SB 6408 - S AMD (S5768.1 Blue) — Licensing and regulation of businesses and professions

Summary

An amendment to SB 6408, labeled Blue, that strikes everything after the enacting clause and inserts new text on agency responsibilities to regulated businesses and professions. The inserted text provides that by December 31, 2020, each state regulatory agency conducting audits, inspections, or examinations must provide the purpose and legal authority, and that the auditor, inspector, or examiner must present identification at the start. The effect statement says the amendment clarifies how identification and contact information are presented, clarifies the statute under which a criminal justice agency exercises its law enforcement authority, and exempts site visits not related to verifying compliance. The joint legislative audit and review committee review is due by December 31, 2023.

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Full text

     6408 AMS .... S5768.1                                            Blue


     SB 6408 - S AMD




 1       Strike everything after the enacting clause and insert the
 2   following:
 3       "NEW SECTION.   Sec. 1.   The legislature reaffirms its findings
 4   that the licensing and regulation of businesses and professions
 5   requires periodic inspections, audits, interviews, site visits, or
 6   other oversight measures to verify that licensing, permit, and other
 7   regulatory requirements are met, and that unnecessary costs and
 8   delays may occur when business owners, particularly small business
 9   owners, must seek outside counsel or other professional assistance to
10   prepare for and participate in review and enforcement actions such as
11   audits, inspections, or examinations of their records, facilities, or
12   job sites.
13       The legislature finds that agencies have a responsibility to
14   provide a clear description of their audit, inspection, or
15   examination processes to businesses and professions they regulate.
16   This information must be clear, concise, and sufficient to provide
17   regulated businesses and professions with an understanding of what
18   they may expect before, during, and after an audit, inspection, or
19   examination.


20       NEW SECTION.    Sec. 2.   (1) By December 31, 2020, each state
21   regulatory agency that conducts audits, inspections, or examinations
22   within its regulatory authority over businesses and professions must
23   provide, or provide references to, the following information at each
24   audit, inspection, or examination:
25       (a) The purpose and legal authority for conducting the audit,
26   inspection, or examination;
27       (b) If advance notice for an audit, inspection, or examination
28   will not be provided, the basis for not providing advance notice;
29       (c)   The   auditor,   inspector,   or   examiner   must   present
30   identification at the start of an audit, inspection, or examination;




     Code Rev/MW:jlb                   1                       S-5768.1/20
 1       (d) The auditor, inspector, or examiner must provide contact
 2   information for a staff person who is available to answer questions
 3   regarding the audit, inspection, or examination;
 4       (e) Whether the business may cure or correct a potential or
 5   actual violation during or after an audit, inspection, or examination
 6   to avoid or mitigate an administrative sanction, if any;
 7       (f) How the business may provide past agency advice or
 8   interpretations it relied upon for consideration in agency decisions;
 9       (g) Whether the business may designate one or more individuals as
10   official company representatives and have legal, accounting, safety,
11   or   other  technical   professionals   participate  in   any   audit,
12   inspection, or examination; and
13       (h) How the business may respond to the outcome of an audit,
14   inspection, or examination, what the next steps are in the process,
15   and a good faith estimate for future communication. Outcomes could
16   include agency reports, findings, orders, or other documentation
17   about the audit, inspection, or examination.
18       (2) The requirements specified in subsection (1) of this section
19   do not apply:
20       (a) In emergency situations where environmental quality or worker
21   or public safety, health, or welfare are in imminent danger;
22       (b) In any criminal investigations or proceedings, including when
23   a criminal justice agency as defined in RCW 10.97.030 exercises its
24   law   enforcement   authority,   or   to   an   agency's   undercover,
25   surveillance, or seizure activities;
26       (c) To site visits conducted by employees, vendors, or
27   contractors of a state regulatory agency if the purpose of the site
28   visit is not related to verifying compliance with licensing or other
29   regulatory requirements; or
30       (d) If they would create a conflict with federal or state law or
31   unreasonably limit, delay, or prevent an agency from performing its
32   statutorily authorized duties.


33       NEW SECTION.    Sec. 3.     For the purposes of this chapter,
34   "regulatory" and "regulatory agency" have the same meaning as in RCW
35   19.02.020, but "regulatory agency" does not include any local
36   government entity.


37       NEW SECTION.   Sec. 4.    State regulatory agencies must post a
38   general description about the responsibilities specified in section 2
     Code Rev/MW:jlb                   2                       S-5768.1/20
1    of this act on their web site. The posting does not have to include
2    specifics for each audit, inspection, or examination program, but
3    must indicate that the information will be provided at an audit,
4    inspection, or examination.


 5       NEW SECTION. Sec. 5. (1) The joint legislative audit and review
 6   committee shall review agencies' performance and compliance with this
 7   chapter by December 31, 2023. The review must include surveying
 8   regulated businesses to obtain their views on agency implementation
 9   and identifying how views compare for small and large businesses.
10       (2) This section expires July 1, 2024.

11       NEW SECTION.     Sec. 6.    Sections 2   through   4   of   this   act
12   constitute a new chapter in Title 18 RCW."


     SB 6408 - S AMD
         By Senator




13       On page 1, line 2 of the title, after "professions;" strike the
14   remainder of the title and insert "adding a new chapter to Title 18
15   RCW; creating new sections; and providing an expiration date."

16       Correct the title.


         EFFECT: Clarifies how auditors, inspectors, or examiners must
     present identification and contact information at the beginning of a
     visit. Clarifies the statute under which a criminal justice agency
     exercises its law enforcement authority. Adds site visits that are
     not related to verifying compliance with regulatory compliance as
     exempt from the requirements that state regulatory agencies must
     follow in section 1(1) of this act.



                                  --- END ---




     Code Rev/MW:jlb                   3                         S-5768.1/20


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