BILL REQ. #:  H-2162.1 

Read first time 02/19/2007.   Referred to Committee on Insurance, Financial Services & Consumer Protection.

     AN ACT Relating to interpretive or policy statements by the insurance commissioner; amending RCW 34.05.230 and 34.05.630; and adding a new section to chapter 48.02 RCW.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 48.02 RCW to read as follows:
     (1) No interpretive or policy statement issued by the insurance commissioner after the effective date of this section is effective unless it complies with the requirements of this section.
     (2) The insurance commissioner must file the text of any proposed interpretive or policy statement for publication in the Washington State Register.
     (3) Any person may file a written objection to a proposed interpretive or policy statement within forty-five days after the notice of proposed interpretive or policy statement is published stating that the insurance commissioner has exceeded his or her authority or that a rule must be adopted instead of an interpretive or policy statement. The objection must be filed with the rules coordinator of the office of the insurance commissioner within forty-five days after the notice of the proposed interpretive or policy statement has been published in the Washington State Register. A person who has filed a written objection to the proposed interpretive or policy statement may withdraw the objection.
     (4) If a person has objected to a proposed interpretive or policy statement stating that the insurance commissioner has exceeded his or her authority or that a rule must be adopted instead of an interpretive or policy statement and not withdrawn the objection, the insurance commissioner may:
     (a) Withdraw the proposed interpretive or policy statement and file a notice of the withdrawal in the Washington State Register. If the insurance commissioner withdraws the proposed interpretive or policy statement, the insurance commissioner may choose to file a revised notice subject to the same requirements of this section;
     (b) Adopt the proposed interpretive or policy statement by rule, subject to the appropriate requirements of the administrative procedure act, chapter 34.05 RCW; or
     (c) Notify the joint administrative rules review committee of the objection to the proposed interpretive or policy statement. The notification must be treated as a request for the joint administrative rules review committee to review the proposed interpretive or policy statement.
     (5) If no written objections to the proposed interpretive or policy statement are filed with the insurance commissioner within forty-five days after the notice of proposed interpretive or policy statement is published, or if all objections that have been filed are withdrawn by the persons filing the objections, the insurance commissioner may file notice issuing the interpretive or policy statement with the Washington State Register.

Sec. 2   RCW 34.05.230 and 2004 c 31 s 3 are each amended to read as follows:
     (1) An agency is encouraged to advise the public of its current opinions, approaches, and likely courses of action by means of interpretive or policy statements. Current interpretive and policy statements are advisory only. To better inform and involve the public, an agency is encouraged to convert long-standing interpretive and policy statements into rules.
     (2) A person may petition an agency requesting the conversion of interpretive and policy statements into rules. Upon submission, the agency shall notify the joint administrative rules review committee of the petition. Within sixty days after submission of a petition, the agency shall either deny the petition in writing, stating its reasons for the denial, or initiate rule-making proceedings in accordance with this chapter.
     (3) Each agency shall maintain a roster of interested persons, consisting of persons who have requested in writing to be notified of all interpretive and policy statements issued by that agency. Each agency shall update the roster periodically and eliminate persons who do not indicate a desire to continue on the roster. Whenever an agency issues an interpretive or policy statement, it shall send a copy of the statement to each person listed on the roster. The agency may charge a nominal fee to the interested person for this service.
     (4) Whenever an agency issues an interpretive or policy statement, it shall submit to the code reviser for publication in the Washington State Register a statement describing the subject matter of the interpretive or policy statement, and listing the person at the agency from whom a copy of the interpretive or policy statement may be obtained.
     (5) The insurance commissioner must also comply with the requirements of section 1 of this act before issuing an interpretive or policy statement.

Sec. 3   RCW 34.05.630 and 1998 c 21 s 1 are each amended to read as follows:
     (1) All rules required to be filed pursuant to RCW 34.05.380, and emergency rules adopted pursuant to RCW 34.05.350, are subject to selective review by the committee.
     (2)(a) All agency policy and interpretive statements, guidelines, and documents that are of general applicability, or their equivalents, are subject to selective review by the committee to determine whether or not a statement, guideline, or document that is of general applicability, or its equivalent, is being used as a rule that has not been adopted in accordance with all applicable provisions of law.
     (b) All policy and interpretive statements, guidelines, and documents from the insurance commissioner that are of general applicability, or their equivalents, are subject to the requirements of section 1 of this act.
     (3) If the rules review committee finds by a majority vote of its members: (a) That an existing rule is not within the intent of the legislature as expressed by the statute which the rule implements, (b) that the rule has not been adopted in accordance with all applicable provisions of law, ((or)) (c) that an agency is using a policy or interpretive statement in place of a rule, or (d) the insurance commissioner has exceeded his or her authority, the agency affected shall be notified of such finding and the reasons therefor. Within thirty days of the receipt of the rules review committee's notice, the agency shall file notice of a hearing on the rules review committee's finding with the code reviser and mail notice to all persons who have made timely request of the agency for advance notice of its rule-making proceedings as provided in RCW 34.05.320. The agency's notice shall include the rules review committee's findings and reasons therefor, and shall be published in the Washington state register in accordance with the provisions of chapter 34.08 RCW.
     (4) The agency shall consider fully all written and oral submissions regarding (a) whether the rule in question is within the intent of the legislature as expressed by the statute which the rule implements, (b) whether the rule was adopted in accordance with all applicable provisions of law, and (c) whether the agency is using a policy or interpretive statement, guideline, or document that is of general applicability, or its equivalent, in place of a rule.