H-3763.1          _______________________________________________

                                  HOUSE BILL 2228

                  _______________________________________________

State of Washington              54th Legislature             1996 Regular Session

By Representatives Mastin, Chandler, Dyer, D. Schmidt, Thompson and McMorris

Read first time 01/08/96.  Referred to Committee on Government Operations.

Implementing regulatory reform.

     AN ACT Relating to regulatory reform; amending RCW 76.09.040, 48.02.060, 48.30.010, 48.44.050, 48.46.200, and 34.05.660; and adding a new section to chapter 43.22 RCW.

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

     Sec. 1.  RCW 76.09.040 and 1994 c 264 s 48 are each amended to read as follows:

     (1) Where necessary to accomplish the purposes and policies stated in RCW 76.09.010, and to implement the provisions of this chapter, the board shall ((promulgate)) adopt forest practices ((regulations)) rules pursuant to chapter 34.05 RCW and in accordance with the procedures enumerated in this section:  PROVIDED, That the board may not adopt rules after the effective date of this section that are based solely on a section of law stating a statute's intent or purpose, on the enabling provisions of the statute establishing the agency, or on any combination of such provisions, for statutory authority to adopt any rule.

(2) The board shall adopt rules that:

     (a) Establish minimum standards for forest practices;

     (b) Provide procedures for the voluntary development of resource management plans which may be adopted as an alternative to the minimum standards in (a) of this subsection if the plan is consistent with the purposes and policies stated in RCW 76.09.010 and the plan meets or exceeds the objectives of the minimum standards;

     (c) Set forth necessary administrative provisions; and

     (d) Establish procedures for the collection and administration of forest practice fees as set forth by this chapter.

     Forest practices ((regulations)) rules pertaining to water quality protection shall be ((promulgated)) adopted individually by the board and by the department of ecology after they have reached agreement with respect thereto.  All other forest practices ((regulations)) rules shall be ((promulgated)) adopted by the board.

     Forest practices ((regulations)) rules shall be administered and enforced by the department except as otherwise provided in this chapter.  Such ((regulations)) rules shall be ((promulgated)) adopted and administered so as to give consideration to all purposes and policies set forth in RCW 76.09.010.

     (((2))) (3) The board shall prepare proposed forest practices ((regulations)) rules.  In addition to any forest practices ((regulations)) rules relating to water quality protection proposed by the board, the department of ecology shall prepare proposed forest practices ((regulations)) rules relating to water quality protection.

     Prior to initiating the rule making process, the proposed ((regulations)) rules shall be submitted for review and comments to the department of fish and wildlife and to the counties of the state.  After receipt of the proposed forest practices ((regulations)) rules, the department of fish and wildlife and the counties of the state shall have thirty days in which to review and submit comments to the board, and to the department of ecology with respect to its proposed ((regulations)) rules relating to water quality protection.  After the expiration of such thirty day period the board and the department of ecology shall jointly hold one or more hearings on the proposed ((regulations)) rules pursuant to chapter 34.05 RCW.  At such hearing(s) any county may propose specific forest practices ((regulations)) rules relating to problems existing within such county.  The board and the department of ecology may adopt such proposals if they find the proposals are consistent with the purposes and policies of this chapter.

NEW SECTION.  Sec. 2.  A new section is added to chapter 43.22 RCW to read as follows:

     For rules adopted after the effective date of this section, the director of the department of labor and industries may not rely solely on a statute's statement of intent or purpose, on the enabling provisions of the statute establishing the agency, or on any combination of such provisions, for statutory authority to adopt any rule:  PROVIDED, That this section shall not apply to rules adopted pursuant to chapter 39.12 RCW.  It is the intent of the legislature to retain the status quo and that the provisions of chapter . . ., Laws of 1996 (this act) shall neither explicitly or impliedly diminish nor expand the rule-making authority of the department under chapter 39.12 RCW.

     Sec. 3.  RCW 48.02.060 and 1947 c 79 s .02.06 are each amended to read as follows:

     (1) The commissioner shall have the authority expressly conferred upon him or her by or reasonably implied from the provisions of this code.

     (2) The commissioner shall execute his or her duties and shall enforce the provisions of this code.

     (3) The commissioner may:

     (a) Make reasonable rules and regulations for effectuating any provision of this code, except those relating to his or her election, qualifications, or compensation:  PROVIDED, That the commissioner may not adopt rules after the effective date of this section that are based solely on this statute, or on a statute's statement of intent or purpose, or on the enabling provisions of the statute establishing the agency, or any combination of such provisions, for statutory authority to adopt any rule, except rules defining or clarifying terms in, or procedures necessary to the implementation of a statute.  No such rules and regulations shall be effective prior to their being filed for public inspection in the commissioner's office.

     (b) Conduct investigations to determine whether any person has violated any provision of this code.

     (c) Conduct examinations, investigations, hearings, in addition to those specifically provided for, useful and proper for the efficient administration of any provision of this code.

     Sec. 4.  RCW 48.30.010 and 1985 c 264 s 13 are each amended to read as follows:

     (1) No person engaged in the business of insurance shall engage in unfair methods of competition or in unfair or deceptive acts or practices in the conduct of such business as such methods, acts, or practices ((are defined pursuant to subsection (2) of this section.

     (2) In addition to such unfair methods and unfair or deceptive acts or practices)) as are expressly defined and prohibited by this code((, the commissioner may from time to time by regulation promulgated pursuant to chapter 34.05 RCW, define other methods of competition and other acts and practices in the conduct of such business reasonably found by the commissioner to be unfair or deceptive.

     (3) No such regulation shall be made effective prior to the expiration of thirty days after the date of the order by which it is promulgated)).

     (((4))) (2) If the commissioner has cause to believe that any person is violating any such ((regulation)) rule or prohibition of this code, the commissioner may order such person to cease and desist therefrom.  The commissioner shall deliver such order to such person direct or mail it to the person by registered mail with return receipt requested.  If the person violates the order after expiration of ten days after the cease and desist order has been received by him or her, he or she may be fined by the commissioner a sum not to exceed two hundred and fifty dollars for each violation committed thereafter.

     (((5))) (3) If any such ((regulation)) rule or prohibition of this code is violated, the commissioner may take such other or additional action as is permitted under the insurance code for violation of a ((regulation)) rule or that prohibition.

(4) Any permanent rule that was adopted by the commissioner under the authority of this section as it existed before the effective date of this section, and that was in effect as of the effective date of this section, shall, if otherwise valid, remain in effect until and unless it is repealed by the commissioner, who shall retain the authority to repeal any such rule, or is effectively repealed by an act of the legislature.

     Sec. 5.  RCW 48.44.050 and 1947 c 268 s 5 are each amended to read as follows:

     The insurance commissioner shall make reasonable regulations in aid of the administration of this chapter which may include, but shall not be limited to regulations concerning the maintenance of adequate insurance, bonds, or cash deposits, information required of registrants, and methods of expediting speedy and fair payments to claimants:  PROVIDED, That the commissioner may not adopt rules after the effective date of this section that are based solely on this section, a statute's statement of intent or purpose, or on the enabling provisions of the statute establishing the agency, or any combination of such provisions, for statutory authority to adopt any rule, except rules defining or clarifying terms in, or procedures necessary to the implementation of a statute.

     Sec. 6.  RCW 48.46.200 and 1975 1st ex.s. c 290 s 21 are each amended to read as follows:

     The commissioner may adopt, in accordance with the provisions of the administrative procedure act, chapter 34.05 RCW, ((promulgate)) rules and regulations as necessary or proper to carry out the provisions of this chapter:  PROVIDED, That the commissioner may not adopt rules after the effective date of this section that are based solely on this section, a statute's statement of intent or purpose, or on the enabling provisions of the statute establishing the agency, or any combination of such provisions, for statutory authority to adopt any rule, except rules defining or clarifying terms in, or procedures necessary to the implementation of a statute.  Nothing in this chapter shall be construed to prohibit the commissioner from requiring changes in procedures previously approved by ((him)) the commissioner.

     Sec. 7.  RCW 34.05.660 and 1988 c 288 s 606 are each amended to read as follows:

(1) Except as provided in subsection (2) of this section, it is the express policy of the legislature that establishment of procedures for review of administrative rules by the legislature and the notice of objection required by RCW 34.05.630(2) and 34.05.640(2) in no way serves to establish a presumption as to the legality or constitutionality of a rule in any subsequent judicial proceedings interpreting such rules.

(2) If the joint administrative rules review committee recommends to the governor that an existing rule be suspended because it does not conform with the intent of the legislature, the recommendation shall establish a rebuttable presumption in any proceeding challenging the validity of the rule that the rule is invalid.  The burden of demonstrating the rule's validity is then on the adopting agency.

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