H-3581.2          _______________________________________________

 

                                  HOUSE BILL 2484

                  _______________________________________________

 

State of Washington              52nd Legislature             1992 Regular Session

 

By Representatives Nelson, Mitchell, Franklin, Winsley, Wineberry, Dellwo, Jones, Haugen, Sprenkle, J. Kohl, Valle and Pruitt

 

Read first time 01/17/92.  Referred to Committee on Housing/Revenue.Changing provisions relating to housing.


     AN ACT Relating to housing; amending RCW 82.45.010, 82.45.020, 82.45.030, 82.45.032, 82.45.060, 82.45.070, 82.45.080, 82.45.090, 82.45.100, 82.45.150, 82.46.010, 82.46.035, 82.46.050, 82.46.070, 30.60.010, 30.60.030, 30.04.212, 32.40.010, 32.40.030, 19.27.015, 19.27.035, 19.27.040, 19.27.074, 19.27.078, 19.27.085, 36.70A.030, 36.70A.020, 36.70A.070, 35.21.685, 36.32.415, 82.02.050, 49.60.030, 49.60.222, 49.60.223, 49.60.224, 49.60.225, 49.60.227, 49.60.230, 49.60.250, 49.60.260, 43.63A.510, 36.34.135, 47.12.063, 18.85.310, and 18.85.315; amending 1985 c 329 s 1 (uncodified); reenacting and amending RCW 82.46.040, 82.46.060, 42.17.310, 19.27.031, 19.27.060, and 49.60.040; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; adding a new section to chapter 84.36 RCW; adding a new section to chapter 82.45 RCW; adding new sections to chapter 30.60 RCW; adding new sections to chapter 32.40 RCW; adding a new section to chapter 30.04 RCW; adding a new section to chapter 31.12 RCW; adding a new section to chapter 32.04 RCW; adding a new section to chapter 33.04 RCW; adding new sections to chapter 19.27 RCW; adding a new section to chapter 36.70A RCW; adding a new section to chapter 8.26 RCW; adding new sections to chapter 49.60 RCW; adding a new section to chapter 28A.335 RCW; adding new sections to chapter 35.21 RCW; adding a new section to chapter 36.34 RCW; adding a new section to chapter 43.19 RCW; adding a new section to chapter 36.32 RCW; adding new chapters to Title 43 RCW; adding new chapters to Title 82 RCW; adding new chapters to Title 84 RCW; adding a new chapter to Title 33 RCW; creating new sections; repealing RCW 82.45.035, 82.45.105, and 82.45.120; prescribing penalties; and providing an effective date.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

     NEW SECTION.  Sec. 1.      (1) The legislature finds that:

     (a) Housing is of vital state-wide importance to the health, safety, and welfare of the residents of the state;

     (b) Decent housing is an essential motivating force in helping people achieve self-sufficiency;

     (c) A healthy housing market is one in which residents of this state have a choice of housing opportunities and one in which the housing consumer may effectively choose within the free market;

     (d) A healthy housing market is fundamentally related to a healthy state economy and can contribute significantly to the employment factor in Washington;

     (e) The federal government has reduced its involvement in the provision of affordable housing;

     (f) State involvement in the provision of affordable housing has increased;

     (g) Public and private sector activity in the provision of affordable housing has increased;

     (h) The lack of a coherent state housing policy has hindered the effective delivery of housing and supportive services to very low-income and low-income households and special needs populations;

     (i) The state has a vital interest in ensuring that resources for housing exist; and

     (j) It is in the public interest to adopt a statement of housing policy objectives.

     (2) The legislature declares that the purposes of the Washington housing policy act are to:

     (a) Provide policy direction to the public and private sector in their attempts to meet the shelter needs of Washington residents;

     (b) Reevaluate housing-related activities affected by legislation in order to ensure proper coordination of those activities to meet the shelter needs of Washington residents;

     (c) Expand and improve the delivery of state services and assistance to very low-income and low-income households and special needs populations;

     (d) Strengthen partnerships among all levels of government, and the public and private sector, including for-profit and nonprofit organizations, in the production and operation of housing that is affordable to very low-income, low-income and moderate-income households; and

     (e) Increase the supply of housing with necessary supportive services needed to enable persons with special needs to live with dignity and independence.

 

                                      PART I

                            GOAL AND POLICY OBJECTIVES

 

     NEW SECTION.  Sec. 101.    It is the goal of the state of Washington to coordinate, encourage, and direct, when necessary, the efforts of the public and private sectors of the state and to cooperate and participate, when necessary, in the attainment of a decent home in a suitable environment for every resident of the state.  The legislature declares that attainment of that goal is a state priority.

 

     NEW SECTION.  Sec. 102.    The objectives of the Washington housing policy act shall be to attain the state's goal of providing a decent home in a suitable environment for every resident of the state by strengthening public and private institutions that are able to:

     (1) Develop an adequate and affordable supply of housing for all economic segments of the population;

     (2) Encourage and maintain home ownership opportunities;

     (3) Reduce life cycle housing costs while preserving public health and safety;

     (4) Preserve the supply of existing affordable housing;

     (5) Provide housing and necessary supportive services for special needs populations;

     (6) Ensure fair and equal access to the housing market;

     (7) Increase the availability of mortgage credit at affordable interest rates; and

     (8) Coordinate and be consistent with the goals and objectives of the state's growth management act.

 

     NEW SECTION.  Sec. 103.    Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

     (1) "Affordable housing" means residential housing that is rented or owned by a person who qualifies as a very low-income, low-income, or moderate-income household and special needs populations, and whose monthly housing costs, including utilities other than telephone, do not exceed thirty percent of the household's monthly income.

     (2) "Affordable housing development" means either:  (a) Residential rental housing in which (i) twenty percent or more of the dwelling units in the development are occupied by households with incomes at or below fifty percent of the median income, adjusted for household size, for the county where the housing development is located and rented at affordable rents or (ii) forty percent or more of the dwelling units in the development are occupied by households with incomes at or below sixty percent of the median income, adjusted for household size, for the county where the housing development is located and rented at affordable rents; or (b) residential housing for private individual ownership that is occupied by households with incomes at or below eighty percent of the median income, adjusted for household size, for the county where the housing development is located.

     (3) "Affordable rent" means that the gross rent paid by the household does not exceed thirty percent of the applicable qualifying income, adjusted for household size, for the county where the housing development is located.

     (4) "First-time homebuyer" means an individual or his or her spouse who has not owned a residence during the three-year period prior to the purchase of a home.

     (5) "Gross rent" means the monthly rent agreed to or contracted for and includes all utilities, other than telephone expenses, but does not include payments made under a federal, state, or local rent subsidy program designed to make the dwelling unit in the structure affordable to very low-income or low-income households.

     (6) "Residence" means a single-family dwelling unit whether such unit be separate or part of a multi-unit dwelling, including the land on which such dwelling stands not to exceed one acre.  The term shall also include a share ownership in a cooperate housing association, corporation, or partnership if the share represents a specific unit.  The term also includes a mobile home which has substantially lost its identity as a mobile unit by virtue of its being fixed in location upon land owned or leased by the owner of the mobile home and placed on a post or block foundation with fixed pipe connections with sewer, water, or other utilities.

     (7) "Nonprofit organization" means any public or private nonprofit organization that:  (a) Is organized under federal, state, or local laws; (b) has no part of its net earnings inuring to the benefit of any member, founder, contributor, or individual; and (c) has among its purposes significant activities related to the provision of decent housing that is affordable to very low-income, low-income, or moderate-income households and special needs populations.

     (8) "Tenant-based organization" means a nonprofit organization whose governing body includes a majority of members who reside in the housing development and are considered low-income households.

     (9) "Very low-income household" means a single person, family, or unrelated persons living together whose income is at or below fifty percent of the median income, adjusted for household size, for the county where the housing development is located.

     (10) "Low-income household" means a single person, family, or unrelated persons living together whose income is more than fifty percent but is at or below eighty percent of the median income, adjusted for household size, for the county where the housing development is located.

     (11) "Moderate-income household" means a single person, family, or unrelated persons living together whose income is more than eighty percent but is at or below one hundred fifteen percent of the median income, adjusted for household size, for the county where the housing development is located.

 

                                      PART II

                                  TAX PROVISIONS

 

     NEW SECTION.  Sec. 201.  A new section is added to chapter 82.08 RCW to read as follows:

     (1) The tax levied by RCW 82.08.020 shall not apply to the retail sale of building materials used in the remodeling, rehabilitation, or new construction of affordable housing developments or to the labor used to incorporate such building materials into real estate.  As used in this section, affordable housing development is as defined in section 103(2)(a) of this act.

     (2) In order to qualify for the exemption of retail sales tax on materials or labor under this section, the affordable housing development must meet the following requirements:

     (a) The affordable housing development must be located in Washington;

     (b) The affordable housing development must be owned by an organization eligible to receive assistance through the Washington housing trust fund created in chapter 43.185 RCW;

     (c) The affordable housing development must contain two or more residential rental dwelling units.  Rental units used on a transient basis shall not be considered under this section; and

     (d) The dwelling units identified for lower-income households in subsection (1) of this section shall be available for a period of at least twenty-five years.

     (3) The department of revenue, in consultation with the department of community development, shall adopt rules specifying the administrative procedures applicable to applicants for exemption from retail sales tax on materials or labor, the form, manner, and time in which applications shall be filed, the information to be contained therein, and criteria for the approval or denial of requests for the exemption from retail sales tax on materials or labor under this chapter.  The rules shall apply to both the department of revenue and the department of community development.

     (4) The department of revenue shall grant an exemption from retail sales tax on materials or labor for affordable housing developments that are approved by the department of community development.  The department of revenue shall keep a running total of exemptions granted under this section and section 202 of this act during each fiscal biennium.  The department of revenue shall not allow any exemption that would cause the tabulation for a biennium to exceed two million dollars.

     (5) This section shall expire January 1, 2002.

 

     NEW SECTION.  Sec. 202.  A new section is added to chapter 82.12 RCW to read as follows:

     (1) The provisions of this chapter shall not apply in respect to the use of building materials used in the remodeling, rehabilitation, or new construction of affordable housing developments or to the labor used to incorporate such building materials into real estate.  As used in this section, affordable housing development is as defined in section 103(2)(a) of this act.

     (2) In order to qualify for the exemption granted by this section, the affordable housing development must meet the following requirements:

     (a) The affordable housing development must be located in Washington;

     (b) The affordable housing development must be owned by an organization eligible to receive assistance through the Washington housing trust fund created in chapter 43.185 RCW;

     (c) The affordable housing development must contain two or more residential rental dwelling units.  Rental units used on a transient basis shall not be considered under this section; and

     (d) The dwelling units identified for lower-income households in subsection (1) of this section shall be available for a period of at least twenty-five years.

     (3) The department of revenue, in consultation with the department of community development, shall adopt rules specifying the administrative procedures applicable to applicants for the tax exemption under this section, the form, manner, and time in which applications shall be filed, the information to be contained therein, and criteria for the approval or denial of requests for the tax exemption under this chapter.  The rules shall apply to both the department of revenue and the department of community development.

     (4) The department of revenue shall grant a tax exemption under this section for affordable housing developments that are approved by the department of community development.  The department of revenue shall keep a running total of exemptions granted under this section and section 201 of this act during each fiscal biennium.  The department of revenue shall not allow any exemption that would cause the tabulation for a biennium to exceed two million dollars.

     (5) This section shall expire January 1, 2002.

 

     NEW SECTION.  Sec. 203.    The state of Washington has an acute shortage of affordable housing.  The reductions in federal funding have hampered the ability of state and local governments to meet this need.  The provision of housing assistance through the state's tax system can be used to provide an incentive for the development, preservation, or acquisition of affordable housing.  It is the purpose and intent of the legislature to promote private financial assistance in meeting the state's need for affordable housing by creating a tax incentive for contributions.

 

     NEW SECTION.  Sec. 204.    Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

     (1) "Affordable housing development" has the same meaning as in section 103 of this act.

     (2) "Business firm" means any incorporated or unincorporated business entity authorized to do business in the state and subject to the state's business and occupation taxes levied in chapter 82.04 RCW.

     (3) "Contributions" means furnishing of financial assistance, labor, material, or technical assistance to aid in the construction, rehabilitation, or acquisition of affordable housing developments.

     (4) "Department" means the department of revenue.

     (5) "Recipient" means the person or business firm receiving tax credits under this chapter.

     (6) "Tax year" or "taxable year" means either the calendar year or the taxpayer's fiscal year if permission is obtained from the department to use a fiscal year in lieu of the calendar year.

 

     NEW SECTION.  Sec. 205.    The department shall establish a program to provide tax credits to business firms making contributions to affordable housing developments developed, sponsored, or managed by organizations that are eligible to receive housing trust fund assistance as eligible organizations under RCW 43.185.060.  The tax credits may be used as a credit against any of the taxes imposed on the business firm under chapter 82.04 RCW.

 

     NEW SECTION.  Sec. 206.    (1) Application for tax credits under this chapter must be made before the actual contribution to the affordable housing development is made.  The application shall be made to the department of community development in a form and manner prescribed by the department of revenue and the department of community development.

     (2) The department of community development shall transmit a copy of the completed application for tax credits to the department of revenue, with its recommendations, within ten working days after receipt thereof.  Within thirty days after receipt of the completed application from the department of community development, the department of revenue shall determine the amount of tax credits to be allocated to the business firm.  The department of revenue shall notify the department of community development of its decision within ten days.

     (3) The department of revenue, with approval of the department of community development, shall adopt rules specifying the administrative procedures applicable to applicants for tax credits, the form and manner in which the applications shall be filed, the information to be contained therein, and criteria for the approval or denial of requests for tax credits under this chapter.  The rules shall apply to both the department of revenue and the department of community development.

     (4) This section shall expire January 1, 2002.

 

     NEW SECTION.  Sec. 207.    In order to qualify for the tax credits in section 205 of this act, the affordable housing development must meet the following requirements:

     (1) The affordable housing development must be located in Washington;

     (2) The affordable housing development must be owned or managed by an organization eligible to receive assistance through the Washington housing trust fund created in chapter 43.185 RCW, or a partnership the majority of which is owned by an organization eligible to receive assistance through the Washington housing trust fund created in chapter 43.185 RCW;

     (3) The housing development is an affordable housing development as defined in section 103 of this act.  Rental units used on a transient basis shall not be considered under this section; and

     (4) The residential rental dwelling units identified for lower-income households in subsection (3) of this section shall be available for a period of at least twenty-five years.

 

     NEW SECTION.  Sec. 208.    (1) No tax credit for an affordable housing development shall be issued after December 31, 2001.

     (2) The department shall grant a credit against the tax due under chapter 82.04 RCW of an amount equal to twenty percent of the approved amount contributed by the business firm for eligible housing activities during the taxable year.

     (3) The department shall keep a running total of all tax credits granted under this chapter during each fiscal biennium.  The department shall not allow any credits which would cause the tabulation for a biennium to exceed two million dollars.  If all or part of an application for credit is disallowed under this subsection, the disallowed portion shall be carried over for approval the next biennium.

     (4) Any tax credit not used during the taxable year in which the contribution was made may be carried forward for the five immediately succeeding calendar or fiscal years until the full credit has been used.

     (5) No tax credit shall be granted to any bank, bank and trust company, insurance company, trust company, national bank, savings association, or savings and loan association for activities that are a part of its normal course of business.

     (6) No recipient is eligible for tax credits in excess of five hundred thousand dollars during the taxable year.

 

     NEW SECTION.  Sec. 209.    Applications and any other information received by the department under this chapter shall not be confidential and shall be subject to disclosure.

 

     NEW SECTION.  Sec. 210.    The department, in consultation with the department of community development, shall report to the appropriate committees of the legislature on the progress and status of the tax credit program.  The report shall be due on December 1, 1993, and every December 1 thereafter and shall include but need not be limited to results regarding the individual affordable housing developments selected, the number of dwelling units developed under the program, the amount of tax credits awarded under the program, and recommendations for improving the program.

 

     NEW SECTION.  Sec. 211.  A new section is added to chapter 84.36 RCW to read as follows:

     (1) Any physical improvements to affordable housing developments upon real property shall be exempt from taxation for the three assessment years subsequent to the completion of the improvements.  As used in this section, affordable housing development has the same meaning as in section 103(2)(a) of this act.  In order to qualify for the property tax exemption, the property must meet the following requirements:

     (a) The affordable housing development must be either owned or leased by an organization eligible to receive assistance through the Washington housing trust fund under chapter 43.185 RCW or owned by a tenant-based organization as defined in section 103 of this act;

     (b) The affordable housing development must contain two or more residential dwelling units;

     (c) The value of the improvements to the affordable housing development must exceed twenty percent of the current assessed value of the original structure; and

     (d) The rent paid by very low-income and low-income households in dwelling units identified in this subsection shall be considered affordable rent as defined in section 103 of this act.

     (2) Application for the exemption granted by this section must be made prior to the improvements being made.  The application shall be made on forms prescribed by the department of revenue and furnished to the taxpayer by the county assessor.  This exemption may not be claimed more than once in a five-year period.

     (3) The department of revenue, in consultation with the department of community development, shall adopt such rules as are necessary and convenient to properly administer the provisions of this section.

     (4) The department of revenue shall grant a property tax exemption under this section for affordable housing developments that are approved by the department of community development.  The department of revenue shall keep a running total of exemptions granted under this section during each fiscal biennium.

     (5) Applications and any other information received by the county assessor under this section shall be confidential.  However, the department of community development and the department of revenue may conduct such audits of the administration of this section, and the claims for exemptions filed under this section, as they consider necessary.

     (6) Any applicant knowingly signing a false application for an exemption under this section shall have the exemption revoked under the provisions of RCW 84.36.845.

     (7) This section shall expire January 1, 2002.

 

     Sec. 212.  RCW 82.45.010 and 1981 c 93 s 1 are each amended to read as follows:

     (1) As used in this chapter, the term (("sale" shall have its ordinary meaning and shall include any)) "conveyance"((,)) shall mean the grant, assignment, quitclaim, sale, or other transfer of the ownership of or title to real property((, including standing timber, or any estate or interest therein for a valuable consideration, and)).  The term includes the grant, assignment, quitclaim, sale, or transfer of improvements constructed upon leased land.

     (2) The term conveyance also includes any contract for ((such conveyance,)) the grant, assignment, quitclaim, sale, or transfer((, and any lease with an option to purchase real property, including standing timber, or any estate or interest therein or other contract)) of real property where, under ((which)) the terms of the contract possession of the property is given to the ((purchaser)) contract vendee, or any other person ((by his)) at the vendee's direction, ((which)) and title to the property is retained by the vendor as security for the ((payment of the purchase price)) vendee's performance of the contract terms.

     ((The term shall not include a transfer by gift, devise, or inheritance, a transfer of any leasehold interest other than of the type mentioned above, a cancellation or forfeiture of a vendee's interest in a contract for the sale of real property, whether or not such contract contains a forfeiture clause, or deed in lieu of foreclosure of a mortgage or the assumption by a grantee of the balance owing on an obligation which is secured by a mortgage or deed in lieu of forfeiture of the vendee's interest in a contract of sale where no consideration passes otherwise or the partition of property by tenants in common by agreement or as the result of a court decree, any transfer, conveyance, or assignment of property or interest in property from one spouse to the other in accordance with the terms of a decree of divorce or in fulfillment of a property settlement agreement incident thereto, the assignment or other transfer of a vendor's interest in a contract for the sale of real property, even though accompanied by a conveyance of the vendor's interest in the real property involved, transfers by appropriation or decree in condemnation proceedings brought by the United States, the state or any political subdivision thereof, or a municipal corporation, a mortgage or other transfer of an interest in real property merely to secure a debt, or the assignment thereof, any transfer or conveyance made pursuant to an order of sale by the court in any mortgage or lien foreclosure proceeding or upon execution of a judgment, or deed in lieu of foreclosure to satisfy a mortgage, a conveyance to the federal housing administration or veterans administration by an authorized mortgagee made pursuant to a contract of insurance or guaranty with the federal housing administration or veterans administration, nor a transfer in compliance with the terms of any lease or contract upon which the tax as imposed by this chapter has been paid or where the lease or contract was entered into prior to the date this tax was first imposed, nor the sale of any grave or lot in an established cemetery, nor a sale by or to the United States, this state or any political subdivision thereof, or a municipal corporation of this state.

     The term sale shall further not include a transfer to a corporation or partnership which is wholly owned by the transferor and/or the transferor's spouse or children:  PROVIDED, That if thereafter such transferee corporation or partnership voluntarily transfers such real property, or such transferor, spouse, or children voluntarily transfer stock in the transferee corporation or interest in the transferee partnership capital, as the case may be, to other than (1) the transferor and/or the transferor's spouse or children, (2) a trust having the transferor and/or the transferor's spouse or children as the only beneficiaries at the time of the transfer to the trust, or (3) a corporation or partnership wholly owned by the original transferor and/or the transferor's spouse or children, within five years of the original transfer to which this exemption applies, excise taxes shall become due and payable on the original transfer as otherwise provided by law.))

     (3) The term conveyance does not include the grant or transfer of an easement, leasehold, license, equitable servitude, or option to purchase.

 

     Sec. 213.  RCW 82.45.020 and 1980 c 154 s 1 are each amended to read as follows:

     As used in this chapter the term (("seller,")) "transferor," unless otherwise indicated by the context, shall mean any individual, receiver, assignee, trustee in bankruptcy, trust, estate, firm, copartnership, joint venture, club, company, joint stock company, business trust, municipal corporation, quasi municipal corporation, corporation, association, society, or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit or otherwise; but it shall not include the United States or the state of Washington.

 

     Sec. 214.  RCW 82.45.030 and 1969 ex.s. c 223 s 28A.45.030 are each amended to read as follows:

     As used in this chapter, the term (("selling price")) "taxable value" means the ((consideration, including)) true and fair value of the property conveyed.  Where property has been conveyed in an arm's length transaction between unrelated persons for a valuable consideration, the taxable value shall be equal to the total consideration paid or contracted to be paid to the transferor or another for the transferor's benefit.  The total consideration paid, or contracted to be paid, includes money or anything of value, paid or delivered or contracted to be paid or delivered in return for the transfer of the real property or estate or interest in real property, and shall include the amount of any lien, mortgage, contract indebtedness, or other incumbrance, either given to secure the purchase price, or any part thereof, or remaining unpaid on such property at the time of ((sale)) conveyance.

     ((The term)) Total consideration shall not include the amount of any outstanding lien or incumbrance in favor of the United States, the state, or a municipal corporation for ((the)) taxes, special benefits, or improvements.

     Under circumstances where the total consideration for the conveyance cannot be ascertained or the total consideration does not represent the true and fair value of the property transferred, the market value assessment maintained on the rolls of the county assessor at the time of the conveyance shall be used as the taxable value.

 

     Sec. 215.  RCW 82.45.032 and 1986 c 211 s 1 are each amended to read as follows:

     Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

     (1) "Real estate" or "real property" means ((real property but includes)) any interest or estate in land or anything affixed to land, including standing timber, used mobile homes, and used floating homes.  The term includes improvements constructed by a lessee upon leased land when the ownership of the improvements passes to the lessor, if at all, only upon the expiration or termination of the leasehold.  The term does not include easements, equitable servitudes, licenses, options to purchase, leaseholds, water rights, or other similar rights transferred separate from the ownership of land.

     (2) "Used mobile home" means a mobile home which has been previously sold at retail and has been subjected to tax under chapter 82.08 RCW, or which has been previously used and has been subjected to tax under chapter 82.12 RCW, and which has substantially lost its identity as a mobile unit at the time of ((sale)) conveyance by virtue of its being fixed in location upon land owned or leased by the owner of the mobile home and placed on a foundation (posts or blocks) with fixed pipe connections with sewer, water, and other utilities.

     (3) "Mobile home" means a mobile home as defined by RCW 46.04.302, as now or hereafter amended.

     (4) "Used floating home" means a floating home in respect to which tax has been paid under chapter 82.08 or 82.12 RCW.

     (5) "Floating home" means a building on a float used in whole or in part for human habitation as a single-family dwelling, which is not designed for self propulsion by mechanical means or for propulsion by means of wind, and which is on the property tax rolls of the county in which it is located.

     (6) "Affordable housing development" has the same meaning as in section 103(2)(a) of this act.

 

     Sec. 216.  RCW 82.45.060 and 1987 c 472 s 14 are each amended to read as follows:

     (1) There is imposed an excise tax upon each ((sale)) conveyance of real property at the rate of one and twenty-eight one-hundredths percent of the ((selling price)) taxable value of the property conveyed as determined under RCW 82.45.030.  An amount equal to seven and seven-tenths percent of the proceeds of this tax remitted to the state treasurer shall be deposited in the public works assistance account created in RCW 43.155.050.

     (2) ((There is imposed an additional excise tax through June 30, 1989, upon each sale of real property at the rate of six one-hundredths of one percent of the selling price.  The tax imposed under this subsection shall be deposited in the conservation area account under RCW 79.71.110)) An amount equal to two percent of the proceeds of this tax remitted to the state treasurer shall be used to offset the potential loss of revenue to the state general fund as a result of housing-related tax exemptions to encourage the development of affordable housing created under sections 201 through 210 of this act.

 

     NEW SECTION.  Sec. 217.  A new section is added to chapter 82.45 RCW to read as follows:

     The following conveyances are exempt from the tax imposed by this chapter:

     (1) A transfer by gift to a family member or to an entity exempt from federal income tax under section 501(c) of the internal revenue code.  For purposes of this section, "family member" means the transferor, the transferor's spouse, grandparents, parents, children, grandchildren, sisters, or brothers.

     (2) A transfer of property by devise or inheritance.

     (3) An assignment or transfer of property from one spouse to another to establish or separate community property in accordance with the terms of a community property agreement, or to separate community property in accordance with the terms of a decree of divorce or in fulfillment of a property settlement agreement incident to a decree of divorce.

     (4) A physical partition of property by tenants in common by agreement or as a result of a court decree.

     (5) A family transfer.

     (a) For the purposes of this subsection, "family transfer" means any transfer:

     (i) To a trust having family members of the transferor as the only beneficiaries at the time of the transfer to the trust; or

     (ii) To a corporation or partnership wholly owned by one or more family members of the transferor.

     (b) A family transfer also includes any subsequent transfer of property by a trust, corporation, or partnership described in (a) of this subsection to a transferee described in (a) of this subsection.

     (c) The exemption provided in this subsection may not apply to any transfer, and tax will be due on such transfer, if, within five years of the date of the transfer, the transferee corporation, partnership, or trust voluntarily conveys the property, or a family member voluntarily transfers stock in the transferee corporation or an interest in the transferee partnership or trust, as the case may be, to other than a person described in (a) of this subsection.

     (6) The creation of a lien by means of a mortgage or deed of trust or the assignment of such a mortgage or deed of trust.

     (7) The assignment or other transfer of a vendor's interest in a contract for the sale of real property, even though accompanied by a conveyance of the vendor's interest in the real property involved.

     (8) A release or satisfaction of mortgage or full reconveyance of the beneficiary's interest under a deed of trust.

     (9) A deed given to the vendee under a real estate contract upon fulfillment of the contract terms.

     (10) A transfer or conveyance made under an order of sale by a court in any mortgage or lien foreclosure proceeding or upon execution of a judgment.

     (11) A transfer by a trustee under a power of sale contained in a deed of trust.

     (12) A deed in lieu of foreclosure of a mortgage or deed of trust given to the mortgagee or trust deed beneficiary.

     (13) A declaration of contract forfeiture or deed given by the vendee to the vendor upon forfeiture of a real estate contract.

     (14) A transfer of a grave or cemetery lot in an established cemetery.

     (15) A transfer by a trustee in bankruptcy or under a court-approved plan of reorganization under chapters 11 or 12 of the bankruptcy code, Title 11 U.S.C.

     (16) A transfer by appropriation or decree in condemnation proceedings brought by the United States, the state of Washington or any of its political subdivisions, or a municipal corporation of this state.

     (17) A transfer to the federal housing administration or the veterans' administration by an authorized mortgagee under a contract of insurance or guaranty with the federal housing administration or the veterans' administration.

     (18) A transfer by a nominee to a third-party principal, if:

     (a) The proper tax was paid on the transfer to the nominee;

     (b) The third-party principal was in legal existence at the time of initial transfer;

     (c) The funds used by the nominee to initially acquire the property were provided by the third-party principal; and

     (d) The subsequent transfer from the nominee to the third-party principal is not for a greater consideration than that of the initial acquisition.

     (19) A transfer by the United States, the state of Washington or any of its political subdivisions, or a municipal corporation of this state.

     (20) The conveyance of an affordable housing development by or to an organization eligible to receive assistance through the Washington housing trust fund created in chapter 43.185 RCW.

 

     Sec. 218.  RCW 82.45.070 and 1969 ex.s. c 223 s 28A.45.070 are each amended to read as follows:

     The tax ((herein provided for and any)) imposed by this chapter, along with interest ((or penalties thereon)) accruing as provided for in RCW 82.45.100 shall be a specific lien upon each ((piece)) parcel of real property ((sold)) conveyed from the time of ((sale)) conveyance until the tax ((shall have)) has been paid, which lien may be enforced in the manner prescribed for the foreclosure of mortgages.  The lien provided under this section is perfected without further act and has priority over any lien arising after the conveyance.

 

     Sec. 219.  RCW 82.45.080 and 1980 c 154 s 3 are each amended to read as follows:

     The tax levied under this chapter shall be the obligation of the ((seller)) transferor and the department of revenue may, at the department's option, enforce the obligation through an action of debt against the ((seller)) transferor or the department may proceed in the manner prescribed for the foreclosure of mortgages ((and)).  Resort to one course of enforcement shall not ((be an election not to pursue)) preclude the department from pursuing the other.

 

     Sec. 220.  RCW 82.45.090 and 1991 c 327 s 6 are each amended to read as follows:

     The tax imposed by this chapter shall be paid to and collected by the treasurer of the county ((within)) in which the property conveyed is located ((the real property which was sold, said)).  In collecting the tax the treasurer ((acting)) shall act as agent for the state.  The county treasurer shall cause a stamp evidencing satisfaction of the lien to be affixed to the instrument of ((sale or)) conveyance prior to its recording or to the real estate excise tax affidavit in the case of sales of used mobile homes ((sales)) and used floating homes ((sales)).  A receipt issued by the county treasurer for the payment of the tax imposed under this chapter shall be evidence of the satisfaction of the lien imposed hereunder and may be recorded in the manner prescribed for recording satisfactions of mortgages.  No instrument ((of sale or conveyance)) evidencing a ((sale)) conveyance subject to the tax shall be accepted by the county auditor for filing or recording until the tax ((shall have)) has been paid and the ((stamp affixed thereto)) instrument has been stamped; in case the tax is not due on the ((transfer)) conveyance, the instrument shall not be so accepted until suitable notation of such fact has been made on the instrument by the treasurer.

 

     Sec. 221.  RCW 82.45.100 and 1988 c 286 s 5 are each amended to read as follows:

     (1) The tax imposed under this chapter is due and payable immediately at the time of ((sale)) conveyance, and if not paid within thirty days thereafter shall bear interest at the rate of one percent per month from the time of ((sale)) conveyance until the date of payment.

     (2) In addition to the interest described in subsection (1) of this section, if the payment of any tax is not received by the county treasurer within thirty days of the date due, there shall be assessed a penalty of five percent of the amount of the tax; if the tax is not received within sixty days of the date due, there shall be assessed a total penalty of ten percent of the amount of the tax; and if the tax is not received within ninety days of the date due, there shall be assessed a total penalty of twenty percent of the amount of the tax.  The payment of the penalty described in this subsection shall be collectible from the ((seller)) transferor only, and RCW 82.45.070 does not apply to the penalties described in this subsection.

     (3) If upon examination of any affidavits or from other information obtained by the department or its agents it appears that all or a portion of the tax is unpaid, the department shall assess against the ((taxpayer)) transferor the additional amount found to be due plus interest and penalties as provided in subsections (1) and (2) of this section.  If the department finds that all or any part of the deficiency resulted from an intent to evade the tax payable under this chapter, an additional penalty of fifty percent of the additional tax found to be due shall be added.

     (4) No assessment or refund may be made by the department more than four years after the date of ((sale)) conveyance except upon a showing of fraud or of misrepresentation of a material fact by the ((taxpayer)) transferor or a failure by the taxpayer to record documentation of a ((sale)) conveyance or otherwise report the ((sale)) conveyance to the county treasurer.

     (5) Penalties collected pursuant to subsection (2) of this section shall be deposited in the housing trust fund as described in chapter 43.185 RCW.

 

     Sec. 222.  RCW 82.45.150 and 1981 c 167 s 1 are each amended to read as follows:

     All of chapter 82.32 RCW, except RCW 82.32.030, 82.32.040, 82.32.050, 82.32.140, and 82.32.270 and except for the penalties and the limitations thereon imposed by RCW 82.32.090, applies to the tax imposed by this chapter, in addition to any other provisions of law for the payment and enforcement of the tax imposed by this chapter.  The department of revenue shall by rule provide for the effective administration of this chapter.  The rules shall ((also include a manual which defines transactions which are taxable under)) prescribe and furnish a real estate excise tax affidavit form to be used by each county in the collection and reporting of the tax imposed by this chapter.  The department of revenue shall annually conduct audits of transactions and affidavits filed under this chapter.

 

     Sec. 223.  RCW 82.46.010 and 1990 1st ex.s. c 17 s 36 are each amended to read as follows:

     (1) The governing body of any county or any city may impose an excise tax on each ((sale)) conveyance of real property in the unincorporated areas of the county for the county tax and in the corporate limits of the city for the city tax at a rate not exceeding one-quarter of one percent of the ((selling price)) taxable value as defined in RCW 82.45.030.  The revenues from this tax shall be used by the respective jurisdictions for local capital improvements, including those listed in RCW 35.43.040.

     After July 1, 1990, revenues generated from the tax imposed under this subsection in counties and cities that are required or choose to plan under RCW 36.70A.040 shall be used primarily for financing capital projects specified in a capital facilities plan element of a comprehensive plan and housing relocation assistance under RCW 59.18.440 and 59.18.450.  However, revenues (a) pledged by such counties and cities to debt retirement prior to July 1, 1990, may continue to be used for that purpose until all outstanding debt is retired, or (b) committed prior to July 1, 1990, by such counties or cities to a capital project may continue to be used for that purpose until the project is completed.

     (2) In lieu of imposing the tax authorized in RCW 82.14.030(2), the governing body of any county or any city may impose an additional excise tax on each ((sale)) conveyance of real property in the unincorporated areas of the county for the county tax and in the corporate limits of the city for the city tax at a rate not exceeding one-half of one percent of the ((selling price)) taxable value as defined in RCW 82.45.030.

     (3) Taxes imposed under this section shall be collected from persons who are taxable by the state under chapter 82.45 RCW upon the occurrence of any taxable event within the unincorporated areas of the county or within the corporate limits of the city, as the case may be.

     (4) Taxes imposed under this section shall comply with all applicable rules, regulations, laws, and court decisions regarding real estate excise taxes as imposed by the state under chapter 82.45 RCW.

     (5) As used in this section, "city" means any city or town.

 

     Sec. 224.  RCW 82.46.035 and 1991 sp.s. c 32 s 33 are each amended to read as follows:

     (1) The governing body of any county or any city that plans under RCW 36.70A.040(1) may impose an additional excise tax on each ((sale)) conveyance of real property in the unincorporated areas of the county for the county tax and in the corporate limits of the city for the city tax at a rate not exceeding one-quarter of one percent of the ((selling price)) taxable value as defined in RCW 82.45.030.  Any county choosing to plan under RCW 36.70A.040(2) and any city within such a county may only adopt an ordinance imposing the excise tax authorized by this section if the ordinance is first authorized by a proposition approved by a majority of the voters of the taxing district voting on the proposition at a general election held within the district or at a special election within the taxing district called by the district for the purpose of submitting such proposition to the voters.

     (2) Revenues generated from the tax imposed under subsection (1) of this section shall be used by such counties and cities solely for financing capital projects specified in a capital facilities plan element of a comprehensive plan.

     (3) Revenues generated by the tax imposed by this section shall be deposited in a separate account.

     (4) As used in this section, "city" means any city or town.

     (5) When the governor files a notice of noncompliance under RCW 36.70A.340 with the secretary of state and the appropriate county or city, the county or city's authority to impose the additional excise tax under this section shall be temporarily rescinded until the governor files a subsequent notice rescinding the notice of noncompliance.

 

     Sec. 225.  RCW 82.46.040 and 1990 1st ex.s. c 17 s 39 and 1990 1st ex.s. c 5 s 4 are each reenacted and amended to read as follows:

     Any tax imposed under this chapter ((or RCW 82.46.070)) and any interest or penalties thereon is a specific lien upon each piece of real property ((sold)) conveyed from the time of ((sale)) conveyance until the tax is paid, which lien may be enforced in the manner prescribed for the foreclosure of mortgages.

 

     Sec. 226.  RCW 82.46.050 and 1990 1st ex.s. c 17 s 40 are each amended to read as follows:

     The taxes levied under this chapter are the obligation of the ((seller)) transferor and may be enforced through an action of debt against the ((seller)) transferor or in the manner prescribed for the foreclosure of mortgages.  Resort to one course of enforcement is not an election not to pursue the other.

 

     Sec. 227.  RCW 82.46.060 and 1990 1st ex.s. c 17 s 41 and 1990 1st ex.s. c 5 s 5 are each reenacted and amended to read as follows:

     Any taxes imposed under this chapter ((or RCW 82.46.070)) shall be paid to and collected by the treasurer of the county within which is located the real property which was ((sold)) conveyed.  The treasurer shall act as agent for any city within the county imposing the tax.  The county treasurer shall cause a stamp evidencing satisfaction of the lien to be affixed to the instrument of sale or conveyance prior to its recording or to the real estate excise tax affidavit in the case of used mobile home ((sales)) conveyances.  A receipt issued by the county treasurer for the payment of the tax imposed under this chapter ((or RCW 82.46.070)) shall be evidence of the satisfaction of the lien imposed in RCW 82.46.040 and may be recorded in the manner prescribed for recording satisfactions of mortgages.  No instrument of sale or conveyance evidencing a ((sale)) conveyance subject to the tax may be accepted by the county auditor for filing or recording until the tax is paid and the stamp affixed thereto; in case the tax is not due on the transfer, the instrument shall not be accepted until suitable notation of this fact is made on the instrument by the treasurer.

 

     Sec. 228.  RCW 82.46.070 and 1990 1st ex.s. c 5 s 3 are each amended to read as follows:

     (1) Subject to subsection (2) of this section, the legislative authority of any county may impose an additional excise tax on each ((sale)) conveyance of real property in the county at a rate not to exceed one percent of the ((selling price)) taxable value as defined in RCW 82.45.030.  The proceeds of the tax shall be used exclusively for the acquisition and maintenance of conservation areas.

     The taxes imposed under this subsection shall be imposed in the same manner and on the same occurrences, and are subject to the same conditions, as the taxes under chapter 82.45 RCW, except:

     (a) The tax shall be the obligation of the ((purchaser)) transferee; and

     (b) The tax does not apply to the acquisition of conservation areas by the county.

     The county may enforce the obligation through an action of debt against the ((purchaser)) transferee or may foreclose the lien on the property in the same manner prescribed for the foreclosure of mortgages.

     The tax shall take effect thirty days after the election at which the taxes are authorized.

     (2) No tax may be imposed under subsection (1) of this section unless approved by a majority of the voters of the county voting thereon for a specified period and maximum rate after:

     (a) The adoption of a resolution by the county legislative authority of the county proposing this action; or

     (b) The filing of a petition proposing this action with the county auditor, which petition is signed by county voters at least equal in number to ten percent of the total number of voters in the county who voted at the last preceding general election.

     The ballot proposition shall be submitted to the voters of the county at the next general election occurring at least sixty days after a petition is filed, or at any special election prior to this general election that has been called for such purpose by the county legislative authority.

     (3) A plan for the expenditure of the excise tax proceeds shall be prepared by the county legislative authority at least sixty days before the election if the proposal is initiated by resolution of the county legislative authority, or within six months after the tax has been authorized by the voters if the proposal is initiated by petition.  Prior to the adoption of this plan, the elected officials of cities located within the county shall be consulted and a public hearing shall be held to obtain public input.  The proceeds of this excise tax must be expended in conformance with this plan.

     (4) As used in this section, "conservation area" has the meaning given under RCW 36.32.570.

 

     NEW SECTION.  Sec. 229.    The following acts or parts of acts are each repealed:

     (1) RCW 82.45.035 and 1969 ex.s. c 223 s 28A.45.035;

     (2) RCW 82.45.105 and 1969 ex.s. c 223 s 28A.45.105; and

     (3) RCW 82.45.120 and 1981 c 167 s 5, 1980 c 134 s 1, & 1969 ex.s. c 223 s 28A.45.120.

 

     NEW SECTION.  Sec. 230.    The legislature finds that the property tax exemption authorized in Article VII, section ... of the state Constitution (HJR ...) shall be made available on the basis of a low-income person's ability to pay property taxes.  The legislature further finds that the best measure of a low-income person's ability to pay taxes is that person's income.  The definition of "income" shall be the same as for low-income households as defined in section 103 of this act.

 

     NEW SECTION.  Sec. 231.    Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

     (1) "Residence" has the same meaning as in RCW 84.36.383.

     (2) "Real property" has the same meaning as in RCW 84.36.383.

     (3) "Low-income household" has the same meaning as in section 103 of this act.

     (4) "Department" means the state department of revenue.

     (5) "Preceding calendar year" has the same meaning as in RCW 84.36.383.

     (6) "Cotenant" has the same meaning as in RCW 84.36.383.

 

     NEW SECTION.  Sec. 232.    A person is exempt from any legal obligation to pay all or a portion of the amount of excess and regular real property taxes due and payable in the year following the year in which a claim is filed, and for an additional one-year period thereafter, in accordance with the following:

     (1) The property taxes must have been imposed upon a residence which was occupied by the person  claiming the exemption as a principal place of residence as of January 1st of the year for which the exemption is claimed;

     (2) The person claiming the exemption must have owned, at the time of filing, in fee, as a life estate, or by contract purchase, the residence on which the property taxes have been imposed.  For purposes of this subsection, a residence owned by a marital community or owned by cotenants is deemed to be owned by each spouse or cotenant, and any lease for life is deemed a life estate;

     (3) The person claiming the exemption must be considered a low-income household; and

     (4) The person claiming the exemption must be sixty years of age or younger on January 1st of the year in which the exemption claim is filed and not eligible for property tax relief under RCW 84.36.379 through 84.36.389.

 

     NEW SECTION.  Sec. 233.    (1) A claim for exemption under section 232 of this act shall be made every two years and filed at any time during the year for exemption from taxes payable the following two-year period.  The claim must be made upon forms as prescribed and furnished by the department.

     (2) A person granted an exemption under section 232 of this act shall inform the county assessor of any change in status affecting the person's entitlement to the exemption on forms prescribed and furnished by the department.

     (3) If the assessor finds that the applicant does not meet the qualifications as set forth in section 232 of this act, the claim or exemption shall be denied but such denial shall be subject to review under the fifth rule in RCW 84.48.010.  If the applicant has received exemption in prior years based on erroneous information, the taxes shall be collected subject to penalties as provided in RCW 84.40.130 for a period not to exceed three years.

     (4) The department and each local assessor shall publicize the qualifications and manner of making claims under this chapter, through communications media, including such paid advertisements or notices as it deems appropriate.  Notice of the qualifications, method of making applications, the penalties for not reporting a change in status, and availability of further information shall be included on or with property tax statements and revaluation notices for all residential property including mobile homes, except rental properties.

 

     NEW SECTION.  Sec. 234.    (1) All claims for exemption shall be made and signed by the person entitled to the exemption, by his or her attorney in fact or in the event the residence of such person is under mortgage or purchase contract requiring accumulation of reserves out of which the holder of the mortgage or contract is required to pay real estate taxes, by such holder or by the owner, either before two witnesses or the county assessor or his or her deputy in the county where the real property is located.

     (2) If a claim for an exemption is made by a person living in a cooperative housing association, corporation, or partnership, such claim shall be made and signed by the person entitled to the exemption and by the authorized agent of such cooperative.

     (3) Any person signing a false claim with the intent to defraud or evade the payment of any tax is guilty of the offense of perjury.

     (4) The tax liability of a cooperative housing association, corporation, or partnership shall be reduced by the amount of tax exemption to which a claimant residing therein is entitled and such cooperative shall reduce any amount owed by the claimant to the cooperative by such exact amount of the tax exemption or, if no amount be owed, the cooperative shall make payment to the claimant of such exact amount of exemption.

 

     NEW SECTION.  Sec. 235.    (1) The department shall adopt rules to implement this chapter.

     (2) The department may conduct such audits of the administration of this chapter and the claims for exemption filed under this chapter as it considers necessary.  The powers of the department under chapter 84.08 RCW apply to these audits.

     (3) Any information or facts concerning confidential income data obtained by the assessor or the department, or their agents or employees, under subsection (2) of this section shall be used only to administer this chapter.

 

     NEW SECTION.  Sec. 236.    Sections 230 through 235 of this act shall take effect upon the effective date of the proposed amendment to Article VII of the Washington state Constitution to authorize a property tax exemption for low-income households if the amendment is validly submitted to and is approved and ratified by the voters at the November 1992 general election.  If the proposed amendment is not so approved and ratified, sections 230 through 235 of this act shall be null and void in its entirety.

 

     NEW SECTION.  Sec. 237.    The legislature hereby declares that:

     (1) There is a shortage in the supply of decent, safe, and sanitary housing for very low-income households in this state.  Far too many people live in overcrowded dwellings, in buildings that are not safe, sanitary, and protected from the elements, in temporary shelters, or even without a form of decent shelter.

     (2) The shortage of safe, sanitary, decent housing for very low-income households harms the general health and safety.  It deprives many very low-income households of proper shelter and protections from unreasonable risks of fire, crime, personal injury, and from overcrowded and deteriorated living conditions.  It harms the general public by contributing to the use of storefronts, public parks, and sidewalks as shelter by the homeless and by contributing to slums and blight in urban areas.

     (3) Public agencies acting alone do not have sufficient resources to supply housing for very low-income households.  Federal cutbacks have made it even more difficult for public agencies to respond to the dwindling supply of very low-income housing.  The assistance of private capital and free enterprise is essential to reduce the shortage of housing for very low-income households, and organizations and individuals should be encouraged to preserve and develop very low-income housing.

     (4) Mobile home parks are an important source of affordable housing, especially for very low-income and elderly persons.  Mobile home parks also provide a unique form of community living that allows elderly persons to live independently for as long as possible.

     (5) Economic pressures have resulted in a dramatic increase in the number of mobile home parks being closed due to changes in land use by the landowner.  Not only does this result in lost affordable housing, but mobile homes are difficult and expensive to move.  Mobile homeowners find it difficult to locate spaces for mobile homes that must be relocated, especially for older mobile homes.

     (6) Valuing and taxing property primarily devoted to mobile home parks or very low-income housing at its current use will provide an economic incentive for preservation and development of mobile home parks and very low-income housing and a disincentive to elimination of such housing for purely economic reasons.  Such an incentive may delay the deterioration and demolition of existing affordable housing, or in the closure of mobile home parks, in higher density areas where competition from higher uses threatens this less competitive use, and it may encourage the development of additional affordable housing and mobile home parks.

     (7) This chapter will implement an amendment to Article VII, section 11, of the Washington state Constitution submitted to the electorate of the state of Washington at the November 1992 general election.

 

     NEW SECTION.  Sec. 238.    The definitions set forth in this section apply throughout this chapter unless the context clearly requires otherwise.

     (1) "Assessor" means the county assessor or such agency or person who is authorized to act on behalf of the assessor.

     (2) "County financial authority" and "financial authority" means the county treasurer or an agency or person charged with the responsibility for billing and collecting property taxes.

     (3) "County recording authority" means the county auditor or an agency or person charged with the recording of documents.

     (4) "Dwelling unit" means a structure other than a single-family home, or that part of a structure that is used as a home, residence, or sleeping place by one person or by two or more persons maintaining a common household, including but not limited to multiplexes and apartment buildings.

     (5) "Devoted to very low-income housing" means that the property is dedicated to housing for very low-income households at rents set below market rates.

     (6) "Mobile home" means a mobile or manufactured home as defined in RCW 46.04.302.

     (7) "Mobile home park" means real property that is rented or held out for rent to others for the placement of two or more mobile homes for the primary purpose of production of income, except where such real property is rented or held out for rent for seasonal recreational purposes only and is not intended for year-round occupancy.

     (8) "Owner" means the party or parties with the fee ownership in the land, and the contract vendee where land is subject to a real estate contract.

     (9) "Very low-income households" shall have the same meaning as in section 103 of this act.

     (10) "Rents set below market rates" means rents that are equal to or less than the greater of either:

     (a) Set in accordance with an agreement with the United States department of housing and urban development or other federal agency, or a local housing authority, to carry out a government program to provide housing for very low-income households, and that do not exceed the fair rental rate promulgated for such very low-income housing by the United States or the housing authority; or

     (b) Do not exceed fifteen percent of the median income, scaled by using the occupancy for the unit authorized by the local building code for family size, for the area in which the building is located.

     (11)  "Reviewing official" means the chief executive officer of a county, city, or town or a subordinate municipal officer designated by the chief executive officer for review of applications for classification pursuant to this chapter.

 

     NEW SECTION.  Sec. 239.    Current use valuation as authorized by this chapter shall be available within each county only if the county legislative authority adopts an implementing ordinance or resolution.

 

     NEW SECTION.  Sec. 240.    (1) Property occupied by a building that meets the following criteria may be classified in whole or in part as "devoted to very low-income housing," and valued and taxed at its current use value unless disqualified under subsection (7) of this section:

     (a) At least fifty percent of the rentable floor area of the building shall be dedicated to housing for very low-income households.  The remainder of the building may be:  (i) Committed to other uses, or (ii) vacant for up to six months, as long as the remainder does not impair the habitability of the units rented for housing to very low-income households;

     (b) At least three dwelling units in the building must be dedicated to housing for very low-income households;

     (c) The rents charged to very low-income households shall be set below market rates; and

     (d) The building and the dwelling units dedicated to housing for very low-income households must comply with local health and safety standards.

     (2) A classification of the real property occupied by a building devoted to very low-income housing applies to the portion of the parcel dedicated to housing for very low-income households, including ancillary areas used for parking, lawn, garden, or landscaping, as required by local zoning and building ordinances.

     (3) Property used for a mobile home park that meets the following criteria may be classified in whole or in part as "devoted to very low-income housing" and valued and taxed at its current use value unless disqualified under subsection (7) of this section:

     (a) At least fifty percent of the mobile home park spaces shall be dedicated to very low-income households at all times for residential purposes by very low-income households.  The remainder of the mobile home park may be:  (i) Committed to other uses, or (ii) vacant for up to six months, as long as the remainder does not impair the habitability of the mobile home park spaces rented to very low-income households;

     (b) At least three mobile home spaces in the mobile home park must be dedicated to housing for very low-income households;

     (c) The rents charged to very low-income households shall be set below market rates for mobile home park spaces; and

     (d) The mobile home park must comply with local health and safety standards.

     (4) A classification of real property used for a mobile home park applies to the portion of the property dedicated to housing for very low-income households, including ancillary areas used for parking, lawn, garden, or landscaping, as required by local zoning and building ordinances.

     (5) In the event that the property for which a classification under this section is applied for is used in part as other than either residential rental property or a mobile home park, only the portion of the property dedicated to housing for very low-income households or a mobile home park shall be eligible for classification under this chapter.

     (6) An assessor may, for property tax purposes, segregate those portions of a property dedicated to housing for very low-income households.

     (7) The following properties are not eligible for classification as property "devoted to very low-income housing":

     (a) Slums:  (i) Property under a municipal or judicial order for abatement; (ii) property with a building that the local jurisdiction has found to violate applicable building, health, and safety standards and on which compliance has not been completed or satisfactory progress shown within sixty days after notice; or (iii) property that is repeatedly cited for a substantial violation of such local standards.

     (b) Institutional housing:  (i) Residential units that serve an institution, where payments for health care, education, or other institutional services are made by or for the occupants to the owner in addition to rent for the dwelling; (ii) privately owned student housing, including fraternities and sororities; or (iii) resorts for recreational purposes.  This subsection (7)(b) does not exclude from eligibility housing that is under contract to a governmental organization or private nonprofit health care organization and is devoted to persons of very low-income.

     (c) Employee housing:  Property used primarily for industrial, commercial, institutional, farm, or agricultural purposes, or as timber land in which the dwelling units identified as devoted to use by persons of very low-income are occupied by employees of the owner, contract workers for the owner, or relatives of the owner.

     (d) A portion of the property that exceeds five acres; except that this requirement does not apply to mobile home parks.

 

     NEW SECTION.  Sec. 241.    (1) Applications made on or before the last day of December shall be processed for classification in the year following application.

     (2) Where practical, applications shall be made upon forms prepared by the state department of revenue and supplied by the assessor.  A document that contains the essential information requested by the state form shall be processed as an application if the approved forms are not available.  The application shall contain a verification or statement under penalty of perjury that the information supplied is true and correct.  The application shall require the applicant to inform the assessor if there is a change in circumstances that would affect the continuing eligibility of the property for classification under this chapter.  The assessor shall provide reasonable assistance to applicants in completing the form.

     (3) If the property lies in an incorporated area, the assessor shall send a copy of the application to the chief executive officer of the city or town or to a subordinate municipal officer designated by the chief executive officer for review.  If the property lies in an unincorporated area, the assessor shall transmit a copy of the application for review to the official who administers the county building codes unless the county legislative authority designates another official.  If a municipal boundary bisects property that is the subject of an application, officials of each affected municipality shall receive a copy of the application.  Before a reviewing official recommends denial of an application, the reviewer shall inform the owner of the proposed denial and allow the owner an opportunity to submit additional information.

     (4) The classification established under this chapter shall be in effect for taxes payable for the year following the year in which a classification is made by and for each subsequent year until (a) withdrawn by the owner or (b) found ineligible by the assessor.

     (5) The city, town, or county may require a reasonable application fee, including the costs necessary to record the document.  Except for recording costs, the application fee shall be nonrefundable.  The fee shall accompany the application.

     (6) An assessor may delegate the performance of any or all of the activities specified by this chapter to a reviewing official of the jurisdiction in which the property is located.

 

     NEW SECTION.  Sec. 242.    (1) Upon receipt of an application from the assessor, a reviewing official may contact the applicant, examine documents and records, interview occupants, and enter and inspect the real property during reasonable business hours to determine compliance with the requirements of this chapter.  However, nothing in this section shall be construed to authorize an entry by a reviewing official into a mobile home site in a mobile home park classified under this chapter unless the owner of such home grants permission.  The reviewing official shall, within forty-five days of receipt of the application from the assessor, file with the assessor a report that states whether the property qualifies for classification under this chapter.  Upon notice to the assessor, the reviewing official may take such additional time as may be needed on account of delays in securing information from an applicant.  An application that is returned to the assessor by the reviewing official later than December 31 of the year in which it is submitted, and that is subsequently approved, shall be treated as approved in the calendar year in which it is returned, except that an application submitted to the assessor fewer than forty-five days prior to December 31, and that is subsequently approved within the forty-five day period, shall be treated as approved in the calendar year in which it is submitted for classification the year following approval.

     (2) The assessor shall grant the classification if the report of the reviewing official recommends approval of the application and shall deny the application if the report recommends denial.

     (3) If no timely report is submitted by a reviewing official, the reviewing official shall inform the applicant.  An applicant may then apply to the county board of equalization for relief.  The board may order:  The classification granted; the classification granted unless the reviewing official shows cause for a denial by a date contained in the order; or denial of the application on the record already made.

     (4) Property classified as a mobile home park or classified as "devoted to very low-income housing" shall be so designated on the assessment roll and notice of that classification shall be given on the notice of assessed value change sent to the taxpayer.  The assessor shall also maintain on the assessment rolls the true and fair value of the property.

 

     NEW SECTION.  Sec. 243.    For the purposes of property tax the value of the real property classified as a mobile home park or classified as "devoted to very low-income housing" shall be the lesser of its value based on its current use and its true and fair value.  In computing its value based on its current use, the assessor shall disregard potential uses that might return a higher income, rents that might be charged were the owner to maximize returns, and values of the property that suppose either the land or the improvements were unencumbered by classification under this chapter.

 

     NEW SECTION.  Sec. 244.    To be sure the property continues to be eligible for classification, an assessor may require the owner to certify information about the building's occupancy by very low-income households, and the rents paid, the continued use of a mobile home park as a mobile home park, or other information pertinent to the continuation of this classification.

 

     NEW SECTION.  Sec. 245.    Once real property has been classified under this chapter, it shall remain under such classification and shall not be applied to other use for at least ten years from the date of classification and shall continue under such classification until and unless withdrawn from classification after notice of request for withdrawal is made by the owner.  During any year after eight years of the initial ten-year classification period have elapsed, notice of request for  withdrawal of all or a portion of the land, which request shall be irrevocable, may be given by the owner to the assessor.  If a portion of a parcel is removed from classification, the remaining portion must meet the same requirements as did the entire parcel when the real property was originally granted classification pursuant to this chapter.  Within seven days the assessor shall transmit one copy of such notice to the reviewing official who originally approved the application.  The assessor or assessors, as the case may be, shall, when two assessment years have elapsed following the date of receipt of the notice, withdraw the real property from such classification and the real property shall be subject to the additional tax due under section 249 of this act.  Classification according to this chapter shall not be considered to be a contract and can be abrogated at any time by the legislature, in which event no additional tax or penalty may be imposed.

 

     NEW SECTION.  Sec. 246.    If real property has been classified under this chapter, except through compliance with section 245 of this act, or except as a result solely from any one of the conditions listed in section 249(5) of this act, the owner shall within sixty days notify the assessor of a change in use, and additional property tax shall be imposed upon the property in an amount equal to the sum of the following:

     (1) The total amount of the additional tax due under section 249 of this act; plus

     (2) A penalty amounting to twenty percent of the amount determined under subsection (1) of this section.

     A person who has information that the property no longer qualifies for the classification may supply the information to the assessor.  Upon receipt of the information, the assessor shall promptly refer the matter to the reviewing official for a report and recommendation on whether the property should be removed from classification.

 

     NEW SECTION.  Sec. 247.    The additional tax and penalties, if any, provided by section 246 of this act shall be extended on the tax roll and shall be, together with the interest thereon, a lien on the property to which the tax applies as of January 1st of the year for which the additional tax is imposed.  The lien has priority as provided in chapter 84.60 RCW.  For purposes of all periods of limitation of actions specified in this title, the year in which the tax became payable shall be as specified in section 248 of this act.

 

     NEW SECTION.  Sec. 248.    The additional tax, penalties, and interest provided by section 247 of this act shall be paid in full thirty days after the date that the county financial authority's statement therefor is rendered.  The county financial authority shall distribute the additional taxes, interest, and penalties in the same manner in which current taxes applicable to the subject land are distributed.

 

     NEW SECTION.  Sec. 249.    (1) If real property has once been classified under this chapter, a notation of the classification shall be made each year upon the assessment and tax rolls, and the real property shall be valued under this chapter until removal of all or a portion of the classification by the assessor upon occurrence of any of the following:

     (a) Receipt of notice from the owner to remove all or a portion of the designation;

     (b) Conveyance or transfer to an ownership making all or a portion of the real property exempt from ad valorem taxation;

     (c) Conveyance or transfer of all or a portion of the real property to a new owner, unless the new owner has signed a notice of classification continuance.  If the notice of continuance is not signed by the new owner, all additional taxes calculated under subsection (3) of this section shall become due and payable by the conveyor or transferor at time of sale.  The county recording authority shall not accept an instrument of conveyance of classified real property for filing or recording unless the new owner has signed the notice of continuance or the additional tax has been paid;

     (d) Determination by the reviewing official, after giving the owner written notice and an opportunity to be heard, that all or a portion of the real property is no longer primarily devoted to and used for the purposes under which it was granted classification.

     (2) Within thirty days after the removal of all or a portion of the real property from classification, the assessor shall notify the owner in writing, setting forth the reasons for the removal.  Within thirty days of mailing the notice of removal, the seller, transferor, or owner may appeal the removal to the county board of equalization.

     (3) Both the assessed valuation before and after the removal of classification shall be listed and taxes shall be allocated according to that part of the year to which each assessed valuation applies.  Except as provided in subsection (5) of this section, an additional tax shall be imposed that is due and payable to the county financial authority thirty days after the owner is notified of the amount of the additional tax.  As soon as possible, the assessor shall compute the amount of such an additional tax and the county financial authority shall mail notice to the owner of the amount thereof and the date on which payment is due.  The amount of the additional tax shall be equal to:

     (a) The difference between the property tax paid as property classified under this chapter and the amount of property tax otherwise due and payable for the seven years last past had the real property not been so classified; plus

     (b) Interest upon the amounts of the additional tax paid at the same statutory rate charged on delinquent property taxes from the dates on which the additional tax could have been paid without penalty if the real property had been assessed at a value without regard to this chapter.

     (4) Additional tax, together with applicable interest thereon, becomes a lien on the real property, which lien attaches at the time the real property is removed from current use classification under this chapter.  The lien has priority to and shall be fully paid and satisfied before any recognizance, mortgage, judgment, debt, obligation, or responsibility to or with which the land may become charged or liable.  The lien may be foreclosed upon expiration of the same period after delinquency and in the same manner provided by law for foreclosure of liens for delinquent real property taxes as provided in RCW 84.64.050.  Any additional tax unpaid on its due date is delinquent.  From the date of delinquency until paid, interest shall be charged at the same rate applied by law to delinquent ad valorem property taxes.

     (5) The additional tax specified in subsection (3) of this section shall not be imposed if the removal of designation pursuant to subsection (1) of this section resulted solely from:

     (a) A taking under exercise of the power of eminent domain or a transfer to a condemning authority under threat of an exercise of the power of eminent domain;

     (b) A transfer to a use that is exempt from property taxes;

     (c) A change in the law or land use regulations that precludes use of the property for very low-income housing or as a mobile home park;

     (d) Destruction of the property, or such severe damage as to render the premises untenantable, through a natural disaster, such as flood, landslide, or earthquake, or a calamity beyond the owner's control, such as fire.

 

     NEW SECTION.  Sec. 250.    An aggrieved owner, the local government agency approving the application, the assessor, and the department of revenue may appeal an action granting or denying a classification pursuant to this chapter to the county board of equalization.  The appeal shall be filed within thirty days of the granting or denial of the classification by serving a copy upon the reviewing officer and the county board of equalization.  The appeal shall be processed in the same manner as appeals from property valuations.

 

     NEW SECTION.  Sec. 251.    The department of revenue shall adopt rules to implement this chapter.

 

     NEW SECTION.  Sec. 252.    The department of community development shall prepare and publish, within sixty days of the date the department of housing and urban development publishes or no later than December 31st of each year, the data on median incomes necessary to implement this chapter.  The department may make its estimates for areas outside federal standard metropolitan statistical areas on the basis of the nearest area with such data.

 

     NEW SECTION.  Sec. 253.    This chapter shall be liberally construed to accomplish its purposes.  This chapter shall also be interpreted as granting reviewing officials designated by a city or county the authority to carry out the functions contemplated by this chapter.

 

     NEW SECTION.  Sec. 254.    Sections 237 through 253 of this act shall take effect upon the effective date of the proposed amendment to Article VII, section 11 of the Washington state Constitution to authorize current use valuation of property used for qualified very low-income housing containing three or more units, if the amendment is validly submitted to and is approved and ratified by the voters at the November 1992 general election.  If the proposed amendment is not so approved and ratified, sections 237 through 253 of this act shall be null and void in its entirety.

 

     Sec. 255.  RCW 42.17.310 and 1991 c 301 s 13, 1991 c 87 s 13, and 1991 c 23 s 10 are each reenacted and amended to read as follows:

     (1) The following are exempt from public inspection and copying:

     (a) Personal information in any files maintained for students in public schools, patients or clients of public institutions or public health agencies, or welfare recipients.

     (b) Personal information in files maintained for employees, appointees, or elected officials of any public agency to the extent that disclosure would violate their right to privacy.

     (c) Information required of any taxpayer in connection with the assessment or collection of any tax if the disclosure of the information to other persons would (i) be prohibited to such persons by RCW 82.32.330 or (ii) violate the taxpayer's right to privacy or result in unfair competitive disadvantage to the taxpayer.

     (d) Specific intelligence information and specific investigative records compiled by investigative, law enforcement, and penology agencies, and state agencies vested with the responsibility to discipline members of any profession, the nondisclosure of which is essential to effective law enforcement or for the protection of any person's right to privacy.

     (e) Information revealing the identity of persons who file complaints with investigative, law enforcement, or penology agencies, other than the public disclosure commission, if disclosure would endanger any person's life, physical safety, or property.  If at the time the complaint is filed the complainant indicates a desire for disclosure or nondisclosure, such desire shall govern.  However, all complaints filed with the public disclosure commission about any elected official or candidate for public office must be made in writing and signed by the complainant under oath.

     (f) Test questions, scoring keys, and other examination data used to administer a license, employment, or academic examination.

     (g) Except as provided by chapter 8.26 RCW, the contents of real estate appraisals, made for or by any agency relative to the acquisition or sale of property, until the project or prospective sale is abandoned or until such time as all of the property has been acquired or the property to which the sale appraisal relates is sold, but in no event shall disclosure be denied for more than three years after the appraisal.

     (h) Valuable formulae, designs, drawings, and research data obtained by any agency within five years of the request for disclosure when disclosure would produce private gain and public loss.

     (i) Preliminary drafts, notes, recommendations, and intra-agency memorandums in which opinions are expressed or policies formulated or recommended except that a specific record shall not be exempt when publicly cited by an agency in connection with any agency action.

     (j) Records which are relevant to a controversy to which an agency is a party but which records would not be available to another party under the rules of pretrial discovery for causes pending in the superior courts.

     (k) Records, maps, or other information identifying the location of archaeological sites in order to avoid the looting or depredation of such sites.

     (l) Any library record, the primary purpose of which is to maintain control of library materials, or to gain access to information, which discloses or could be used to disclose the identity of a library user.

     (m) Financial information supplied by or on behalf of a person, firm, or corporation for the purpose of qualifying to submit a bid or proposal for (((a))) (i) a ferry system construction or repair contract as required by RCW 47.60.680 through 47.60.750 or (((b))) (ii) highway construction or improvement as required by RCW 47.28.070.

     (n) Railroad company contracts filed with the utilities and transportation commission under RCW 81.34.070, except that the summaries of the contracts are open to public inspection and copying as otherwise provided by this chapter.

     (o) Financial and commercial information and records supplied by private persons pertaining to export services provided pursuant to chapters 43.163 ((RCW)) and ((chapter)) 53.31 RCW.

     (p) Financial disclosures filed by private vocational schools under chapter 28C.10 RCW.

     (q) Records filed with the utilities and transportation commission or attorney general under RCW 80.04.095 that a court has determined are confidential under RCW 80.04.095.

     (r) Financial and commercial information and records supplied by businesses during application for loans or program services provided by chapters 43.163 ((RCW and chapters)), 43.31, 43.63A, and 43.168 RCW.

     (s) Membership lists or lists of members or owners of interests of units in timeshare projects, subdivisions, camping resorts, condominiums, land developments, or common-interest communities affiliated with such projects, regulated by the department of licensing, in the files or possession of the department.

     (t) All applications for public employment, including the names of applicants, resumes, and other related materials submitted with respect to an applicant.

     (u) The residential addresses and residential telephone numbers of employees or volunteers of a public agency which are held by the agency in personnel records, employment or volunteer rosters, or mailing lists of employees or volunteers.

     (v) The residential addresses and residential telephone numbers of the customers of a public utility contained in the records or lists held by the public utility of which they are customers.

     (w) Information obtained by the board of pharmacy as provided in RCW 69.45.090.

     (x) Information obtained by the board of pharmacy or the department of health and its representatives as provided in RCW 69.41.044, 69.41.280, and 18.64.420.

     (y) Financial information, business plans, examination reports, and any information produced or obtained in evaluating or examining a business and industrial development corporation organized or seeking certification under chapter 31.24 RCW.

     (z) Financial and commercial information supplied to the state investment board by any person when the information relates to the investment of public trust or retirement funds and when disclosure would result in loss to such funds or in private loss to the providers of this information.

     (aa) Financial and valuable trade information under RCW 51.36.120.

     (bb) Client records maintained by an agency that is a domestic violence program as defined in RCW 70.123.020 or a rape crisis center as defined in RCW 70.125.030.

     (cc) Financial information contained in applications and tenant information for the current use valuation granted by chapter 84.-- RCW (sections 237 through 253 of this act).

     (2) Except for information described in subsection (1)(c)(i) of this section and confidential income data exempted from public inspection pursuant to RCW 84.40.020, the exemptions of this section are inapplicable to the extent that information, the disclosure of which would violate personal privacy or vital governmental interests, can be deleted from the specific records sought.  No exemption may be construed to permit the nondisclosure of statistical information not descriptive of any readily identifiable person or persons.

     (3) Inspection or copying of any specific records exempt under the provisions of this section may be permitted if the superior court in the county in which the record is maintained finds, after a hearing with notice thereof to every person in interest and the agency, that the exemption of such records is clearly unnecessary to protect any individual's right of privacy or any vital governmental function.

     (4) Agency responses refusing, in whole or in part, inspection of any public record shall include a statement of the specific exemption authorizing the withholding of the record (or part) and a brief explanation of how the exemption applies to the record withheld.

 

                                     PART III

                         FINANCIAL INSTITUTION PROVISIONS

 

     Sec. 301.  1985 c 329 s 1 (uncodified) is amended to read as follows:

     The legislature believes that commercial banks ((and)), savings banks, and savings and loan associations doing business in Washington state have a responsibility to meet the credit needs of the businesses and communities of Washington state, consistent with safe and sound business practices and the free exercise of management discretion.

     This act is intended to provide the supervisor of banking and the supervisor of savings and loan associations with the information necessary to enable the supervisors to better determine whether commercial banks, savings banks, and savings and loan associations are meeting the convenience and needs of the public.

     This act is further intended to condition the approval of any application by a commercial bank, savings bank, or savings and loan association for a new branch or satellite facility, for an acquisition, merger, conversion, or purchase of assets of another institution not required for solvency reasons, or for the exercise of any new power upon proof that the applicant is satisfactorily meeting the convenience and needs of its community or communities.

 

     Sec. 302.  RCW 30.60.010 and 1985 c 329 s 2 are each amended to read as follows:

     (1) In conducting an examination of a bank chartered under Title 30 RCW, the supervisor of banking, deputy supervisor, or examiner shall investigate and assess the record of performance of the bank in meeting the credit needs of the bank's entire community, including low and moderate-income neighborhoods.  The supervisor shall accept, in lieu of an investigation or part of an investigation required by this section, any report or document that the bank is required to prepare or file with one or more federal agencies by the act of Congress ((entitled)) under the (("))Community Reinvestment Act ((of 1977")) (12 U.S.C. Sec. 2901 et seq.) as amended and ((the)) any regulations promulgated in accordance with that act, to the extent such reports or documents assist the supervisor in making an assessment based upon the factors outlined in subsection (2) of this section.

     (2) In making an investigation required under subsection (1) of this section, the supervisor shall consider, independent of any federal determination, the following factors in assessing the bank's record of performance:

     (a) Activities conducted by the institution to ascertain credit needs of its community, including the extent of the institution's efforts to communicate with members of its community regarding the credit services being provided by the institution;

     (b) The extent of the institution's marketing and special credit related programs to make members of the community aware of the credit services offered by the institution;

     (c) The extent of participation by the institution's board of directors in formulating the institution's policies and reviewing its performance with respect to the purposes of the Community Reinvestment Act ((of 1977));

     (d) Any practices intended to discourage applications for types of credit set forth in the institution's community reinvestment act statement(s);

     (e) The geographic distribution of the institution's credit extensions, credit applications, and credit denials;

     (f) Evidence of prohibited discriminatory or other illegal credit practices;

     (g) The institution's record of opening and closing offices and providing services at offices;

     (h) The institution's participation, including investments, in local community development projects;

     (i) The institution's origination of residential mortgage loans, housing rehabilitation loans, home improvement loans, and small business or small farm loans within its community, or the purchase of such loans originated in its community;

     (j) The institution's participation in governmentally insured, guaranteed, or subsidized loan programs for housing, small businesses, or small farms;

     (k) The institution's ability to meet various community credit needs based on its financial condition, size, legal impediments, local economic condition, and other factors;

     (l) Other factors that, in the judgment of the supervisor, reasonably bear upon the extent to which an institution is helping to meet the credit needs of its entire community.

     (3) The supervisor shall include as part of the examination report, a summary of the results of the assessment required under subsection (1) of this section and shall assign annually to each bank a numerical community reinvestment rating based on a one through five scoring system.  Such numerical scores shall represent performance assessments as follows:

     (a) ((Excellent performance)) Outstanding

record of meeting community credit needs:              1

     (b) ((Good performance)) Good record of

meeting community credit needs:                        2

     (c) ((Satisfactory performance))

Satisfactory record of meeting community

credit needs:                                                3

     (d) ((Inadequate performance)) Needs to

improve record of meeting community credit needs:      4

     (e) ((Poor performance)) Substantial

noncompliance in meeting community credit needs:       5

 

 

     NEW SECTION.  Sec. 303.    (1) The supervisor of banking shall annually prepare and submit to the state treasurer a list of banks that have satisfied their continuing and affirmative obligations to help meet the credit needs of the applicant's entire community, including low and moderate-income neighborhoods.  Only banks in such list shall be eligible to receive deposits of state funds under the provisions of chapter 43.86A RCW.

     (2) The supervisor of banking shall also prepare and submit annually to the state treasurer a list, based on information received from the appropriate federal agency, that indicates those federal savings and loan associations and national banking associations that have been determined by the office of thrift supervision, the federal deposit insurance corporation, the federal reserve bank, or the office of the comptroller of the currency to have complied with the requirements of the federal community reinvestment act (12 U.S.C. Sec. 2901 et seq.), and any regulations promulgated in accordance with that act.  Only those banks so listed shall be eligible to receive deposits of state funds under the provisions of chapter 43.86A RCW.

 

     NEW SECTION.  Sec. 304.    The supervisor of banking shall compile community reinvestment evaluations required under RCW 30.60.010 and the federal community reinvestment act (12 U.S.C. Sec. 2901 et seq.).  The supervisor shall summarize the results of the evaluations and make this information available to the public.

 

     Sec. 305.  RCW 30.60.030 and 1985 c 329 s 7 are each amended to read as follows:

     (1) The supervisor of banking shall adopt all rules necessary to implement sections 2 through 6 of ((this act)) chapter 329, Laws of 1985 by January 1, 1986.

     (2) The supervisor of banking shall adopt all rules necessary to implement sections 303 and 304 of this act by January 1, 1993.

 

     Sec. 306.  RCW 30.04.212 and 1985 c 329 s 5 are each amended to read as follows:

     (1) In addition to the powers granted under RCW 30.04.210 and subject to the limitations and restrictions contained in this section and in RCW 30.60.010 and 30.60.020, a bank:

     (a) May acquire any interest in unimproved or improved real property;

     (b) May construct, alter, and manage improvements of any description on real estate in which it holds a substantial equity interest.

     (2) The powers granted under subsection (1) of this section do not include, and a bank may not:

     (a) Manage any real property in which the bank does not own a substantial equity interest;

     (b) Engage in activities of selling, leasing, or otherwise dealing in real property as an agent or broker; or

     (c) Acquire any equity interest in any one to four-family dwelling that is used as a principal residence by the owner of the dwelling; however, this shall not prohibit a bank from making loans secured by such dwelling where all or part of the bank's anticipated compensation results from the appreciation and sale of such dwelling.

     (3) The aggregate amount of funds invested under this section shall not exceed two percent of a bank's capital, surplus, and undivided profits.  Such percentage amount shall be increased based upon the most recent community reinvestment rating assigned to a bank by the supervisor in accordance with RCW 30.60.010, as follows:

     (a) ((Excellent performance))

Outstanding record of meeting community

credit needs:                                    Increase to 10%

     (b) ((Good performance)) Good

record of meeting community credit needs: Increase to 8%

     (c) ((Satisfactory performance))

Satisfactory record of meeting community

credit needs:                                    Increase to 6%

     (d) ((Inadequate performance)) Needs

to improve record of meeting community

credit needs:                                    Increase to 3%

     (e) ((Poor performance)) Substantial

noncompliance in meeting community

credit needs:                                    No increase

     (4) For purposes of this section only, each bank will be deemed to have been assigned a community reinvestment rating of "1" for the period beginning with January 1, 1986, and ending December 31, 1986.  Thereafter, each bank will be assigned an annual rating in accordance with RCW 30.60.010, which rating shall remain in effect for the next succeeding year and until the supervisor has conducted a new investigation and assigned a new rating for the next succeeding year, the process repeating on an annual basis.

     (5) No bank may at any time be required to dispose of any investment made in accordance with this section due to the fact that the bank is not then authorized to acquire such investment, if such investment was lawfully acquired by the bank at the time of acquisition.

     (6) The supervisor shall limit the amount that may be invested in a single project or investment and may adopt any rule necessary to the safe and sound exercise of powers granted by this section.

 

     Sec. 307.  RCW 32.40.010 and 1985 c 329 s 8 are each amended to read as follows:

     (1) In conducting an examination of a savings bank chartered under Title 32 RCW, the supervisor of banking, deputy supervisor, or examiner shall investigate and assess the record of performance of the savings bank in meeting the credit needs of the savings bank's entire community, including low and moderate-income neighborhoods.  The supervisor shall accept, in lieu of an investigation or part of an investigation required by this section, any report or document that the savings bank is required to prepare or file with one or more federal agencies by the act of Congress ((entitled)) under the (("))Community Reinvestment Act ((of 1977")) (12 U.S.C. Sec. 2901 et seq.), and ((the)) any regulations promulgated in accordance with that act, to the extent such reports or documents assist the supervisor in making an assessment based upon the factors outlined in subsection (2) of this section.

     (2) In making an investigation required under subsection (1) of this section, the supervisor shall consider, independent of any federal determination, the following factors in assessing the savings bank's record of performance:

     (a) Activities conducted by the institution to ascertain credit needs of its community, including the extent of the institution's efforts to communicate with members of its community regarding the credit services being provided by the institution;

     (b) The extent of the institution's marketing and special credit related programs to make members of the community aware of the credit services offered by the institution;

     (c) The extent of participation by the institution's board of directors or board of trustees in formulating the institution's policies and reviewing its performance with respect to the purposes of the Community Reinvestment Act ((of 1977));

     (d) Any practices intended to discourage applications for types of credit set forth in the institution's community reinvestment act statement(s);

     (e) The geographic distribution of the institution's credit extensions, credit applications, and credit denials;

     (f) Evidence of prohibited discriminatory or other illegal credit practices;

     (g) The institution's record of opening and closing offices and providing services at offices;

     (h) The institution's participation, including investments, in local community development projects;

     (i) The institution's origination of residential mortgage loans, housing rehabilitation loans, home improvement loans and small business or small farm loans within its community, or the purchase of such loans originated in its community;

     (j) The institution's participation in governmentally insured, guaranteed, or subsidized loan programs for housing, small businesses, or small farms;

     (k) The institution's ability to meet various community credit needs based on its financial condition, size, legal impediments, local economic condition, and other factors;

     (l) Other factors that, in the judgment of the supervisor, reasonably bear upon the extent to which an institution is helping to meet the credit needs of its entire community.

     (3) The supervisor shall include as part of the examination report, a summary of the results of the assessment required under subsection (1) of this section and shall assign annually to each savings bank a numerical community reinvestment rating based on a one through five scoring system.  Such numerical scores shall represent performance assessments as follows:

     (a) ((Excellent performance)) Outstanding

record of meeting community credit needs:              1

     (b) ((Good performance)) Good record of

meeting community credit needs:                        2

     (c) ((Satisfactory performance)) Satisfactory

record of meeting community credit needs:              3

     (d) ((Inadequate performance)) Needs to

improve record of meeting community credit needs:      4

     (e) ((Poor performance)) Substantial

noncompliance in meeting community credit needs:       5

 

     NEW SECTION.  Sec. 308.    (1) The supervisor of banking shall annually prepare and submit to the state treasurer a list of savings banks that have satisfied their continuing and affirmative obligations to help meet the credit needs of the applicant's entire community, including low and moderate-income neighborhoods.  Only savings banks in such list shall be eligible to receive deposits of state funds under the provisions of chapter 43.86A RCW.

     (2) The supervisor of banking shall also prepare and submit annually to the state treasurer a list, based on information received from the appropriate federal agency, that indicates those federal savings and loan associations and national banking associations that have been determined by the office of thrift supervision, the federal deposit insurance corporation, the federal reserve bank, or the office of the comptroller of the currency to have complied with the requirements of the federal community reinvestment act (12 U.S.C. Sec. 2901 et seq.), and any regulations promulgated in accordance with that act.  Only those savings banks so listed shall be eligible to receive deposits of state funds under the provisions of chapter 43.86A RCW.

 

     NEW SECTION.  Sec. 309.    The supervisor of banking shall compile community reinvestment evaluations required under RCW 32.40.010 and the federal community reinvestment act (12 U.S.C. Sec. 2901 et seq.).  The supervisor shall summarize the results of the evaluations and make this information available to the public.

 

     Sec. 310.  RCW 32.40.030 and 1985 c 329 s 10 are each amended to read as follows:

     (1) The supervisor of banking shall adopt all rules necessary to implement RCW 32.40.010 and 32.40.020 by January 1, 1986.

     (2) The supervisor of banking shall adopt all rules necessary to implement sections 308 and 309 of this act by January 1, 1993.

 

     NEW SECTION.  Sec. 311.    (1) In conducting an examination of a savings and loan association chartered under Title 33 RCW, the supervisor of savings and loans, deputy supervisor, or examiner shall investigate and assess the record of performance of the savings and loan association in meeting the credit needs of the savings and loan associations' entire community, including low and moderate-income neighborhoods.  The supervisor shall accept, in lieu of an investigation or part of an investigation required by this section, any report or document that the savings and loan association is required to prepare or file with one or more federal agencies by the act of Congress under the community reinvestment act (12 U.S.C. Sec. 2901 et seq.) and any regulations promulgated in accordance with that act, to the extent such reports or documents assist the supervisor in making an assessment based upon the factors outlined in subsection (2) of this section.

     (2) In making an investigation required under subsection (1) of this section, the supervisor shall consider, independent of any federal determination, the following factors in assessing the savings and loan association's record of performance:

     (a) Activities conducted by the institution to ascertain credit needs of its community, including the extent of the institution's efforts to communicate with members of its community regarding the credit services being provided by the institution;

     (b) The extent of the institution's marketing and special credit related programs to make members of the community aware of the credit services offered by the institution;

     (c) The extent of participation by the institution's board of directors or board of trustees in formulating the institution's policies and reviewing its performance with respect to the purposes of the federal community reinvestment act;

     (d) Any practices intended to discourage applications for types of credit set forth in the institution's community reinvestment act statement(s);

     (e) The geographic distribution of the institution's credit extensions, credit applications, and credit denials;

     (f) Evidence of prohibited discriminatory or other illegal credit practices;

     (g) The institution's record of opening and closing offices and providing services at offices;

     (h) The institution's participation, including investments, in local community development projects;

     (i) The institution's origination of residential mortgage loans, housing rehabilitation loans, home improvement loans and small business or small farm loans within its community, or the purchase of such loans originated in its community;

     (j) The institution's participation in governmentally insured, guaranteed, or subsidized loan programs for housing, small businesses, or small farms;

     (k) The institution's ability to meet various community credit needs based on its financial condition, size, legal impediments, local economic condition, and other factors;

     (l) Other factors that, in the judgment of the supervisor, reasonably bear upon the extent to which an institution is helping to meet the credit needs of its entire community.

     (3) The supervisor shall include as part of the examination report, a summary of the results of the assessment required under subsection (1) of this section and shall assign annually to each savings and loan association a numerical community reinvestment rating based on a one through five scoring system.  Such numerical scores shall represent performance assessments as follows:

     (a) Outstanding record of meeting community credit needs:                    1

     (b) Good record of meeting community credit needs:                           2

     (c) Satisfactory record of meeting community credit needs:                   3

     (d) Needs to improve record of meeting community credit needs:               4

     (e) Substantial noncompliance in meeting community credit

         needs:                                                                   5

 

     NEW SECTION.  Sec. 312.    Whenever the supervisor of savings and loans must approve or disapprove of an application for a new branch or satellite facility; for a purchase of assets, a merger, an acquisition or a conversation not required for solvency reasons; or for authority to engage in a business activity, the supervisor shall consider, among other factors, the record of performance of the applicant in helping to meet the credit needs of the applicant's entire community, including low and moderate-income neighborhoods.  Assessment of an applicant's record of performance may be the basis for denying an application.

 

     NEW SECTION.  Sec. 313.    (1) The supervisor of savings and loans shall annually prepare and submit to the state treasurer a list of savings and loans associations that have satisfied their continuing and affirmative obligations to help meet the credit needs of the applicant's entire community, including low and moderate-income neighborhoods.  Only savings and loans associations in such list shall be eligible to receive deposits of state funds under the provisions of chapter 43.86A RCW.

     (2) The supervisor of savings and loans shall also prepare and submit annually to the state treasurer a list, based on information received from the appropriate federal agency, that indicates those federal savings and loan associations and national banking associations that have been determined by the office of thrift supervision, the federal deposit insurance corporation, the federal reserve bank, or the office of the comptroller of the currency to have complied with the requirements of the federal community reinvestment act (12 U.S.C. Sec. 2901 et seq.), and any regulations promulgated in accordance with that act.  Only those savings and loan associations so listed shall be eligible to receive deposits of state funds under the provisions of chapter 43.86A RCW.

 

     NEW SECTION.  Sec. 314.    The supervisor of banking shall compile community reinvestment evaluations required under section 311 of this act and the federal community reinvestment act (12 U.S.C. Sec. 2901 et seq.).  The supervisor shall summarize the results of the evaluations and make this information available to the public.

 

     NEW SECTION.  Sec. 315.    The supervisor of savings and loans shall adopt all rules necessary to implement sections 311 through 314 of this act by January 1, 1993.

 

     NEW SECTION.  Sec. 316.    The legislature finds that financial institutions earn significant interest from funds of mortgage customers held in escrow accounts for the purpose of paying property taxes, hazard insurance, and other obligations of the residential real estate loan customer in relation to residential real estate loans.  It is the intent of the legislature by enacting sections 317 through 320 of this act to require financial institutions to pay interest on mortgage escrow accounts and the interest to be used to assist in the provision of affordable housing.

 

     NEW SECTION.  Sec. 317.  A new section is added to chapter 30.04 RCW to read as follows:

     (1) A bank and trust company shall place all funds received from the residential real estate loan customer and designated for the payment of property taxes and hazard insurance of the residential real estate loan, into an interest-bearing real estate escrow account.

     (2) The interest accruing on this account, minus reasonable and appropriate service charges or fees, shall be paid to the state treasurer for deposit in the Washington housing trust fund created in RCW 43.185.030.  For the purposes of this section, appropriate service charges or fees are those charged to holders of passbook savings accounts.

     (3) The bank and trust company may notify the residential real estate loan customer of the intended use of such funds.

     (4) For purposes of this section, a residential real estate loan is a loan secured by a first mortgage, deed of trust, real estate contract, or other first lien on the borrower's interest in a one-to-four family dwelling, including an individual cooperative unit, or a loan for the construction of the dwelling.

     (5) "Mortgage escrow account" means an account created in conjunction with a residential real estate loan that is intended for the placement of funds, on an incremental basis, for the purpose of paying property taxes, hazard insurance, and other obligations of the residential real estate loan customer in relation to residential real estate loan.

 

     NEW SECTION.  Sec. 318.  A new section is added to chapter 31.12 RCW to read as follows:

     (1) A credit union shall place all funds received from the residential real estate loan customer and designated for the payment of property taxes and hazard insurance of the residential real estate loan, into an interest-bearing mortgage escrow account.

     (2) The interest accruing on this account, minus any reasonable and appropriate service charges or fees, shall be paid to the state treasurer for deposit in the Washington housing trust fund created in RCW 43.185.030.  As used in this subsection, appropriate service charges or fees are those charged to holders of passbook savings accounts.

     (3) The credit union may, but is not required to, notify the residential real estate loan customer of the intended use of such funds.

     (4) "Residential real estate loan" has the same meaning as in RCW 31.12.415.

     (5) "Mortgage escrow account" means an account created in conjunction with a residential real estate loan that is intended for the placement of funds, on an incremental basis, for the purpose of paying property taxes, hazard insurance, and other obligations of the residential real estate loan customer in relation to residential real estate loan.

 

     NEW SECTION.  Sec. 319.  A new section is added to chapter 32.04 RCW to read as follows:

     (1) A savings bank shall place all funds received from the residential real estate loan customer, and designated for the payment of property taxes and hazard insurance of the residential real estate loan, into an interest-bearing mortgage escrow account.

     (2) The interest accruing on this account, minus reasonable and appropriate service charges or fees, shall be paid to the state treasurer for deposit in the Washington housing trust fund created in RCW 43.185.030.  For the purposes of this section, appropriate service charges or fees are those charged to holders of passbook savings accounts.

     (3) The savings bank may notify the residential real estate loan customer of the intended use of such funds.

     (4) For purposes of this section, residential real estate loan is a loan secured by a first mortgage, deed of trust, real estate contract, or other first lien on the borrower's interest in a one-to-four family dwelling, including an individual cooperative unit, or a loan for the construction of the dwelling.

     (5) "Mortgage escrow account" means an account created in conjunction with a residential real estate loan that is intended for the placement of funds, on an incremental basis, for the purpose of paying  property taxes, hazard insurance, and other obligations of the residential real estate loan customer in relation to residential real estate loan.

 

     NEW SECTION.  Sec. 320.  A new section is added to chapter 33.04 RCW to read as follows:

     (1) A savings and loan association shall place all funds received from the residential real estate loan customer, and designated for the payment of property taxes and hazard insurance of the residential real estate loan, into an interest-bearing mortgage escrow account.

     (2) The interest accruing on this account, minus reasonable and appropriate service charges or fees, shall be paid to the state treasurer for deposit in the Washington housing trust fund created in RCW 43.185.030.  For the purposes of this section, appropriate service charges or fees are those charged to holders of passbook savings accounts.

     (3) The savings and loan association may notify the residential real estate loan customer of the intended use of such funds.

     (4) For purposes of this section, residential real estate loan is a loan secured by a first mortgage, deed of trust, real estate contract, or other first lien on the borrower's interest in a one-to-four family dwelling, including an individual cooperative unit, or a loan for the construction of the dwelling.

     (5) "Mortgage escrow account" means an account created in conjunction with a residential real estate loan that is intended for the placement of funds, on an incremental basis, for the purpose of paying property taxes, hazard insurance, and other obligations of the residential real estate loan customer in relation to residential real estate loan.

 

                                      PART IV

                          STATE BUILDING CODE PROVISIONS

 

     Sec. 401.  RCW 19.27.015 and 1985 c 360 s 1 are each amended to read as follows:

     As used in this chapter:

     (1) "City" means a city or town; ((and))

     (2) "Council" means the state building code council;

     (3) "Dwelling unit" means any building or portion thereof which contains living facilities, including provisions for sleeping, eating, cooking, and sanitation, as required by the state building code, for not more than one household;

     (4) "Multifamily residential building" means common wall residential buildings that consist of ((four or fewer units, that do not exceed two stories in height, that are less than five thousand square feet in area,)) three or more dwelling units and that have a one-hour fire-resistive occupancy separation between units;

     (5) "Single-family residential building" means any residential building that contains not more than two dwelling units; and

     (6) "Stand-alone ordinance" means an ordinance, resolution, or regulation adopted by a city or county, under any of the powers generally granted by the state Constitution, that effectively amends the codes enumerated in RCW 19.27.031 as adopted and amended by the council as they apply to single-family and multifamily residential buildings.

 

     Sec. 402.  RCW 19.27.031 and 1989 c 348 s 9 and 1989 c 266 s 1 are each reenacted and amended to read as follows:

     Except as otherwise provided in this chapter, there shall be in effect in all counties and cities the state building code which shall consist of the following codes which are hereby adopted by reference:

     (1) Uniform Building Code and Uniform Building Code Standards, published by the International Conference of Building Officials;

     (2) Uniform Mechanical Code, including Chapter 22, Fuel Gas Piping, Appendix B, published by the International Conference of Building Officials;

     (3) The Uniform Fire Code and Uniform Fire Code Standards, published by the International Conference of Building Officials and the Western Fire Chiefs Association:  PROVIDED, That, notwithstanding any wording in this code, participants in religious ceremonies shall not be precluded from carrying hand-held candles;

     (4) Except as provided in RCW 19.27.150, the Uniform Plumbing Code and Uniform Plumbing Code Standards, published by the International Association of Plumbing and Mechanical Officials:  PROVIDED, That chapters 11 and 12 of such code are not adopted; ((and))

     (5) The rules ((and regulations)) adopted by the council establishing standards for making buildings and facilities accessible to and usable by the physically handicapped or elderly persons as provided in RCW 70.92.100 through 70.92.160;

     (6) The rules adopted by the council establishing minimum standards for repairs, alterations, and additions necessary for the preservation, restoration, rehabilitation, or strengthening of historic or architecturally significant buildings as provided in RCW 19.27.120; and

     (7) The rules adopted by the council establishing minimum standards for change of occupancy, alteration, or repair of existing buildings and structures as provided in section 412 of this act.

     In case of conflict among the codes enumerated in subsections (1), (2), (3), and (4) of this section, the first named code shall govern over those following.

     The codes enumerated in this section shall be adopted by the council as provided in RCW 19.27.074.

     The council may issue opinions relating to the codes at the request of a local building official.

 

     Sec. 403.  RCW 19.27.035 and 1989 c 266 s 6 are each amended to read as follows:

     (1) The ((building code)) council shall, within one year of July 23, 1989, adopt a process for the review of proposed state-wide amendments to the codes enumerated in RCW 19.27.031, and proposed or enacted local amendments to the codes enumerated in RCW 19.27.031 as amended and adopted by the ((state building code)) council.

     (2) The council shall, by January 1, 1993, adopt a process for the review of existing, proposed, or revised stand-alone ordinances and proposed state agency rules.

     (3) The council's criteria for the review of state-wide and local amendments and stand-alone ordinances shall include but not be limited to, the standards and objectives enumerated in RCW 19.27.020 and standards to achieve state-wide uniformity of residential codes, standards that do not unnecessarily increase the cost of construction on a state-wide or regional basis, the cumulative effect of the stand-alone ordinance on the cost of housing, and special consideration of amendments or stand-alone ordinances to address problems unique to the jurisdiction or region.

     (4) The council's criteria for the review of rules proposed by a state agency shall be based on the criteria contained in section 406 of this act.

 

     Sec. 404.  RCW 19.27.040 and 1990 c 2 s 11 are each amended to read as follows:

     The governing body of each county or city is authorized to amend the state building code as it applies within the jurisdiction of the county or city.  The minimum performance standards of the codes and the objectives enumerated in RCW 19.27.020 shall not be diminished by any county or city amendments or stand-alone ordinances.

     Nothing in this chapter shall authorize any modifications of the requirements of chapter 70.92 RCW.

 

     Sec. 405.  RCW 19.27.060 and 1989 c 266 s 2 and 1989 c 246 s 1 are each reenacted and amended to read as follows:

     (1) The governing bodies of counties and cities may amend the codes enumerated in RCW 19.27.031 as amended and adopted by the ((state building code)) council as they apply within their respective jurisdictions, but the amendments shall not result in a code that is less than the minimum performance standards and objectives contained in the state building code.

     (a) ((No)) (i) Any amendment to a code enumerated in RCW 19.27.031 as amended and adopted by the ((state building code)) council that affects single family or multifamily residential buildings and any stand-alone ordinance shall not be effective unless the amendment or stand-alone ordinance is approved by the ((building code)) council under RCW 19.27.074(1)(b).

     (ii) Effective one year after the effective date of this section, any existing stand-alone ordinance of a county or city shall be submitted to the council for approval.  If the stand-alone ordinance is not approved by the council within two years after the effective date of this section, the stand-alone ordinance shall no longer be effective.  New or revised stand-alone ordinances may be submitted at any time and shall be effective upon approval by the council.

     (b) Any county or city amendment to a code enumerated in RCW 19.27.031 which is approved under RCW 19.27.074(1)(b) shall continue to be effective after any action is taken under RCW 19.27.074(1)(a) without necessity of reapproval under RCW 19.27.074(1)(b) unless the amendment is declared null and void by the council at the time any action is taken under RCW 19.27.074(1)(a) because such action in any way altered the impact of the amendment.

     (2) Except as permitted or provided otherwise under this section, the state building code shall be applicable to all buildings and structures including those owned by the state or by any governmental subdivision or unit of local government.

     (3) The governing body of each county or city may limit the application of any portion of the state building code to exclude specified classes or types of buildings or structures according to use other than single family or multifamily residential buildings:  PROVIDED, That in no event shall fruits or vegetables of the tree or vine stored in buildings or warehouses constitute combustible stock for the purposes of application of the uniform fire code.

     (4) The provisions of this chapter shall not apply to any building four or more stories high with a B occupancy as defined by the uniform building code, 1982 edition, and with a city fire insurance rating of 1, 2, or 3 as defined by a recognized fire rating bureau or organization.

     (5) No provision of the uniform fire code concerning roadways shall be part of the state building code:  PROVIDED, That this subsection shall not limit the authority of a county or city to adopt street, road, or access standards.

     (6) The provisions of the state building code may be preempted by any city or county to the extent that the code provisions relating to the installation or use of sprinklers in jail cells conflict with the secure and humane operation of jails.

     (7)(a) Effective one year after July 23, 1989, the governing bodies of counties and cities may adopt an ordinance or resolution to exempt from permit requirements certain construction or alteration of either group R, division 3, or group M, division 1 occupancies, or both, as defined in the uniform building code, 1988 edition, for which the total cost of fair market value of the construction or alteration does not exceed fifteen hundred dollars.  The permit exemption shall not otherwise exempt the construction or alteration from the substantive standards of the codes enumerated in RCW 19.27.031, as amended and maintained by the ((state building code)) council under RCW 19.27.070.

     (b) Prior to July 23, 1989, the ((state building code)) council shall adopt by rule, guidelines exempting from permit requirements certain construction and alteration activities under (a) of this subsection.

 

     NEW SECTION.  Sec. 406.  A new section is added to chapter 19.27 RCW to read as follows:

     (1) Any rule proposed by a state agency that affects construction requirements of Group A, B, E, H, I, M, or R occupancies, as defined in the state building code, shall be submitted to the council for review and comment prior to adoption.  Proposed state agency rules that are submitted to the council for review and comment must contain a written analysis that justifies the need for the rule in terms of the following criteria:

     (a) The proposed rule does not conflict with, overlap, or duplicate existing state building code requirements;

     (b) The public interest requires the adoption of the proposed rule;

     (c) The proposed rule is consistent with the purposes, objectives, and standards of this chapter; and

     (d) The proposed rule does not diminish the minimum performance standards and requirements of the codes enumerated in RCW 19.27.031, 19.27A.020, and 19.27A.025.

     (2) The council shall review the determination and analysis of the state agency on each of the criteria outlined in subsection (1) of this section and provide written comment within sixty days of receipt of the proposed rule.  Factual determinations by the state agency shall be considered conclusive by the council unless the council specifically finds, and sets forth its reasoning in writing, that such factual determination is substantially unsupported by the evidence considered by the state agency.

     (3) The council shall transmit a copy of its comments on the proposed rule to the state agency, which shall respond to any concerns and recommendations made by the council before final adoption of the proposed rule.

     (4) For purposes of this section, state agency means administrative department and agencies created under RCW 43.17.010, 43.30.030, or 43.43.010.

 

     Sec. 407.  RCW 19.27.074 and 1989 c 266 s 3 are each amended to read as follows:

     (1) The state building code council shall:

     (a) Adopt and maintain the codes to which reference is made in RCW 19.27.031 in a status which is consistent with the state's interest as set forth in RCW 19.27.020.  In maintaining these codes, the council shall regularly review updated versions of the codes referred to in RCW 19.27.031 and other pertinent information and shall amend the codes as deemed appropriate by the council;

     (b) Approve or deny all county or city amendments ((to any code referred to in RCW 19.27.031 to the degree the amendments)) or stand-alone ordinances that apply to single family or multifamily residential buildings as provided in RCW 19.27.060;

     (c) Review and comment on rules proposed by state agencies under section 406 of this act;

     (d) As required by the legislature, develop and adopt any codes relating to buildings; and

     (((d))) (e) Propose a budget for the operation of the state building code council to be submitted to the office of financial management pursuant to RCW 43.88.090.

     (2) The state building code council may:

     (a) Appoint technical advisory committees which may include members of the council;

     (b) Employ permanent and temporary staff and contract for services; ((and))

     (c) Conduct research into matters relating to any code or codes referred to in RCW 19.27.031 or any related matter; and

     (d) Conduct or sponsor in-service education and training programs for design professionals, construction industry representatives, and local code enforcement officials for carrying out the purposes of this chapter.

     All meetings of the ((state building code)) council shall be open to the public under the open public meetings act, chapter 42.30 RCW.  All actions of the ((state building code)) council which adopt or amend any code of state-wide applicability shall be pursuant to the administrative procedure act, chapter 34.05 RCW.

     All council decisions relating to the codes enumerated in RCW 19.27.031 shall require approval by at least a majority of the members of the council.

     All decisions to adopt or amend codes of state-wide application shall be made prior to December 1 of any year and shall not take effect before the end of the regular legislative session in the next year.

 

     Sec. 408.  RCW 19.27.078 and 1989 c 266 s 4 are each amended to read as follows:

     (1) ((The state building code council shall contract with a private entity to conduct a study and analysis of the codes referred to in RCW 19.27.031 and related regulations of state and local agencies to ascertain the amount and nature of any conflict and inconsistencies.  The findings and proposed solutions resulting from this study and analysis shall be submitted to the state building code council no later than September 1, 1987.  The state building code council shall consider these findings and proposed solutions when carrying out its responsibilities under RCW 19.27.074.

     (2) The state building code council shall conduct a study of county and city enforcement of the requirements of the codes to which reference is made in RCW 19.27.031.  In conducting the study, the council shall conduct public hearings at designated council meetings to seek input from interested individuals and organizations.  The findings of the study shall be submitted in a report to the governor and the legislature no later than September 1, 1987.

     (3) The study required under subsection (2) of this section shall include, but not be limited to, a review of the impact of discretionary building permit requirements imposed by local code enforcement personnel.  This review shall be designed to determine the extent, if any, to which such discretionary requirements are based upon (a) the requirements of the state building code or (b) city or county amendments to the state building code.

     (4))) The ((state building code)) council shall conduct a study to identify and define stand-alone ordinances adopted by counties and cities that add or alter construction requirements to buildings and structures built under the codes enumerated in RCW 19.27.031, as adopted and amended by the ((state building code)) council.  In conducting the study, the council shall consult with representatives from counties, cities, home builders, architects, building officials, and fire officials.  To aid in data collection, local governments shall submit fire suppression ordinances, as defined by the ((state building code)) council, in effect on March 31, 1989, to the ((state building code)) council.  The findings of the study shall be submitted in a written report to the house of representatives committee on housing and the senate governmental operations committee no later than November 1, 1989.

     (((5))) (2) The study required under subsection (((4))) (1) of this section shall include, but not be limited to, a review of ordinances or regulations adopted by counties and cities that add or alter construction requirements to buildings and structures built under the codes enumerated in RCW 19.27.031.

 

     Sec. 409.  RCW 19.27.085 and 1989 c 256 s 1 are each amended to read as follows:

     (1) There is hereby created the building code council account in the state treasury.  Moneys deposited into the account shall be used by the ((building code)) council, after appropriation, to perform the purposes of the council.

     (2) All moneys collected under ((subsection (3) of this section)) section 413 of this act shall be deposited into the building code council account.  Every four years the state treasurer shall report to the legislature on the balances in the account so that the legislature may adjust the charges imposed under ((subsection (3) of this section.

     (3) There is imposed a fee of four dollars and fifty cents on each building permit issued by a county or a city, plus an additional surcharge of two dollars for each residential unit, but not including the first unit, on each building containing more than one residential unit.  Quarterly each county and city shall remit moneys collected under this section to the state treasury; however, no remittance is required until a minimum of fifty dollars has accumulated pursuant to this subsection)) section 413 of this act.

 

     NEW SECTION.  Sec. 410.  A new section is added to chapter 19.27 RCW to read as follows:

     (1) The council may conduct or sponsor in-service education and training programs on the technical, legal, and administrative aspects of building code administration and enforcement.  For this purpose it may cooperate and contract with educational institutions, local, regional, state, or national code enforcement officials' organizations, and any other appropriate organizations.

     (2) The council may reimburse code enforcement agency personnel and other employees of the state and its subdivisions for related expenses incurred by them for attendance at in-service education and training programs approved by the council.

     (3) In the establishment and administration of the in-service education and training programs, the council shall consult and cooperate with state and national code enforcement officials' organizations in order to facilitate the acceptance of these programs as meeting the requirements for certification as code enforcement agency personnel.

 

     NEW SECTION.  Sec. 411.  A new section is added to chapter 19.27 RCW to read as follows:

     (1) The governing bodies of counties and cities, in order to hear and decide appeals of orders, decisions, or determinations made by the building official relative to the application and interpretation of the codes enumerated in RCW 19.27.031 as amended and adopted by the council, shall establish a board of appeals.

     (2) The board of appeals shall consist of members who are qualified by experience and training to pass on matters pertaining to building construction and who are not employees of the governing body.  Members of the board of appeals shall be appointed by the legislative body of the governing body and shall hold office at the pleasure of the governing body.

     (3) The building official shall be an ex officio member of the board of appeals and shall act as secretary to the board but shall not have a vote on any matter before the board of appeals.

     (4) The board of appeals shall adopt rules of procedure for conducting its business and shall render all decisions and findings in writing to the appellant with a copy to the building official and the council.

     (5) The local board of appeals shall have no authority to waive requirements of the codes enumerated in RCW 19.27.031 as amended and adopted by the council.

 

     NEW SECTION.  Sec. 412.  A new section is added to chapter 19.27 RCW to read as follows:

     (1) Alterations or repairs to existing buildings or structures may be made without conformance to all of the requirements of the codes adopted under RCW 19.27.031 and 19.27A.020, when authorized by the appropriate building officials under the rules adopted under subsection (2) of this section, if:

     (a) The building or structure was legally constructed under the laws of the state of Washington; and

     (b) The restored building or structure will be less hazardous, based on fire and life safety risk, than the existing building or structure.

     (2) By July 1, 1993, the council shall adopt rules, as appropriate, to provide alternative methods to those otherwise required under this chapter for alterations and repairs necessary for life-safety requirements to existing buildings.

 

     NEW SECTION.  Sec. 413.    (1) An additional tax is imposed on each sale at wholesale equal to the gross proceeds of sales of lumber and building materials of the business, multiplied by the rate of five one-hundredths of one percent.

     (2) An additional tax is imposed on each sale at retail on lumber and building materials in this state.  The rate of the tax shall be equal to the rate imposed under subsection (1) of this section.

     (3) Remittances received by the treasurer pursuant to subsections (1) and (2) of this section shall be divided between the building code council account created by RCW 19.27.085, which shall receive fifty percent, and the Washington housing trust fund created by RCW 43.185.030, which shall receive fifty percent.

     (4) Chapter 82.32 RCW applies to the tax imposed in this chapter.  The tax due dates, reporting periods, and return requirements applicable to chapter 82.04 RCW apply equally to the tax imposed in this chapter.

     (5) As used in this section, lumber and building materials include lumber, plywood, windows, doors and frames, kitchen cabinets, millwork, wallboards, asphalt and asbestos products, paint, glass and wallpaper, floor coverings, central air and heating units, heating stoves, roofing and siding, masonry supplies, plumbing and electrical supplies, insulation, prefabricated buildings and components, hardware that becomes a component of the structure, and all other building materials.

 

     NEW SECTION.  Sec. 414.    The following are exempt from the taxes imposed in this chapter:

     (1) Any successive sale of previously taxed lumber and building materials.  As used in this section, previously taxed lumber and building materials means lumber and building materials in respect to which the tax has been paid under section 413 of this act.

     (2) Any lumber and building materials that are transferred to a point outside the state for use outside the state.  The department shall provide by rule appropriate procedures and exemption certificates for the administration of this exemption.

 

     NEW SECTION.  Sec. 415.    (1) The tax imposed in section 413(1) of this act shall be paid by the buyer to the wholesaler and each wholesaler shall collect from the buyer the full amount of the tax payable in respect to each taxable sale, unless the wholesaler is prohibited from collecting the tax from the buyer under the Constitution of this state or the Constitution or laws of the United States.  Regardless of the obligation to collect the tax from the buyer, the wholesaler is liable to the state for the amount of the tax.  The tax imposed in section 413(2) of this act shall be paid by the retailer.

     (2) The additional tax required to be collected by the wholesaler under section 413(1) of this act shall be stated separately from the selling price in any sales invoice or other instrument of sale.

     (3) Any wholesaler who fails or refuses to collect tax under this section, with intent to violate the provisions of this chapter or to gain some advantage or benefit, either direct or indirect, is guilty of a misdemeanor.

     (4) The amount of additional tax required to be collected under this section shall constitute a debt from the buyer to the wholesaler until paid by the buyer to the wholesaler.

 

                                      PART V

                         GROWTH MANAGEMENT ACT PROVISIONS

 

     Sec. 501.  RCW 36.70A.030 and 1990 1st ex.s. c 17 s 3 are each amended to read as follows:

     Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

     (1) "Adopt a comprehensive land use plan" means to enact a new comprehensive land use plan or to update an existing comprehensive land use plan.

     (2) "Affordable housing" has the same meaning as in section 103 of this act.

     (3) "Agricultural land" means land primarily devoted to the commercial production of horticultural, viticultural, floricultural, dairy, apiary, vegetable, or animal products or of berries, grain, hay, straw, turf, seed, Christmas trees not subject to the excise tax imposed by RCW 84.33.100 through 84.33.140, or livestock, and that has long-term commercial significance for agricultural production.

     (((3))) (4) "City" means any city or town, including a code city.

     (((4))) (5) "Comprehensive land use plan," "comprehensive plan," or "plan" means a generalized coordinated land use policy statement of the governing body of a county or city that is adopted pursuant to this chapter.

     (((5))) (6) "Critical areas" include the following areas and ecosystems:  (a) Wetlands; (b) areas with a critical recharging effect on aquifers used for potable water; (c) fish and wildlife habitat conservation areas; (d) frequently flooded areas; and (e) geologically hazardous areas.

     (((6))) (7) "Department" means the department of community development.

     (((7))) (8) "Development regulations" means any controls placed on development or land use activities by a county or city, including, but not limited to, zoning ordinances, official controls, planned unit development ordinances, subdivision ordinances, and binding site plan ordinances.

     (((8))) (9) "Fair share housing" means housing of various types and densities located within a city or county that is affordable and available to very low-income and low-income households, as defined in section 103 of this act, and persons with special needs, to address the county or regional need.

     (10) "Forest land" means land primarily useful for growing trees, including Christmas trees subject to the excise tax imposed under RCW 84.33.100 through 84.33.140, for commercial purposes, and that has long-term commercial significance for growing trees commercially.

     (((9))) (11) "Geologically hazardous areas"  means areas that because of their susceptibility to erosion, sliding, earthquake, or other geological events, are not suited to the siting of commercial, residential, or industrial development consistent with public health or safety concerns.

     (((10))) (12) "Long-term commercial significance" includes the growing capacity, productivity, and soil composition of the land for long-term commercial production, in consideration with the land's proximity to population areas, and the possibility of more intense uses of the land.

     (((11))) (13) "Minerals" include gravel, sand, and valuable metallic substances.

     (((12))) (14) "New fully contained community" means a comprehensive development providing for a mixture of land uses which includes the following:  (a) A mix of jobs, housing, and public facilities needed for a self-contained community including a fair share of affordable housing, as defined in section 103 of this act; (b) preservation of open spaces within and around the community; (c) an internal and external transportation system supportive of pedestrian access and public transit; (d) the new infrastructure needed to serve the proposed community; and (e) the mitigation of off-site impacts.

     (15) "Public facilities" include streets, roads, highways, sidewalks, street and road lighting systems, traffic signals, domestic water systems, storm and sanitary sewer systems, parks and recreational facilities, and schools.

     (((13))) (16) "Public services" include fire protection and suppression, law enforcement, public health, education, recreation, environmental protection, and other governmental services.

     (((14))) (17) "Urban growth" refers to growth that makes intensive use of land for the location of buildings, structures, and impermeable surfaces to such a degree as to be incompatible with the primary use of such land for the production of food, other agricultural products, or fiber, or the extraction of mineral resources.  When allowed to spread over wide areas, urban growth typically requires urban governmental services.  "Characterized by urban growth" refers to land having urban growth located on it, or to land located in relationship to an area with urban growth on it as to be appropriate for urban growth.

     (((15))) (18) "Urban growth areas" means those areas designated by a county pursuant to RCW 36.70A.110.

     (((16))) (19) "Urban governmental services" include those governmental services historically and typically delivered by cities, and include storm and sanitary sewer systems, domestic water systems, street cleaning services, fire and police protection services, public transit services, and other public utilities associated with urban areas and normally not associated with nonurban areas.

     (((17))) (20) "Wetland" or "wetlands" means areas that are inundated or saturated by surface water or ground water at a frequency and duration sufficient to support, and that under normal circumstances do support, a prevalence of vegetation typically adapted for life in saturated soil conditions.  Wetlands generally include swamps, marshes, bogs, and similar areas.  Wetlands do not include those artificial wetlands intentionally created from nonwetland sites, including, but not limited to, irrigation and drainage ditches, grass-lined swales, canals, detention facilities, wastewater treatment facilities, farm ponds, and landscape amenities.  However, wetlands may include those artificial wetlands intentionally created from nonwetland areas created to mitigate conversion of wetlands, if permitted by the county or city.

 

     Sec. 502.  RCW 36.70A.020 and 1990 1st ex.s. c 17 s 2 are each amended to read as follows:

     The following goals are adopted to guide the development and adoption of comprehensive plans and development regulations of those counties and cities that are required or choose to plan under RCW 36.70A.040.  The following goals are not listed in order of priority and shall be used ((exclusively)) for the purpose of guiding the development of comprehensive plans and development regulations:

     (1) Urban growth.  Encourage development in urban areas where adequate public facilities and services exist or can be provided in an efficient manner.

     (2) Reduce sprawl.  Reduce the inappropriate conversion of undeveloped land into sprawling, low-density development.

     (3) Transportation.  Encourage efficient multimodal transportation systems that are based on regional priorities and coordinated with county and city comprehensive plans.

     (4) Housing.  Encourage ((the availability of affordable)) housing ((to)) for all economic segments of the population of this state, participate in making available a fair share of affordable housing, including affordable housing for people with special needs, promote a variety of residential densities and housing types, ((and)) encourage preservation of existing housing stock, and assure that housing complies with applicable federal, state, and local health and safety laws.

     (5) Economic development.  Encourage economic development throughout the state that is consistent with adopted comprehensive plans, promote economic opportunity for all citizens of this state, especially for unemployed and for disadvantaged persons, and encourage growth in areas experiencing insufficient economic growth, all within the capacities of the state's natural resources, public services, and public facilities.

     (6) Property rights.  Private property shall not be taken for public use without just compensation having been made.  The property rights of landowners shall be protected from arbitrary and discriminatory actions.

     (7) Permits.  Applications for both state and local government permits should be processed in a timely and fair manner to ensure predictability.

     (8) Natural resource industries.  Maintain and enhance natural resource-based industries, including productive timber, agricultural, and fisheries industries.  Encourage the conservation of productive forest lands and productive agricultural lands, and discourage incompatible uses.

     (9) Open space and recreation.  Encourage the retention of open space and development of recreational opportunities, conserve fish and wildlife habitat, increase access to natural resource lands and water, and develop parks.

     (10) Environment.  Protect the environment and enhance the state's high quality of life, including air and water quality, and the availability of water.

     (11) Citizen participation and coordination.  Encourage the involvement of citizens in the planning process and ensure coordination between communities and jurisdictions to reconcile conflicts.

     (12) Public facilities and services.  Ensure that those public facilities and services necessary to support development shall be adequate to serve the development at the time the development is available for occupancy and use without decreasing current service levels below locally established minimum standards.

     (13) Historic preservation.  Identify and encourage the preservation of lands, sites, and structures, that have historical or archaeological significance.

 

     Sec. 503.  RCW 36.70A.070 and 1990 1st ex.s. c 17 s 7 are each amended to read as follows:

     The comprehensive plan of a county or city that is required or chooses to plan under RCW 36.70A.040 shall consist of a map or maps, and descriptive text covering objectives, principles, and standards used to develop the comprehensive plan.  The plan shall be an internally consistent document and all elements shall be consistent with the future land use map.  A comprehensive plan shall be adopted and amended with public participation as provided in RCW 36.70A.140.

     Each comprehensive plan shall include a plan, scheme, or design for each of the following:

     (1) A land use element designating the proposed general distribution and general location and extent of the uses of land, where appropriate, for agriculture, timber production, housing, commerce, industry, recreation, open spaces, public utilities, public facilities, and other land uses.  The land use element shall provide for sufficient developable land and densities for a range of housing types.  The land use element shall include population densities, building intensities, and estimates of future population growth.  Each county shall include urban growth areas as established in RCW 36.70A.110 in its comprehensive land use plan.  The land use element shall provide for protection of the quality and quantity of ground water used for public water supplies.  Where applicable, the land use element shall review drainage, flooding, and storm water run-off in the area and nearby jurisdictions and provide guidance for corrective actions to mitigate or cleanse those discharges that pollute waters of the state, including Puget Sound or waters entering Puget Sound.

     (2) A housing element recognizing the vitality and character of established residential neighborhoods that:  (a) Includes an inventory and analysis of existing and projected housing needs including a jobs-housing balance consisting of at least a comparison between the supply of housing and the number of jobs projected in the next ten years in the county or sub-county area, as well as an assessment of whether the housing is affordable to the workers; (b) includes a statement of goals, policies, ((and)) objectives, and a five-year financing plan for the preservation, improvement, and development of housing and for ensuring that a community's fair share housing responsibility is met within either the county or the jurisdictions; (c) identifies sufficient land for housing, including, but not limited to, government-assisted housing, housing for very low-income and low-income ((families)) households, manufactured housing, multifamily housing, and group homes and foster care facilities; ((and)) (d) makes adequate provisions for existing and projected needs of all economic segments of the community; and (e) identifies regulatory barriers to the development and placement of affordable housing.

     (3) A capital facilities plan element consisting of:  (a) An inventory of existing capital facilities owned by public entities, showing the locations and capacities of the capital facilities; (b) a forecast of the future needs for such capital facilities; (c) the proposed locations and capacities of expanded or new capital facilities; (d) at least a six-year plan that will finance such capital facilities within projected funding capacities and clearly identifies sources of public money for such purposes; and (e) a requirement to reassess the land use element if probable funding falls short of meeting existing needs and to ensure that the land use element, capital facilities plan element, and financing plan within the capital facilities plan element are coordinated and consistent.

     (4) A utilities element consisting of the general location, proposed location, and capacity of all existing and proposed utilities, including, but not limited to, electrical lines, telecommunication lines, and natural gas lines.

     (5) Counties shall include a rural element including lands that are not designated for urban growth, agriculture, forest, or mineral resources.  The rural element shall permit land uses that are compatible with the rural character of such lands and provide for a variety of rural densities.

     (6) A transportation element that implements, and is consistent with, the land use element.  The transportation element shall include the following subelements:

     (a) Land use assumptions used in estimating travel;

     (b) Facilities and services needs, including:

     (i) An inventory of air, water, and land transportation facilities and services, including transit alignments, to define existing capital facilities and travel levels as a basis for future planning;

     (ii) Level of service standards for all arterials and transit routes to serve as a gauge to judge performance of the system.  These standards should be regionally coordinated;

     (iii) Specific actions and requirements for bringing into compliance any facilities or services that are below an established level of service standard;

     (iv) Forecasts of traffic for at least ten years based on the adopted land use plan to provide information on the location, timing, and capacity needs of future growth;

     (v) Identification of system expansion needs and transportation system management needs to meet current and future demands;

     (c) Finance, including:

     (i) An analysis of funding capability to judge needs against probable funding resources;

     (ii) A multiyear financing plan based on the needs identified in the comprehensive plan, the appropriate parts of which shall serve as the basis for the six-year street, road, or transit program required by RCW 35.77.010 for cities, RCW 36.81.121 for counties, and RCW 35.58.2795 for public transportation systems;

     (iii) If probable funding falls short of meeting identified needs, a discussion of how additional funding will be raised, or how land use assumptions will be reassessed to ensure that level of service standards will be met;

     (d) Intergovernmental coordination efforts, including an assessment of the impacts of the transportation plan and land use assumptions on the transportation systems of adjacent jurisdictions;

     (e) Demand-management strategies.

     After adoption of the comprehensive plan by jurisdictions required to plan or who choose to plan under RCW 36.70A.040, local jurisdictions must adopt and enforce ordinances which prohibit development approval if the development causes the level of service on a transportation facility to decline below the standards adopted in the transportation element of the comprehensive plan, unless transportation improvements or strategies to accommodate the impacts of development are made concurrent with the development.  These strategies may include increased public transportation service, ride sharing programs, demand management, and other transportation systems management strategies.  For the purposes of this subsection (6) "concurrent with the development" shall mean that improvements or strategies are in place at the time of development, or that a financial commitment is in place to complete the improvements or strategies within six years.

     The transportation element described in this subsection, and the six-year plans required by RCW 35.77.010 for cities, RCW 36.81.121 for counties, and RCW 35.58.2795 for public transportation systems, must be consistent.

 

     NEW SECTION.  Sec. 504.  A new section is added to chapter 36.70A RCW to read as follows:

     (1) The department shall establish by rule in consultation with local governments the process for determining a fair share housing responsibility for each city and unincorporated area within a county.  The process shall use county-wide data provided by the office of financial management and the department, except that the department may aggregate data from more than one county where it deems appropriate.  The process shall include, but is not limited to, an assessment of the existing housing stock, the projected needs for affordable housing in the local community and county wide, the population density, the amount of developable land in the urban growth area, and the projected number of jobs to be created in the community in the next ten years.  Each community's fair share affordable housing responsibility shall include housing that is affordable to very low-income and low-income households, and persons with special housing needs.

     (2) The department shall require each city and county to submit an annual report that describes the progress being made to meet its fair share affordable housing responsibility.  Cities and counties that exceed their fair share affordable housing responsibility shall receive preference points in applications for loan or grant assistance through the public works trust fund under chapter 43.155 RCW, the housing assistance program under chapter 43.185 RCW, and the affordable housing program under chapter 43.185A RCW.  In determining whether a city or county is making a good faith effort to meet its fair share affordable housing responsibility, the department may consider a city's or county's effort in reducing minimum lot and frontage sizes, the amount of local effort compared to tax capacity, the submission of any bond and levy measures to the voters for affordable housing, the identification and elimination of regulatory barriers that restrict the development and placement of affordable housing, the enactment of laws controlling demolition, abandonment, and conversion of existing very low-income and low-income housing, the enactment of density bonuses and land use techniques such as cluster housing and planned unit developments, the adoption of a current use classification for assessing low-income housing, and efforts to preserve federally assisted housing developments.

 

     NEW SECTION.  Sec. 505.  A new section is added to chapter 8.26 RCW to read as follows:

     Whenever the state or local public agency demolishes or otherwise eliminates affordable housing as defined in section 103 of this act for a public works project, it shall deposit moneys in a local jurisdiction housing replacement fund in an amount equal to the cost of providing an equal number of new affordable housing units for very low-income and low-income households in the same area.  The moneys shall be used for acquiring, constructing, or rehabilitating housing units for very low-income and low-income households.  Nothing in this section shall require a state or local public agency to pay an impact fee for demolishing housing that constitutes a nuisance or a health or safety hazard to the community.

 

     Sec. 506.  RCW 35.21.685 and 1986 c 248 s 1 are each amended to read as follows:

     A city or town may assist in the development or preservation of publicly or privately owned housing for persons of low income by providing loans or grants ((of general municipal funds)) to the owners or developers of the housing.  The loans or grants shall be made pursuant to a plan or program authorized by the legislative authority of the city or town((.  They may be made)) to finance all or a portion of the cost of construction, reconstruction, acquisition, or rehabilitation of housing that will be occupied by ((a)) one or more persons or ((family)) families of low income or relocation assistance for such persons or families.  As used in this section, "low income" ((means income that does not exceed eighty percent of the median income for the standard metropolitan statistical area in which the city or town is located)) has the same meaning as in section 103 of this act.  For the purposes of this section, "owner" includes a lessee under a ground lease or master lease.  Housing constructed, acquired, or rehabilitated with loans or grants made under this section shall not be considered public works or improvements subject to competitive bidding or a purchase of services subject to the prohibition against advance payment for services:  PROVIDED, That whenever feasible the borrower or grantee shall make every reasonable and practicable effort to utilize a competitive public bidding process.

 

     Sec. 507.  RCW 36.32.415 and 1986 c 248 s 2 are each amended to read as follows:

     A county may assist in the development or preservation of publicly or privately owned housing for persons of low income by providing loans or grants ((of general county funds)) to the owners or developers of the housing.  The loans or grants shall be made pursuant to a plan or program authorized by the legislative authority of a county((.  They may be made)) to finance all or a portion of the cost of construction, reconstruction, acquisition, or rehabilitation of housing that will be occupied by ((a)) one or more persons or ((family)) families of low income or relocation assistance for such persons or families.  As used in this section, "low income" ((means income that does not exceed eighty percent of the median income for the standard metropolitan statistical area in which the county is located)) has the same meaning as in section 103 of this act.  For the purposes of this section, "owner" includes a lessee under a ground lease or master lease.  Housing constructed, acquired, or rehabilitated with loans or grants made under this section shall not be considered public works or improvements subject to competitive bidding or a purchase of services subject to the prohibition against advance payment for services:  PROVIDED, That whenever feasible the borrower or grantee shall make every reasonable and practicable effort to utilize a competitive public bidding process.

 

     Sec. 508.  RCW 82.02.050 and 1990 1st ex.s. c 17 s 43 are each amended to read as follows:

     (1) It is the intent of the legislature:

     (a) To ensure that adequate facilities are available to serve new growth and development;

     (b) To promote orderly growth and development by establishing standards by which counties, cities, and towns may require, by ordinance, that new growth and development pay a proportionate share of the cost of new facilities needed to serve new growth and development and that new development that reduces the supply of housing for very low-income and low-income households contribute to the cost to the community of developing replacement housing for low-income households; and

     (c) To ensure that impact fees are imposed through established procedures and criteria so that specific developments do not pay arbitrary fees or duplicative fees for the same impact.

     (2) Counties, cities, and towns that are required or choose to plan under RCW 36.70A.040 are authorized to impose impact fees on development activity as part of the financing for public facilities, provided that the financing for system improvements to serve new development must provide for a balance between impact fees and other sources of public funds and cannot rely solely on impact fees.

     (3) The impact fees:

     (a) Shall only be imposed for system improvements that are reasonably related to the new development;

     (b) Shall not exceed a proportionate share of the costs of system improvements that are reasonably related to the new development; and

     (c) Shall be used for system improvements that will reasonably benefit the new development.

     (4) Impact fees may be collected and spent only for the public facilities defined in RCW 82.02.090 which are addressed by a capital facilities plan element of a comprehensive land use plan adopted pursuant to the provisions of RCW 36.70A.070 or the provisions for comprehensive plan adoption contained in chapter 36.70, 35.63, or 35A.63 RCW or for replacement housing.  After July 1, 1993, continued authorization to collect and expend impact fees shall be contingent on the county, city, or town adopting or revising a comprehensive plan in compliance with RCW 36.70A.070, and on the capital facilities plan identifying:

     (a) Deficiencies in public facilities serving existing development and the means by which existing deficiencies will be eliminated within a reasonable period of time;

     (b) Additional demands placed on existing public facilities by new development; and

     (c) Additional public facility improvements required to serve new development.

     If the capital facilities plan of the county, city, or town is complete other than for the inclusion of those elements which are the responsibility of a special district, the county, city, or town may impose impact fees to address those public facility needs for which the county, city, or town is responsible.

     (5) Any jurisdiction authorized to impose impact fees under this section may also impose, on any development activity that involves the demolition of a structure previously used as low-income housing, or the conversion of any such structure to use other than low-income housing, a housing replacement fee.  The housing replacement fee may not exceed the estimated cost to the jurisdiction of offsetting the impact of the development activity on the supply of low-income housing in the area in which the development is located.  Any housing replacement fee shall be calculated by the jurisdiction in accordance with standards adopted by ordinance or regulation.  All replacement housing fees shall be used to provide or finance low-income housing in the manner authorized by RCW 35.21.685 or 36.32.415.

     After July 1, 1993, continued authorization to collect housing replacement fees shall be contingent on the jurisdiction adopting or  revising a comprehensive plan in compliance with RCW 36.70A.070, and in compliance with the local jurisdiction's fair share affordable housing goal pursuant to chapter 36.70A RCW.

 

                                      PART VI

                   EQUAL OPPORTUNITY AND FAIR HOUSING PROVISIONS

 

     Sec. 601.  RCW 49.60.030 and 1984 c 32 s 2 are each amended to read as follows:

     (1) The right to be free from discrimination because of race, creed, color, national origin, sex, or the presence of any sensory, mental, or physical handicap is recognized as and declared to be a civil right.  This right shall include, but not be limited to:

     (a) The right to obtain and hold employment without discrimination;

     (b) The right to the full enjoyment of any of the accommodations, advantages, facilities, or privileges of any place of public resort, accommodation, assemblage, or amusement;

     (c) The right to engage in real estate transactions without discrimination, including discrimination against families with children;

     (d) The right to engage in credit transactions without discrimination;

     (e) The right to engage in insurance transactions or transactions with health maintenance organizations without discrimination:  PROVIDED, That a practice which is not unlawful under RCW 48.30.300, 48.44.220, or 48.46.370 does not constitute an unfair practice for the purposes of this subparagraph; and

     (f) The right to engage in commerce free from any discriminatory boycotts or blacklists.  Discriminatory boycotts or blacklists for purposes of this section shall be defined as the formation or execution of any express or implied agreement, understanding, policy or contractual arrangement for economic benefit between any persons which is not specifically authorized by the laws of the United States and which is required or imposed, either directly or indirectly, overtly or covertly, by a foreign government or foreign person in order to restrict, condition, prohibit, or interfere with or in order to exclude any person or persons from any business relationship on the basis of race, color, creed, religion, sex, national origin or lawful business relationship:  PROVIDED HOWEVER, That nothing herein contained shall prohibit the use of boycotts as authorized by law pertaining to labor disputes and unfair labor practices.

     (2) Any person deeming himself or herself injured by any act in violation of this chapter shall have a civil action in a court of competent jurisdiction to enjoin further violations, to seek appropriate temporary or preliminary relief, to recover the actual damages sustained by ((him, or both)) the person, and ordering such affirmative actions as may be necessary, together with the cost of suit including a reasonable attorney's fee((s)) or any other appropriate remedy authorized by this chapter or the United States Civil Rights Act of 1964 as amended, or the federal fair housing amendments act of 1988 (42 U.S.C. Sec. 3601 et seq.); and

     (3) Notwithstanding any other provisions of this chapter, any act prohibited by this chapter related to sex discrimination or discriminatory boycotts or blacklists which is committed in the course of trade or commerce in the state of Washington as defined in the Consumer Protection Act, chapter 19.86 RCW, shall be deemed an unfair practice within the meaning of RCW 19.86.020 and 19.86.030 and subject to all the provisions of chapter 19.86 RCW as now or hereafter amended.

 

     NEW SECTION.  Sec. 602.  A new section is added to chapter 49.60 RCW to read as follows:

     (1) The superior courts of the state of Washington shall have jurisdiction upon petition of the commission, through the attorney general, to seek appropriate temporary or preliminary relief to enjoin any unfair practice in violation of RCW 49.60.222 through 49.60.225, from which prompt judicial action is necessary to carry out the purposes of this chapter.

     (2) The commencement of a civil action under this section does not preclude the initiation or continuation of administrative proceedings under this chapter.

 

     Sec. 603.  RCW 49.60.040 and 1985 c 203 s 2 and 1985 c 185 s 2 are each reenacted and amended to read as follows:

     As used in this chapter:

     (1) "Person" includes one or more individuals, partnerships, associations, organizations, corporations, cooperatives, legal representatives, trustees and receivers, or any group of persons; it includes any owner, lessee, proprietor, manager, agent, or employee, whether one or more natural persons; and further includes any political or civil subdivisions of the state and any agency or instrumentality of the state or of any political or civil subdivision thereof;

     (2) "Commission" means the Washington state human rights commission;

     (3) "Employer" includes any person acting in the interest of an employer, directly or indirectly, who employs eight or more persons, and does not include any religious or sectarian organization not organized for private profit;

     (4) "Employee" does not include any individual employed by his or her parents, spouse, or child, or in the domestic service of any person;

     (5) "Labor organization" includes any organization which exists for the purpose, in whole or in part, of dealing with employers concerning grievances or terms or conditions of employment, or for other mutual aid or protection in connection with employment;

     (6) "Employment agency" includes any person undertaking with or without  compensation to recruit, procure, refer, or place employees for an employer;

     (7) "National origin" includes "ancestry";

     (8) "Full enjoyment of" includes the right to purchase any service, commodity, or article of personal property offered or sold on, or by, any establishment to the public, and the admission of any person to accommodations, advantages, facilities, or privileges of any place of public resort, accommodation, assemblage, or amusement, without acts directly or indirectly causing persons of any particular race, creed, color, sex, or with any sensory, mental, or physical handicap, or a blind or deaf person using a trained dog guide, to be treated as not welcome, accepted, desired, or solicited;

     (9) "Any place of public resort, accommodation, assemblage, or amusement" includes, but is not limited to, any place, licensed or unlicensed, kept for gain, hire, or reward, or where charges are made for admission, service, occupancy, or use of any property or facilities, whether conducted for the entertainment, housing, or lodging of transient guests, or for the benefit, use, or accommodation of those seeking health, recreation, or rest, or for the burial or other disposition of human remains, or for the sale of goods, merchandise, services, or personal property, or for the rendering of personal services, or for public conveyance or transportation on land, water, or in the air, including the stations and terminals thereof and the garaging of vehicles, or where food or beverages of any kind are sold for consumption on the premises, or where public amusement, entertainment, sports, or recreation of any kind is offered with or without charge, or where medical service or care is made available, or where the public gathers, congregates, or assembles for amusement, recreation, or public purposes, or public halls, public elevators, and public washrooms of buildings and structures occupied by two or more tenants, or by the owner and one or more tenants, or any public library or educational institution, or schools of special instruction, or nursery schools, or day care centers or children's camps: PROVIDED, That nothing contained in this definition shall be construed to include or apply to any institute, bona fide club, or place of accommodation, which is by its nature distinctly private, including fraternal organizations, though where public use is permitted that use shall be covered by this chapter; nor shall anything contained in this definition apply to any educational facility, columbarium, crematory, mausoleum, or cemetery operated or maintained by a bona fide religious or sectarian institution;

     (10) "Real property" includes buildings, structures, dwellings, real estate, lands, tenements, leaseholds, interests in real estate cooperatives, condominiums, and hereditaments, corporeal and incorporeal, or any interest therein;

     (11) "Real estate transaction" includes the sale, exchange, purchase, transacting or applying for a loan, rental, or lease of real property;

     (12) "Dwelling" means any building, structure, or portion thereof that is occupied as, or designed or intended for occupancy as, a residence by one or more families, and any vacant land that is offered for sale or lease for the construction or location thereon of any building, structure, or portion thereof;

     (13) "Sex" means gender((.));

     (14) "Aggrieved person" means any person who:  (a) Claims to have been injured by a discriminatory housing practice; or (b) believes that he or she will be injured by a discriminatory housing practice that is about to occur;

     (15) "Credit transaction" includes any open or closed end credit transaction, whether in the nature of a loan, retail installment transaction, credit card issue or charge, or otherwise, and whether for personal or for business purposes, in which a service, finance, or interest charge is imposed, or which provides for repayment in scheduled payments, when such credit is extended in the regular course of any trade or commerce, including but not limited to transactions by banks, savings and loan associations or other financial lending institutions of whatever nature, stock brokers, or by a merchant or mercantile establishment which as part of its ordinary business permits or provides that payment for purchases of property or service therefrom may be deferred;

     (16) "Families with children" status ensues when one or more individuals who have not attained the age of eighteen years is domiciled with a parent or another person having custody or guardianship of such individual or individuals.  Families with children status also applies to any person who is pregnant or is in the process of securing legal custody or guardianship of any individual who has not attained the age of eighteen years.

 

     Sec. 604.  RCW 49.60.222 and 1989 c 61 s 1 are each amended to read as follows:

     (1) It is an unfair practice for any person, whether acting for himself, herself, or another, because of sex, marital status, race, creed, color, national origin, families with children status, the presence of any sensory, mental, or physical handicap, or the use of a trained guide dog or service dog by a blind, deaf, or physically disabled person:

     (((1))) (a) To refuse to engage in a real estate transaction with a person;

     (((2))) (b) To discriminate against a person in the terms, conditions, or privileges of a real estate transaction or in the furnishing of facilities or services in connection therewith;

     (((3))) (c) To refuse to receive or to fail to transmit a bona fide offer to engage in a real estate transaction from a person;

     (((4))) (d) To refuse to negotiate for a real estate transaction with a person;

     (((5))) (e) To represent to a person that real property is not available for inspection, sale, rental, or lease when in fact it is so available, or to fail to bring a property listing to his or her attention, or to refuse to permit ((him)) the person to inspect real property;

     (((6))) (f) To print, circulate, post, or mail, or cause to be so published a statement, advertisement, or sign, or to use a form of application for a real estate transaction, or to make a record or inquiry in connection with a prospective real estate transaction, which indicates, directly or indirectly, an intent to make a limitation, specification, or discrimination with respect thereto;

     (((7))) (g) To offer, solicit, accept, use, or retain a listing of real property with the understanding that a person may be discriminated against in a real estate transaction or in the furnishing of facilities or services in connection therewith;

     (((8))) (h) To expel a person from occupancy of real property;

     (((9))) (i) To discriminate in the course of negotiating, executing,  or financing a real estate transaction whether by mortgage, deed of trust, contract, or other instrument imposing a lien or other security in real property, or in negotiating or executing any item or service related thereto including issuance of title insurance, mortgage insurance, loan guarantee, or other aspect of the transaction.  Nothing in this section shall limit the effect of RCW 49.60.176 relating to unfair practices in credit transactions; or

     (((10))) (j) To attempt to do any of the unfair practices defined in this section.

     (2) For the purposes of this chapter discrimination based on the presence of any sensory, mental, or physical handicap or the use of a trained guide dog or service dog by a blind, deaf, or physically disabled person includes:

     (a) To refuse to make reasonable accommodation in rules, policies, practices, or services when such accommodations may be necessary to afford a person with the presence of any sensory, mental, or physical handicap and/or the use of a trained guide dog or service dog by a blind, deaf, or physically disabled person equal opportunity to use and enjoy a dwelling; or

     (b) To fail to design and construct dwellings in conformance with the federal fair housing amendments act of 1988 (42 U.S.C. Sec. 3601 et seq.) and all other applicable laws or regulations pertaining to access by persons with any sensory, mental, or physical handicap or use of a trained guide dog or service dog.  Whenever the requirements of applicable laws or regulations differ, the requirements which require greater accessibility for persons with any sensory, mental, or physical handicap shall govern.

     (3) Notwithstanding any other provision of ((law)) this chapter, it shall not be an unfair practice or a denial of civil rights for any public or private educational institution to separate the sexes or give preference to or limit use of dormitories, residence halls, or other student housing to persons of one sex or to make distinctions on the basis of marital or ((family)) families with children status.

     (4) This section shall not be construed to require structural changes, modifications, or additions to make facilities accessible to a handicapped person except as otherwise required by law.  Nothing in this section affects the rights and responsibilities of landlords and tenants pursuant to chapter 59.18 or 59.20 RCW, including the right to post and enforce reasonable rules of conduct and safety for all tenants and their guests.  Nor does anything in this section limit the applicability of any reasonable federal, state, or local restrictions regarding the maximum number of occupants permitted to occupy a dwelling.

     (5) Notwithstanding any other provision of this chapter, it shall not be an unfair practice for any public establishment providing for accommodations offered for the full enjoyment of transient guests as defined by RCW 9.91.010(1)(c) to make distinctions on the basis of families with children status.  Nothing in this section shall limit the effect of RCW 49.60.215 relating to unfair practices in places of public accommodation.

     (6) Nothing in this chapter prohibiting discrimination based on families with children status applies to housing for older persons as defined by the federal fair housing amendments act of 1988, as amended, 42 U.S.C. Sec. 3607(b)(1) through (3) as of the effective date of this section.

 

     Sec. 605.  RCW 49.60.223 and 1979 c 127 s 9 are each amended to read as follows:

     It is an unfair practice for any person, for profit, to induce or attempt to induce any person to sell or rent any real property by representations regarding the entry or prospective entry into the neighborhood of a person or persons of a particular race, creed, color, sex, national origin, families with children status, or with any sensory, mental, or physical handicap or the use of a trained guide dog or service dog by a blind, deaf, or physically disabled person.

 

     NEW SECTION.  Sec. 606.  A new section is added to chapter 49.60 RCW to read as follows:

     It is an unlawful practice to coerce, intimidate, threaten, or interfere with any person in the exercise or enjoyment of, or on account of his or her having exercised or enjoyed, or on account of his or her having aided or encouraged any other person in the exercise or enjoyment of, rights secured by RCW 49.60.030, 49.60.040, and 49.60.222 through 49.60.224.

 

     Sec. 607.  RCW 49.60.224 and 1979 c 127 s 10 are each amended to read as follows:

     (1) Every provision in a written instrument relating to real property which purports to forbid or restrict the conveyance, encumbrance, occupancy, or lease thereof to individuals of a specified race, creed, color, sex, national origin, families with children status, or with any sensory, mental, or physical handicap, and every condition, restriction, or prohibition, including a right of entry or possibility of reverter, which directly or indirectly limits the use or occupancy of real property on the basis of race, creed, color, sex, national origin, families with children status, or the presence of any sensory, mental, or physical handicap or the use of a trained guide dog or service dog by a blind, deaf, or physically disabled person is void.

     (2) It is an unfair practice to insert in a written instrument relating to real property a provision that is void under this section or to honor or attempt to honor such a provision in the chain of title.

 

     Sec. 608.  RCW 49.60.225 and 1985 c 185 s 19 are each amended to read as follows:

     (1) When a determination has been made under RCW 49.60.250 that an unfair practice involving real property has been committed, the ((commission may, in addition to other relief authorized by RCW 49.60.250, award the complainant up to one thousand dollars)) administrative law judge shall promptly issue an order for such relief suffered by the aggrieved party as may be appropriate, which may include actual damages as provided by Title VIII (42 U.S.C. Sec. 3601 et seq.) as amended, and injunctive or other equitable relief.  Such order may, to further the public interest, assess a civil penalty against the respondent:

     (a) In an amount up to ten thousand dollars if the respondent has not been adjudged to have committed any prior discriminatory housing practice;

     (b) In an amount up to twenty-five thousand dollars if the respondent has been adjudged to have committed one other discriminatory housing practice during the five-year period ending on the date of the filing of this charge; or

     (c) In an amount up to fifty thousand dollars if the respondent has been adjudged to have committed two or more discriminatory housing practices during the seven-year period ending on the date of the filing of this charge, for loss of the right secured by RCW 49.60.010, 49.60.030, 49.60.040, and 49.60.222 through ((49.60.226)) 49.60.224, as now or hereafter amended, to be free from discrimination in real property transactions because of sex, marital status, race, creed, color, national origin, families with children status, or the presence of any sensory, mental, or physical handicap or the use of a trained guide dog or service dog by a blind, deaf, or physically disabled person.  Enforcement of the order and appeal therefrom by the complainant or respondent ((shall)) may be made as provided in RCW 49.60.260 and 49.60.270.  If acts constituting the discriminatory housing practice that is the object of the charge are committed by the same natural person who has been previously adjudged to have committed acts constituting a discriminatory housing practice, then the civil penalty may be imposed without regard to the period of time within which any subsequent discriminatory housing practice occurred.

     (2) Such order shall not affect any contract, sale, conveyance, encumbrance, or lease consummated before the issuance of an order that involves a bona fide purchaser, encumbrancer, or tenant without actual notice of the charge filed under this chapter.

     (3) Notwithstanding any other provision of this chapter, persons awarded a remedy under this section may not receive additional damages pursuant to RCW 49.60.250.

 

     Sec. 609.  RCW 49.60.227 and 1987 c 56 s 2 are each amended to read as follows:

     If a written instrument contains a provision that is void by reason of RCW 49.60.224, either the owner, occupant, or tenant of the property which is subject to the provision may cause the provision to be stricken from the public records by bringing an action in the superior court in the county in which the property is located.  The action shall be an in rem, declaratory judgment action whose title shall be the description of the property.  The necessary party to the action shall be either the owner, occupant, or tenant of the property or any portion thereof.

     If the court finds that any provisions of the written instrument are void under RCW 49.60.224, it shall enter an order striking the void provisions from the public records and eliminating the void provisions from the title or lease of the property described in the complaint.

 

     Sec. 610.  RCW 49.60.230 and 1985 c 185 s 21 are each amended to read as follows:

     (1) Who may file a complaint:

     (((1))) (a) Any person claiming to be aggrieved by an alleged unfair practice may, personally or by his or her attorney, make, sign, and file with the commission a complaint in writing under oath.  The complaint shall state the name and address of the person alleged to have committed the unfair practice and the particulars thereof, and contain such other information as may be required by the commission.

     (((2))) (b) Whenever it has reason to believe that any person has been engaged or is engaging in an unfair practice, the commission may issue a complaint.

     (((3))) (c) Any employer or principal whose employees, or agents, or any of them, refuse or threaten to refuse to comply with the provisions of this chapter may file with the commission a written complaint under oath asking for assistance by conciliation or other remedial action.

     (2) Any complaint filed pursuant to this section must be so filed within six months after the alleged act of discrimination except that complaints alleging discrimination with respect to real estate transactions pursuant to RCW 49.60.222, 49.60.223, and 49.60.224 must be so filed within one year after the alleged discriminatory housing practice has occurred or terminated.

 

     NEW SECTION.  Sec. 611.  A new section is added to chapter 49.60 RCW to read as follows:

     (1) Any complainant or respondent on whose behalf the reasonable cause finding was made, may elect to have the claims on which reasonable cause was found decided in a civil action under RCW 49.60.030(2) in lieu of a hearing under RCW 49.60.250.  This election must be made not later than twenty days after the receipt by the electing person of service of the reasonable cause finding.  The person making such election shall give notice of doing so to the commission and to all other parties and respondents to whom the charge relates.  Any reasonable cause finding issued by the commission pursuant to the procedures contained in this chapter shall become final twenty days after service of the reasonable cause finding unless a written notice of election is received by the commission within the twenty-day period.

     (2) If an election is made under subsection (1) of this section, the commission shall authorize not later than thirty days after the election is made, and the attorney general shall commence, a civil action on behalf of the aggrieved person in a court of the state of Washington seeking relief under this section.

     (3) Any aggrieved person with respect to the issues to be determined in a civil action under this section may intervene as of right in that civil action.

     (4) In a civil action under this section, if the court finds that a discriminatory housing practice has occurred or is about to occur, the court may grant any relief that a court could grant with respect to such discriminatory housing practice in a civil action under RCW 49.60.030(2).  If monetary relief is sought for the benefit of an aggrieved person who does not intervene in the civil action, the court shall not award such relief if that aggrieved person has not complied with discovery orders entered by the court.

     (5) In any administrative proceeding brought under this section or any court proceeding arising under this section, the court in its discretion may allow the prevailing party reasonable attorneys' fees and costs.

 

     Sec. 612.  RCW 49.60.250 and 1989 c 175 s 115 are each amended to read as follows:

     (1) In case of failure to reach an agreement for the elimination of such unfair practice, and upon the entry of findings to that effect, the entire file, including the complaint and any and all findings made, shall be certified to the chairperson of the commission.  The chairperson of the commission shall thereupon request the appointment of an administrative law judge under Title 34 RCW to hear the complaint and shall cause to be issued and served in the name of the commission a written notice, together with a copy of the complaint, as the same may have been amended, requiring the respondent to answer the charges of the complaint at a hearing before the administrative law judge, at a time and place to be specified in such notice.

     (2) The place of any such hearing may be the office of the commission or another place designated by it.  The case in support of the complaint shall be presented at the hearing by counsel for the commission:  PROVIDED, That the complainant may retain independent counsel and submit testimony and be fully heard.  No member or employee of the commission who previously made the investigation or caused the notice to be issued shall participate in the hearing except as a witness, nor shall the member or employee participate in the deliberations of the administrative law judge in such case.  Any endeavors or negotiations for conciliation shall not be received in evidence.

     (3) The respondent shall file a written answer to the complaint and appear at the hearing in person or otherwise, with or without counsel, and submit testimony and be fully heard.  The respondent has the right to cross-examine the complainant.

     (4) The administrative law judge conducting any hearing may permit reasonable amendment to any complaint or answer.  Testimony taken at the hearing shall be under oath and recorded.

     (5) If, upon all the evidence, the administrative law judge finds that the respondent has engaged in any unfair practice, the administrative law judge shall state findings of fact and shall issue and file with the commission and cause to be served on such respondent an order requiring such respondent to cease and desist from such unfair practice and to take such affirmative action, including, (but not limited to) hiring, reinstatement or upgrading of employees, with or without back pay, an admission or restoration to full membership rights in any respondent organization, or to take such other action as, in the judgment of the administrative law judge, will effectuate the purposes of this chapter, including action that could be ordered by a court, except that damages for humiliation and mental suffering shall not exceed ((one)) ten thousand dollars, and including a requirement for report of the matter on compliance.  Relief available for violations of RCW 49.60.222 through 49.60.224 shall be limited to the relief specified in RCW 49.60.225.

     (6) The final order of the administrative law judge shall include a notice to the parties of the right to obtain judicial review of the order by appeal in accordance with the provisions of RCW 34.05.510 through 34.05.598, and that such appeal must be served and filed within thirty days after the service of the order on the parties.

     (7) If, upon all the evidence, the administrative law judge finds that the respondent has not engaged in any alleged unfair practice, the administrative law judge shall state findings of fact and shall similarly issue and file an order dismissing the complaint.

      (8) An order dismissing a complaint may include an award of reasonable attorneys' fees in favor of the respondent if the administrative law judge concludes that the complaint was frivolous, unreasonable, or groundless.

      (9) The commission shall establish rules of practice to govern, expedite, and effectuate the foregoing procedure.

 

     Sec. 613.  RCW 49.60.260 and 1989 c 175 s 116 are each amended to read as follows:

     (1) The commission ((shall)) or any person entitled to relief under any final order may petition the court within the county wherein any unfair practice occurred or wherein any person charged with an unfair practice resides or transacts business for the enforcement of any final order which is not complied with and is issued by the commission or an administrative law judge under the provisions of this chapter and for appropriate temporary relief or a restraining order, and shall certify and file in court the final order sought to be enforced.  Within five days after filing such petition in court, the commission or any person entitled to relief under any final order shall cause a notice of the petition to be sent by certified mail to all parties or their representatives.

     (2) If before the expiration of sixty days after the date the administrative law judge's order is entered, no petition has been filed under subsection (1) of this section and the commission has not sought enforcement of the final order under this section, any person entitled to relief under any final order may petition for a decree enforcing the order in the superior courts of the state of Washington for the county in which the discriminatory housing practice under RCW 49.60.222 through 49.60.224 is alleged to have occurred.

     (3) From the time the petition is filed, the court shall have jurisdiction of the proceedings and of the questions determined thereon, and shall have the power to grant such temporary relief or restraining order as it deems just and suitable.

     (((3))) (4) If the petition shows that there is a final order issued by the commission or administrative law judge under RCW 49.60.240 or 49.60.250 and that the order has not been complied with in whole or in part, the court shall issue an order directing the person who is alleged to have not complied with the administrative order to appear in court at a time designated in the order, not less than ten days from the date thereof, and show cause why the administrative order should not be enforced according to the terms.  The commission or any person entitled to relief of any final order shall immediately serve the ((person)) noncomplying party with a copy of the court order and the petition.

     (((4))) (5) The administrative order shall be enforced by the court if the person does not appear, or if the person appears and the court finds that:

     (a) The order is regular on its face;

     (b) The order has not been complied with; and

     (c) The person's answer discloses no valid reason why the order should not be enforced, or that the reason given in the person's answer could have been raised by review under RCW 34.05.510 through 34.05.598, and the person has given no valid excuse for failing to use that remedy.

     (((5))) (6) The jurisdiction of the court shall be exclusive and its judgment and decree shall be final, except that the same shall be subject to appellate review by the supreme court or the court of appeals, on appeal, by either party, irrespective of the nature of the decree or judgment.  The review shall be taken and prosecuted in the same manner and form and with the same effect as is provided in other cases.

 

     NEW SECTION.  Sec. 614.  A new section is added to chapter 49.60 RCW to read as follows:

     Sections 601 through 612 of this act apply prospectively only and not retroactively.  Sections 601 through 612 of this act apply only to causes of action that arise or that are decided on or after the effective date of this section.

 

                                     PART VII

                             MISCELLANEOUS PROVISIONS

 

     NEW SECTION.  Sec. 701.    (1) The legislature finds that:

     (a) The lack of available land and the rising cost of land are major barriers to the development of housing that is affordable to very low-income, low-income, and moderate-income households;

     (b) There are publicly owned lands and buildings that may be suitable to be marketed, sold, leased, or exchanged for the development of affordable housing; and

     (c) Nonprofit organizations can play an important role in the provision of affordable housing to very low-income, low-income, and moderate-income households.

     (2) The legislature declares that the purposes of this act are:

     (a) To provide a central location of inventories of publicly owned land and buildings that may be suitable to be marketed, sold, leased, or exchanged for the development of affordable housing;

     (b) To consider the return to the state by having the housing developed by nonprofit organizations when determining fair market value of publicly owned land and buildings; and

     (c) To pursue an effective use of publicly owned surplus and underutilized buildings and land for affordable housing.

 

     Sec. 702.  RCW 43.63A.510 and 1990 c 253 s 6 are each amended to read as follows:

     The department shall work with the departments of natural resources, transportation, and general administration to identify and catalog under((-))utilized, state-owned land and property for possible lease or sale for affordable housing.  The department shall provide an inventory of real property that is owned or administered by each agency and is available for lease.  The inventories shall be provided to the department by November 1, ((1990)) 1992, with inventory revisions provided each November 1 thereafter.  The department shall assist local governments, public housing authorities, public nonprofit organizations, and private nonprofit organizations in obtaining ((long-term leases of)) suitable and available sites.  The leases or sales shall be for the purpose of providing sites to be used for affordable housing ((for farmworkers)) developments.  As used in this section, "affordable housing development" has the same meaning as in section 103 of this act.

 

     NEW SECTION.  Sec. 703.  A new section is added to chapter 28A.335 RCW to read as follows:

     Every school district shall identify and catalog real property of the district that is no longer required for school purposes that is available for possible lease or sale for an affordable housing development as defined in RCW 43.63A.510.  The inventory shall include the location and approximate size of the property.  A copy of the inventory shall be provided to the state department of community development by November 1, 1992, with inventory revisions provided each November 1 thereafter.

 

     NEW SECTION.  Sec. 704.  A new section is added to chapter 35.21 RCW to read as follows:

     Every city and town, including every code city as defined in Title 35A RCW, shall identify and catalog the underutilized real property that it owns that is available for possible lease or sale for an affordable housing development as defined in RCW 43.63A.510.  The inventory shall include the location and approximate size of the property.  A copy of the inventory shall be provided to the state department of community development by November 1, 1992, with inventory revisions provided each November 1 thereafter.

 

     NEW SECTION.  Sec. 705.  A new section is added to chapter 36.34 RCW to read as follows:

     Every county shall identify and catalog the underutilized real property that it owns that is available for possible lease or sale for an affordable housing development as defined in RCW 43.63A.510.  The inventory shall include the location and approximate size of the property.  A copy of the inventory shall be provided to the state department of community development by November 1, 1992, with inventory revisions provided each November 1 thereafter.

 

     Sec. 706.  RCW 36.34.135 and 1990 c 253 s 7 are each amended to read as follows:

     If a county owns property that is located anywhere within the county, including within the limits of a city or town, and that is suitable for ((seasonal or migrant farmworker housing)) an affordable housing development, the legislative authority of the county may, by negotiation, lease the property for ((seasonal or migrant farmworker housing)) an affordable housing development for a term not to exceed seventy-five years to any public housing authority or nonprofit organization that has demonstrated its ability to construct or operate ((housing for seasonal or migrant farmworkers)) an affordable housing development.  Leases for ((housing for migrant and seasonal farmworkers)) an affordable housing development shall not be subject to any requirement of periodic rental adjustments, as provided in RCW 36.34.180, but shall provide for such fixed annual rents as appear reasonable considering the public, social, and health benefits to be derived by providing an adequate supply of affordable, safe, and sanitary housing ((for migrant and seasonal farmworkers)).  As used in this section, "affordable housing development" has the same meaning as in section 103 of this act.

 

     Sec. 707.  RCW 47.12.063 and 1988 c 135 s 1 are each amended to read as follows:

     (1) It is the intent of the legislature to continue the department's policy giving priority consideration to abutting property owners in agricultural areas when disposing of property through its surplus property program under this section.  It is also the intent of the legislature to support the development of affordable housing for low-income households by giving nonprofit organizations priority when disposing of surplus property that is suitable for residential development under this section.

     (2) Whenever the department determines that any real property owned by the state of Washington and under the jurisdiction of the department is no longer required for transportation purposes and that it is in the public interest to do so, the department may sell the property or exchange it in full or part consideration for land or improvements or for construction of improvements at fair market value to any of the following governmental entities or persons:

     (a) Any other state agency;

     (b) The city or county in which the property is situated;

     (c) Any other municipal corporation;

     (d) The former owner of the property from whom the state acquired title;

     (e) In the case of residentially improved property, a tenant of the department who has resided thereon for not less than six months and who is not delinquent in paying rent to the state;

     (f) Any abutting private owner but only after each other abutting private owner (if any), as shown in the records of the county assessor, is notified in writing of the proposed sale.  If more than one abutting private owner requests in writing the right to purchase the property within fifteen days after receiving notice of the proposed sale, the property shall be sold at public auction in the manner provided in RCW 47.12.283;

     (g) To any person through the solicitation of written bids through public advertising in the manner prescribed by RCW 47.28.050; ((or))

     (h) To any other owner of real property required for transportation purposes; or

     (i) In the case of property suitable for residential use, any nonprofit organization dedicated to providing housing to low-income households as defined in section 103 of this act and eligible to receive assistance through the Washington housing trust fund created in chapter 43.185 RCW.

     (3) Sales to purchasers may at the department's option be for cash, by real estate contract, or exchange of land or improvements.  Transactions involving the construction of improvements must be conducted pursuant to chapter 47.28 RCW or Title 39 RCW, as applicable, and must comply with all other applicable laws and rules.

     (4) Conveyances made pursuant to this section shall be by deed executed by the secretary of transportation and shall be duly acknowledged.

     (5) All moneys received pursuant to the provisions of this section less any real estate broker commissions paid pursuant to RCW 47.12.320 shall be deposited in the motor vehicle fund.

 

     NEW SECTION.  Sec. 708.  A new section is added to chapter 43.19 RCW to read as follows:

     All state agencies, including educational institutions, shall maintain a perpetual record of state-owned, underutilized real property that it owns or is under its control that is available for possible lease or sale for an affordable housing development as defined in RCW 43.63A.510.  The record shall include the location and approximate size of the property.  A copy of the record shall be provided to the state department of community development by November 1, 1992, with inventory revisions provided each November 1 thereafter.  As used in this section, "real property" means buildings, land, or buildings and land.

 

     NEW SECTION.  Sec. 709.    (1) The legislature finds that:

     (a) The construction of housing is governed by a broad range of federal, state, and local regulations and administrative actions;

     (b) There is growing concern over the rising costs of housing;

     (c) Governmental actions have been cited as a significant contributor to the rising cost of housing;

     (d) The issue of housing regulations is technically complicated, and cuts across many disciplines, jurisdictions, constituencies, and values;

     (e) Uniform responses to the growing pressures to address regulatory issues of housing may result in the sacrifice of other public goals without necessarily achieving compensating benefits in housing affordability; and

     (f) There exists a lack of information on the impact of governmental regulation and administrative actions on the cost of housing.

     (2) The legislature declares that the purposes of this chapter are to:

     (a) Provide a focus within state government to address the affordability implications of governmental actions;

     (b) Identify and, where possible, reform governmental regulations which impede or add unnecessary costs to the development of housing; and

     (c) Provide technical assistance to state agencies and local governments in their efforts to reform governmental regulations that impede or add unnecessary costs to the development of housing.

 

     NEW SECTION.  Sec. 710.    Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

     (1) "Affordable housing" has the same meaning as in section 103 of this act.

     (2) "Department" means the department of community development.

     (3) "Director" means the director of community development.

     (4) "Office" means the office of housing affordability and regulation.

     (5) "Very low-income household" has the same meaning as in section 103 of this act.

     (6) "Low-income household" has the same meaning as in section 103 of this act.

     (7) "Moderate-income household" has the same meaning as in section 103 of this act.

 

     NEW SECTION.  Sec. 711.    There is created the office of housing affordability and regulation in the department which will serve as the coordinating office within state government for matters relating to the need for, development, placement, and preservation of affordable housing.

 

     NEW SECTION.  Sec. 712.    The duties of the office shall include:

     (1) An analysis of the costs and benefits of state legislation, rules, and administrative actions and their impact on housing affordability;

     (2) Assisting state agencies and local governments in determining the impact of anticipated actions, legislation, and rules on housing affordability;

     (3) An investigation of techniques and opportunities for reducing the life cycle housing costs through regulatory reform;

     (4) Monitoring and addressing major federal regulations and actions that impact housing affordability;

     (5) An analysis of the impact of state and local regulations on the development and placement of affordable housing;

     (6) Conducting studies on selected topics that impact the cost of housing;

     (7) Preparation of and annual status reports on the five-year housing advisory plan required under section 713 of this act; and

     (8) Other activities as the director deems necessary to aid the state, local governments, and the housing industry in meeting the affordable housing needs of the state.

 

     NEW SECTION.  Sec. 713.    (1) The department shall prepare and from time to time amend a five-year housing advisory plan.  The purpose of the plan is to document the need for affordable housing in the state and the extent to which that need is being met through public and private sector programs, to facilitate planning to meet the affordable housing needs of the state, and to enable the development of sound strategies and programs for affordable housing.  The information in the five-year housing advisory plan must include:

     (a) An assessment of the state's housing market trends;

     (b) An assessment of the housing needs of very low-income, low-income, and moderate-income households as defined in section 103 of this act, and special needs populations;

     (c) An inventory of the supply and geographic distribution of affordable housing units made available through public and private sector programs;

     (d) A status report on the degree of progress made by the public and private sector toward meeting the housing needs of the state; and

     (e) Specific policies or proposals for meeting the affordable housing needs of the state.

     (2)(a) The five-year housing advisory plan required under subsection (1) of this section must be submitted to the legislature on or before January 1, 1993, and subsequent plans must be submitted every five years thereafter.

     (b) Each January 1st, beginning January 1, 1994, the department shall submit an annual supplementary report detailing the extent to which the state's affordable housing needs were met during the preceding year and recommendations for meeting those needs.

     (3) There is hereby created a fund in the office of the treasurer known as the Washington housing advisory plan trust fund, to be administered by the department, for the purposes of this chapter.  The housing advisory plan trust fund shall include revenue from the sources established by this chapter, appropriations by the legislature, private contributions, and all other sources.

 

     NEW SECTION.  Sec. 714.    The following acts or parts of acts, as now existing or hereafter amended, are each repealed effective July 1, 1997:

     (1) RCW 43.--.--- and 1992 c -- s 709 (section 709 of this act);

     (2) RCW 43.--.--- and 1992 c -- s 710 (section 710 of this act);

     (3) RCW 43.--.--- and 1992 c -- s 711 (section 711 of this act);

     (4) RCW 43.--.--- and 1992 c -- s 712 (section 712 of this act); and

     (5) RCW 43.--.--- and 1992 c -- s 713 (section 713 of this act).

 

     Sec. 715.  RCW 18.85.310 and 1988 c 286 s 2 are each amended to read as follows:

     (1) Every licensed real estate broker shall keep adequate records of all real estate transactions handled by or through him.  The records shall include, but are not limited to, a copy of the earnest money receipt, and an itemization of the broker's receipts and disbursements with each transaction.  These records and all other records hereinafter specified shall be open to inspection by the director or his authorized representatives.

     (2) Every real estate broker shall also deliver or cause to be delivered to all parties signing the same, at the time of signing, conformed copies of all earnest money receipts, listing agreements and all other like or similar instruments signed by the parties, including the closing statement.

     (3) Every real estate broker shall also keep separate real estate fund accounts in a recognized Washington state depositary authorized to receive funds in which shall be kept separate and apart and physically segregated from licensee broker's own funds, all funds or moneys of clients which are being held by such licensee broker pending the closing of a real estate sale or transaction, or which have been collected for said client and are being held for disbursement for or to said client and such funds shall be deposited not later than the first banking day following receipt thereof.

     (4) Separate accounts comprised of clients' funds required to be maintained under this section, with the exception of property management trust accounts, shall be interest-bearing accounts from which withdrawals or transfers can be made without delay, subject only to the notice period which the depository institution is required to reserve by law or regulation.

     (5) Every real estate broker shall maintain a pooled interest-bearing escrow account for deposit of client funds, with the exception of property management trust accounts, which are nominal.  As used in this section, a "nominal" deposit is a deposit of not more than five thousand dollars.

     The interest accruing on this account, net of any reasonable and appropriate financial institution service charges or fees,  shall be paid to the state treasurer for deposit in the Washington housing trust fund created in RCW 43.185.030.  Appropriate service charges or fees are those charges made by financial institutions on other demand deposit or "now" accounts.  An agent may, but shall not be required to, notify the client of the intended use of such funds.

     (6) All client funds not required to be deposited in the account specified in subsection (5) of this section shall be deposited in:

     (a) A separate interest-bearing trust account for the particular client or client's matter on which the interest will be paid to the client; or

     (b) The pooled interest-bearing trust account specified in subsection (5) of this section if the parties to the transaction agree.

     The department of licensing shall promulgate regulations which will serve as guidelines in the choice of an account specified in subsection (5) of this section or an account specified in this subsection.

     (7) For an account created under subsection (5) of this section, an agent shall direct the depository institution to:

     (a) Remit interest or dividends, net of any reasonable and appropriate service charges or fees, on the average monthly balance in the account, or as otherwise computed in accordance with an institution's standard accounting practice, at least quarterly, to the state treasurer for deposit in the housing trust fund created by RCW 43.185.030, the Washington housing advisory plan trust fund created by section 713(3) of this act, and the real estate commission account created by RCW 18.85.220 as directed by RCW 18.85.315; and

     (b) Transmit to the director of community development a statement showing the name of the person or entity for whom the remittance is spent, the rate of interest applied, and the amount of service charges deducted, if any, and the account balance(s) of the period in which the report is made, with a copy of such statement to be transmitted to the depositing person or firm.

     (8) The director shall forward a copy of the reports required by subsection (7) of this section to the department of licensing to aid in the enforcement of the requirements of this section consistent with the normal enforcement and auditing practices of the department of licensing.

     (9) This section does not relieve any real estate broker from any obligation with respect to the safekeeping of clients' funds.

     (10) Any violation by a real estate broker of any of the provisions of this section, or RCW 18.85.230, shall be grounds for revocation of the licenses issued to the broker.

 

     Sec. 716.  RCW 18.85.315 and 1987 c 513 s 9 are each amended to read as follows:

     Remittances received by the treasurer pursuant to RCW 18.85.310 shall be divided between the housing trust fund created by RCW 43.185.030, which shall receive seventy-five percent, the Washington housing advisory plan trust fund created by section 713(3) of this act, which shall receive ten percent, and the real estate commission account created by RCW 18.85.220, which shall receive ((twenty-five)) fifteen percent.

 

     NEW SECTION.  Sec. 717.  A new section is added to chapter 35.21 RCW to read as follows:

     (1) A city or town may assist moderate-income, first-time homebuyers in the purchase of their principal place of residence by providing either loans, loan guarantees, down payment assistance, or closing costs assistance.

     The financial assistance authorized under this section shall be authorized by the legislative authority of the city or town.  The funds may be used to finance all or a portion of the cost of the residence or to guarantee loans made to first-time homebuyers.

     (2) To receive assistance under this section the purchaser must meet all of the following requirements:

     (a) The purchaser must be a first-time homebuyer;

     (b) The purchaser must be a moderate-income household; and

     (c) The purchase price of the residence must not exceed ninety percent of the average purchase price of single-family residences, as determined by the Washington state department of community development, in the statistical area in which the residence is located for the most recent twelve-month period for which statistical information is available.

     (3) As used in this section:

     (a) "First-time homebuyer" has the same meaning as in section 103 of this act.

     (b) "Moderate-income household" has the same meaning as in section 103 of this act.

     (c) "Residence" has the same meaning as in section 103 of this act.

 

     NEW SECTION.  Sec. 718.  A new section is added to chapter 36.32 RCW to read as follows:

     (1) A county may assist moderate-income, first-time homebuyers in the purchase of their principal place of residence by providing either loans, loan guarantees, down payment assistance, or closing costs assistance.

     The financial assistance authorized under this section shall be authorized by the legislative authority of the county.  The funds may be used to finance all or a portion of the cost of the residence or to guarantee loans made to first-time homebuyers.

     (2) To receive assistance under this section the purchaser must meet all of the following requirements:

     (a) The purchaser must be a first-time homebuyer;

     (b) The purchaser must be a moderate-income household; and

     (c) The purchase price of the residence must not exceed ninety percent of the average purchase price of single-family residences, as determined by the Washington state department of community development, in the statistical area in which the residence is located for the most recent twelve-month period for which statistical information is available.

     (3) As used in this section:

     (a) "First-time homebuyer" has the same meaning as in section 103 of this act.

     (b) "Moderate-income household" has the same meaning as in section 103 of this act.

     (c) "Residence" has the same meaning as in section 103 of this act.

 

     NEW SECTION.  Sec. 719.    Sections 717 and 718 of this act shall take effect upon the effective date of the proposed amendment to Article VIII of the state Constitution authorizing financial assistance to first-time homebuyers, if the amendment is validly submitted to and is approved and ratified by the voters at the November 1992 general election.  If the proposed amendment is not so approved and ratified, sections 717 and 718 of this act shall be null and void in its entirety.

 

                                     PART VIII

                               TECHNICAL PROVISIONS

 

     NEW SECTION.  Sec. 801.    (1) Sections 1 and 101 through 103 of this act shall constitute a new chapter in Title 43 RCW.

     (2) Sections 203 through 210 of this act shall constitute a new chapter in Title 82 RCW.

     (3) Sections 230 through 235 of this act shall constitute a new chapter in Title 84 RCW.

     (4) Sections 237 through 253 of this act shall constitute a new chapter in Title 84 RCW.

     (5) Sections 303 and 304 of this act are each added to chapter 30.60 RCW.

     (6) Sections 308 and 309 of this act are each added to chapter 32.40 RCW.

     (7) Sections 311 through 315 of this act shall constitute a new chapter in Title 33 RCW.

     (8) Sections 413 through 415 of this act shall constitute a new chapter in Title 82 RCW.

     (9) Sections 709 through 714 of this act shall constitute a new chapter in Title 43 RCW.

 

     NEW SECTION.  Sec. 802.    Sections 212 through 229 of this act shall take effect July 1, 1992.

 

     NEW SECTION.  Sec. 803.    If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

 

     NEW SECTION.  Sec. 804.    Part headings as used in this act constitute no part of the law.

 

     NEW SECTION.  Sec. 805.    This act may be known and cited as the "Washington housing policy act."