In the adoption of a rule under chapter 34.05 RCW, an agency shall prepare a small business economic impact statement: (i) If the proposed rule will impose more than minor costs on businesses in an industry; or (ii) if requested to do so by a majority vote of the joint administrative rules review committee within forty-five days of receiving the notice of proposed rulemaking under RCW 34.05.320.
RCW 19.85.020 defines minor cost as a cost per business that is less than three-tenths of one percent of annual revenue or income, or one hundred dollars, whichever is greater, or one percent of annual payroll. However, for the rules of the department of social and health services "minor cost" means cost per business that is less than fifty dollars of annual cost per client or other appropriate unit of service.
A Minor-Cost Threshold Calculator (updated November 2023) has been created to help agencies in preparing cost calculations during their rulemaking. This calculator is just one tool that may help determine if the cost of compliance with the proposed rule imposes more than minor cost for those businesses within the industry.
Disclaimer:Our intent is to provide this calculator as a resource to help agencies think about the Small Business Impact Statement, but it should be used as a guide in the process. The user is responsible to make the decision on whether to complete a SBEIS, and the Minor Cost Calculator is one of many tools to assist the user in making that determination.
While we do the best we can to ensure the information in the calculator is accurate, the Minor Cost Calculator is a tool that is dependent on the accuracy of third-party data and the inputs of the user. As such, the data and conclusions may not always be correct or current. Since the tool is reliant on third party data outside of ORIA’s control, it is important to know that ORIA cannot be responsible for the data quality.