BILL REQ. #:  H-0957.1 

Read first time 01/28/11.   Referred to Committee on State Government & Tribal Affairs.

     AN ACT Relating to requiring state agencies to determine whether compliance with a rule will result in a specific economic impact; adding a new section to chapter 34.05 RCW; and creating new sections.

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

NEW SECTION.  Sec. 1   This act may be known and cited as the regulatory fairness act of 2011.

NEW SECTION.  Sec. 2   The legislature finds that many citizens, employers, and local governments are struggling with nonemergency regulatory burdens resulting in the loss of time, resources, employees, and the ability to create job growth. At a time when state agencies should be looking for ways to reduce the negative impacts of nonemergency rules, they continue to produce a flow of new and unnecessary changes to the Washington Administrative Code that are stunting economic recovery in Washington state.
     The citizens of Washington state elect state lawmakers to represent them and, in turn, hold them accountable for their actions and the outcomes of state government. If state agencies are placing costly nonemergency regulatory burdens on citizens, it is the duty of state lawmakers to address these problems directly within the legislative process.
     The governor has acknowledged, through Executive Order 10-06, "Suspending Non-Critical Rule Development and Adoption," that "in a time of severe budget constraints, small businesses and governments find it more difficult to monitor and respond to proposed changes in rules and policies" and "a stable and predictable regulatory and policy environment will conserve resources for small businesses and local governments and promote economic recovery."
     State agencies currently must provide economic impact statements in a select few instances under the regulatory fairness act. In 2010, an estimated thirty statements were filed with the code reviser's office despite the fact that there were thousands of changes to rules. The system is set up so that even if there are economic and time burdens placed on citizens, employers, or local governments, state agencies may still go forward and enact the rules. This is detrimental to the economic growth of Washington state.
     The legislature intends to prevent regulatory bodies from having the authority to place costly burdens on citizens, employers, and local governments that will further damage Washington state's economy.

NEW SECTION.  Sec. 3   A new section is added to chapter 34.05 RCW to read as follows:
     (1) Before adoption of a rule, an agency must determine whether compliance with the rule will result in a specified economic impact. If the agency determines that a rule will result in a specified economic impact, the agency must provide notification and may not enforce the rule until the rule is enacted into law by the legislature.
     (2) Not later than one hundred eighty days after the effective date of this section, and annually thereafter, each agency shall determine whether any of its rules has resulted in a specified economic impact in the preceding year. If such a determination is made, the agency must provide notification, and may no longer enforce the rule until the rule is enacted into law by the legislature.
     (3)(a) For purposes of this section, "provide notification" means transmit the proposed or existing rule determined to result in a specified economic impact and the findings supporting such a determination, including relevant public comments in the case of a proposed rule, to the code reviser for publication in the state register and to the appropriate committees of the senate and the house of representatives.
     (b) For purposes of this section, "specified economic impact" means any of the following:
     (i) Costs to any individual of one thousand dollars or more in a year;
     (ii) Costs to any business, partnership, corporation, association, or public or private organization, but not including state government, of five thousand dollars or more in a year; or
     (iii) The loss of one or more existing jobs of a Washington resident within one year as a direct result of the adoption of a rule.
     (4) Any person may commence an action in the superior court either for an injunction or writ of mandamus for compliance of this section.