HOUSE BILL REPORT

HB 1018

BYRepresentatives D. Sommers,  Amondson, Ballard, B. Williams, Brough, Beck, Ferguson, Sanders, Betrozoff and Miller

Studying ways to implement regulatory relief and reform.

House Committe on Trade & Economic Development

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass. (15)

      Signed by Representatives Vekich, Chair; Wineberry, Vice Chair; Beck, Cantwell, Doty, Fox, Hargrove, Heavey, Holm, Kremen, McLean, Moyer, Rasmussen, Schoon and J. Williams.

House Staff:Bonnie Austin (786-7107)

AS REPORTED BY COMMITTEE ON TRADE & ECONOMIC DEVELOPMENT

FEBRUARY 3, 1988

BACKGROUND:

The Regulatory Fairness Act (Act) requires that state agencies reduce the impact of their rules on small businesses.  Under the provisions of this Act, agencies are required to prepare a small business Economic Impact Statement whenever the adoption of an agency rule will have an economic impact on more than: (1) ten percent of any one industry; or (2) twenty percent of all industries.  When feasible, the agency must also develop alternative means of compliance, simplify reporting requirements, or exempt small businesses from the requirements.

Small business organizations report that state agencies are not carrying out the duties imposed upon them by the Act, or alternatively that agencies are complying with the letter of the law while ignoring the intent of the Act.

SUMMARY:

SUBSTITUTE BILL:  The Washington State Institute for Public Policy (Institute) is directed to study the effectiveness of the Act in reducing the impact of state regulations on small businesses in the state.  The Institute shall investigate agency noncompliance and implementation problems and make recommendations to the legislature by January 15, 1989 on methods of solving the implementation problems.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The original bill directed the Department of Trade and Economic Development to prepare a proposal to submit to the legislature by December 28, 1988 on the least intrusive, most effective method of implementing the "Regulatory Relief and Regulatory Reform, the Washington Agenda" report prepared by the Washington Institute for Policy Studies.  The substitute bill directs the Washington State Institute for Public Policy to conduct a study of the implementation of the Regulatory Fairness Act.

Appropriation:    $50,000 to the Washington State Institute for Public Policy.

Fiscal Note:      Requested February 3, 1988.

House Committee ‑ Testified For:    Representative Beck.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Small businesses do make an effort to comply with state laws and regulations, but the requirements are often so complex and overwhelming that some small businesses give up trying to comply.

House Committee - Testimony Against:      None Presented.