PROPOSED RULES
TRADE AND ECONOMIC DEVELOPMENT
Original Notice.
Preproposal statement of inquiry was filed as WSR 99-15-010.
Title of Rule: WAC 365-135-020 Definitions, bond cap allocation fees.
Purpose: Change in fees is needed to cover increasing costs of administering the bond cap allocation program.
Statutory Authority for Adoption: RCW 39.86.180.
Statute Being Implemented: RCW 39.86.170.
Summary: The bond cap allocation fee is being raised under Initiative 601 rules. The fee will increase from .00025 of an allocation request to .00026 on December 31, 1999, .000269 on July 1, 2000, and .000277 on July 1, 2001.
Reasons Supporting Proposal: An increase in the fee is needed to adequately cover the administrative costs of running the bond cap allocation program due to increasing costs for salaries and benefits as well as increased rent for space.
Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Bill Cole, 906 Columbia Street S.W., Olympia, WA, (360) 753-0307.
Name of Proponent: Department of Community, Trade and Economic Development, governmental.
Rule is not necessitated by federal law, federal or state court decision.
Explanation of Rule, its Purpose, and Anticipated Effects: The rule sets the fee as a percentage of the requested allocation amount. The fee has been .00025 of the requested amount since 1987. This rule change allows the agency to increase the fee under Initiative 601 guidelines to .00026 on December 31, 1999, .000269 on July 1, 2000, and .000277 on July 1, 2001. The purpose of the change in fee is to adequately cover the administrative costs of the agency to administer the bond cap allocation program.
Proposal Changes the Following Existing Rules: The proposal changes the definition of allocation fee in the definitions section of chapter 365-135 WAC. The proposal will replace the current .00025 figure with the following figures:
| December 31, 1999, through June 30, 2000 | .000026 |
| July 1, 2000, through June 30, 2001 | .000269 |
| July 1, 2001 and thereafter | .000277 |
No small business economic impact statement has been prepared under chapter 19.85 RCW. Under RCW 19.85.030(1), it states "...an agency shall prepare a small business economic impact statement: (a) If the proposed rule will impose more than minor costs on businesses in an industry;...." All applicants to the bond cap allocation program must pay a fee in order to receive an allocation. Almost all small businesses that apply to the program apply for allocation from the small issue category, which has a limit of $10 million per project. Currently fees for this category range from $500 to $2,500. Under the proposal, the fee would range from $500 to $2,770, only a $270 increase on the top end of a $10 million project. As part of this process, representatives from issuers, including ports, economic development councils, industrial development councils, as well as the Washington Economic Development Finance Authority approved of the fee increase.
Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption.
Hearing Location: Washington State Department of Community, Trade and Economic Development, 906 Columbia Street S.W., Room 5A, Olympia, WA 98504-8300, on November 12, 1999, at 10:00-12:00.
Assistance for Persons with Disabilities: Contact Bill Cole by November 5, 1999, TDD (360) 586-4224.
Submit Written Comments to: Bill Cole, Department of Community, Trade and Economic Development, P.O. Box 48300, Olympia, WA 98504-8300, fax (360) 753-0307, by November 10, 1999.
Date of Intended Adoption: December 31, 1999.
October 4, 1999
Jean L. Ameluxen
Legislative Liaison
OTS-3476.1
AMENDATORY SECTION(Amending WSR 97-02-093, filed 1/2/97,
effective 2/2/97)
WAC 365-135-020
Definitions.
The definitions in this section apply throughout this chapter unless the context clearly provides otherwise.
Allocation fee: The total fee paid by the issuer to the
department for receiving allocation from the BCAP. It is
assessed by the department based on ((the following formula:
1/40 of one percent (.00025) of the approved allocation amount))
multiplying the requested allocation amount by the following
figures:
| December 31, 1999, through June 30, 2000 | .00026 |
| July 1, 2000, through June 30, 2001 | .000269 |
| July 1, 2001, and thereafter | .000277; |
Department: The Washington state department of community, trade, and economic development.
Extension fee: The fee the department may assess when an issuer requests and is granted an extension for issuing the allocation or carryforward of the allocation. The amount of the fee will not exceed two hundred fifty dollars and is nonrefundable.
Filing fee: The nonrefundable five hundred dollar portion of the allocation fee.
Reallocation: The assignment of an unused portion of the state ceiling from one bond use category to another or the provision of a certificate of approval to any issuer for an allocation amount which previously had been returned to the department.
Statute: Chapter 39.86 RCW.
[Statutory Authority: Chapter 39.86 RCW and RCW 43.330.040 (2)(g). 97-02-093, § 365-135-020, filed 1/2/97, effective 2/2/97. Statutory Authority: Chapter 39.86 RCW. 93-13-012 (Order 93-05), § 365-135-020, filed 6/7/93, effective 1/1/94. Statutory Authority: 1987 c 297. 87-19-082 (Order 87-18), § 365-135-020, filed 9/16/87.]