium or its fiscal years ending in the previous biennium.

(a) The construction dollar commitment of each political subdivision will be divided by the sum of those commitments reported to calculate its proportionate share of the net allocation. The net allocation is the amount remaining after deduction of the amounts charged under subsection (3) of this section from the total allocated to all political subdivisions.

(b) The ((proportionate share)) percentage ((of)) calculated for each reporting political subdivision will be applied to the total due from all political subdivisions required to report to determine their respective fees((.

(6) The fee for a political subdivision that fails to report as required will be determined as follows:

(a))): Provided, That where a political subdivision required by this section to report fails to do so, the net allocation will be further reduced by an amount calculated as follows:

(i) The number of political subdivisions reporting will be divided by the total number of political subdivisions required to report at that time.

(((b))) (ii) The resulting percentage will be used to calculate the ((amount of the total)) portion of the net allocation due from the political subdivisions which is to be apportioned among those who ((report)) reported. The balance of the ((total)) net allocation will be charged equally among those who fail to report.

(((7))) (5) After the initial billing, which will include the total amount((s)) due for the ((number of full quarters)) biennium beginning July 1, ((1993)) 1997, the office will mail invoices on a quarterly basis one month before the start of each quarter for the outstanding balance at that time. Payments shall be due within thirty calendar days after receipt of the invoice.

(((8) As the number of reporting political subdivisions changes, the amounts due from each for the remaining quarters in a biennium will be recalculated.))

[Statutory Authority: RCW 39.19.220. 94-11-113, 326-02-034, filed 5/18/94, effective 6/18/94.]

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