WSR 98-08-106

PROPOSED RULES

DEPARTMENT OF LICENSING

(Board of Registration for Professional Engineers and Land Surveyors)

[Filed April 1, 1998, 11:06 a.m.]



Original Notice.

Preproposal statement of inquiry was filed as WSR 97-18-039

Title of Rule: Business practices, chapter 196-25 WAC

Purpose: To implement the provisions of legislation enacted in 1997 (chapter 247, Laws of 1997) as codified in RCW 18.43.130 Excepted services--Fees (effective July 1, 1998)

Statutory Authority for Adoption: RCW 18.43.035, 18.43.130

Statute Being Implemented: RCW 18.43.130

Summary: In the 1997 legislation provisions were made amending the registration requirements for engineering corporations, engineering partnerships, PS corporations. It also clarifies the recognition of joint stock associations and establishes the requirements for the new category of limited liability companies. The rules under this filing deal with the administration of these statutory amendments

Reasons Supporting Proposal: Implements existing statutory language that becomes effective July 1, 1998. These rules provide for a more simplified process

Name of Agency Personnel Responsible for Drafting: Rick Notestine, 405 Black Lake Boulevard, Olympia, WA, (360) 753-3634; Implementation and Enforcement: George A. Twiss, 405 Black Lake Boulevard, Olympia, WA, (360) 586-3361

Name of Proponent: Board of Registration for Professional Engineers and Land Surveyors, governmental.

Agency Comments or Recommendations, if any, as to Statutory Language, Implementation, Enforcement, and Fiscal Matters: These rules are necessary to implement the registration process for the business categories identified in the enabling legislation

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

Explanation of Rule, its Purpose, and Anticipated Effects: The 1997 legislature amended chapter 18.43 RCW to include changes to the registration requirement for corporations and partnerships that offer engineering services in Washington. This amendment also clarifies the registration of joint stock associations and establishes the requirements for limited liability companies that will be offering engineering and land surveying services that were not previously recognized in chapter 18.43 RCW.

The rules proposed for new chapter 196-25 WAC are a combination of amendments to the old rules for engineering corporation currently codified in chapter 196-24 WAC and new rules dealing with revised corporation provisions, joint stock associations and limited liability companies that offer engineering and/or land surveying services in Washington.

These rules set forth a simplified process for the registration of these business entities under chapter 18.43 RCW

Proposal Changes the Following Existing Rules: See Explanation of Rule above

No small business economic impact statement has been prepared under chapter 19.85 RCW. The 1997 legislature made changes to RCW 18.43.130 impacting corporations, joint stock associations and engineering partnerships. These changes were: Engineering partnerships and PS corporations would no longer be required to apply to the board for a certificate of authority to practice in the state; all other corporations practicing engineering would continue to apply; corporations practicing land surveying, and limited liability companies practicing engineering and/or land surveying would now be required to apply to the board to practice, where in the past, they did not. Chapter 196-25 WAC did not create these requirements, but is written to implement the legislative changes.

The Board of Registration mailed 5,200 packets of information out to the regulated community informing them of the rule changes. About 3,000 of those were sent to engineering businesses as provided on a list by the Department of Revenue under SIC Code 8711. The majority of engineering businesses fall within the definition of "small business."

The documents mailed included the board's analysis of the impact of chapter 196-25 WAC on the engineering business community. The board found no significant impact of these rules on business. Of the 5,200 mailings, there were thirty-three responses for a return rate of 0.6%. No respondent identified an economic impact due to this rule that could be addressed by this rule making.

RCW 34.05.328 does not apply to this rule adoption. These rules are required to implement the 1997 legislation in chapter 247, Laws of 1997. These rules set forth registration requirements and procedures for the application and issuance of a certificate of authorization (permit) for certain business entities to offer and practice engineering or land surveying in the state of Washington (RCW 34.05.328 (5)(c) Procedural rule).

Hearing Location: Sea-Tac Hilton Hotel, 17620 Pacific Highway South, Sea-Tac, WA 98188, on May 7, 1998, at 3:00 p.m

Assistance for Persons with Disabilities: Contact Shanan Gillespie, (360) 586-7568, by April 22, 1998, TDD (360) 586-2788

Submit Written Comments to: Rick Notestine, Program Director, Board of Registration for Professional Engineers and Land Surveyors, P.O. Box 9649, Olympia, WA 98507-9649

Date of Intended Adoption: May 7, 1998

March 31, 1998

George A. Twiss

Executive Director

OTS-2050.1

Chapter 196-25 WAC



BUSINESS PRACTICES



NEW SECTION



WAC 196-25-001  Purpose. The purpose of this chapter is to implement that part of chapter 18.43 RCW related to corporations and limited liability companies offering engineering and land surveying services, as enacted by the 1997 legislature.



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NEW SECTION



WAC 196-25-002  Definitions. Board. The Washington state board of registration for professional engineers and land surveyors.

Professional engineer. A person registered by the board under chapter 18.43 RCW to practice engineering in this state.

Professional land surveyor. A person registered by the board under chapter 18.43 RCW to practice land surveying in this state.

Business. A corporation, joint stock association or limited liability company that is practicing or offering to practice, engineering or land surveying or both in this state.

Designee. A currently registered professional engineer designated by the business to be in responsible charge of engineering activities for the business in this state, OR, a currently registered professional land surveyor designated by the business to be in responsible charge of land surveying activities for the business in this state.

Certificate of authorization. A certificate issued by the board, pursuant to chapter 18.43 RCW, to a business authorizing it to practice engineering or land surveying or both in this state. (Note: This is a different certificate than the certificate of authorization that may be filed with the secretary of state.)



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NEW SECTION



WAC 196-25-005  Businesses that must be authorized by the board. Except for professional service (PS) corporations and professional service limited liability companies (PLLC's), all corporations, joint stock associations and limited liability companies (LLC's) that offer engineering or land surveying services must apply to the board for a certificate of authorization to practice engineering or land surveying or both in the state of Washington.

Effective July 1, 1998, engineering partnerships currently registered with the board will no longer be required to pay an annual renewal fee. Also effective July 1, partnerships and limited liability partnerships offering engineering and/or land surveying services will not be required to apply for a certificate of authorization from the board. However, the partnership must employ at least one person currently registered as a professional engineer or professional land surveyor or both under chapter 18.43 RCW.



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NEW SECTION



WAC 196-25-010  Applications. All applications must be completed on forms provided by the board and filed with the executive director at the board's address and be accompanied by the appropriate fee as listed in WAC 196-26-020.



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NEW SECTION



WAC 196-25-020  Corporations or joint stock associations. (1) The following will be submitted with the application for a certificate of authorization: A certified copy of a resolution of the board of directors; identification of the designee(s); an affidavit signed by the designee(s); a copy of the certificate of incorporation or certificate of authorization as filed with the secretary of state; and, a copy of the corporation's current Washington business license.

(2) The resolution of the board of directors of the corporation designating person(s) must also provide full authority to the designee to make all final engineering or land surveying decisions respectfully on behalf of the corporation for work performed by the corporation in this state.

The resolution must further state that the bylaws of the corporation shall be amended in accordance with RCW 18.43.130 (8)(c) pertaining to engineering or land surveying decisions made by the designee.



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NEW SECTION



WAC 196-25-030  Limited liability companies. (1) The following must be submitted with the application for a certificate of authorization: A certified copy of a resolution by the company manager or managers; identification of the designee(s); an affidavit signed by the designee(s); a copy of the certificate of formation as filed with the secretary of state; and, a copy of the company's current business license.

(2) The resolution by the limited liability company manager or managers designating person(s), must also provide full authority to the designee to make all final engineering or land surveying decisions respectfully on behalf of the company for work performed by the company in the state of Washington. The resolution must further state that the limited liability company agreement shall be amended in accordance with RCW 18.43.130 (10)(b) pertaining to engineering or land surveying decisions made by the designee.



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NEW SECTION



WAC 196-25-040  Provisions pertaining to both corporations and limited liability companies. (1) If the business offers both engineering and land surveying services, there must be a designee for each profession. If a person is licensed in both engineering and land surveying, that person may be designated for both professions.

(2) An affidavit must be signed by the designee(s) stating that he or she knows they have been designated by the business as being responsible for the engineering and/or land surveying activities in the state of Washington.

(3) The designated engineer and/or designated land surveyor must be an employee of the business.

(4) No person may be the designated engineer or designated land surveyor at more than one business at any one time.

(5) If there is a change in the designee(s), the business must notify the board in writing within thirty days of the effective date of the change and submit a new affidavit.

(6) If the business changes its name, the business must submit a copy of its amended certificate of authority or amended certificate of incorporation (for corporations) or a copy of the certificate of amendment (for LLC's), as filed with the secretary of state within thirty days of the filing.

(7) At the time of renewal, a copy of the business' business license must be submitted to insure that the company is registered with the secretary of state and has a current uniform business identification (UBI) number.

(8) The filing of the resolution shall not relieve the business of any responsibility or liability imposed upon it by law or by contract. Any business that is certified under chapter 18.43 RCW and this chapter is subject to the authority of the board as provided in RCW 18.43.035, 18.43.105, 18.43.110, and 18.43.120.



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