WSR 04-02-042

PROPOSED RULES

OFFICE OF MINORITY AND

WOMEN'S BUSINESS ENTERPRISES

[ Filed January 5, 2004, 11:24 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 03-23-124.

Title of Rule: WAC 326-20-125 Processing fee.

Purpose: Change procedures for implementation of chapter 39.19 RCW related to the changing processing fees for new applications, recertification applications, and annual updates to be based upon legal organization structures of businesses and type of application.

Statutory Authority for Adoption: RCW 39.19.210.

Statute Being Implemented: Chapter 39.19 RCW.

Summary: The Office of Minority and Women's Business Enterprises (OMWBE) has the authority to increase fees in excess of the fiscal growth factor to offset the decrease in the office's revolving fund charges to state agencies. The current fee is a flat fee and makes no distinction about the type of application: New, recertification, or annual update. The current fee makes no distinction about the type and complexity of legal organizational structures of businesses and the amount of time it takes to make a determination of eligibility.

Reasons Supporting Proposal: OMWBE has the authority to increase fees in excess of the fiscal growth factor to offset the decrease in the office's revolving fund charges to state agencies. The proposed changes in processing fees will reflect the complexity of legal organizational structure, the level of review of a business, and the amount of time spent to determine eligibility by the office.

Name of Agency Personnel Responsible for Drafting: Vicky Schiantarelli, 406 South Water, P.O. Box 44160, Olympia, WA 98504-1160, (360) 704-1197; Implementation and Enforcement: Carolyn Crowson, 406 South Water, P.O. Box 44160, Olympia, WA 98504-1160, (360) 753-9679.

Name of Proponent: Office of Minority and Women's Business Enterprises, governmental.

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

Explanation of Rule, its Purpose, and Anticipated Effects: Current processing fee for all applications is $20.00. OMWBE has the authority to increase fees in excess of the fiscal growth factor to offset the decrease in the office's revolving fund charges to state agencies. Current fees make no distinction about the type of application: New, recertification, or annual update. Current fees make no distinction about the type and complexity of legal organizational structures of businesses and the amount of time it takes to make a determination of eligibility. The proposed changes in processing fees will reflect the complexity of legal organizational structure, the level of review of a business, and the amount of time spent to determine eligibility by the office.

Proposal Changes the Following Existing Rules: Fees will increase, based upon leal organizational structures of the businesses applying and maintaining certification. The current fee is $20. The proposed fees for state or state and federal certification for both new applications and recertification will be as follows:


Sole Proprietorship Partnership Corporation/LLC/Other Annual Updates
$50 $75 $100 $20

The proposed fees for federal certification only will be as follows:


All Legal

Organizational Structures

New applications and recertification $25
$20

No small business economic impact statement has been prepared under chapter 19.85 RCW. Certification is voluntary. Although the fees will be higher than before the rule change, the fee schedule is based upon the complexity of the applicant's legal organizational structure so that there will not be a disproportionately higher burden. There is no negative impact to small businesses in general.

RCW 34.05.328 does not apply to this rule adoption. RCW 34.05.328 (5)(b)(ii), rules relating only to internal governmental operations that are not subject to violation by a nongovernmental party; RCW 34.05.328 (5)(f), rules that set or adjust fees or rates pursuant to legislative standards; and RCW 34.05.328 (5)(g)(ii), a filing or related process requirement for applying to an agency for a license or permit.

Hearing Location: Seattle, U.S. Small Business Administration, 1200 Sixth Avenue, 17th Floor, Executive Conference Room, on February 11, 2004, at 10:00 a.m. - 1:00 p.m.; at Olympia, OMWBE, 406 South Water Street, Main Conference Room, on February 13, 2004, at 1:30 p.m. - 4:30 p.m.; at Olympia, OMWBE, 406 South Water Street, Main Conference Room, on February 17, 2004, at 5:30 p.m. - 8:30 p.m.; at Vancouver, Washington State Department of Transportation, Southwest Region, Room 124, 11018 N.E. 51st Circle, on February 23, 2004, at 3:00 p.m. - 6:00 p.m.; at Tacoma, Tacoma Housing Authority, 902 South "L" Street, on February 24, 2004, at 5:30 p.m. - 8:30 p.m.; and at Spokane, Business Information Center, U.S. Small Business Administration, 801 West Riverside, on March 2, 2004, at 1:30 p.m. - 4:30 p.m.

The first hour of each session is a "public information session." The OMWBE rule-making team will give a brief overview of the proposed rule and the public may ask questions of OMWBE rule-making team about the proposed rule during the "public information session." The two hour public hearing immediately follows.

Assistance for Persons with Disabilities: Contact Tammi Hazlitt by phone (360) 753-9691 or thazlitt@omwbe.wa.gov.

Submit Written Comments to: Cathy Canorro, Rules Coordinator, Office of Minority and Women's Business Enterprises, P.O. Box 41160, Olympia, WA 98504-1160, fax (360) 586-7079, by March 3, 2004.

Date of Intended Adoption: April 5, 2004.

January 2, 2004

Carolyn Crowson

Director

OTS-6900.1


AMENDATORY SECTION(Amending WSR 94-11-115, filed 5/18/94, effective 6/18/94)

WAC 326-20-125   Processing fee.   The office shall charge ((businesses)) a nonrefundable ((twenty dollar)) fee for ((processing applications. "Applications" includes requests to be considered for DBE status when the requests are submitted separate from a certification or recertification application. Businesses)) certification or recertification based upon the legal organizational structure of the business, as follows: Fifty dollars for a sole proprietorship, seventy-five dollars for a partnership (general or limited), and one hundred dollars for all other legal organizational structures; e.g., corporation or limited liability company: Provided, however, That the office shall only charge a twenty-five dollar fee when the application requests DBE-only certification or recertification for all business legal organizational structures. The office shall also charge a nonrefundable twenty-dollar fee for processing annual updates for all business legal organizational structures. The business must submit the fee with ((all)) the application((s)) for certification ((or)), recertification ((received in the office on or after July 1, 1993)), or annual update. The business applying for DBE-only certification may request a waiver of the fee. The request for fee waiver must be submitted to the office in writing. The office will review the request and make a determination in accordance with the Washington state department of transportation (WSDOT) DBE plan. An application is not deemed to be ((filed and processing will not begin)) received by the office until ((this)) the required fee is received by the office((. No business shall be charged more than once in a twelve month period)) or the request of waiver of the fee has been approved by the office.

[Statutory Authority: RCW 39.19.030. 94-11-115, 326-20-125, filed 5/18/94, effective 6/18/94. Statutory Authority: 1993 c 195. 93-16-080, 326-20-125, filed 8/3/93, effective 9/3/93.]

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