Minor-Cost Threshold Calculator

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 October 2021) 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.

Play video tutorial for this calculator.