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Senate Bill Report — SB 6408, Agency Responsibilities to Regulated Businesses

Summary

A Senate Bill Report on SB 6408, As of January 30, 2020, titled An act relating to agency responsibilities to regulated businesses and professions, prepared for the Senate Committee on Financial Institutions, Economic Development & Trade. The report's brief summary says the bill requires state regulatory agencies to provide certain information at each audit, inspection, or examination. By December 31, 2020, agency personnel must give the purpose and legal authority for the action, whether advance notice will be provided, the regulator's identification, and whether the business may cure a potential or actual violation. The Joint Legislative Audit and Review Committee must review agency compliance by December 31, 2023. Senator Lynda Wilson, the prime sponsor, is listed among those testifying in favor.

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Issuer
Congressional materials
Document type
Report
Date
2020-01-30
Case
2020 01 30 A26428 D211725 Bill Report 6408 Sba Fiet 20 Ta

Cite this document

“Senate Bill Report — SB 6408, Agency Responsibilities to Regulated Businesses.” Original at app.leg.wa.gov, dated 2020-01-30. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2020-01-30-2020-01-30-a26428-d211725-bill-report-6408-sba-fiet-20-ta/, SHA-256 bbb9ff00efda03fb229ae5628707285757f00133a726cda0b20006b608c4a899.

Full text

                             SENATE BILL REPORT
                                   SB 6408

                                      As of January 30, 2020

Title: An act relating to agency responsibilities to regulated businesses and professions.

Brief Description: Concerning agency responsibilities to regulated businesses and professions.

Sponsors: Senators Wilson, L., Mullet, Short, Becker, Takko, King, Zeiger, Brown, Schoesler,
   Frockt, Hasegawa, Rolfes, Honeyford, Walsh, Van De Wege and Braun.

Brief History:
   Committee Activity: Financial Institutions, Economic Development & Trade: 1/28/20.

                                      Brief Summary of Bill
          Ÿ Requires state regulatory agencies to provide certain information at each
            audit, inspection, or examination.


SENATE  COMMITTEE                  ON      FINANCIAL          INSTITUTIONS,           ECONOMIC
DEVELOPMENT & TRADE

    Staff: Clint McCarthy (786-7319)

    Background: In 2017, the Legislature directed the attorney general (AG) to review the
    Administrative Procedures Act, related administrative rules, statutes, and case law to identify
    rights and protections afforded to small business owners selected for agency enforcement
    actions, such as audits, inspections, site visits, and record reviews. For the same reason, the
    departments of Agriculture, Ecology, Employment Security, Labor and Industries, and
    Revenue, and the state fire marshall must review respective governing statutes,
    administrative rules, policy statements, guidance, and directives identified as sources for
    rights and protections. Each agency must provide the AG with specified materials and copies
    of statements of rights provided to small businesses for the AG's review no later than August
    31, 2017.

    The AG was directed to compile findings in a report to relevant legislative committees by
    November 30, 2017. In the report, the AG recommended steps be taken to:
        Ÿ improve efforts to provide transparent, accessible information and assistance to
          operating businesses early in the process;
––––––––––––––––––––––
    This analysis was prepared by non-partisan legislative staff for the use of legislative
    members in their deliberations. This analysis is not a part of the legislation nor does it
    constitute a statement of legislative intent.

Senate Bill Report                              -1-                                          SB 6408
         Ÿ improve efforts to share effective practices among agencies;
         Ÿ expand the role of business associations and other groups to coordinate sharing
           information between small business owners and agencies;
         Ÿ be deliberate about how small business is defined; and
         Ÿ consider targeted expansion using special advocates or ombuds to help disseminate
           information and resolve noncompliance issues or disputes.

    Summary of Bill: Requirements of Agency Personnel. By December 31, 2020, state
    government agency personnel must provide the following information at each audit,
    inspection, or examination:
         Ÿ the purpose and legal authority for conducting the regulatory action;
         Ÿ whether advance notice for a regulatory action will be provided, and the basis for not
            providing notice;
         Ÿ the identification of the regulator, along with contact information;
         Ÿ whether the business may cure or correct a potential or actual violation during or after
            an investigation to avoid or mitigate an administrative sanction;
         Ÿ information on how the business may provide past agency advice or interpretations it
            relied upon for consideration in a regulatory decision;
         Ÿ whether the business may designate one or more company representatives to have
            certain company representatives participate in a regulatory investigation; and
         Ÿ how businesses may respond to the outcome of the regulatory action.

    These requirements do not apply to emergency situations, criminal investigations, or if they
    would create a conflict between federal or state law.

    Requirement of Agencies. State regulatory agencies must post a general description of the
    their responsibilities on their website.

    Joint Legislative Audit and Review Committee. The Joint Legislative Audit and Review
    Committee must review agencies performance and compliance with the requirements of
    agency personnel by December 31, 2023.

    Appropriation: None.

    Fiscal Note: Available.

    Creates Committee/Commission/Task Force that includes Legislative members: No.

    Effective Date: Ninety days after adjournment of session in which bill is passed.

    Staff Summary of Public Testimony: PRO: This bill has been well worked with
    stakeholders and the Governor's Office. Small businesses do not always have the resources
    that know everything right away when it comes to state regulatory compliance. This bill
    helps businesses understand how they can fix or mitigate an issue to prevent a fine. This bill
    affects 27 different regulatory issues. This bill includes eight best practices that an agency
    must follow when interfacing with a small business facing a regulatory action, and provides
    more transparency for small businesses. This will improve compliance by improving
    communication.

Senate Bill Report                             -2-                                         SB 6408
    Persons Testifying: PRO: Senator Lynda Wilson, Prime Sponsor; Patrick Connor, NFIB;
    Sheri Sawyer, Office of the Governor.

    Persons Signed In To Testify But Not Testifying: No one.




Senate Bill Report                          -3-                                 SB 6408

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