The agency is proposing the following new rules:

• WAC 325-20-035
• WAC 326-20-055
• WAC 326-20-086
• WAC 326-30-099

The agency is proposing to amend the following rules:

• WAC 326-02-030
• WAC 326-02-045
• WAC 326-20-048
• WAC 326-20-050
• WAC 326-20-060
• WAC 326-20-080
• WAC 326-20-081
• WAC 326-20-094

The agency is proposing to repeal the following rules:

• WAC 326-20-030
• WAC 326-20-040
• WAC 326-20-092
• WAC 326-20-095
• WAC 326-20-096
• WAC 326-20-155

The agency is proposing to re-codify the following amended rule

• WAC 326-02-045

OMWBE is proposing the following changes regarding state certification in order to provide clarification, eliminate unnecessary barriers and restrictions to certification for small businesses, and clarify language and grammar to reflect modern and respectful wording. These rule changes will bring OMWBE into alignment with state and federal laws, rules and policies such as the Governor’s Executive Order # 17.01.

• Allow for the additional evidence of ownership over a business, including: contributions of expertise under certain circumstances, ownership based on a final property settlement or court order in a divorce, legal separation, or inheritance, and gifts or transfers without consideration in certain circumstances.
• Modify the presumption of social disadvantage by replacing language requiring an individual be “visibly identifiable” as a presumptively disadvantaged person with the requirement a person sign a sworn declaration, and that the agency may rebut their presumption of disadvantage for a well-founded reason. 
• Eliminate the requirement that applicants for state certification must be citizens or permanent legal residents of the United States. This requirement is not based in state law and is not a requirement for other business-related state licenses.
• Add clarifying language that a firm may be owned by an Indian tribe, Native Hawaiian organization, or Alaska Native Corporation.              
• Add language that OMWBE may certify subsidiaries if there is 51% cumulative ownership of the subsidiary by a socially and economically disadvantaged individual(s).
• Eliminate references to a former program: corporate sponsored dealerships.
• Allow for additional evidence of control, including factors considered in determining control; such as local and state laws licensing and credentialing requirements, owner(s) demonstrable ability to make independent and daily operating business decisions, delegations of authority, remunerations, and business affiliation.
• Update the language defining the performance of a commercially useful function for a modern business environment and remove WAC 326-02-045 from chapter 326-02 and add it to chapter 326-20.
• Eliminate the need for business owner(s) to sign an application under oath as OMWBE uses sworn affidavits.
• Provide more guidance to applicants and the office regarding the acquisition and removal of NAICS codes. The proposed updates will also allow businesses to provide the office a clear, specific, and detailed narrative of the type of work they perform if they believe an existing code does not fully or clearly describe the work in which the business is certified.
• Clarify that a non-applicant spouse or registered domestic partner may co-sign on loans and other documents. Clarify that OMWBE will look carefully at the application when ownership transfers occur between spouses and domestic partners.
• Include new language regarding the examination of past relationships between certified and noncertified firms to ensure independence.
• Eliminate WAC 326-20-092, WAC 326-20-095 and WAC 326-20-096 and combine the contents of these rules under proposed WAC 326-20-099, as these rules all interrelate to firm size and accompanying standards.
• Update rules for grammar and to reflect modern language and terminology.

Questions can be sent to rules@omwbe.wa.gov until May 9, 2019.

A public hearing will be held on May 16, 2019 at 9:30 am.

Attend in person at,

Capitol Court
1110 Capitol Way S, Rm 135
Olympia, WA 98501

Or via webinar at,

https://global.gotomeeting.com/join/785035237