AN ACT Relating to comprehensive land use planning and economic development; amending RCW 82.02.020, 35.43.110, 35.91.020, 36.93.150, 36.93.180, 43.31.524, 43.31.526, 43.210.010, 43.210.020, 43.31.005, 43.31.035, 43.63A.065, 43.155.070, 43.160.060, and 43.168.050; amending section 1, chapter 417, Laws of 1989 (uncodified); reenacting and amending RCW 42.17.2401; adding new sections to chapter 43.31 RCW; adding new sections to chapter 43.63A RCW; adding a new chapter to Title 43 RCW; creating new sections; making an appropriation; and prescribing penalties.

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

NEW SECTION. Sec. 1. LEGISLATIVE FINDINGS AND INTENT. The state of Washington's natural environment is distinguished by a beauty, richness, and diversity which is the foundation of its economy, its quality of life and its spirit. Our neighborhoods and communities provide support for a stable, just, and enjoyable quality of life. These endowments are threatened by the consequences of unplanned growth, which results in the disappearance of its productive farm and forest lands, the decline of fish production, the fouling of its air and waters, the destruction of ecological diversity, the wasteful and uncoordinated provision of roads, sewers, water, and other services to sprawling development, the destabilization of established neighborhoods and communities, and divisive conflicts over the proper use of land and the future of our communities. These conflicts have revealed the lack of common goals which express the public's interest in the wise conservation and planned development of our lands. It is the intent of the legislature to remedy these problems by adopting state land use planning goals expressing our common policies, and creating a fair and open planning process that will allow citizens and local governments to find the means best adapted to their circumstances for achieving these state policies in local land use plans and implementing regulations.

The legislature finds that many of Washington's urban and suburban neighborhoods and communities are characterized by affordable housing stock which are compatible with available municipal services and transportation systems. These neighborhoods are threatened by redevelopment which would substitute greater densities of less affordable housing and which would overtax existing municipal services and transportation systems, ultimately resulting in overcrowded conditions and a reduction in value as well as quality of life. It is the intent of the legislature to foster stability in such neighborhoods and communities by affirmatively regulating direct development, including redevelopment within the state.

It is the intent of the legislature to deal with land use on a state-wide policy basis by initially focusing on the impacts of disproportionate population and employment pressure; the prevention of urban sprawl; the preservation of agricultural lands, forest lands, environmentally sensitive lands, aquatic resource lands, and other valuable resource lands; the restoration of lands which have suffered undue damage; the promotion of economic growth in regions lacking adequate growth, and the preservation of the character of existing communities. It is further the intent of the legislature to maintain an adequate renewable resource base while at the same time to protect the natural resources and environment of this state and to facilitate orderly and well planned development.

NEW SECTION. Sec. 2. DEFINITIONS. The terms defined in this section shall have the meanings indicated when used in this chapter, unless the context requires otherwise.

(1) "Agricultural land" means either (a) land which contains soils classified as prime and unique farm lands by the United States soils conservation service, or (b) land which has been (i) devoted primarily to the production of livestock or agricultural commodities for commercial purposes, or (ii) enrolled in the federal conservation reserve program or its successor administered by the Untied States department of agriculture. Land satisfying this definition shall exist in a contiguous parcel of at least eighty acres, but not necessarily under single ownership. Lands not satisfying this definition but contiguous to and under the same ownership as lands that do satisfy this definition, shall be considered agricultural lands for all purposes.

(2) "Forest lands" means land in public or private ownership whose natural features, including soils, topography, and climate are suited to commercial forest production, or where the predominant land use is forest production. Land satisfying this definition lies in a contiguous parcel of at least eighty acres, but not necessarily under single ownership. Lands not satisfying either this definition or the definition of agricultural land that are contiguous to and under the same ownership as lands that do satisfy this definition, shall be considered forest lands for all purposes.

(3) "Local government" means any city, town, or optional municipal code city, county, charter county, and charter city.

(4) "Commission" means the commission of land planning.

(5) "Comprehensive plan" means a generalized coordinated statement of a government body adopted pursuant to this chapter.

(6) "Development regulations" means any city, county, or regional controls placed on development or land use activities including, but not limited to, zoning ordinances, planned unit development ordinances, and subdivision ordinances.

(7) "Land" means the land, air, and water within the jurisdiction of the state of Washington or its cities or counties.

(8) "Special district" means a local unit of government, other than a city, county, or regional organization, authorized and regulated by statute to perform a single function or a limited number of functions, and includes, but is not limited to, water districts, irrigation districts, port districts, fire districts, school districts, community college districts, public hospital districts, sewer districts, public utility districts, transportation districts, and metropolitan municipal corporations organized under chapter 35.58 RCW.

(9) "Urban use" refers to the use of land for manufacturing and assembly, warehouses, offices, wholesale and retail sales and residential at greater than one dwelling unit per two and one-half acres, and residential uses dependent upon municipal sewage treatment. Residential, office, wholesale and retail sales, and product preparation solely incidental to the use of land for agricultural, forestry, mineral production, recreational, and fish and shellfish preparations shall not be considered as urban uses.

(10) "Urban growth" refers to that growth which makes intensive use of the land for the location of buildings, structures, impermeable surfaces, population densities to such a degree as to be incompatible with the primary use of such land for public recreation; or the production of foods, fibers, or mineral resources; or the protection and retention of lands which have importance for fish habitat and propagation, threatened or endangered species, wildlife corridors; or environmentally sensitive lands. When allowed to spread over wide areas, it typically requires urban governmental services.

(11) "Characterized by urban growth" refers to land which has urban growth located thereon, or to land which is so located in relationship to an area with urban growth as to be appropriate for urban growth.

(12) "Urban governmental services" include those governmental services historically and typically delivered by cities. The services include sewer services, water services, street cleaning services, fire and police protection services, public transportation, street lighting services, and other public utilities associated with urban areas and not normally associated with nonurban areas.

(13) "Community plans" means comprehensive localized plans for subareas of a county or city with a natural or artificial geographic identity as a neighborhood or community. Such plans are required to meet the state land use planning goals and may be required to meet other municipal or county objectives, but the specific content of the plans, including the map of land uses and future uses, is substantially completed and agreed to by the citizens residing within the geographic area of the neighborhood or community in question. There is no presumption of strict representation in a community plan process, though a demonstration of broad public support from the neighborhood or community may be required before such plans are approved by the municipal or county government.

(14) "Natural carrying capacity" means the amount of population or development beyond which the resources systems such as potable water, watersheds, forests, air, perkable soils, waste management systems, etc. are unable to sustain and recharge themselves without artificial assistance.

NEW SECTION. Sec. 3. LAND PLANNING COMMISSION. (1) There is hereby established within the office of the governor the commission of land planning which shall consist of nine members, appointed by the governor. In making appointments under this section, the governor shall select from residents of this state one member from each congressional district. No more than two members shall come from any county. Each appointee shall have demonstrated a commitment to protecting the environmental heritage of Washington. Initial appointments shall be made within four weeks of the effective date of this act.

(2) Except for the first members appointed to the commission, each member shall serve a term of four years. Of the members first appointed to the commission: (a) Two shall serve for a term ending June 30, 1991; (b) two shall serve for a term ending June 30, 1992; (c) three shall serve for a term ending June 30, 1993; and (d) two shall serve for a term ending June 30, 1994. No member shall serve more than eight years on the commission, or in the case of elected officials, beyond the terms of their office. A commission member may be removed by the governor, but only for cause. The governor shall appoint a person to fill a vacancy on the commission and such appointed person shall, subject to senate confirmation, serve for the remainder of the predecessor's unexpired term.

(3)(a) Members of the commission shall have a demonstrated commitment to preserving and enhancing Washington's environmental heritage; the fair, prompt and impartial execution of this statute; and upholding the public interest.

(b) No member of the commission shall have a financial conflict of interest which interferes, or which might reasonably be expected to interfere, with execution of their statutory responsibilities. Any member with a conflict of interest in any action shall excuse himself or herself from all participation on that issue.

(c) No more than two commissioners may receive any substantial part of his or her income from the sale or development of real property, whether this income is in the form of salaries or return on investment, and whether the income is deferred to or accrued at a later time. The income from spouses, children, or parents used to pay for the living expenses of the commission member is considered the commissioner's income for the purposes of this section.

(d) The courts shall construe (b) and (c) of this subsection so as to assure the public's confidence in the impartiality of the commission.

(4) Commission members shall be subject to recall as provided in this subsection:

(a) Recall of commissioners may be initiated by any legal voter of the state either individually or on behalf of an organization on the basis of any cause by filing a recall petition request with the secretary of state. The secretary of state shall provide the sponsor with a petition certification. The sponsor shall have a maximum of two hundred seventy days in which to obtain and file supporting signatures from the date of certification.

(b) The petition shall be in the form specified in RCW 29.82.030 except that no statement of cause or particular charges shall be included.

(c) The number of signatures required for placing the recall petition on the ballot shall be equal to ten percent of the total number of votes cast for all candidates for position 1 of the supreme court in the most recent election. Verification and canvassing of the petitions shall be in the manner established in RCW 29.82.090. If, at the conclusion of the verification and canvassing, it is found that the petition bears the required number of signatures, the secretary of state shall promptly certify the petition as sufficient and place the recall measure on the ballot of the next general election. The ballot shall be in the following form:

RECALL BALLOT

!ixFOR the recall of (here insert the name of Commissioner).

!ixAGAINST the recall of (here insert the name of Commissioner).

If a majority of all votes cast at the election is for the recall of the commissioner, the commissioner shall be recalled and discharged from the commission.

(d) The provisions of RCW 29.82.170 relating to crimes by petition signers shall apply to signers of recall petitions authorized by this section.

(e) Every person is guilty of a gross misdemeanor who:

(i) For any consideration signs or declines to sign any recall petition; or

(ii) By any corrupt practice or by threats or intimidation interferes with or attempts to interfere with the right of any legal voter to sign or not to sign any recall petition or to vote for or against any recall.

NEW SECTION. Sec. 4. COMMISSION COMPENSATION AND STAFF. (1) The compensation of members of the commission shall be established by the governor. The travel expense provisions of RCW 43.03.050 and 43.03.060 shall apply to the commission but the term "designated posts of duty" or "designated post of duty" as used in such provisions shall mean, when applied to commission members, the place in which they regularly reside.

(2) The commission shall hire staff sufficient to allow the commission to carry out its responsibilities in a timely and professional manner. In addition, each commission member may hire an individual staff person using funds allocated to the commission by this chapter.

NEW SECTION. Sec. 5. COMMISSION OFFICERS, SELECTION‑-QUORUM. (1) The commission shall select one of its members as chairperson and another member as vice-chairperson, for such terms and with duties and powers necessary for the performance of the functions of such offices as the commission determines. The vice-chairperson of the commission shall act as the chairperson of the commission in the absence of the chairperson.

(2) A majority of the members of the commission constitutes a quorum for the transaction of business.

(3) For purposes of reviewing local comprehensive plans and plan amendments, the commission shall sit in two panels, one panel made up of commissioners selected from districts east of the Cascade mountains and a second panel made up of commissioners selected from districts west of the Cascade mountains. Each panel shall review the comprehensive plans and plan amendments submitted from the local governments within the districts represented on that panel.

NEW SECTION. Sec. 6. COMMISSION AUTHORITY AND DUTIES. (1) The commission may exercise the following powers in addition to any other powers granted by law or this chapter:

(a) Examine the effectiveness and adequacy of the planning process established by this chapter;

(b) Study and report to the legislature on the need for new legislation to carry out the purposes of this chapter;

(c) Adopt a standardized system for the scale and display of comprehensive land use maps such that members of the commission, their staff, and citizens from different jurisdictions around the state can understand their local plans;

(d) Determine whether actions and programs of state agencies conform with the state-wide planning goals and are compatible with city and county comprehensive plans;

(e) Provide for periodic and objective evaluation of the performance of local governments, special districts, and state agencies in adopting and implementing comprehensive plans which are effective in carrying out the state's land use policies;

(f) Review and comment on all aspects of land use planning;

(g) Accept, receive, disburse, and administer grants or other funds or gifts from any source, including private individuals or agencies, the federal government, and other public agencies for the purposes of carrying out the provisions of this chapter; and

(h) Contract for the services of professional persons or organizations, or contract with any public agency, for the performance of services or the exchange of employees or services.

(2) The commission shall:

(a) Prepare, collect, provide, or cause to be prepared, collected, or provided state-wide land use inventories;

(b) Provide technical and financial assistance, a resource center with model plans and implementation strategies, and other support to local governments in the development and implementation of comprehensive land use plans, including information on innovative implementing regulations such as transferable development rights. Local governments engaged in joint or regional planning shall receive priority handling of their grant applications;

(c) Provide technical assistance to state agencies in developing functional plans and planning processes which conform to the legislatively adopted policy goals;

(d) Provide for the creation of a common data base which records the date, type, and location of land use decisions made by local governments in order to assist in the periodic evaluation of the effectiveness of the state's planning program;

(e) Establish dispute resolution systems for use by state agencies, local governments, special districts, and citizens;

(f) Adopt rules necessary to implement the state-wide planning goals identified in section 9 of this act within eight months of the effective date of this act. These rules shall contain numeric standards to provide clear and objective direction to local governments and state agencies as to how they should implement the state-wide planning goals.

(g) Adopt rules that establish procedures and standards for the preparation, review, adoption, and implementation of comprehensive plans within eight months of the effective date of this act;

(h) Represent this state before any agency of this state, any other state, or the United States with respect to land conservation and development within this state;

(i) Appoint advisory committees to aid it in carrying out its duties, including a state citizen advisory committee, broadly representative of the geographic areas of the state;

(j) Ensure widespread citizen involvement and input in all phases of the exercise of the commission's authority including holding hearings in the locales affected by its decisions, and developing models for information and planning processes by which neighborhood, city, county, region, and state plans can be substantially derived from citizen input, and by making grants to public interest organizations to assure public participation in the implementation and enforcement of this chapter;

(k) Review all comprehensive plans and plan amendments prepared under this chapter for purposes of determining compliance with state-wide goals as set forth in sections 3 and 9 of this act;

(l) Advise other state agencies regarding actions necessary for implementation of and compliance with this chapter;

(m) Collect and inventory data describing land uses, demographics, infrastructure, environmentally sensitive areas, transportation corridors, physical features, housing, and other information useful in managing growth throughout the state.

(3) Prior to the end of each even-numbered year, the commission shall prepare a written report for submission to the legislature describing activities and accomplishments of the commission, state agencies, local governments, and special districts in carrying out the provisions of this chapter. A draft of the report shall be submitted to the appropriate standing legislative committees for their review and comment at least sixty days prior to submission of the report to the legislature. Timely comments and recommendations of the standing legislative committees shall be addressed in the final report.

NEW SECTION. Sec. 7. LAND PLANNING ACCOUNT. (1) There is established in the general fund in the state treasury the land planning account. Moneys in the account may be continuously appropriated for carrying out the purposes of this chapter.

(2) All fees, moneys, and other revenue received by the department or the commission shall be deposited in the land planning account.

NEW SECTION. Sec. 8. NATURAL HERITAGE LANDS. (1) Natural heritage lands shall consist of all lands identified pursuant to subsection (2) or (4) of this section.

(2) The legislature may create heritage lands by approving or modifying a recommendation made by the commission. The commission shall recommend to the legislature lands for natural heritage designation upon finding that the lands possess qualities identified with the natural heritage of Washington state. At a minimum, within one year of the effective date of this act, the commission shall make recommendations regarding the following lands:

(a) Nisqually Delta;

(b) Skagit Flats;

(d) Dishman Hills; and

(e) Forest lands in state or private ownership contiguous or proximate to lands managed by the United States forest service or United States park service which are used or can reasonably be used for commercial wood fiber production.

(3) The commission's recommendations shall specify:

(a) The boundary of the area;

(b) The reasons for the requested designation; and

Upon the legislature's designation of natural heritage lands, the commission shall develop and adopt a management plan.

(4) (a) Natural heritage lands may be designated by the commission upon passage of an ordinance at the local level requesting such a designation. The ordinance shall specify:

(i) The boundary of the area;

(ii) The reasons for the requested designation; and

(iii) The goals to be served by a management plan.

(b) Within sixty days of receipt of an ordinance meeting the requirements of subsection (1) of this section, the commission shall determine whether there is a need for a management plan in order to protect the designated lands. Within six months of such a determination, the commission shall develop and adopt a management plan.

(5) Management plans developed and adopted pursuant to subsections (2) and (4) of this section shall be consistent with the goals identified in the nomination. For forest lands designated pursuant to subsection (2)(e) of this section, the plan shall include a prohibition on subdividing into lots smaller than one hundred sixty acres, and shall allow as a permitted use commercial forestry activity consistent with other laws. The commission's process for developing a management plan shall be consistent with the public participation goals of this chapter and shall include at a minimum at least two public hearings in the vicinity of the designated lands.

(6) Land uses and land activities within natural heritage lands and governmental decisions directly affecting those lands shall be consistent with the purposes for which the lands were designated.

NEW SECTION. Sec. 9. DECLARATION OF STATE LAND USE PLANNING GOALS. In order to assure the highest quality of life in Washington, land use decisions and regulation by state agencies, counties, cities, metropolitan corporations, special districts, and other local jurisdictions shall conform with the following goals and policies:

(1) State-wide planning goals:

(a) Land use: To provide for the efficient use of our state's land base and for coordinated land use planning and development;

(b) Economic development: To promote beneficial economic growth and development within the capacities of the state's natural resources and its public services and facilities;

(c) Conservation: To prevent further loss of agricultural, forest, environmentally sensitive, and wildlife habitat lands and to protect and improve water and air quality;

(d) Local community protection: To preserve and protect existing residential and business communities from incompatible uses and density of development;

(e) Transportation: To promote efficient transportation that relieves congestion and is consistent with state land use goals;

(f) Housing: To provide for adequate housing at reasonable cost in all cities and counties;

(g) Public services: To provide adequate services at reasonable costs;

(h) Historic preservation: To preserve and enhance historic, cultural, and archaeological sites and districts;

(i) Recreation and open space: To preserve and enhance the public's access to both public and private recreation and open space lands;

(j) Planning process: To require the enactment by all local jurisdictions of comprehensive plans, that the plans have regulatory effect, and that the plans be adopted and implemented with full public participation.

(2) The state land use planning goals set forth in subsection (1) of this section are further refined as follows:

(a) Land use goals:

(i) Prevent sprawl by defining urban growth boundaries and providing open space and low-density rural development at the perimeter of urban areas;

(ii) Protect, and restore where possible, and mitigate where protection is impossible, functioning natural ecosystems and environmentally sensitive lands;

(iii) Retain and increase recreational and open space lands in urban areas;

(iv) Protect natural heritage lands of state-wide significance;

(v) Preserve "productive forest lands";

(vi) Preserve "productive crop and grazing lands";

(vii) Phase out uses which do not conform with applicable comprehensive plans;

(viii) Ensure that land use development is consistent with existing local community character and/or community plans;

(ix) Assure that major public facilities are located to reduce impacts on existing neighborhoods and environmentally sensitive lands and are spread equitably throughout communities and the state;

(x) Protect property from unconstitutional taking;

(xi) Assure a balance between local employment and housing mix and capacity;

(xii) Locate and design employment and housing in a manner that supports transit and reduces reliance on single-occupancy vehicles; and

(xiii) Phase increases in allowable intensity of development in accordance with actual growth.

(b) Economic development goals:

(i) Permit only that development which is consistent with and promotes the land use goals of this chapter, and will not create a need for unplanned upgrading or increase in public service or transportation systems;

(ii) Designate in each comprehensive plan lands that are ready for development;

(iii) Provide for reuse of existing commercial and industrial areas in preference to abandonment of such areas and/or establishment of alternate areas;

(iv) Provide for a predictable, efficient development approval process;

(v) Prohibit development which requires or encourages urbanization of lands not designated for urban use in the comprehensive plan;

(vi) To the extent consistent with the protection of open space and environmentally sensitive lands, require in-filling of existing urbanized areas with available public service and facility capacity prior to developing lands identified for future urban growth;

(vii) Encourage development in areas of the state which are not affected by excessive growth;

(viii) Nurture an economy which is sustainable and not dependent on converting our remaining natural resource lands and open space to urban uses;

(ix) Encourage the use of productive forests and farms by allowing the utilization of prudent silvaculture and agricultural practices without interference by other uses; by protecting such lands from intrusion by others; and by assuring that adjacent uses are compatible with active forestry and agricultural practices;

(x) Assure that future development will not degrade public services and transportation systems, taking into consideration the age and condition of existing services and facilities; and

(xi) When allowing additional development in urban areas, identify areas where public services and transportation systems are overburdened, and encourage development in those areas where public services and transportation systems are underutilized.

(i) Use water resources in an efficient manner consistent with the public interest, and with the land use goals of this chapter;

(ii) Provide for the conservation and wise use of energy, mineral, and other natural resources;

(iii) Protect and improve air and water quality;

(iv) Conserve, protect, and use wisely environmentally sensitive lands;

(v) Conserve and restore fish and wildlife habitat, including riparian and migration corridors, to prevent loss of native fauna and flora and to assure bountiful and diverse wildlife for generations to come;

(vi) Manage surface waters for the protection of stream channels and water quality from altered runoff patterns and, particularly, storms; and

(vii) Prevent overburdening of the optimal carrying capacity of the local environmental resource systems such as soil, biological production, diversity, fresh and salt waters, air quality, food, health, and power supplies.

(d) Neighborhood community protection goals:

(i) Protect existing residential neighborhoods and business communities from development which is not reasonably consistent with the height, bulk, and scale of existing residential and business use or with the intent of community plans;

(ii) Promote stability of existing neighborhoods and limit the rate and nature of change in established neighborhoods unless a clear showing of public need has been made;

(iii) Promote the preservation and rehabilitation of existing housing stock in preference to its demolition and redevelopment;

(iv) Promote economic vitality and diversity of existing community business districts;

(v) Encourage and protect local pedestrian environments;

(vi) Ensure that the integrity of existing neighborhoods is maintained by avoiding development which will overload capacity of existing neighborhood service and transportation systems; and

(vii) Promote aesthetically pleasing design of development or redevelopment that enhances the character of the community or neighborhood.

(e) Transportation goals:

(i) Provide only transportation systems which are consistent with and promote the land use plans of this chapter;

(ii) Promote conservation and efficiency to minimize demand for motorized transportation;

(iii) Develop transportation systems which relieve traffic congestion, minimize pollution, and promote mobility of people and goods;

(iv) Give priority to mass transit, pedestrians, and nonmotorized transportation systems;

(v) Protect and coordinate existing and future rights of way and corridors for mass transit, carpools, pedestrians, and nonmotorized transportation;

(vi) Provide sound fiscal policies to fund the development of transportation systems in a timely and efficient manner;

(vii) Assure that future development bears a reasonable, and in most cases proportionate, share of the cost of transportation improvements necessitated by that development, to maintain the level of service standards established by comprehensive plans;

(viii) Provide for regional review and approval of regional transportation facilities such as airports and rail systems; and

(ix) Assure that transportation facilities are available concurrently with the impacts of land use development.

(f) Housing goals:

(i) Provide adequate and affordable housing for the existing population, anticipated population growth, and households with special housing needs;

(ii) Provide for rehabilitation of substandard housing to create additional affordable housing;

(iii) Provide for a fair share distribution of affordable housing including low and moderate income housing, multifamily housing and manufactured housing; and

(iv) Provide for retention of existing stocks of affordable housing, particularly low-income housing, and housing in stable neighborhoods, in preference to their demolition and replacement with other uses and housing types.

(g) Public service goals:

(i) Provide state and local governmental services ("public services") in a manner that is consistent with and promotes the land use goals of this chapter;

(ii) Utilize conservation and efficiency to minimize demand for sewer, water, electricity, solid waste disposal, fire and police protection, schools, and other public services;

(iii) Assure the timely and efficient provision of public services for new development;

(iv) Provide adequate funding for public services by assuring that proposed developments bear a reasonable and proportionate share of the cost of new public services necessitated by the development, to maintain levels of service standards established within comprehensive plans;

(v) Assure the public services and facilities are available concurrently with the impacts of land use development; and

(vi) Provide for equitable distribution of public services.

(h) Historic, archaeological, and cultural preservation goals: Identify and encourage preservation and, if appropriate, adoptive reuse, of lands, structures, and sites which have historic, aesthetic, archaeological, and/or cultural significance in preference to demolition, redevelopment, and inappropriate reuse.

(i) Recreation and open space goals:

(i) Ensure both public and private open space is provided to supply wildlife habitat and migration corridors, to protect public health and safety, and to enhance the quality of the urban environment;

(ii) Ensure public access to areas traditionally open for public use, including recreation sites, public viewpoints, and the waters and shorelines including, but not limited to, lakes, rivers, streams, and marine waters; and

(iii) Ensure that adequate parks and recreation facilities sized to accommodate anticipated growth and demand are provided prospectively or concurrently with approval of development that will increase demand.

(j) Planning process and goals:

(i) Assure that all agencies of the state and local units of government plan in accordance with the goals of this chapter;

(ii) Provide for adequate funding of local planning processes;

(iii) Establish procedures for citizen participation throughout the planning process, including early and adequate opportunity for review of inventories, plans, and proposals, submission of comments, examination of documents and persons relevant to a particular inventory, proposal, or project, and establishment of a procedure which will guarantee that citizen comments are made part of the record and given substantive weight in all planning processes;

(iv) Develop a simple planning process, and require plans and supporting studies to be written in plain language, to allow maximum citizen participation with minimum need for attorneys and experts, and make the assumptions behind the planning available to the public;

(v) Base the comprehensive plans on supportable and specific rate-of-growth assumptions including numerical level-of-service standards and projected population-to-service need ratios;

(vi) Develop phasing mechanisms to encourage compact growth patterns over the life of the comprehensive plan;

(vii) Develop regional, multicounty plans which address the needs for and siting of major regional facilities such as airports, sewage treatment plants, correctional institutions and landfills; and

(viii) Assure that decisions are made by persons who do not have and who do not present the appearance of having an economic conflict of interest or bias.

NEW SECTION. Sec. 10. PLANNING RESPONSIBILITIES OF CITIES, COUNTIES, AND PORT DISTRICTS. (1) Local governments and port districts shall exercise their responsibilities, including the issuance of all land use permits, subdivision approvals, rezonings, and plan amendments, city or special district boundary changes, the annexations of unincorporated territory, the incorporation of new cities, the formation, change, or annexation to any special district, and the development of capital budgets in accordance with this chapter and its goals, the rules adopted by the commission to implement this chapter and its goals and all applicable comprehensive plans, including the comprehensive plans of other jurisdictions which may be impacted by the proposed action implementing the provisions of this chapter.

(2) Within six months of the effective date of this act, each local government shall develop ten and twenty-year population, housing, and employment goals for all lands within the local government.

(3) Each local government in this state shall:

(a) Prepare, adopt, amend, and revise comprehensive plans in compliance with the goals established by this chapter, and as further defined by the commission;

(b) Make land use and capital budget decisions in compliance with the goals established by this chapter and the commission in the event that its comprehensive plan and land use regulations have not been approved by the commission;

(c) Make land use and capital budget decisions in compliance with the approved plan and land use regulations in the event that its comprehensive plan and land use regulations have been approved by the commission; and

(d) Collect and provide to the commission data specified in the commission's rules.

(4) Each local government shall enact regulations fully implementing its comprehensive plans. The regulations shall include:

(a) A prohibition on new development which would cause public services, transportation or recreation facilities to fall below the level of service standards established by the local government in its comprehensive plan; and

(b) Provisions which protect and create incentives for the continuation of prudent commercial forestry and agricultural practices in appropriate rural areas.

NEW SECTION. Sec. 11. COMPREHENSIVE PLANS‑-PUBLIC PARTICIPATION. (1) Each local government shall establish procedures providing for early and continuous public participation in the development of inventories, comprehensive land use plans, and general ordinances implementing such plans and in the development of amendments to such plans or ordinances. The procedures shall provide for broad dissemination of proposals and alternatives, opportunity for written comments, public meetings after effective notice, provision for open discussion, communication programs, information services, and consideration of and response to public comments. Each local government shall establish advisory committees to assist in carrying out its responsibilities under this chapter.

(2) Cities with a population larger than one hundred thousand shall develop community plans covering subareas of the city, the boundaries of which shall be determined by the legislative authority after a thorough public process, including open public hearings with adequate advance public notice. The community plans shall be integrated and reconciled with one another so that the city's comprehensive plan meets the requirements of sections 9, 11, and 12 of this act. Implementing acts of this statute shall ensure that neighborhoods are fully aware of city-wide goals and objectives prior to completing their plans.

NEW SECTION. Sec. 12. COMPREHENSIVE PLAN‑-INTERGOVERNMENTAL COORDINATION. Local governments and port districts may develop joint or regional plans, and may apply for funds from the land planning account and/or establish regional planning agencies for that purpose. All joint and regional plans shall meet all the substantive and procedural requirements for comprehensive plans established by this chapter. If joint or regional plans are not developed, local governments and port districts shall be encouraged to utilize the commission's dispute resolution procedures for purposes of developing consistency between and among their comprehensive plans.

NEW SECTION. Sec. 13. COMPREHENSIVE PLAN REQUIREMENTS. Within three years after the effective date of this act, each local government shall have adopted a comprehensive land use plan and shall have furnished a copy thereof to the commission.

(1) Each element of a comprehensive plan shall include the following components:

(a) An inventory of all existing lands, land uses, or facilities relating to that element;

(b) An analysis of existing needs;

(c) An analysis of future needs based upon the land uses shown on the future land use map as required by subsection (2)(b) of this section, and population, housing, and employment goals consistent with the goals developed pursuant to section 9 of this act;

(d) A statement of the goals and a list of objectives consistent with the land uses shown on the future land use map and consistent with the goals of section 9 of this act.

(2) Each comprehensive plan shall include a land use element which is based on the carrying capacity of the land and which includes:

(a) A map depicting the existing distribution of "important lands and land uses," defined in (c) of this subsection, and lands which because of existing sewer lines, water lines, and other urban services can be characterized as urban growth areas;

(b) A map depicting the proposed future distribution of "important lands and land uses," including an urban service area, consistent with the goals of section 9 of this act;

(i) Urban and suburban lands, which shall be further identified and classified by local regulation;

(ii) Mixed use rural lands;

(iii) Agricultural and range lands;

(iv) Forest lands;

(v) Mining and mineral production lands;

(vi) Environmentally sensitive lands, including wetlands, one hundred year floodplains, slopes in excess of forty percent and landslide and seismic hazard lands; wildlife habitat, fish habitat, and special plant community lands; public recreation lands; lands important for watersheds and ground water recharge; coasts, dunes, and shorelands; and lands of archaeological, historic, or religious value;

(vii) Lands used for local public facilities; and

(viii) Lands used for regional or state-wide public facilities.

(3) Each comprehensive plan shall also contain the following additional elements. Each additional element shall be consistent with the future land use map:

(a) An economic development element which:

(i) Is based on an analysis of the community's economic patterns and potential; and

(ii) Identifies an adequate supply of sites of suitable size, type, location, and service levels for industrial and commercial uses;

(b) A conservation element;

(c) A neighborhood preservation element which provides for the preservation of existing residential and business communities;

(d) A transportation element which:

(i) Establishes level of service standards at peak hours for all roads and mass transit systems;

(ii) Is based on an analysis of the age, condition, and maintenance of existing systems; and

(iii) Identifies potential corridors for future transit or road development as called for in the plan;

(e) A housing element which takes into account regional housing needs; provides for additional housing at various price ranges and rent levels; and provides for distribution and acceptance of the jurisdiction's fair share of regional demand for multiple-unit housing, low-income housing, manufactured housing, and housing for those with special needs;

(f) A public services element which:

(i) Establishes level of service standards for all public services;

(ii) Assesses the need for and alternatives to regional facilities and determines whether appropriate sites exist; and

(iii) Makes provision for public service needs of the community by providing sites within its area or by entering into agreements with other communities or jurisdictions; and

(g) A recreation and open space element which:

(i) Includes specific open space definitions and standards and local land development regulation;

(ii) Establishes a plan and financial capability for the acquisition of open space and preservation of natural lands; and

(iii) Establishes the level of service standards for recreation.

(4) Each comprehensive plan shall be internally consistent so that all elements of the plan are consistent with the future land use map and with each other.

(5) Each comprehensive plan shall contain an element demonstrating that its employment and population goals and its elements are consistent with the goals and elements of plans of surrounding jurisdictions and regional wildlife corridor protection and/or restoration plans developed by the commission and the department of wildlife.

(6) A comprehensive plan may contain additional elements consistent with the elements required by this section, including an element addressing multijurisdictional issues.

NEW SECTION. Sec. 14. The commission shall review each county comprehensive plan and shall, subsequent to at least one hearing thereon, either reject the plan on the ground that it is not in compliance with sections 9, 10, 11, and 13 of this act or approve it. If the commission rejects the plan it shall specify its reasons therefor. Commission approval or rejection shall occur within six months of submission of the plan.

NEW SECTION. Sec. 15. COMPREHENSIVE PLANS‑-COMMISSION APPROVAL. (1) If the commission finds that a comprehensive land use plan, which is submitted for approval fails to comply with section 9, 10, 11, or 13 of this act as a result of inadequacies which can be easily corrected, the commission may grant a provisional approval of such plan. The terms of a provisional approval shall specify the plan's inadequacies and shall require the local government to correct them by a prescribed date, in no event more than three months from the date of provisional approval. The commission shall review the progress made by the local government in correcting such inadequacies and shall grant final certification of the plan whenever it finds that such inadequacies have been corrected. A provisional approval can be extended only one time and for no more than three additional months. If the commission finds that the inadequacies have not been corrected by the prescribed date, the plan shall be deemed "unapproved" as of the time of such finding. A plan having the status of provisional approval shall be deemed "approved" for the purposes of section 17 of this act.

(2) If the comprehensive plan of the adjacent district is not approved and its deadline has not passed, the adjacent community may advise the commission that it has reasonable belief that the submitted comprehensive plan may be in conflict with the comprehensive plan being developed by the adjacent community. In that event, the commission shall defer action on the comprehensive plan or the contested portion of the comprehensive plan until the adjacent local government submits its comprehensive plan, or the deadline for submittal passes.

NEW SECTION. Sec. 16. COMPREHENSIVE PLANS, FINAL APPROVAL DEADLINE. Within four years after the effective date of this act, each local government shall have obtained the commission's approval of its comprehensive plan. All unapproved comprehensive plans in existence on and after such period and all development regulations implementing such unapproved plans shall, except as provided in section 18 of this act, continue in effect until replaced by regulations pursuant to this chapter or revised pursuant to this chapter.

NEW SECTION. Sec. 17. COMPREHENSIVE PLANS‑-PRESUMED CONFORMANCE. Any comprehensive plan approved by the commission shall be conclusively presumed to be in conformity with sections 9, 10, 11, and 13 of this act. This section shall not apply to any approval which the commission finds resulted from the furnishing to it of inaccurate or incomplete information or to any approval which has been appealed and on which a judicial decision is pending or to any decision made or proceeding conducted pursuant to section 29 of this act.

NEW SECTION. Sec. 18. COMPREHENSIVE PLANS' AMENDMENTS AND REVISIONS. (1) Any amendment to or revision of an approved comprehensive plan shall be of no force or effect until the commission certifies that the amended or revised plan complies with sections 9, 10, 11, and 13 of this act. Any amended or revised plan approved by the commission shall be construed to be and shall have the same status under this chapter as an approved comprehensive plan.

(2) Each local government and special district shall establish procedures whereby proposed amendments or revisions of comprehensive plans are considered by the local government's legislative body no more often than once a year. All such proposals shall be considered by the legislative body concurrently so that the cumulative effect of the various proposals can be ascertained.

(3) Emergency amendments may be adopted outside the annual amendment cycle only if a showing is made by clear, cogent, and convincing evidence that (a) new environmental conditions exist which could not have been foreseen at the time of the last plan adoption or amendment and (b) serious and irreparable harm inconsistent with the land use goals of this chapter will occur if the emergency amendment is not adopted. Emergency amendments must be adopted seventy-five percent by the local government and approved seventy-five percent by the commission. Emergency amendments shall be subject to the referendum procedures of chapter 29.79 RCW.

NEW SECTION. Sec. 19. COMPREHENSIVE PLANS‑-REMAND FOR MODIFICATION. (1) If a local government's comprehensive plan is not approved by the commission and the deadline for approval has not passed, the plan shall be remanded to the local government for corrections.

(2) If a local government's comprehensive plan is not approved by the commission and the plan is less than one year overdue, the commission may take one or more of the following actions:

(a) If the local government is a city or town, prohibit the local government from proceeding with annexation proposals;

(b) Certify to the state treasurer, the lack of compliance with this chapter. Upon receipt of such certification, the state treasurer shall withhold any distribution of:

(i) Local sales and use tax revenues to be made to that jurisdiction pursuant to RCW 82.14.060; and

(ii) Motor vehicle tax revenues to be made to that jurisdiction pursuant to RCW 46.68.110(3), 46.68.115, 46.68.120(4), 46.68.122, and 46.68.124.

All payments withheld shall be retained by the state treasurer until such time as the commission certifies that the jurisdiction has complied with this chapter by obtaining commission approval of its comprehensive plan.

(3) If a local government's comprehensive plan is more than one year overdue, the commission shall take both of the actions listed in subsection (2) of this section.

(4) If a local government's comprehensive plan is more than two years overdue, the commission may impose a moratorium on some or all development within part or all of the jurisdiction.

(5) If a local government's comprehensive plan is more than four years overdue, the commission shall impose a moratorium on some or all development activity within all of the jurisdiction.

(6) If a local government's comprehensive plan is more than five years overdue, the commission shall impose a moratorium on all development activity in that jurisdiction not vital to the maintenance of public health and safety.

NEW SECTION. Sec. 20. APPROVED COMPREHENSIVE PLANS‑-ALLOWANCE FOR LOCAL OPTION TAXES. Upon approval of a comprehensive plan by the commission, the local government shall immediately be authorized to fix and impose an excise tax on the sale or distribution of motor vehicle fuel and special fuel. The rate of such tax shall be in increments of one-tenth of one cent per gallon and shall not exceed two cents per gallon. Any jurisdiction imposing such tax shall contract with the department of revenue for the administration and collection of the tax. All appropriate administrative provisions in chapters 82.36 and 82.38 RCW shall be applicable to the tax authorized by this section.

NEW SECTION. Sec. 21. COMPREHENSIVE PLANS‑-FORCE AND EFFECT OVER CONFLICTING DEVELOPMENT REGULATIONS. Within one year of approval of the jurisdiction's comprehensive plan each local government shall enact development regulations which implement and do not conflict with its approved comprehensive land use plan and shall file a copy of such regulations with the commission for its review and comments. Ordinances utilizing transferrable development rights shall be considered. Any development regulation shall be of no force or effect which conflicts with or fails to implement the jurisdiction's approved comprehensive plan. With or without properly adopted development regulations, the approved comprehensive plan shall have the force and effect of law and shall regulate the use of land.

NEW SECTION. Sec. 22. STATE COMPLIANCE WITH COMPREHENSIVE PLANS. The activities of all state agencies, including development of capital budgets and proposals for use of public lands, shall comply with the goals of section 9 of this act and the comprehensive plans and development regulations of cities and counties approved or adopted by the commission pursuant to this chapter. All state agencies shall analyze their existing practices and activities to determine and demonstrate compliance with such goals. If at any time, the comprehensive plan or development regulation does not allow for a land use proposed by a state agency, the state agency may only receive approval by first applying for amendment to the comprehensive plan or development regulation at issue, as such amendments are regularly processed by the local jurisdiction and the commission. If the amendment process does not resolve the conflict, the agency may petition the commission to resolve the conflict. The commission's rules for resolving such disputes shall assure that all participants, including the public, have full opportunity to affect the decision.

NEW SECTION. Sec. 23. JUDICIAL REVIEW. (1) Any final action taken by any local government or any special district in exercise of its responsibilities under section 10 of this act, including any action taken under rules adopted pursuant to this chapter and under the state environmental policy act may be appealed to superior court by any person or entity, or association of persons or entities, having an interest affected by such action. This section creates a new cause of action in addition to existing causes of action under statute and constitutional and common law.

(2) An appeal under this chapter shall be commenced within thirty days of the date of publication of the final order appealed from. For purposes of this limitation period, publication shall consist of (a) publishing notice of such final action within a legal newspaper of general circulation in the area of the property subject to the action for two consecutive weeks and (b) mailing notice of such final action to each party of record, each property owner, and each owner of property within three hundred feet of the property subject to the action. The notice shall identify: The property subject to the action; the nature of the action taken; the final date of publication; the final date of any appeal; and availability of appeal to superior court.

(3) Venue of any action brought under this chapter shall reside in the county of the local government or special district whose action is subject to the appeal, or in the adjoining county, or in Thurston county.

(4) The local government or special district rendering the decision appealed from shall be joined in any appeal brought under this chapter, but only in the name of its corporate entity, and not in the name of its representative boards, councils, bodies, examiners, executives, commissions, or other bodies. Service of such appeal is lawfully provided if personally delivered to the principal office or place of business for such local government or special district or the office of the prosecuting, city, or district attorney.

(5) If a final action appealed under this chapter involves an application for action on a specific parcel of property, the persons or entities making such application shall be joined as parties to such an appeal, and shall be named as set forth in such application. No other persons or entities must be named and/or served as necessary parties.

(6) Within sixty days of receipt of service of an appeal of a final action, the local government or special district shall prepare and file with the superior court the record of the decision appealed from. The record of the decision shall include all authorities, evidence, testimony, and other documentation relied upon by the local government or special district in making the decision. By stipulation or upon motion, the record may be shortened. Any party unreasonably refusing to stipulate to limit the record may be assessed additional costs by the court. The costs of preparing the record of decision, including the transcription of proceedings, shall be borne by the local government or special district whose decision is under appeal.

(7) Review of the local government or special district decision appealed from shall be limited to the record except for issues concerning procedural irregularity, constitutional violations, and issues for which appellant was deprived the opportunity to prepare an adequate record before the local government or special district.

(8) The court may affirm, reverse, or remand a decision appealed under this chapter. A decision shall be reversed or remanded if the court finds:

(a) The decision to be unlawful in substance or procedure, including being contrary to the provisions and protections of this chapter and plans and regulations adopted thereunder;

(b) The decision to be unconstitutional; or

(c) The decision to be unsupported by substantial evidence in the record as to facts found by the local government or special district.

(9) In revising or remanding a decision of a local government or special district the court shall award reasonable costs and attorneys' fees to a qualified appellant against the local government or special district, if it finds that the decision appealed from was not substantially justified and the appeal was brought in the public interest. For purposes of this section, a decision is not substantially justified if it is found to be contrary to law in either substance or procedure, is declared unconstitutional, or devoid of such support in the evidence as to be arbitrary and capricious. An appeal shall be deemed to be brought in the public interest if it promotes the interest of the community at large and beyond the interests at stake in an individual parcel of property. A qualified appellant is a person or entity or association of persons or entities with less than one hundred thousand dollars in net assets.

NEW SECTION. Sec. 24. CONFORMANCE WITH OTHER PLANNING STATUTES. All planning which this chapter requires a local government to perform shall be performed in conformity with chapter 36.70 or 35.63 RCW, whichever is appropriate: PROVIDED, That a charter county or charter city may perform its planning activities pursuant to charter provisions as an incident of its inherent home rule authority. Any county which adopts a comprehensive land use plan conforming to the definition of "comprehensive land use plan" contained in this chapter shall be deemed to have complied with the requirements of RCW 36.70.020(6) and 36.70.330. Any city which adopts a comprehensive land use plan conforming to the definition of "comprehensive land use plan" contained in this chapter shall be deemed to have complied with chapter 35.63 or 35A.63 RCW, whichever is appropriate. Should there exist a conflict between the provision of this chapter, and the provision of chapter 36.70, 35.63, or 35A.63 RCW, the provision of this chapter shall prevail.

NEW SECTION. Sec. 25. CONFORMANCE WITH SHORELINE MANAGEMENT ACT AND STATE ENVIRONMENTAL POLICY ACT. All land subject to the provisions of chapter 90.58 RCW, the shoreline management act, and chapter 43.21C RCW, the state environmental policy act, as now or hereafter amended, shall continue to be managed pursuant thereto. This chapter in no way amends, limits, or repeals the effect of these laws upon land and actions subject to those laws.

NEW SECTION. Sec. 26. VESTING DOCTRINE REVISED. The majority rule for vesting of rights is adopted for the state of Washington under which a right vests only:

(1) Upon the issuance of a valid permit; and

(2) Upon both a change of position and substantial reliance being made upon the permit. Prior Washington case law to the contrary shall have no further effect.

Sec. 27. Section 82.02.020, chapter 15, Laws of 1961 as last amended by section 6, chapter 179, Laws of 1988 and RCW 82.02.020 are each amended to read as follows:

IMPACT FEES. (1) Except only as expressly provided in RCW 67.28.180 and 67.28.190 and the provisions of chapter 82.14 RCW, the state preempts the field of imposing taxes upon retail sales of tangible personal property, the use of tangible personal property, parimutuel wagering authorized pursuant to RCW 67.16.060, conveyances, and cigarettes, and no county, town, or other municipal subdivision shall have the right to impose taxes of that nature.

((No)) (2) Any county, city, town, or other municipal corporation shall have the authority to impose any tax, fee, or charge, either direct or indirect, on the construction or reconstruction of residential buildings, commercial buildings, industrial buildings, or on any other building or building space or appurtenance thereto, or on the development, subdivision, classification, or reclassification of land((~~. However, this section does not preclude~~)), and to require dedications of land or easements pursuant to RCW 58.17.110 within the proposed development or plat which the county, city, town, or other municipal corporation can demonstrate are reasonably necessary as a ((~~direct~~)) result of the proposed development or plat to which the fees, charges, or dedications of land or easements ((is)) are to apply.

(3) This section does not prohibit voluntary agreements with counties, cities, towns, or other municipal corporations that allow a payment in lieu of a dedication of land or to mitigate a direct impact that has been identified as a consequence of a proposed development, subdivision, or plat. The refusal to enter into such voluntary agreements shall not limit a local government's authority under subsection (2) of this section. A local government shall not use such voluntary agreements for local off-site transportation improvements within the geographic boundaries of the area or areas covered by an adopted transportation program authorized by chapter 39.92 RCW. Any such voluntary agreement is subject to the following provisions:

((~~(1)~~)) (a) The payment shall be held in a reserve account and may only be expended to fund a capital improvement agreed upon by the parties to mitigate the identified, direct impact;

((~~(2)~~)) (b) The payment shall be expended in all cases within five years of collection; and

((~~(3)~~)) (c) Any payment not so expended shall be refunded with interest at the rate applied to judgments to the property owners of record at the time of the refund; however, if the payment is not expended within five years due to delay attributable to the developer, the payment shall be refunded without interest.

((No county, city, town, or other municipal corporation shall require any payment as part of such a voluntary agreement which the county, city, town, or other municipal corporation cannot establish is reasonably necessary as a direct result of the proposed development or plat.))

Nothing in this section ((~~prohibits~~)) limits cities, towns, counties, or other municipal corporations from collecting reasonable fees from an applicant for a permit or other governmental approval to cover the cost to the city, town, county, or other municipal corporation of processing applications, inspecting and reviewing plans, or preparing detailed statements required by chapter 43.21C RCW.

This section ((~~does not~~)) in no way limits the existing authority of any county, city, town, or other municipal corporation to impose special assessments on property specifically benefitted thereby in the manner prescribed by law.

Nothing in this section prohibits or limits counties, cities, or towns from imposing or permits counties, cities, or towns to impose water, sewer, natural gas, drainage utility, and drainage system charges((: PROVIDED, That no such charge shall exceed the proportionate share of such utility or system's capital costs which the county, city, or town can demonstrate are attributable to the property being charged: PROVIDED FURTHER, That these provisions shall not be interpreted to expand or contract any existing authority of counties, cities, or towns to impose such charges)).

Nothing in this section prohibits a transportation benefit district from imposing fees or charges authorized in RCW 36.73.120 nor prohibits the legislative authority of a county, city, or town from approving the imposition of such fees within a transportation benefit district.

Nothing in this section prohibits counties, cities, or towns from imposing transportation impact fees authorized pursuant to chapter 39.92 RCW.

This section does not apply to special purpose districts formed and acting pursuant to Titles 54, 56, 57, or 87 RCW, nor is the authority conferred by these titles affected.

Sec. 28. Section 35.43.110, chapter 7, Laws of 1965 as amended by section 10, chapter 313, Laws of 1981 and RCW 35.43.110 are each amended to read as follows:

Proceedings to establish local improvement districts must be initiated by petition in the following cases:

(1) Any local improvement payable in whole or in part by special assessments which includes a charge for the cost and expense of operation and maintenance of escalators or moving sidewalks shall be initiated only upon a petition signed by the owners of two-thirds of the lineal frontage upon the improvement to be made and two-thirds of the area within the limits of the proposed improvement district;

(2) If the management of park drives, parkways, and boulevards of a city has been vested in a board of park commissioners or similar authority: PROVIDED, That the proceedings may be initiated by a resolution, if the ordinance is passed at the request of the park board or similar authority therefor specifying the particular drives, parkways, or boulevards, or portions thereof to be improved and the nature of the improvement.

(3) Any local improvement district for sewers or a system of sewerage, as defined in RCW 35.67.010, shall be initiated only upon a petition signed by the owners of at least seventy percent of the lineal frontage upon the improvement to be made. These property owners shall pay at least seventy percent of the total cost of the sewer local improvement district, or for the entire cost of the local improvement district, whichever is greater, if they are the ones who solely benefit from the local improvement district, as defined and explained in this subsection.

In order for the other thirty percent or smaller percentage of property owners to be assessed for the sewer local improvement district, the proponents must prove by clear and convincing evidence that the sewer local improvement district will not work an economic and financial hardship on those property owners resulting in the possible loss of their land, homes, and/or businesses. If the proponents of the sewer local improvement district cannot meet this burden of proof for each and every property owner, they shall pay for the total cost of the sewer local improvement district.

Sec. 29. Section 35.91.020, chapter 7, Laws of 1965 as last amended by section 11, chapter 313, Laws of 1981 and RCW 35.91.020 are each amended to read as follows:

The governing body of any city, town, county, sewer district, water district, or drainage district, hereinafter referred to as a "municipality" may contract with owners of real estate for the construction of storm, sanitary, or combination sewers, pumping stations, and disposal plants, water mains, hydrants, reservoirs, or appurtenances, hereinafter called "water or sewer facilities," within their boundaries or (except for counties) within ten miles from their corporate limits connecting with the public water or sewerage system to serve the area in which the real estate of such owners is located, and to provide for a period of not to exceed ((~~fifteen~~)) twenty-five years for the reimbursement of such owners and their assigns by any owner of real estate who did not contribute to the original cost of such water or sewer facilities and who subsequently tap onto or use the same of a fair pro rata share of the cost of the construction of said water or sewer facilities, including not only those directly connected thereto, but also users connected to laterals or branches connecting thereto, subject to such reasonable rules and regulations as the governing body of such municipality may provide or contract, and notwithstanding the provisions of any other law. To the extent it may require in the performance of such contract, such municipality may install said water or sewer facilities in and along the county streets in the area to be served as hereinabove provided, subject to such reasonable requirements as to the manner of occupancy of such streets as the county may by resolution provide. The provisions of such contract shall not be effective as to any owner of real estate not a party thereto unless such contract has been recorded in the office of the county auditor of the county in which the real estate of such owner is located prior to the time such owner taps into or connects to said water or sewer facilities. The power of the governing body of such municipality to so contract also applies to water or sewer facilities in process of construction on June 10, 1959, or which have not been finally approved or accepted for full maintenance and operation by such municipality upon June 10, 1959.

The duration of latecomer fee agreements for sewers in this section is extended to twenty-five years from the current fifteen years.

The amount of latecomer's fees for sewer hookup must be fair and reasonable, based upon reasonable, prevailing market rates for construction at the time the sewer project is completed.

These latecomer's fees must not exceed the original construction costs, as determined by an audit conducted by a private, impartial party. The costs of this audit shall be included within the original costs of the project. Latecomer's fees are not intended to be a money-making proposition for developers, they can only recoup their original costs, exclusive of inflation.

Sec. 30. Section 15, chapter 189, Laws of 1967 as last amended by section 7, chapter 477, Laws of 1987 and RCW 36.93.150 are each amended to read as follows:

The board, upon review of any proposed action, shall take such of the following actions as it deems necessary to best carry out the intent of this chapter:

(1) Approval of the proposal as submitted;

(2) Subject to RCW 35.02.170, modification of the proposal by adjusting boundaries to add or delete territory: PROVIDED, That any proposal for annexation by the board shall be subject to RCW 35.21.010 and shall not add additional territory, the amount of which is greater than that included in the original proposal: PROVIDED FURTHER, That such modifications shall not interfere with the authority of a city, town, or special purpose district to require or not require preannexation agreements, covenants, or petitions;

(3) Determination of a division of assets and liabilities between two or more governmental units where relevant;

(4) Determination whether, or the extent to which, functions of a special purpose district are to be assumed by an incorporated city or town, metropolitan municipal corporation, or another existing special purpose district; or

(5) Disapproval of the proposal except that the board shall not have jurisdiction to disapprove the dissolution or disincorporation of a special purpose district which is not providing services but shall have jurisdiction over the determination of a division of the assets and liabilities of a dissolved or disincorporated special purpose district: PROVIDED, That a board shall not have jurisdiction over the division of assets and liabilities of a special purpose district that is dissolved or disincorporated pursuant to chapter 36.96 RCW.

Unless the board shall disapprove a proposal, it shall be presented under the appropriate statute for approval of a public body and, if required, a vote of the people. A proposal that has been modified shall be presented under the appropriate statute for approval of a public body and if required, a vote of the people. If a proposal, other than that for a city, town, or special purpose district annexation, after modification does not contain enough signatures of persons within the modified area, as are required by law, then the initiating party, parties or governmental unit has thirty days after the modification decision to secure enough signatures to satisfy the legal requirement. If the signatures cannot be secured then the proposal may be submitted to a vote of the people, as required by law.

The addition or deletion of property by the board shall not invalidate a petition which had previously satisfied the sufficiency of signature provisions of RCW 35.13.130 or 35A.14.120. When the board, after due proceedings held, disapproves a proposed action, such proposed action shall be unavailable, the proposing agency shall be without power to initiate the same or substantially the same as determined by the board, and any succeeding acts intended to or tending to effectuate that action shall be void, but such action may be reinitiated after a period of twelve months from date of disapproval and shall again be subject to the same consideration.

The board shall ((~~not~~)) modify or deny a proposed action ((~~unless there is evidence on the record to support a conclusion~~)) if it finds that the action is inconsistent with one or more of the objectives under RCW 36.93.180 and that such inconsistency is not outweighed by the actions taken in fulfillment of other objectives under RCW 36.93.180. The board shall deny any annexation of a city or town beyond the urban service area established by section 9(2)(a)(i) of this act. Every such determination to modify or deny a proposed action shall be made in writing pursuant to a motion, and shall be supported by appropriate written findings and conclusions, based on the record.

Sec. 31. Section 18, chapter 189, Laws of 1967 as last amended by section 6, chapter 84, Laws of 1989 and RCW 36.93.180 are each amended to read as follows:

The decisions of the boundary review board shall attempt to achieve the following objectives:

(1) Preservation of natural neighborhoods and communities;

(2) Use of physical boundaries, including but not limited to bodies of water, highways, and land contours;

(3) Creation and preservation of logical service areas;

(4) Prevention of abnormally irregular boundaries;

(5) Discouragement of multiple incorporations of small cities and encouragement of incorporation of cities in excess of ten thousand population in heavily populated urban areas;

(6) Dissolution of inactive special purpose districts;

(7) Adjustment of impractical boundaries;

(8) Incorporation as cities or towns or annexation to cities or towns of unincorporated areas which are urban in character; ((~~and~~))

(9) Protection of agricultural and rural lands which are designated for long term productive agricultural and resource use by a comprehensive plan adopted by the county legislative authority; and

(10) Prevention of sprawl, including, but not limited to, denying any annexation of a city or town beyond an urban service area established pursuant to sections 9(2)(a)(i) and 13(2)(b) of this act.

NEW SECTION. Sec. 32. Local governments, state agencies, and the courts shall construe the provisions of this chapter liberally to achieve its legislative intent and state land use planning goals.

NEW SECTION. Sec. 33. All decisions affecting the use, development, and conservation of land made by all levels of government must comply with the state-wide planning goals of this chapter on the effective date of this act. Development rights under previous laws and regulations in existence at the time of a development application shall not vest unless unreasonable prejudice would result by application of the goals of this chapter or of the plans and regulations adopted pursuant to this chapter, or amendments and revisions thereto. Findings of unreasonable prejudice or a lack thereof are reviewable by the land use board of appeals.

NEW SECTION. Sec. 34. INTENT--RURAL ECONOMIC DEVELOPMENT. The legislature finds that the Puget Sound region is experiencing economic prosperity and the challenges associated with rapid growth. Much of the rest of the state is not experiencing economic prosperity, and faces challenges associated with slow economic growth. It is the intent of the legislature to encourage economic prosperity and balanced economic growth throughout the state.

In order to accomplish this goal, growth must be managed more effectively in the Puget Sound region, and rural areas must build local capacity to accommodate additional economic activity in their communities. Where possible, rural economies should be linked with prosperous urban economies to share economic growth for the benefit of both these areas and the state.

Sec. 35. Section 1, chapter 417, Laws of 1989 (uncodified) is amended to read as follows:

MARKETPLACE--IDENTIFY NEW MARKETS. The legislature finds and declares that substantial benefits in increased employment and business activity can be obtained by assisting businesses in identifying opportunities to purchase the goods and services they need from ((~~in-state~~)) Washington suppliers rather than from out-of-state suppliers and in identifying new markets for which Washington businesses can provide goods and services. The replacement of out-of-state imports with services and manufactured goods produced in-state can be an important source of economic growth in a local community especially in rural areas. Businesses in the state are often unaware that goods and services they purchase from out-of-state suppliers are available from in-state firms with substantial advantages in responsiveness, service, and price. Increasing the economic partnerships between businesses in Washington state can build bridges between urban and rural communities and can result in the identification of additional opportunities for successful economic development initiatives. Providing additional information to businesses regarding in-state sources of goods and services can be a particularly valuable component of revitalization strategies in economically distressed areas. The legislature finds and declares that it is the policy of the state to strengthen the economies of local communities by increasing the economic partnerships between in-state businesses and creating programs to assist businesses in identifying in-state sources of goods and services, and in addition to identify new markets for Washington firms to provide goods and services.

Sec. 36. Section 3, chapter 417, Laws of 1989 and RCW 43.31.524 are each amended to read as follows:

MARKETPLACE. There is established a Washington marketplace program within the business assistance center established under RCW 43.31.083. The program shall assist ((~~Washington~~)) businesses to competitively meet their needs for goods and services within Washington by providing information relating to the replacement of out-of-state imports or the fulfillment of new requirements for goods or services with ((~~in-state~~)) Washington products. The program shall place special emphasis on strengthening rural economies in ((~~economically distressed~~)) eligible areas of the state as defined in RCW 82.60.020(3). The Washington marketplace program shall consult with the community revitalization team established pursuant to chapter 43.165 RCW.

Sec. 37. Section 4, chapter 417, Laws of 1989 and RCW 43.31.526 are each amended to read as follows:

MARKETPLACE--ESTABLISH URBAN-RURAL LINKS. (1) The department shall contract with local nonprofit organizations in at least ((~~four economically distressed~~)) three eligible areas of the state, as defined in RCW 82.60.020(3), to implement the Washington marketplace program in these areas. The department, in order to foster cooperation and linkages between distressed and nondistressed areas and urban and rural areas, may enter into joint contracts with multiple nonprofit organizations. ((Each joint contract must include at least one nonprofit organization that is located in a distressed area. No joint contract may include more than one nonprofit organization located in an urban location.)) In contracting with local nonprofit organizations, the department shall:

(a) Award contracts based on a competitive bidding process, pursuant to chapter 43.19 RCW;

(b) Give preference to nonprofit organizations representing a broad spectrum of community support; ((~~and~~))

(c) Ensure that each location contain sufficient business activity to permit effective program operation and contribute at least twenty percent local funding; and

(d) Require that rural marketplace programs, assisted by the department when possible, seek to establish links with urban businesses.

(2) The contracts with local nonprofit organizations shall ((~~be for~~)) include but not be limited to the performance of the following services for the Washington marketplace program:

(a) Contacting Washington businesses to identify goods and services they are currently buying or are planning in the future to buy out-of-state and determine which of these goods and services could be purchased on competitive terms within the state;

(b) Identifying locally sold goods and services which are currently provided by out-of-state businesses;

(c) Determining, in consultation with local business, goods and services for which the business is willing to make contract agreements;

(d) Advertising market opportunities described in (c) of this subsection; ((~~and~~)) or

(e) Receiving bid responses from potential suppliers and sending them to that business for final selection.

(3) Contracts may include provisions for charging service fees of businesses that profit as a result of participation in the program.

(4) The center shall also perform the following activities in order to promote the goals of the program:

(a) Prepare promotional materials or conduct seminars to inform communities and organizations about the Washington marketplace program;

(b) Provide technical assistance to communities and organizations interested in developing an import replacement program;

(d) Provide continuing management and technical assistance to local contractors; and

(e) Report by December 31 of each year to the senate economic development and labor committee and to the house of representatives trade and economic development committee describing the activities of the Washington marketplace program.

Sec. 38. Section 1, chapter 20, Laws of 1983 1st ex. sess. as amended by section 1, chapter 231, Laws of 1985 and RCW 43.210.010 are each amended to read as follows:

EXPORT ASSISTANCE CENTER--ENCOURAGE URBAN-RURAL LINKS. The legislature finds:

(1) The exporting of goods and services from Washington to international markets is an important economic stimulus to the growth, development, and stability of the state's businesses in both urban and rural areas, and that these economic activities create needed jobs for Washingtonians.

(2) Impediments to the entry of many small and medium-sized businesses into export markets have restricted growth in exports from the state.

(3) Particularly significant impediments for many small and medium-sized businesses are the lack of easily accessible information about export opportunities and financing alternatives.

(4) There is a need for a small business export finance assistance center which will specialize in providing export assistance to small and medium-sized businesses throughout the state in acquiring information about export opportunities and financial alternatives for exporting.

Sec. 39. Section 2, chapter 20, Laws of 1983 1st ex. sess. as amended by section 2, chapter 231, Laws of 1985 and RCW 43.210.020 are each amended to read as follows:

EXPORT ASSISTANCE CENTER--ENCOURAGE URBAN-RURAL LINKS. A nonprofit corporation, to be known as the small business export finance assistance center, and branches subject to its authority, may be formed under chapter 24.03 RCW for the following public purposes:

(1) To assist small and medium-sized businesses in both urban and rural areas in the financing of export transactions.

(2) To provide, singly or in conjunction with other organizations, information and assistance to these businesses about export opportunities and financing alternatives.

(3) To provide information to and assist those businesses interested in exporting products, including the opportunities available to them in organizing export trading companies under the United States export trading company act of 1982, for the purpose of increasing their comparative sales volume and ability to export their products to foreign markets.

Sec. 40. Section 1, chapter 466, Laws of 1985 and RCW 43.31.005 are each amended to read as follows:

DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT--ENCOURAGE GROWTH STATE-WIDE. The legislature of the state of Washington finds that economic development is an essential public purpose which requires the active involvement of state government. The state's primary economic strategy is to encourage the retention and expansion of existing businesses, to attract new businesses and industries, ((~~and~~)) to foster the formation of new businesses, and to economically link rural communities with urban areas. In order to aid the citizens of Washington to obtain desirable employment and achieve adequate incomes, it is necessary for the state to encourage balanced growth and economic prosperity and to promote a more diversified and healthy economy throughout the state.

The legislature finds that the state needs to improve its level of employment, business activity, and revenue growth. In order to increase job opportunities and revenues, a broader and more stable economic base is needed. The state shall take primary responsibility to encourage the balanced growth of the economy consistent with the preservation of Washington's quality of life and environment. A healthy economy can be achieved through partnership efforts with the private sector to facilitate increased investment in Washington. It is the policy of the state of Washington to encourage and promote an economic development program that provides sufficient employment opportunities for our current resident work force and those individuals who will enter the state's work force in the future.

The legislature finds that the state of Washington has the potential to become a major world trade gateway. In order for Washington to fulfill its potential and compete successfully with other states and provinces, it must articulate a consistent, long-term trade policy. It is the responsibility of the state to monitor and ensure that such traditional functions of state government as transportation, infrastructure, education, taxation, regulation and public expenditures contribute to the international trade focus the state of Washington must develop.

Sec. 41. Section 4, chapter 466, Laws of 1985 and RCW 43.31.035 are each amended to read as follows:

DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT--ENCOURAGE GROWTH STATE-WIDE. The department shall pursue a coordinated approach for the state's economic development policies and programs to achieve a more diversified and healthy economy. The department shall support and work cooperatively with other state agencies, public and private organizations, and units of local government, as well as the federal government, to strengthen and coordinate economic development programs ((in)) throughout the state. The department's activities shall include, but not be limited to:

(1) Providing economic development advisory assistance to the governor, other state agencies, and the legislature on economic-related issues, and other matters affecting the economic well-being of the state and all its citizens.

(2) Providing staff and support to cabinet level interagency economic development coordinating activities.

(3) Representing and monitoring the state's interests with the federal government in its formulation of policies and programs in economic development.

(4) Assisting in the development and implementation of a long-term economic strategy for the state that encourages a balance in economic growth between urban and rural areas and that stimulates economic development in areas not experiencing problems associated with rapid growth, and assisting the continual update of information and strategies contained in the long-term economic program for the state.

Sec. 42. Section 5, chapter 125, Laws of 1984 as amended by section 137, chapter 266, Laws of 1986 and RCW 43.63A.065 are each amended to read as follows:

DEPARTMENT OF COMMUNITY DEVELOPMENT--PRIORITIZE BASED ON NEED. The department shall have the following functions and responsibilities:

(1) Cooperate with and provide technical and financial assistance to the local governments and to the local agencies serving the communities of the state for the purpose of aiding and encouraging orderly, productive, and coordinated development of the state, and, unless stipulated otherwise, give priority to local communities with the greatest relative need and the fewest resources.

(2) Administer state and federal grants and programs which are assigned to the department by the governor or the legislature.

(3) Administer community services programs through private, nonprofit organizations and units of general purpose local government; these programs are directed to the poor and infirm and include community-based efforts to foster self-sufficiency and self-reliance, energy assistance programs, head start, and weatherization.

(4) Study issues affecting the structure, operation, and financing of local government as well as those state activities which involve relations with local government and report the results and recommendations to the governor, legislature, local government, and citizens of the state.

(5) Assist the governor in coordinating the activities of state agencies which have an impact on local governments and communities.

(6) Provide technical assistance to the governor and the legislature on community development policies for the state.

(7) Assist in the production, development, rehabilitation, and operation of owner-occupied or rental housing for low and moderate income persons, and qualify as a participating state agency for all programs of the Department of Housing and Urban Development or its successor.

(8) Support and coordinate local efforts to promote volunteer activities throughout the state.

(9) Participate with other states or subdivisions thereof in interstate programs and assist cities, counties, municipal corporations, governmental conferences or councils, and regional planning commissions to participate with other states or their subdivisions.

(10) Hold public hearings and meetings to carry out the purposes of this chapter.

(11) Provide a comprehensive state-level focus for state fire protection services, funding, and policy.

(12) Administer a program to identify, evaluate, and protect properties which reflect outstanding elements of the state's cultural heritage.

(13) Coordinate a comprehensive state program for mitigating, preparing for, responding to, and recovering from emergencies and disasters.

NEW SECTION. Sec. 43. A new section is added to chapter 43.31 RCW to read as follows:

ASSOCIATE DEVELOPMENT ORGANIZATION NETWORK FORMALIZED. (1) There is established in the department the local economic development service program. This program shall coordinate the delivery of economic development services to local communities or regional areas. It shall encourage a partnership between the public and private sectors and between state and local officials to encourage appropriate economic growth in communities throughout the state.

(2) The department's local economic development service program shall promote local economic development by assisting businesses to start-up, maintain, or expand their operations, by encouraging public infrastructure investment and private capital investment in local communities, and by expanding employment opportunities.

(3) The department's local economic development service program shall, among other things, (a) contract with local economic development nonprofit corporations, called "associate development organizations," for the delivery of economic development services to local communities or regional areas; (b) enter into interagency agreements with appropriate state agencies, such as the department of community development, the department of agriculture, and the employment security department, to coordinate the delivery of economic development services to local communities or regional areas; (c) enter into agreements with other public organizations or institutions that provide economic development services, such as the small business development center, the washington technology center, community colleges, vocational-technical institutes, the University of Washington, Washington State University, four-year colleges and universities, the federal small business administration, ports, and others, to coordinate the delivery of economic development services to local communities and regional areas; and (d) provide training, through contracts with public or private organizations, and other assistance to associate development organizations to the extent resources allow.

(4) It is the intent of the legislature that the associate development organizations coordinate, through local service agreements or other methods, the delivery of all available economic development services in their areas that are provided by public and private organizations, including state agencies.

(5) The legislature encourages local associate development organizations to form partnerships with other associate development organizations in their region to combine resources for better access to available services, to encourage regional delivery of state services, and to more effectively build the local capacity of communities in the region.

(6) It is the intent of the legislature that state agencies and other public and private organizations enter into agreements with the department or associate development organizations to enhance the delivery of economic development services to local communities.

NEW SECTION. Sec. 44. A new section is added to chapter 43.63A RCW to read as follows:

ADDITIONAL STAFF FOR RURAL COMMUNITIES. (1) The department, subject to available resources, shall contract with the local economic development service program and selected regional or local associate development organizations to provide two staff persons, one each in two different rural areas, to provide financing and rural revitalization services to that rural area. Both staff persons shall be located in the rural area.

(2) The department, in consultation with the local economic development service program, shall select these two rural areas pursuant to subsection (1) of this section. Criteria the department shall use to make the two selections shall include but not be limited to: (a) The current level of service being provided by the department regarding its community finance, development loan fund, and community revitalization programs; (b) the additional staff time that will be made available to other areas of the state for the department's finance and revitalization programs; (c) the benefit to the local community; and (d) the provision of at least one-third of the cost of the staff person by the local or regional associate development organization. The department shall give priority, when other factors are similar, to joint proposals by two or more associate development organizations.

NEW SECTION. Sec. 45. A new section is added to chapter 43.31 RCW to read as follows:

THE SERVICE DELIVERY TASK FORCE AND URBAN-RURAL SUBCOMMITTEE CREATED. The service delivery task force is established. The purpose of the task force is to review the current system for delivering economic development services in Washington and to make recommendations for improving the effectiveness of state economic development services, especially in rural areas.

(1) The task force shall consider existing studies and reports in its analysis, and shall seek input from the key persons or organizations delivering and receiving state economic development services. These key organizations include: (a) The University of Washington and Washington State University, (b) ports, (c) community colleges, (d) vocational-technical institutes, (e) the small business administration, (f) the Washington technology center, (g) nonprofit community action organizations, (h) local businesses and chambers of commerce.

(2) The recommendations shall consider, but not be limited to, the following: (a) What should be the structure for delivering state economic development services? and (b) What performance standards should be developed to evaluate the state programs and service delivery?

(3) The task force shall consist of: (a) Four legislators, one from each major caucus in the house of representatives appointed by the speaker of the house of representatives and one from each major caucus in the senate appointed by the president of the senate; (b) a representative of the governor; (c) a representative from each of the following departments: (i) The department of trade and economic development, (ii) the department of community development, (iii) the department of agriculture, and (iv) the employment security department; (d) four representatives of local governments, two appointed by the association of cities with one from east of the Cascades, and two appointed by the association of Washington counties, with one from east of the Cascades; (e) four representatives of associate development organizations, appointed by the chair of the associate development organization's state council; (f) two representatives of small businesses appointed by the governor; and (g) one representative each from the Northwest policy center at the University of Washington and the public policy institute at The Evergreen State College appointed by their directors.

(4) The task force shall form a subcommittee to make recommendations regarding how urban-rural links can be established to enhance rural economic development.

(5) Staff services for the task force shall be jointly provided by the department of trade and economic development and the department of community development.

(6) The governor shall appoint the chair of the task force.

(7) Task force members may be reimbursed as provided by RCW 43.03.050 and 43.03.060.

(8) The task force may create subcommittees and may invite nonmembers of the task force to participate in the subcommittees.

(9) The task force shall report on its findings and make its recommendations to the house of representatives trade and economic development committee, the senate economic development and labor committee, and the governor by November 1, 1990.

NEW SECTION. Sec. 46. A new section is added to chapter 43.31 RCW to read as follows:

GRANT PROGRAM--ENCOURAGE VALUE-ADDED PRODUCTS AND INDUSTRY MODERNIZATION THROUGH BUSINESS NETWORKS. (1) The business assistance center shall administer a grant program to encourage more value-added manufacturing in Washington state. The business assistance center shall award grants on a competitive basis, and when funds are available, to local organizations or individuals to provide industry modernization services in targeted sectors or to form business networks or consortia in targeted sectors.

(2) To receive a grant under subsection (1) of this section, the applicant must demonstrate significant private sector interest from businesses in the targeted sector and must designate a field agent to coordinate the targeted sector effort. The field agent must be, among other things, experienced in organizing business networks or business assistance projects and familiar with businesses in the targeted sector.

(3) The department may accept public and private funds to provide grants under subsection (1) of this section.

(4) The department's efforts under this section shall be coordinated with any department activities under RCW 43.31.434, 43.31.436, or 43.31.438.

NEW SECTION. Sec. 47. A new section is added to chapter 43.31 RCW to read as follows:

IMPROVE STATE PERMIT PROCESS. (1) It is the intent of the legislature that state agencies process requests for permits in a timely and efficient manner, one that balances the need of the organization requesting the permit with the public policy the permit is designed to protect. It is also the intent of the legislature that state agencies coordinate with the business assistance center to accomplish this goal.

(2) The business assistance center shall assist businesses or local governments with the processing of permits that relate to economic development and are required by law to be issued by state agencies. State agencies shall assist the business assistance center to accomplish the purposes of this section consistent with subsection (4) of this section. The business assistance center may enter into interagency contracts with state agencies responsible for issuing permits to develop a process that is coordinated and service oriented. A dispute resolution process should be part of the state permit process.

(3) The business assistance center may make recommendations to the governor or the legislature regarding enhancing the processing of permits by state government.

(4) Nothing in this section is intended to weaken state laws or their effectiveness. The purpose of this section is to improve the administration of requests for state permits that are required by state law.

Sec. 48. Section 12, chapter 446, Laws of 1985 as last amended by section 3, chapter 93, Laws of 1988 and RCW 43.155.070 are each amended to read as follows:

PUBLIC WORKS ASSISTANCE FUND--CONSIDER BENEFITS TO COMMUNITY. (1) To qualify for loans or pledges under this chapter the board must determine that a local government meets all of the following conditions:

(a) The city or county must be imposing a tax under chapter 82.46 RCW at a rate of at least one-quarter of one percent;

(b) The local government must have developed a long-term plan for financing public works needs; and

(c) The local government must be using all local revenue sources which are reasonably available for funding public works, taking into consideration local employment and economic factors.

(2) The board shall develop a priority process for public works projects as provided in this section. The intent of the priority process is to maximize the value of public works projects accomplished with assistance under this chapter. The board shall attempt to assure a geographical balance in assigning priorities to projects. The board shall consider at least the following factors in assigning a priority to a project:

(a) Whether the local government receiving assistance has experienced severe fiscal distress resulting from natural disaster or emergency public works needs;

(b) Whether the project is critical in nature and would affect the health and safety of a great number of citizens;

(d) The number of communities served by or funding the project;

(e) Whether the project is located in an area of high unemployment, compared to the average state unemployment; ((~~and~~))

(f) The relative benefit of the project to the community, considering the present level of economic activity in the community and the existing local capacity to increase local economic activity in communities that have low economic growth; and

(g) Other criteria that the board considers advisable.

(3) Existing debt or financial obligations of local governments shall not be refinanced under this chapter. Each local government applicant shall provide documentation of attempts to secure additional local or other sources of funding for each public works project for which financial assistance is sought under this chapter.

(4) Before November 1 of each year, the board shall develop and submit to the chairs of the ways and means committees of the senate and house of representatives a description of the emergency loans made under RCW 43.155.065 during the preceding fiscal year and a prioritized list of projects which are recommended for funding by the legislature, including one copy to the staff of each of the committees. The list shall include, but not be limited to, a description of each project and recommended financing, the terms and conditions of the loan or financial guarantee, the local government jurisdiction and unemployment rate, demonstration of the jurisdiction's critical need for the project and documentation of local funds being used to finance the public works project. The list shall also include measures of fiscal capacity for each jurisdiction recommended for financial assistance, compared to authorized limits and state averages, including local government sales taxes; real estate excise taxes; property taxes; and charges for or taxes on sewerage, water, garbage, and other utilities.

(5) The board shall not sign contracts or otherwise financially obligate funds from the public works assistance account before the legislature has appropriated funds for a specific list of public works projects. The legislature may remove projects from the list recommended by the board. The legislature shall not change the order of the priorities recommended for funding by the board.

(6) Subsections (4) and (5) of this section do not apply to loans made for emergency public works projects under RCW 43.155.065.

Sec. 49. Section 6, chapter 40, Laws of 1982 1st ex. sess. as last amended by section 62, chapter 431, Laws of 1989 and RCW 43.160.060 are each amended to read as follows:

COMMUNITY ECONOMIC REVITALIZATION BOARD--CONSIDER BENEFITS TO RURAL COMMUNITY. The board is authorized to make direct loans to political subdivisions of the state for the purposes of assisting the political subdivisions in financing the cost of public facilities, including development of land and improvements for public facilities, as well as the acquisition, construction, rehabilitation, alteration, expansion, or improvement of the facilities. A grant may also be authorized for purposes designated in this chapter, but only when, and to the extent that, a loan is not reasonably possible, given the limited resources of the political subdivision.

Application for funds shall be made in the form and manner as the board may prescribe. In making grants or loans the board shall conform to the following requirements:

(1) The board shall not make a grant or loan:

(a) For a project the primary purpose of which is to facilitate or promote a retail shopping development or expansion.

(b) For any project that probably would result in a development or expansion that would displace existing jobs in any other community in the state.

(2) The board shall only make grants or loans:

(a) For those projects which would result in specific private developments or expansions (i) in manufacturing, production, food processing, assembly, warehousing, and industrial distribution; (ii) for processing recyclable materials or for facilities that support recycling, including processes not currently provided in the state, including but not limited to, de-inking facilities, mixed waste paper, plastics, yard waste, and problem-waste processing; (iii) for manufacturing facilities that rely significantly on recyclable materials, including but not limited to waste tires and mixed waste paper; or (iv) which substantially support the trading of goods or services outside of the state's borders.

(b) For projects which it finds will improve the opportunities for the successful maintenance, establishment, or expansion of industrial or commercial plants or will otherwise assist in the creation or retention of long-term economic opportunities.

(c) When the application includes convincing evidence that a specific private development or expansion is ready to occur and will occur only if the grant or loan is made.

(3) The board shall prioritize each proposed project according to the relative benefits provided to the community by the jobs the project would create, not just the total number of jobs it would create after the project is completed and according to the unemployment rate in the area in which the jobs would be located. As long as there is more demand for loans or grants than there are funds available for loans or grants, the board is instructed to fund projects in order of their priority.

(4) A responsible official of the political subdivision shall be present during board deliberations and provide information that the board requests.

Before any loan or grant application is approved, the political subdivision seeking the loan or grant must demonstrate to the community economic revitalization board that no other timely source of funding is available to it at costs reasonably similar to financing available from the community economic revitalization board.

Sec. 50. Section 5, chapter 164, Laws of 1985 as last amended by section 9, chapter 430, Laws of 1989 and RCW 43.168.050 are each amended to read as follows:

DEVELOPMENT LOAN FUND COMMITTEE--CONSIDER BENEFITS TO RURAL COMMUNITY. (1) The committee may only approve an application providing a loan for a project which the committee finds:

(a) Will result in the creation of employment opportunities or the maintenance of threatened employment;

(b) Has been approved by the director as conforming to federal rules and regulations governing the spending of federal community development block grant funds;

(c) Will be of public benefit and for a public purpose, and that the benefits, including increased or maintained employment, improved standard of living, and the employment of disadvantaged workers, will primarily accrue to residents of the area;

(d) Will probably be successful;

(e) Would probably not be completed without the loan because other capital or financing at feasible terms is unavailable or the return on investment is inadequate.

(2) The committee shall, subject to federal block grant criteria, give higher priority to economic development projects that contain provisions for child care.

(3) The committee may not approve an application if it fails to provide for adequate reporting or disclosure of financial data to the committee. The committee may require an annual or other periodic audit of the project books.

(4) The committee may require that the project be managed in whole or in part by a local development organization and may prescribe a management fee to be paid to such organization by the recipient of the loan or grant.

(5) (a) Except as provided in (b) of this subsection, the committee shall not approve any application which would result in a loan or grant in excess of three hundred fifty thousand dollars.

(b) The committee may approve an application which results in a loan or grant of up to seven hundred thousand dollars if the application has been approved by the director.

(6) The committee shall fix the terms and rates pertaining to its loans.

(7) Should there be more demand for loans than funds available for lending, the committee shall provide loans for those projects which will lead to the greatest amount of employment or benefit to a community. In determining the "greatest amount of employment or benefit" the committee shall also consider the employment which would be saved by its loan and the benefit relative to the community, not just the total number of new jobs or jobs saved.

(8) To the extent permitted under federal law the committee shall require applicants to provide for the transfer of all payments of principal and interest on loans to the Washington state development loan fund created under this chapter. Under circumstances where the federal law does not permit the committee to require such transfer, the committee shall give priority to applications where the applicants on their own volition make commitments to provide for the transfer.

(9) The committee shall not approve any application to finance or help finance a shopping mall.

(10) The committee shall make at least eighty percent of the appropriated funds available to projects located in distressed areas, and may make up to twenty percent available to projects located in areas not designated as distressed. The committee shall not make funds available to projects located in areas not designated as distressed if the fund's net worth is less than seven million one hundred thousand dollars.

(11) If an objection is raised to a project on the basis of unfair business competition, the committee shall evaluate the potential impact of a project on similar businesses located in the local market area. A grant may be denied by the committee if a project is not likely to result in a net increase in employment within a local market area.

NEW SECTION. Sec. 51. A new section is added to chapter 43.63A RCW to read as follows:

GRANT PROGRAM--IMPROVE RURAL ECONOMIES. (1) The department shall administer a grant program which makes grants to the local nonprofit organizations for rural economic development. The grants shall be used to: (a) Build urban-rural links; (b) develop local capacity for economic growth; or (c) improve the export of products or services from rural areas to locations outside the United States.

(2) The department shall use existing advisory councils and the service delivery task force and urban-rural link subcommittee created under section 45 of this act in administering the grant program created under subsection (1) of this section.

(3) The department may enact rules to carry out this section.

Sec. 52. Section 2, chapter 34, Laws of 1984 as last amended by section 2, chapter 158, Laws of 1989, section 22, chapter 279, Laws of 1989, and by section 812, chapter 9, Laws of 1989 1st ex. sess. and RCW 42.17.2401 are each reenacted and amended to read as follows:

For the purposes of RCW 42.17.240, the term "executive state officer" includes:

(1) The chief administrative law judge, the director of agriculture, the administrator of the Washington basic health plan, the director of the department of services for the blind, the director of the state system of community colleges, the director of community development, the secretary of corrections, the director of ecology, the commissioner of employment security, the chairman of the energy facility site evaluation council, the director of the energy office, the secretary of the state finance committee, the director of financial management, the director of fisheries, the executive secretary of the forest practices appeals board, the director of the gambling commission, the director of general administration, the secretary of health, the administrator of the Washington state health care authority, the executive secretary of the health care facilities authority, the executive secretary of the higher education facilities authority, the director of the higher education personnel board, the executive secretary of the horse racing commission, the executive secretary of the human rights commission, the executive secretary of the indeterminate sentence review board, the director of the department of information services, the director of the interagency committee for outdoor recreation, the executive director of the state investment board, the director of labor and industries, the director of licensing, the director of the lottery commission, the director of the office of minority and women's business enterprises, !sethe director of parks and recreation, the director of personnel, the executive director of the public disclosure commission, the director of retirement systems, the director of revenue, the secretary of social and health services, the chief of the Washington state patrol, the executive secretary of the board of tax appeals, the director of trade and economic development, the secretary of transportation, the secretary of the utilities and transportation commission, the director of veterans affairs, the director of wildlife, the president of each of the regional and state universities and the president of The Evergreen State College, each district and each campus president of each state community college;

(2) Each professional staff member of the office of the governor;

(3) Each professional staff member of the legislature; and

(4) Central Washington University board of trustees, board of trustees of each community college, each member of the state board for community college education, state convention and trade center board of directors, committee for deferred compensation, Eastern Washington University board of trustees, Washington economic development finance authority, The Evergreen State College board of trustees, forest practices appeals board, forest practices board, gambling commission, Washington health care facilities authority, state health coordinating council, higher education coordinating board, higher education facilities authority, higher education personnel board, horse racing commission, ((~~hospital commission~~)) department of health, state housing finance commission, human rights commission, indeterminate sentence review board, board of industrial insurance appeals, information services board, interagency committee for outdoor recreation, state investment board, liquor control board, lottery commission, oil and gas conservation committee, Pacific Northwest electric power and conservation planning council, parks and recreation commission, personnel appeals board, personnel board, pollution control hearings board, public disclosure commission, public pension commission, shorelines hearing board, state employees' benefits board, board of tax appeals, transportation commission, University of Washington board of regents, utilities and transportation commission, Washington public power supply system executive board, Washington State University board of regents, Western Washington University board of trustees, ((~~and~~)) wildlife commission, and the land planning commission.

NEW SECTION. Sec. 53. APPROPRIATION--GENERAL FUND. (1) Thirty-nine million dollars, or as much thereof as may be necessary, is appropriated from the general fund to the land planning account authorized by section 7 of this act, for the biennium ending June 30, 1991, to implement this act.

(2) The appropriation in this section is subject to the following limitations:

(a) No more than one million dollars may be used to provide technical assistance and mediation services to counties and cities under section 6(2)(b) and (c) of this act;

(b) No more than thirty million dollars may be used to make grants to counties and cities under section 6(2)(b) of this act;

(d) No less than three hundred ninety thousand dollars may be used to make grants under section 6(2)(d) of this act; and

(e) No more than two million dollars may be used for rural economic development as follows: (i) Up to three hundred thousand dollars for the marketplace program under RCW 43.31.524 and 43.31.526; (ii) up to two hundred thousand dollars for training for associate development organizations under section 43(3)(d) of this act; (iii) up to one hundred thousand dollars for the local economic development service program under section 43 of this act; (iv) up to one hundred thousand dollars for the service delivery task force and urban-links subcommittee under section 45 of this act; (v) up to two hundred thousand dollars for grants for business networks and industry modernization under section 46 of this act; (vi) up to one hundred thousand dollars for the purposes of section 44 of this act; and (vii) up to one million dollars for grants to improve rural economies under section 51 of this act.

NEW SECTION. Sec. 54. SEVERABILITY. 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. 55. Section captions as used in this act shall constitute no part of the law.

NEW SECTION. Sec. 56. This act shall be known and cited as the balanced growth enabling act.

NEW SECTION. Sec. 57. Sections 1 through 26, 32 through 34, and 56 of this act shall constitute a new chapter in Title 43 RCW.