AN ACT Relating to the Puget Sound regional growth authority; amending RCW 36.81.121, 35.77.010, 35.58.2795, and 82.02.020; adding a new section to Title 28A RCW; adding a new section to chapter 36.70 RCW; adding a new section to chapter 35.63 RCW; adding a new section to chapter 35A.63 RCW; adding a new section to chapter 46.68 RCW; adding a new section to chapter 66.08 RCW; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.14 RCW; adding a new section to chapter 82.44 RCW; adding a new chapter to Title 64 RCW; adding a new chapter to Title 82 RCW; creating a new section; and declaring an emergency.

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

NEW SECTION. Sec. 1. INTENT. The legislature finds that uncoordinated and unmanaged growth poses an immediate threat to the environment, to sustainable economic development, and to the high quality of life enjoyed by inhabitants of the region of this state that includes King, Pierce, and Snohomish counties, the "Puget Sound region." It is in the interest of all the people of this state, and in particular in the interest of the people of the Puget Sound region, that citizens, communities, and local governments cooperate and coordinate with one another in growth management and land use planning.

NEW SECTION. Sec. 2. DEFINITIONS. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

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

(2) "Agricultural land" means land primarily devoted to the commercial production of aquacultural, horticultural, viticultural, floricultural, dairy, apiary, vegetable, or animal products or of berries, grain, hay, straw, turf, seed, or livestock, and that has, or might reasonably have, long-term commercial significance for agricultural production.

(3) "City" or "component city" means any city or town, including a code city, located in the Puget Sound growth authority region.

(4) "Comprehensive plan" or "plan" means the generalized coordinated land use policy statement of the governing body of a county or city located in the Puget Sound growth authority region.

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

(6) "County" or "participating county" means any county located in the Puget Sound growth authority region.

(7) "Forestry land" means land primarily useful for growing trees, including Christmas trees, for commercial purposes, and that has, or reasonably could have, long-term commercial significance for growing trees commercially.

(8) "Ground water management areas" means ground water management areas as defined in RCW 90.44.400.

(9) "Geologically hazardous" means lands that because of their susceptibility to erosion, sliding, earthquake, or other characteristics are not suited to commercial, residential, or industrial development or the placement of utility or transportation corridors.

(10) "Land" means the land, air, and water in the Puget Sound growth authority region.

(11) "Open space land" means (a) any area so designated by an official comprehensive land use plan adopted by any city or county and zoned accordingly, or (b) any land area, the preservation of which in its present use would (i) conserve and enhance natural or scenic resources, (ii) protect streams or water supply, (iii) promote conservation of soils, wetlands, beaches, or tidal marshes, (iv) enhance the value to the public of abutting or neighboring parks, forests, wildlife preserves, nature reservations, or sanctuaries or other open space, (v) enhance recreation opportunities, (vi) preserve historic sites, or (vii) retain in its natural state tracts of land not less than five acres situated in an urban area and open to public use on such conditions as may be reasonably required by the legislative body granting the open space classification.

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

(13) "Puget Sound regional growth authority" or "authority" means the entity established in section 3 of this act.

(14) "Puget Sound regional growth plan" means the regional land use policy statement and planning guidelines adopted by the Puget Sound regional growth authority pursuant to section 5 of this act.

(15) "Puget Sound growth authority region" or "region" means that area within King, Pierce, and Snohomish counties.

(16) "Puget Sound regional land use board of review" or "board of review" means the entity established in section 25 of this act.

(17) "Sensitive areas" includes the following sensitive and critical areas and ecosystems: (a) Wetlands; (b) areas that recharge aquifers used for potable water; (c) areas of significant fisheries and wildlife habitat; (d) flood plains; and (e) geologically hazardous areas.

(18) "Special district" means a unit of local government, other than a county or city, that is located in the Puget Sound growth authority region and that is authorized and regulated by statute to perform a single function or a limited number of functions, and includes, but is not limited to, cemetery districts, diking districts, drainage districts, water districts, sewer districts, port districts, public utility districts, school districts, community college districts, public hospital districts, irrigation districts, metropolitan park districts, metropolitan municipal corporations, fire protection districts, and public transit benefit areas within the Puget Sound growth authority region.

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

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

(21) "Wetland" or "wetlands" means lands defined by the United States fish and wildlife service as lands transitional between terrestrial and aquatic systems where the water table is usually at or near the surface or the land is covered by shallow water. For purposes of this subsection wetlands must have one or more of the following attributes:

(a) The land supports predominantly hydrophytes;

(b) The substrate is predominantly undrained hydric soil; or

(c) The substrate is nonsoil and is saturated with water or covered by shallow water at some time during the growing season of each year.

(22) "Zoning" means the division of a city or county into districts and the prescription and reasonable application of different regulations in each district.

NEW SECTION. Sec. 3. PUGET SOUND REGIONAL GROWTH AUTHORITY. (1) There is hereby established the Puget Sound regional growth authority.

(2) The Puget Sound regional growth authority shall be composed of the following persons, each of whom shall be a person entitled to vote for members of the authority in accordance with section 4(1) of this act: Six persons representing counties, no more than two of whom reside in the same county; four persons representing cities with populations of sixty thousand or more, no more than two of whom reside in the same city; six persons representing cities with populations of less than sixty thousand, no more than one of whom resides in the same city and at least one from each participating county; and three persons representing special districts who reside in different counties, who represent different categories of special districts, and one of whom represents the most populous metropolitan municipal corporation in the Puget Sound growth authority region.

(3) Members elected to the authority shall serve two-year terms.

(4) Members of the authority shall, by a majority vote, elect from amongst themselves a chairperson and a vice-chairperson. The chairperson shall preside over and call meetings of the authority. In the chairperson's absence, the vice-chairperson shall preside over meetings of the authority.

NEW SECTION. Sec. 4. PERSONS ENTITLED TO VOTE FOR MEMBERS OF THE PUGET SOUND REGIONAL GROWTH AUTHORITY. (1) The following persons shall be entitled to vote for members of the Puget Sound regional growth authority:

(a) The county executive of each participating county within the Puget Sound growth authority region;

(b) For each participating county, four persons appointed by the county who are members of the legislative body of such participating county;

(c) For each component city with a population of one hundred thousand or more, three persons appointed by the city who are members of the legislative body of such city;

(d) For each component city with a population of sixty thousand or more but less than one hundred thousand, two persons appointed by the city who are members of the legislative body of such city;

(e) For each component city with a population of fifteen thousand or more but less than sixty thousand, one person appointed by the city who is a member of the legislative body of such city;

(f) Five persons, no two of whom reside in the same city, who are members of legislative authorities of component cities with populations of six thousand or more but less than fifteen thousand to be selected by the mayors of such cities in the following manner: The mayors of all such cities shall meet prior to July 1, 1990, and then prior to July 1st of each even-numbered year at a time and place fixed by the Puget Sound regional growth authority. The county executive of the most populous county within the Puget Sound growth authority region shall preside at the first meeting of such mayors, and the authority chairperson shall preside at each subsequent meeting. After nominations are made, successive ballots shall be taken until one candidate receives a majority of all votes cast;

(g) Five persons, no two of whom reside in the same city, who are members of legislative authorities of component cities with populations of two thousand or more but less than six thousand to be selected by the mayors of such cities in the following manner: The mayors of all such cities shall meet prior to July 1, 1990, and then prior to July 1st of each even-numbered year at a time and place fixed by the Puget Sound regional growth authority. The county executive of the most populous county shall preside at the first meeting of such mayors, and the authority chairperson shall preside at each subsequent meeting. After nominations are made, successive ballots shall be taken until one candidate receives a majority of all votes cast;

(h) Three persons, no two of whom reside in the same city, who are members of the legislative authorities of component cities with populations of less than two thousand to be selected by the mayors of such cities in the following manner: The mayors of all such cities shall meet prior to July 1, 1990, and then prior to July 1st of each even-numbered year at a time and place fixed by the Puget Sound regional growth authority. The county executive of the most populous county shall preside at the first meeting of such mayors, and the authority chairperson shall preside at each subsequent meeting. After nominations are made, successive ballots shall be taken until one candidate receives a majority of all votes cast;

(i) Ten persons, no more than three of whom reside in the same county, who are members of legislative bodies of special districts located within the Puget Sound growth authority region to be selected in the following manner: The chairpersons of the legislative authorities for all such special districts shall meet prior to July 1, 1990, and then prior to July 1st of each even-numbered year at a time and place fixed by the Puget Sound regional growth authority. The county executive of the most populous county shall preside at the first meeting of such chairpersons, and the authority chairperson shall preside at each subsequent meeting. After nominations are made, successive ballots shall be taken until one candidate receives a majority of all votes cast. At least two of the persons selected under this subsection must represent metropolitan municipal corporations and at least one person selected under this subsection must represent a school district.

(2) Persons entitled to vote for members of the authority shall have that right for four years from the date of initial appointment or until they are no longer members of the legislative authority of which they were a member at the time of initial appointment to the authority, whichever is earlier.

(3) The county executive of the most populous county shall preside over the first meeting of persons entitled to vote for members of the authority. The chairperson of the authority shall preside over all subsequent meetings.

(4) The first meeting of the persons entitled by subsection (1) of this section to vote for members of the Puget Sound regional growth authority shall take place after July 1, 1990, and before September 1, 1990, at the call of the county executive of the most populous county within the Puget Sound growth authority region. Subsequent meetings shall take place at least annually, at the call of the authority chairperson. At such meetings, any vacancies on the authority shall be filled and land use issues deemed by the authority to be of importance to the Puget Sound growth authority region may be discussed.

(5) Members of the authority shall be selected by and from the persons listed in subsection (1) of this section. After nominations for membership on the authority are made for each category of member listed in this section, successive ballots shall be taken until one candidate for each position receives a majority of votes cast.

NEW SECTION. Sec. 5. PUGET SOUND REGIONAL GROWTH PLAN‑-DECLARATION OF REGIONAL PLANNING GOALS. (1) No later than July 1, 1992, the Puget Sound regional growth authority, shall adopt a regional land use policy statement and planning guidelines applicable to the comprehensive plans of all counties and cities within the Puget Sound growth authority region. The policy statement and planning guidelines adopted pursuant to this section shall be known as the "Puget Sound regional growth plan."

(2) The Puget Sound regional growth authority shall develop and draft the Puget Sound regional growth plan. In developing the plan, the authority shall seek extensive public participation. The authority shall hold at least two public hearings in each participating county and shall present the plan at no less than three separate meetings of the persons listed in section 4(1) of this act.

(3) The Puget Sound regional growth plan, and any amendment thereto, shall be considered adopted upon its approval by an affirmative vote of at least twelve members of the authority.

(4) At a minimum, the Puget Sound regional growth plan shall address the following regional policy goals:

(a) To assure that citizens have a meaningful role in participating in local and regional land use planning decisions;

(b) To encourage greater regional planning, consistency of local plans with the regional growth plan, and coordination of county and city comprehensive plans in areas with common growth management and urban governmental service concerns;

(c) To encourage future urban growth to occur in existing urban areas and adjacent areas designated for additional urban growth, and to discourage urban growth from occurring in areas that have long-term importance for agricultural or forest uses, or in areas that are environmentally sensitive;

(d) To provide for the conservation, enhancement, and wise use of natural resources, and to maintain productive agricultural and forest land industries by discouraging the conversion of agricultural and forest land to other uses;

(e) To preserve unique wildlife habitats;

(f) To prevent uses of rare or important natural ecosystems that are incompatible with the long-term sustainability of such lands;

(g) To protect environmentally sensitive areas, including wetlands, riparian zones, flood plains, and areas of geological hazard;

(h) To protect lands having significant historical, cultural, or geological value;

(i) To ensure that adequate and diversified recreational opportunities and publicly accessible open space are provided throughout the region, and particularly in areas of increasing urbanization;

(j) To encourage diversified transportation modes that decrease reliance upon the automobile, particularly in high-density urban areas;

(k) To encourage and provide incentives for high-quality development that permit growth in accordance with public need and the physical and environmental limitations of land;

(l) To encourage provision of urban governmental services in areas planned for urban growth, and to require that adequate services be provided as growth occurs;

(m) To assure that major developments such as educational institutions, health care facilities, transportation facilities, waste management and disposal facilities, energy facilities, and correctional institutions are prudently and equitably located to serve the needs of the entire Puget Sound growth authority region; and

(n) To incorporate shoreline master programs developed pursuant to the shoreline management act into city and county comprehensive plans.

(5) If the Puget Sound regional growth authority has not adopted a Puget Sound regional growth plan by July 1, 1992, then beginning on July 1, 1992, no state agency shall extend financial assistance for the provision of urban governmental services to any county or city within the Puget Sound growth authority region until the authority has adopted a Puget Sound regional growth plan.

NEW SECTION. Sec. 6. PUGET SOUND REGIONAL GROWTH AUTHORITY DUTIES. The Puget Sound regional growth authority shall exercise the following duties in addition to any other duties imposed upon it by law or this chapter:

(1) Determine whether actions and programs of state agencies are compatible with the Puget Sound regional growth plan and with the comprehensive plans of counties and cities within the Puget Sound growth authority region;

(2) Provide for the periodic and objective evaluation of the performance of counties and cities in adopting and implementing comprehensive plans in accordance with the Puget Sound regional growth plan;

(3) Review and comment on all aspects of land use planning within the Puget Sound growth authority region;

(4) 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 purpose of carrying out the provisions of this chapter;

(5) Provide for the creation of a common data base that records the date, type, and location of land use decisions made by local governments to assist in the periodic evaluation of the effectiveness of the Puget Sound regional growth plan;

(6) Develop models for dispute resolution systems for use by state agencies, local governments, special districts, and citizens in regional land use matters. Such models shall emphasize the expeditious resolution of land use disputes;

(7) Ensure widespread citizen involvement and input in all phases of regional land use policy planning;

(8) Review all comprehensive plans and plan amendments prepared by counties and cities within the Puget Sound growth authority region to determine compliance with the Puget Sound regional growth plan; and

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

NEW SECTION. Sec. 7. PUGET SOUND REGIONAL GROWTH AUTHORITY‑-GENERAL POWERS. The Puget Sound regional growth authority is a quasi-municipal corporation, an independent taxing "authority" within the meaning of Article VII, section 1, of the state Constitution, and a "taxing district" within the meaning of Article VII, section 2, of the state Constitution. The Puget Sound regional growth authority shall constitute a body corporate and shall possess all the usual powers of a corporation for public purposes. In addition to the powers specifically granted by this chapter, the authority shall have all powers that are necessary to carry out the purposes of this chapter. The authority may sue and be sued in its corporate capacity in all courts and in all proceedings.

NEW SECTION. Sec. 8. PUGET SOUND REGIONAL GROWTH AUTHORITY DIRECTOR‑-DUTIES AND AUTHORITIES. (1) The authority shall appoint a Puget Sound regional growth authority director. The director shall hold office at the pleasure of the authority. The salary of the director shall be fixed and paid by the authority. The director shall be reimbursed for the actual and necessary expenses incurred in the performance of official duties.

(2) Subject to policies adopted by the authority, the director shall:

(a) Be the administrative head of the Puget Sound growth authority;

(b) Coordinate the activities of the authority in its regional land use policy planning with such functions of federal agencies, state agencies, counties, cities, and special districts;

(c) Appoint, reappoint, assign, and reassign all subordinate officers and employees of the authority, prescribe their duties, and fix their compensation; and

(d) Provide clerical and other necessary support services for the authority.

(3) On behalf of the authority the director may participate in and seek review of any land use decision involving the goals and policies encompassed in the Puget Sound regional growth plan. The director shall report to the authority on each case in which the authority participates and on positions taken by the director in each case.

(4) Prior to the end of each year, the director shall prepare a written report for submission by the authority to those persons listed in section 4(1) of this act describing activities and accomplishments of state agencies, counties, cities, and special districts in carrying out the policies and goals encompassed in the Puget Sound regional growth plan.

NEW SECTION. Sec. 9. COMPREHENSIVE PLANS MADE MANDATORY. (1) By no later than twenty-four months following the authority's adoption of the Puget Sound regional growth plan, each county and city within the Puget Sound growth authority region shall adopt a comprehensive plan or make revisions to its existing comprehensive plan to be consistent with the Puget Sound regional growth plan.

(2) Each city and county shall establish procedures providing for early and continuous public participation in the development of comprehensive plans and general ordinances implementing 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. Errors in exact compliance with the established procedures that do not have a material effect upon the ability of a person to participate shall not be the basis for invalidation of a plan provision, plan amendment, or comprehensive plan implementation regulation.

(3) Each county and city shall coordinate its comprehensive plan with other counties or cities that have, in part, common borders or related regional issues. This coordination, at a minimum, shall include the sharing of comprehensive plans among adjoining jurisdictions and sharing and making public comments regarding the coordination of these plans on issues that affect multiple jurisdictions. The public comments shall include the identification of areas of conflict and attempts made to resolve such conflicts.

NEW SECTION. Sec. 10. COMPREHENSIVE PLANS‑-DESIGNATIONS. (1) Each comprehensive plan within the Puget Sound growth authority region shall, to the extent applicable, include a designation of:

(a) Agricultural lands not already characterized by urban growth;

(b) Forest lands not already characterized by urban growth;

(c) Land not already characterized by urban growth that has, or might reasonably have, long-term importance for the extraction of mineral resources, which are designated as mineral resource lands;

(d) Open space lands; and

(e) Land not substantially developed lying between and serving as a natural barrier separating areas already characterized by urban growth, which are designated as natural boundary lands.

(2) Each comprehensive plan shall provide policies for the conservation of lands designated under subsection (1) of this section. Such policies shall be designed to restrict such future development of these lands as:

(a) Constitutes urban growth;

(b) Probably would lead to urban growth; or

(c) Would be incompatible with the use or continued importance of these lands for the production of agricultural products or timber, or for the extraction of mineral resources, or as open space or natural boundary lands.

(3) Each comprehensive plan shall include an inventory of sensitive areas that are located anywhere within the planning jurisdiction of the county or city and shall provide policies that are designed to restrict future development incompatible with such sensitive areas from locating on or encroaching upon such sensitive areas.

(4) Nothing in this chapter shall be construed to affect or limit a county's authority to permit or prohibit development that does not involve the division of land, is under single, contiguous private or public ownership, and is used for park or recreational purposes. Such park and recreational development shall be permitted only if the county specifically identifies and limits such uses in its comprehensive plan and if the comprehensive plan contains a finding that such land is better suited and has more long-term importance for the particular park or recreational use than for the production of food, other agricultural products, or timber, or for the extraction of mineral resources.

NEW SECTION. Sec. 11. INTERIM DESIGNATIONS. (1) No later than January 1, 1991, each county and city within the Puget Sound growth authority region shall adopt interim designations of:

(a) Agricultural lands, forest lands, mineral resource lands, open space lands, and natural boundary lands within its jurisdiction, that it will probably designate as such under section 10 of this act. In making such interim designations, the county or city shall consider, at a minimum, the current and historical use of the land within its jurisdiction.

(b) Sensitive areas that it probably will designate as such under section 10 of this act.

(2) No later than July 1, 1991, each county and city within the Puget Sound growth authority region shall adopt interim development regulations precluding the designated agricultural lands, forest lands, mineral resource lands, open space lands, and natural boundary lands from having uses of development that:

(a) Constitute urban growth; or

(b) Probably would lead to urban growth; or

(c) Would be incompatible with the use of such lands as agricultural lands, forest lands, mineral resource lands, open space lands, or natural boundary lands.

(3) No later than July 1, 1991, each county and city within the Puget Sound growth authority region shall adopt interim development regulations precluding land uses or development that are incompatible with the designated sensitive areas.

(4) In the event a county or city fails to make the designations required by this section, then, upon proper application made therefor, the superior court shall grant such injunctive relief as shall be appropriate to accomplish the designations required by this section.

NEW SECTION. Sec. 12. COMPREHENSIVE PLANS‑-MANDATORY ELEMENTS. Each comprehensive plan within the Puget Sound growth authority region shall consist of a map or maps, and descriptive text covering objectives, principles, and standards used to develop the comprehensive plan, and shall include a plan, scheme, or design for each of the following, to the extent applicable:

(1)(a) A land use element designating the proposed general distribution and general location and extent of the uses of land, where appropriate, for agriculture, timber production, housing, commerce, industry, recreation, public utilities, public facilities, educational facilities, correctional facilities, and other land uses. The land use element shall include population densities, building intensities, and estimates of future population growth. The land use element shall provide for protection of the quality and quantity of ground water used for public water supplies. Where applicable, the land use element shall review drainage, flooding, and storm water run-off in the area and nearby jurisdictions and provide guidance for corrective actions to mitigate or cleanse those discharges that pollute Puget Sound or waters entering Puget Sound.

(b) The land use element shall include the following subelements:

(i) A housing subelement that includes (A) an inventory and analysis of existing and projected housing needs; (B) a statement of goals, policies, and objectives for the preservation, improvement, and development of housing; (C) an identification of adequate sites for housing, including, but not limited to, government-assisted housing, housing for low-income and moderate-income families, manufactured housing, multifamily housing, and group and foster care facilities; and (D) adequate provision for existing and projected needs of all economic segments of the community.

(ii) A public facilities subelement that is consistent with the public facilities elements of comprehensive plans of adjoining jurisdictions within the region and that includes: (A) A description of the general location and capacity of all existing and proposed public facilities, including publicly owned public utilities, but not including facilities included in the transportation element; (B) a forecast of the future needs for such public facilities; (C) an analysis of funding capabilities necessary to finance the maintenance of existing public facilities and to provide additional needed public facilities; (D) a plan to finance public facilities within the projected funding capacities; and (E) a requirement to reassess the land use element if probable funding falls short of meeting existing needs.

(2) A public utilities element that is consistent with the public utilities elements of comprehensive plans of adjoining jurisdictions within the region and that includes: (a) A description of the general location and capacity of all existing and proposed public utilities, other than those shown in the transportation or land use elements, including, but not limited to, electrical lines, telephone lines, and natural gas lines; (b) a forecast of the future needs for such public utilities; (c) an analysis of funding capabilities necessary to finance the maintenance of existing public utilities and to provide additional needed public utilities; (d) a plan to finance public utilities within the projected funding capacities; and (e) a requirement to reassess the land use element if probable funding falls short of meeting existing needs.

(3) A transportation element that implements, and is consistent with, the land use element and the transportation elements of comprehensive plans in adjoining jurisdictions within the region.

(a) The transportation element shall include the following parts: (i) Circulation and transportation; (ii) transit; (iii) transportation financing; (iv) intergovernmental coordination; and (v) demand management strategies.

(b) The transportation element shall include the following subelements:

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

(ii) Level-of-service standards for all arterial and transit routes to reflect the traveling expectations of local and regional residents, and to serve as a gauge to judge performance of the system;

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

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

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

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

(vii) A requirement to reassess the land use element if probable funding falls short of meeting identified needs.

(c) The parts and subelements of the transportation element described in this subsection, and the six-year plans required by RCW 35.77.010 for cities, RCW 36.81.121 for counties, and RCW 35.58.2795 for public transportation systems shall be consistent.

(4) A conservation element for the conservation, development, and utilization of natural resources, including water and its hydraulic force, forests, watersheds, soils, rivers and other waters, harbors, fisheries, wildlife, minerals, and other natural resources.

(5) A recreation element showing a comprehensive system of areas and public sites for recreation, natural reservations, parks, parkways, beaches, playgrounds, and other recreational areas, including their locations and proposed development.

NEW SECTION. Sec. 13. URBAN GROWTH BOUNDARIES. (1) Each participating county shall prescribe urban growth boundaries as an element of its comprehensive plan. These boundaries shall be consistent with the Puget Sound regional growth plan. In prescribing urban growth boundaries, participating counties shall consider, at a minimum, the following criteria:

(a) Present and potential use of the land for nonurban uses such as agriculture and forest production;

(b) The location of any environmentally sensitive areas;

(d) Environmental capacity for future population;

(e) Present and potential urban governmental service capacity, and any existing plans for future service delivery;

(f) Past patterns and future projections of commercial and industrial development;

(g) Suitability to meet unmanaged growth needs of the urban growth configuration;

(h) Projected population density;

(i) Residential characteristics and community identities;

(j) Affordable housing needs and necessary land for affordable housing; and

(k) Plans and programs of public agencies.

(2) Each city that is located in the county shall be included within an urban growth boundary. The area within an urban growth boundary may include more than a single city, and may include unincorporated areas adjacent to the included city or cities.

(3) The county shall submit a copy of a resolution or resolutions of each city located within each urban growth boundary indicating the city's approval of the urban growth boundary.

(4) Following certification of the county comprehensive plan by the Puget Sound regional growth authority, no urban governmental services may be extended outside of an urban growth boundary unless approved by the county legislative authority or planning commission as consistent with the comprehensive plan provisions for future urban growth, or as necessary to protect the health and safety of an existing residential population.

(5) Proposed facilities or systems to provide urban governmental services outside an urban growth boundary having a capacity to serve needs projected beyond five years in the future shall not be approved by the county unless it first amends the urban growth boundary provisions of its comprehensive plans and obtains certification of the amendment from the Puget Sound regional growth authority.

(6) This section shall not apply to the provision of urban governmental services within the incorporated area of a city or town.

NEW SECTION. Sec. 14. CERTIFICATION. The Puget Sound regional growth authority shall review comprehensive plans adopted by counties and cities and special districts to determine conformity with the Puget Sound regional growth plan. The comprehensive plan shall be considered certified upon the approval by the affirmative vote of at least twelve members of the authority. The authority must either certify, grant provisional approval, or reject the comprehensive plan submitted within ninety days of the time of its submission. If the authority does not approve a comprehensive plan, then it shall clearly specify the reasons for such decision not to grant approval. A plan not acted upon by the authority within ninety days of its submission shall be deemed certified.

NEW SECTION. Sec. 15. PROVISIONAL APPROVAL. If the Puget Sound regional growth authority rejects a comprehensive plan as a result of inadequacies that, in the discretion of the authority, can be easily corrected, the authority may grant provisional approval of such plan. The terms of a provisional approval shall specify the plan's inadequacies and shall require the stated inadequacies be corrected by a prescribed date, in no event more than ninety days from the date of provisional approval. The authority shall grant final certification of the plan whenever it finds that stated inadequacies have been corrected. A provisional approval can be extended only one time and for no more than an additional ninety days. If the authority finds that the stated inadequacies have not been corrected by the prescribed date, the plan shall be deemed unapproved at the time of such finding.

NEW SECTION. Sec. 16. CERTIFICATION DEADLINE. Each city and county shall obtain certification of its comprehensive plan from the authority no later than thirty-six months following the authority's adoption of the Puget Sound regional growth plan.

NEW SECTION. Sec. 17. FAILURE TO SUBMIT PLAN OR RECEIVE CERTIFICATION. When any city or county required to submit a comprehensive plan pursuant to section 14 of this act fails to do so within the twenty-four month time period, or fails to obtain certification or provisional approval of its comprehensive plan within the thirty-six month time period pursuant to section 16 of this act, the Puget Sound regional growth authority may take one or both of the following actions:

(1) Develop and adopt a comprehensive plan and development regulations for the city or county. Such comprehensive plan shall be in effect only until such time as the city or county has adopted a comprehensive plan that is certified by the authority; or

(2) Issue an order declaring the county or city not to be in compliance with the Puget Sound regional growth plan. The order shall be delivered to the directors of the department of revenue and the office of financial management who shall then withhold funds in accordance with sections 53 through 57 of this act. All such funds shall be withheld pending final certification of the county's or city's comprehensive plan by the authority. Upon certification, the director, on behalf of the Puget Sound regional growth authority, shall issue an order declaring the county or city to be in compliance with the Puget Sound regional growth plan. The order shall be delivered to the directors of the department of revenue and the office of financial management who shall then release all funds withheld under this section.

NEW SECTION. Sec. 18. COMPREHENSIVE PLAN AMENDMENTS. (1) Except as provided in this section, amendments to a certified comprehensive plan shall be submitted to the authority prior to adoption. The authority shall review the amendment for consistency with the Puget Sound regional growth plan. Where the authority finds the amendment to be consistent, it shall promptly notify the county or city, and the amendment shall be conclusively deemed consistent. Unless the authority notifies the county or city within sixty days of receipt that it finds the proposed amendment to be inconsistent with the guidelines and rules, it shall be deemed consistent.

(2) Where the authority timely notifies the county or city that a proposed amendment is not consistent with the Puget Sound regional growth plan, and the county or city adopts the amendment, the authority or any person aggrieved by the decision may seek review thereof in the superior court for the county in which the decision was made.

(3) The authority shall adopt rules defining categories of minor plan amendments not requiring certification by the authority. The rules shall allow a county or city to submit an amendment otherwise exempt from these procedures for the purpose of obtaining the certification provided under subsection (1) of this section.

NEW SECTION. Sec. 19. COMPREHENSIVE PLANS‑-SPECIAL DISTRICTS MUST CONFORM. All special districts shall perform their activities that affect land use in conformity with the Puget Sound regional growth plan and the comprehensive plans applicable in the area where the activities occur.

NEW SECTION. Sec. 20. BOUNDARY REVIEW BOARD‑-LAND USE PLAN. A boundary review board created under chapter 36.93 RCW shall act consistently with any certified comprehensive land use plan applicable to the area under review by the boundary review board. The boundary review board shall not approve a boundary revision, annexation, or incorporation that would be inconsistent with the urban growth boundaries of a certified county comprehensive land use plan.

NEW SECTION. Sec. 21. ANNEXATION REVIEW BOARD‑-LAND USE PLAN. An annexation review board created under chapter 35.13 RCW shall act consistently with any certified comprehensive land use plan applicable to the area under review by the annexation review board. The annexation review board shall not approve a boundary revision, annexation, or incorporation that would be inconsistent with the urban growth boundaries of a certified county comprehensive land use plan.

NEW SECTION. Sec. 22. COMPREHENSIVE PLAN IMPLEMENTATION REGULATIONS. Within eighteen months of the certification of a comprehensive plan, the city or county that submitted the plan shall enact comprehensive plan implementation regulations that implement its comprehensive plan and shall file a copy of such regulations with the authority for its review and comments. The comprehensive plan implementation regulations shall not conflict with the county or city's certified comprehensive plan. Any comprehensive plan implementation regulation that conflicts with or fails to implement the county or city's approved comprehensive plan shall be of no force or effect.

NEW SECTION. Sec. 23. STATE AGENCY PROPOSED LAND USES. (1) Except as provided in this section, all state agencies shall comply with the Puget Sound regional growth plan, with certified comprehensive plans, and with the comprehensive plan implementation regulations of cities and counties.

(2) Where a comprehensive plan implementation regulation of a city or county does not permit outright a proposed land use by a state agency, the city or county shall provide a procedure by which the proposed use may be allowed following issuance of an extraordinary use permit.

(3) Each application for an extraordinary use permit shall be made to the legislative body of the county or city with jurisdiction. The legislative body shall conduct a hearing thereon within thirty days from the date the application is filed.

(4) A city or county may condition an extraordinary use permit to ensure consistency with the Puget Sound regional growth plan, its certified comprehensive plan, and any applicable comprehensive plan implementation regulations.

(5) A city or county may deny an extraordinary use permit when it determines that the proposed use would cause unacceptably extreme impacts upon public health or safety or the environment that are not avoidable through economically feasible mitigation measures.

NEW SECTION. Sec. 24. ACTIVITIES OF STATE CONCERN. (1) The following are hereby designated activities of state concern:

(a) New airports with runways of five thousand feet or longer, additions to existing airport runways that extend the runway beyond five thousand feet, and additions of one thousand feet or longer to an existing airport runway of five thousand feet or longer;

(b) New port facilities designed to serve ships of twenty-five thousand deadweight tons or greater, and modifications to existing port facilities if the modifications provide the capacity to accommodate ships of fifty thousand deadweight tons or greater;

(c) Power transmission, gas, and oil lines creating new or expanding existing corridors or expansions are ten or more miles long, and power generation facilities requiring site certification from the energy facility site evaluation council or a permit from the federal power commission;

(d) Sewer trunk lines seventy-two inches in diameter or greater, and new sewage treatment facilities or expansion of existing sewage treatment facility capacity by fifteen percent or more in system design capacity above that necessary to serve the projected population of the service area at the time installation work is expected to be completed: PROVIDED, That sewage treatment facilities that exclusively serve four or fewer residential dwelling units are not activities of state concern;

(e) New municipal and industrial water supply systems with a capacity of five cubic feet per second or more, and additions to existing water supply systems that provide an increase of fifteen percent or more in system design capacity above that necessary to serve the projected population of the service area at the time installation work is expected to be completed;

(f) Solid waste disposal facilities with a design capacity of five hundred tons per day or greater; and

(g) Correctional facilities administered by the department of corrections or department of social and health services.

(2) A city or county shall hold at least one public hearing before making a decision whether or not to approve an activity of state concern.

(3) A city or county may condition approval of an activity of state concern to provide consistency with the Puget Sound regional growth plan, its comprehensive plan, and any applicable comprehensive plan implementation regulations.

(4) A city or county may deny an activity of state concern where it determines that the activity will cause unacceptably extreme adverse impacts upon public health or safety or the environment that cannot be avoided by economically feasible mitigation measures, and that these impacts outweigh the benefits of the proposed activity. Proposals for a use under subsection (1) (d) and (e) of this section shall be reviewed for consistency with the urban growth boundaries of an applicable comprehensive plan.

NEW SECTION. Sec. 25. PUGET SOUND REGIONAL LAND USE BOARD OF REVIEW‑-APPOINTMENT AND REMOVAL OF MEMBERS‑-QUALIFICATIONS. (1) There is hereby created a Puget Sound regional land use board of review.

(2) The Puget Sound regional land use board of review shall be composed of three members appointed by the governor. For each vacant position on the board of review, the authority shall submit a list of five nominees, in order of preference, to the governor. The governor shall make the appointment from the list of nominees submitted by the authority. Members of the board of review shall be residents of the Puget Sound growth authority region and shall serve for a term of four years. The salaries of the members shall be fixed and paid by the authority, and shall not be reduced during the period of service of the member. The Puget Sound regional land use board of review shall appoint from among its members one member to serve as the chief hearings officer. The tenure of that position shall be two years.

(3) The authority may at any time remove any member of the Puget Sound regional land use board of review for incompetence, neglect of duty, malfeasance or misfeasance in office, or unfitness to render effective service. Before such removal the authority shall give the member a copy of the charges against the member and shall fix the time when the member can be heard in defense against the charges, which shall not be less than ten days thereafter. The hearing shall be open to the public and shall be conducted in the same manner as an adjudicative proceeding under chapter 34.05 RCW. The decision of the authority to remove a member of the Puget Sound regional land use board of review shall be subject to judicial review in the same manner as provided for review of adjudicative proceedings under chapter 34.05 RCW.

NEW SECTION. Sec. 26. JURISDICTION OF THE BOARD OF REVIEW‑-LIMITATIONS‑-EFFECT ON SUPERIOR COURT JURISDICTION. (1) Except as provided in subsections (2) and (3) of this section, the Puget Sound regional land use board of review shall have exclusive jurisdiction to review claims of noncompliance with the Puget Sound regional growth plan and intergovernmental land use disputes within the Puget Sound growth authority region.

(2) The jurisdiction of the Puget Sound regional land use board of review:

(a) Is limited to those cases in which the petitioner is the Puget Sound regional growth authority, the state, or a county, city, or special district within the Puget Sound regional growth region and has exhausted all remedies available by right before petitioning the board of review for review;

(b) Excludes those land use decisions of a state agency over which the court of appeals has jurisdiction for initial judicial review under chapter 34.05 RCW or other statutory provisions; and

(3) The provisions of subsection (2)(a) of this section do not affect the authority of the Puget Sound regional land use board of review to decide issues not raised in the local government proceedings.

(4) Notwithstanding subsection (1) of this section, the superior courts of this state retain jurisdiction:

(a) To grant declaratory, injunctive, or mandatory relief in proceedings brought to enforce provisions of a locally adopted comprehensive plan or land use regulation; and

(b) To enforce orders of the Puget Sound regional land use board of review in appropriate proceedings brought by the Puget Sound regional land use board of review or by a party to the board of review proceeding resulting in the order.

NEW SECTION. Sec. 27. PARTIES‑-DUTY TO CONDUCT REVIEW PROCEEDINGS‑-RULES‑-AUTHORITY TO ISSUE ORDERS. (1) The Puget Sound regional land use board of review shall adopt rules governing the conduct of its review proceedings. The rules shall provide for a simplified and economical procedure for obtaining a prompt and equitable resolution of the noncompliance complaint. Such rules shall:

(a) Provide for discovery, subpoena, witnesses, rules of evidence, and absence of parties;

(b) Provide a format for review requests. Copies of the request for review shall be served upon all interested parties. A request for review may be filed at any time; and

(c) Require the board of review to hold at least one hearing on the review request within sixty days of the filing of the request. Within ten days of the termination of the last hearing before the board of review, the board of review shall issue its final order which shall include findings of fact, conclusions of law, and required action, if any.

(2) The board of review shall provide for the publication of its orders that are of general public interest in the form it deems best adapted for public convenience. The publications shall constitute the official reports of the board of review.

(3) Any attorneys' fees and costs related to a review by the Puget Sound regional land use board of review shall be borne by the respective parties.

NEW SECTION. Sec. 28. REVIEW‑-FINAL ORDERS. (1) The Puget Sound regional land use board of review shall review the claim of noncompliance and prepare a final order directing what, if any, corrective action is necessary by the county, city or legal entity to bring it into compliance with the Puget Sound regional growth plan.

(2) No decision of the Puget Sound regional land use board of review shall be a basis for any legal action by any entity other than the Puget Sound regional growth authority or any county, city, or special district within the Puget Sound growth authority region.

(3) Any final order issued by the Puget Sound regional land use board of review shall be clear and specific.

NEW SECTION. Sec. 29. ENFORCEMENT. (1) When the Puget Sound regional land use board of review issues an order to a county, city, or legal entity to take corrective action so that it is in compliance with the Puget Sound regional growth plan, the county, city, or legal entity shall have thirty days in which to comply.

(2) No later than thirty days following issuance of the order, the party directed to take corrective action shall report to the Puget Sound regional land use board of review the steps taken to comply with said order.

(3) The Puget Sound regional land use board of review shall, within ten days of receipt of the above report, review the action taken and:

(a) If it is satisfied that the action brings the city, county, or legal entity into compliance with the Puget Sound regional growth plan, issue an order so stating; or

(b) If it is satisfied that the city, county, or legal entity is still not in compliance with the Puget Sound regional growth plan it shall immediately issue an order so stating and inform the directors of the department of revenue and the office of financial management, which directors shall then withhold funds in accordance with section 17 of this act.

(4) When funds have been withheld in accordance with subsection (3)(b) of this section, the affected city, county, or legal entity may petition the Puget Sound regional land use board of review anytime thereafter to show that it has complied with the Puget Sound regional land use board of review's earlier issued order and is now in compliance with the Puget Sound regional growth plan. When the Puget Sound regional land use board of review is satisfied that the county, city, or special district is in compliance with the Puget Sound regional growth plan it shall issue an order and inform the directors of the department of revenue and the office of financial management. The directors shall then release all funds withheld pursuant to this section.

NEW SECTION. Sec. 30. JUDICIAL REVIEW. (1) Any party to a proceeding before the Puget Sound regional land use board of review may seek judicial review of a final order issued in those proceedings. Judicial review of orders of the board of review shall be solely as provided in this section.

(2) Jurisdiction for judicial review of orders of the Puget Sound regional land use board of review is conferred upon the superior court. Proceedings for review shall be instituted by filing a notice of appeal in the superior court. Notice of appeals may only be filed after the Puget Sound regional land use board of review has informed the directors of the department of revenue and the office of financial management of noncompliance under section 29(3)(b) of this act.

(3) The notice of appeal shall state the nature of the order the petitioner desires to appeal. Copies of the notice shall be served by registered or certified mail upon the Puget Sound regional land use board of review and all other parties of record in the board of review proceeding.

(4) Within thirty days after service of the notice, the Puget Sound regional land use board of review shall transmit to the court the original or a certified copy of the entire record of the proceeding under appeal, but, by stipulation of all parties to the review proceeding, the record may be summarized. Any party unreasonably refusing to summarize the record may be taxed by the court for the additional costs. The court may require or permit subsequent corrections or additions to the record when deemed desirable. Except as specifically provided in this subsection, the cost of the record shall not be taxed to the petitioner or any intervening party. However, the court may tax such costs and the cost of transcription of record to a party filing a frivolous petition for review.

(5) Petitions, briefs, motions, and other papers shall be filed within the time periods established by the rules of procedure.

(6) Review of an order of the Puget Sound regional land use board of review shall be confined to the record before the board of review. The court shall not substitute its judgment for that of the board of review as to any issue of fact.

(7) The court may affirm, reverse, or remand the order. The court shall reverse or remand the order only if it finds:

(a) The order to be unlawful in substance or procedure;

(b) The order to be unconstitutional; or

(8) If the order of the Puget Sound regional land use board of review is remanded by the court, the board of review shall respond to the court's mandate within thirty days.

(9) Attorneys' fees and costs may be awarded by the court.

NEW SECTION. Sec. 31. SHORELINE MANAGEMENT ACT. This act shall not affect the planning and regulating of uses of lands subject to the shoreline management act, chapter 90.58 RCW.

NEW SECTION. Sec. 32. A new section is added to Title 28A RCW to read as follows:

SCHOOL DISTRICT ENROLLMENT ASSESSMENTS. Each school district within the Puget Sound growth authority region shall by December 31st of each year, provide the Puget Sound regional growth authority and the superintendent of public instruction with an assessment of current and projected student enrollment and facilities and infrastructure needs. In assessing current and future needs, school districts shall survey and study: (1) Student population projections by total attendance zones, (2) proposed facility needs analyses, (3) infrastructure, and (4) energy and utility needs assessments for existing and proposed facilities. Future needs shall be forecast on a ten-year basis.

NEW SECTION. Sec. 33. A new section is added to chapter 36.70 RCW to read as follows:

COMPREHENSIVE PLANS‑-COMPLIANCE. A county adopting a comprehensive plan pursuant to chapter 64.__ RCW (sections 1 through 31 of this act) shall be deemed to be in compliance with RCW 36.70.320 and 36.70.330.

NEW SECTION. Sec. 34. A new section is added to chapter 35.63 RCW to read as follows:

COMPREHENSIVE PLANS‑-COMPLIANCE. A city or town adopting a comprehensive plan pursuant to chapter 64.__ RCW (sections 1 through 31 of this act) shall be deemed to be in compliance with RCW 35.63.080 through 35.63.110.

NEW SECTION. Sec. 35. A new section is added to chapter 35A.63 RCW to read as follows:

COMPREHENSIVE PLANS‑-COMPLIANCE. A code city adopting a comprehensive plan pursuant to chapter 64.__ RCW (sections 1 through 31 of this act) shall be deemed to be in compliance with RCW 35A.63.060 through 35A.63.062.

Sec. 36. Section 20, chapter 49, Laws of 1983 1st ex. sess. as amended by section 8, chapter 167, Laws of 1988 and RCW 36.81.121 are each amended to read as follows:

TRANSPORTATION PLANS MUST CONFORM TO COMPREHENSIVE PLAN. (1) Before July 1st of each year, the legislative authority of each county with the advice and assistance of the county road engineer, and pursuant to one or more public hearings thereon, shall prepare and adopt a comprehensive road program for the ensuing six calendar years. If the county has adopted a comprehensive plan pursuant to chapter 35.63 or 36.70 RCW or the inherent authority of a charter county derived from its charter, the program shall be consistent with such comprehensive plan.

The program shall include proposed road and bridge construction work, and for those counties operating ferries shall also include a separate section showing proposed capital expenditures for ferries, docks, and related facilities. Copies of the program shall be filed with the county road administration board and with the state secretary of transportation not more than thirty days after its adoption by the legislative authority. The purpose of this section is to assure that each county shall perpetually have available advanced plans looking to the future for not less than six years as a guide in carrying out a coordinated road construction program. The program may at any time be revised by a majority of the legislative authority but only after a public hearing thereon.

(2) The six-year program of each county having an urban area within its boundaries shall contain a separate section setting forth the six-year program for arterial road construction based upon its long-range construction plan and formulated in accordance with regulations of the transportation improvement board. The six-year program for arterial road construction shall be submitted to the transportation improvement board forthwith after its annual revision and adoption by the legislative authority of each county. The six-year program for arterial road construction shall be based upon estimated revenues available for such construction together with such additional sums as the legislative authority of each county may request for urban arterials from the urban arterial trust account or the transportation improvement account for the six-year period. The arterial road construction program shall provide for a more rapid rate of completion of the long-range construction needs of principal arterial roads than for minor and collector arterial roads, pursuant to regulations of the transportation improvement board.

(3) Each six-year program forwarded to the secretary in compliance with subsection (1) of this section shall contain information as to how a county will expend its moneys, including funds made available pursuant to chapter 47.30 RCW, for bicycles, pedestrians, and equestrian purposes.

Sec. 37. Section 35.77.010, chapter 7, Laws of 1965 as last amended by section 6, chapter 167, Laws of 1988 and RCW 35.77.010 are each amended to read as follows:

TRANSPORTATION PLANS MUST CONFORM TO COMPREHENSIVE PLAN. (1) The legislative body of each city and town, pursuant to one or more public hearings thereon, shall prepare and adopt a comprehensive street program for the ensuing six calendar years ((~~and shall file~~)). If the city or town has adopted a comprehensive plan pursuant to chapter 35.63 or 35A.63 RCW, Title 35A RCW, or the inherent authority of a first class city derived from its charter, the program shall be consistent with such comprehensive plan. The program shall be filed with the secretary of transportation not more than thirty days after its adoption. Annually thereafter the legislative body of each city and town shall review the work accomplished under the program and determine current city street needs. Based on these findings each such legislative body shall prepare and after public hearings thereon adopt a revised and extended comprehensive street program before July 1st of each year, and each one-year extension and revision shall be filed with the secretary of transportation not more than thirty days after its adoption. The purpose of this section is to assure that each city and town shall perpetually have available advanced plans looking to the future for not less than six years as a guide in carrying out a coordinated street construction program. The program may at any time be revised by a majority of the legislative body of a city or town, but only after a public hearing.

The six-year program of each city lying within an urban area shall contain a separate section setting forth the six-year program for arterial street construction based upon its long range construction plan and formulated in accordance with rules of the transportation improvement board. The six-year program for arterial street construction shall be submitted to the transportation improvement board forthwith after its annual revision and adoption by the legislative body of the city. The six-year program for arterial street construction shall be based upon estimated revenues available for such construction together with such additional sums as the legislative authority may request for urban arterials from the urban arterial trust account or the transportation improvement account for the six-year period. The arterial street construction program shall provide for a more rapid rate of completion of the long-range construction needs of principal arterial streets than for minor and collector arterial streets, pursuant to rules of the transportation improvement board: PROVIDED, That urban arterial trust funds made available to the group of incorporated cities lying outside the boundaries of federally approved urban areas within each region need not be divided between functional classes of arterials but shall be available for any designated arterial street.

(2) Each six-year program forwarded to the secretary in compliance with subsection (1) of this section shall contain information as to how a city or town will expend its moneys, including funds made available pursuant to chapter 47.30 RCW, for bicycle, pedestrian, and equestrian purposes.

Sec. 38. Section 1, chapter 396, Laws of 1989 and RCW 35.58.2795 are each amended to read as follows:

TRANSPORTATION PLANS MUST CONFORM TO COMPREHENSIVE PLAN. By April 1st of each year, the legislative authority of each municipality, as defined in RCW 35.58.272, shall prepare a six-year transit development and financial program for that calendar year and the ensuing five years. The program shall be consistent with the comprehensive plans adopted by counties, cities, and towns, pursuant to chapter 35.63, 35A.63, or 36.70 RCW, or the inherent authority of a first class city or charter county derived from its charter. The program shall contain information as to how the municipality intends to meet state and local long-range priorities for public transportation, capital improvements, significant operating changes planned for the system, and how the municipality intends to fund program needs. Each municipality shall file the six-year program with the state department of transportation, the transportation improvement board, and cities, counties, and regional planning councils within which the municipality is located.

In developing its program, the municipality shall consider those policy recommendations affecting public transportation contained in the state transportation policy plan approved by the state transportation commission and, where appropriate, adopted by the legislature. The municipality shall conduct one or more public hearings while developing its program and for each annual update.

NEW SECTION. Sec. 39. EXCISE TAX ON REAL PROPERTY SALES. (1) The Puget Sound regional growth authority may impose an excise tax on each sale of real property within the boundaries of the Puget Sound growth authority region at a rate not exceeding one percent of the selling price. The authority may impose the excise tax authorized under this section only if it also imposes the development fee authorized under section 46 of this act. This tax is in addition to any other tax imposed by law.

(2) Taxes imposed under this section shall be collected from persons who are taxable by the state under chapter 82.45 RCW upon the occurrence of any taxable event within the boundaries of the Puget Sound growth authority region. (3) Taxes imposed under this section shall comply with all applicable rules, regulations, laws, and court decisions regarding real estate excise taxes as imposed by the state under chapter 82.45 RCW.

(4) As used in this chapter:

(a) "Authority" means the Puget Sound regional growth authority established in section 3 of this act.

(b) "Board of review" means the Puget Sound regional land use board of review established in section 25 of this act.

(d) "Puget Sound regional growth plan" means the regional land use policy statement and planning guidelines adopted by the Puget Sound regional growth authority pursuant to section 5 of this act.

NEW SECTION. Sec. 40. EXCISE TAX‑-LIEN. Any tax imposed under section 39 of this act and any interest or penalties thereon is a specific lien upon each piece of real property sold from the time of sale until the tax is paid, which lien may be enforced in the manner prescribed for the foreclosure of mortgages.

NEW SECTION. Sec. 41. TAX‑-OBLIGATION OF SELLER. The taxes levied under section 39 of this act are the obligation of the seller and may be enforced through an action of debt against the seller or in the manner prescribed for the foreclosure of mortgages. Resort to one course of enforcement is not an election not to pursue the other.

NEW SECTION. Sec. 42. COLLECTION OF TAX. Any taxes imposed under section 39 of this act shall be paid to and collected by the treasurer of the county within which is located the real property which was sold. The treasurer shall act as agent for the authority. The county treasurer shall cause a stamp evidencing satisfaction of the lien to be affixed to the instrument of sale or conveyance prior to its recording or to the real estate excise tax affidavit in the case of used mobile home sales. A receipt issued by the county treasurer for the payment of the tax imposed under section 39 of this act shall be evidence of the satisfaction of the lien imposed in section 40 of this act and may be recorded in the manner prescribed for recording satisfactions of mortgages. No instrument of sale or conveyance evidencing a sale subject to the tax may be accepted by the county auditor for filing or recording until the tax is paid and the stamp affixed thereto; in case the tax is not due on the transfer, the instrument shall not be accepted until suitable notation of this fact is made on the instrument by the treasurer.

NEW SECTION. Sec. 43. EXCISE TAX PROCEEDS. The county treasurer shall place one-tenth of one percent of the proceeds of the tax imposed under section 39 of this act in the county current expense fund to defray costs of collection and distribution.

(2) The remaining proceeds from the tax imposed under section 39 of this act shall be distributed to the authority monthly.

(3) This section does not limit the existing authority of any city, town, or county to impose special assessments on property specially benefited thereby in the manner prescribed by law.

NEW SECTION. Sec. 44. DISTRIBUTION BY AUTHORITY. (1) The authority may annually use not more than five percent of the tax proceeds provided under section 39 of this act for costs of operation and administration.

(2) The remaining tax proceeds held by the authority shall be distributed monthly by the director to the counties and cities within the Puget Sound growth authority region as follows:

(a) Taxes collected from the sale of real property in the unincorporated areas of the county shall be distributed to the county in which such area lies and placed in a county growth fund; and

(b) Taxes collected from the sale of real property in a city shall be distributed to the city and placed in a city growth fund.

(3) Notwithstanding subsection (2) of this section, tax proceeds held by the authority shall be withheld by the director from those counties and cities that:

(a) Fail to submit a comprehensive plan in accordance with section 9 of this act;

(b) Fail to obtain certification or provisional certification of a comprehensive plan in accordance with sections 14 and 15 of this act; or

(c) Fail to comply with an order of the Puget Sound regional land use board of review in accordance with section 29 of this act.

(4) Tax proceeds withheld by the director under subsection (3) of this section shall be released to the county or city when it has submitted a comprehensive plan, obtained certification of a comprehensive plan, or complied with the order of the Puget Sound regional land use board of review.

Sec. 45. 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:

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. Except as provided in section 46 of this act, no county, city, town, or other municipal corporation shall 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 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 dedication of land or easement is to apply.

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. 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) 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) The payment shall be expended in all cases within five years of collection; and

(3) 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 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 limit 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 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.

NEW SECTION. Sec. 46. IMPOSITION OF DEVELOPMENT FEE. (1) The Puget Sound regional growth authority may impose a development fee on the issuance of each development permit within the boundaries of the Puget Sound growth authority region equal to one percent of the fair market value of the development that is authorized by the issuance of the permit. The authority may impose the development fee authorized under this section only if it also imposes the excise tax authorized under section 39 of this act. This fee is in addition to any other fee or tax imposed by law.

(2) For the purposes of this section:

(a) "Fair market value" means the price in terms of money that the improved property as authorized by the permit or other approval will bring in a competitive and open market under all conditions of a fair sale, the buyer and seller each prudently knowledgeable.

(b) "Development" includes: (i) The construction or reconstruction of any structure, building space, or land; (ii) any division of land for purposes of sale, lease, or transfer of ownership, including subdivisions, short subdivisions, condominium approvals, or binding site plans; and (iii) any planned unit or other contractual rezoning action.

(d) "Puget Sound regional growth authority" or "authority" means the entity established in section 3 of this act.

(e) "Puget Sound regional land use board of review" or "board of review" means the entity established in section 25 of this act.

NEW SECTION. Sec. 47. DEVELOPMENT PERMITS. No development permit may be issued by any local government within the Puget Sound growth authority region before payment of any fee imposed under section 46 of this act is made.

NEW SECTION. Sec. 48. TRANSFER TO COUNTY TREASURER. All development fees collected under this chapter, regardless of by whom collected, shall be transferred monthly to the respective county treasurer for collection, accounting, and distribution. The county treasurers shall act as agents for the authority.

NEW SECTION. Sec. 49. DISTRIBUTION BY COUNTY TREASURER. (1) The county treasurer shall place one-tenth of one percent of the proceeds of the fee imposed under section 46 of this act in the county current expense fund to defray costs of collection and distribution.

(2) The remaining proceeds from the fee imposed under section 46 of this act shall be distributed to the authority monthly.

NEW SECTION. Sec. 50. DISTRIBUTION BY THE AUTHORITY. (1) The authority may annually use not more than five percent of the fee proceeds provided under section 49(2) of this act for costs of operation and administration.

(2) The remaining fee proceeds held by the authority shall be distributed monthly by the director to the counties and cities within the Puget Sound growth authority region as follows:

(a) Fees collected from the development of real property in the unincorporated areas of the county shall be distributed to the county in which such area lies and placed in a county growth fund;

(b) Fees collected from the development of real property in a city shall be distributed to the city and placed in a city growth fund.

(3) Notwithstanding subsection (2) of this section, fee proceeds held by the authority shall be withheld by the director from those counties and cities that:

(a) Fail to submit a comprehensive plan in accordance with section 9 of this act;

(b) Fail to obtain certification or provisional certification of a comprehensive plan in accordance with sections 14 and 15 of this act; or

(c) Fail to comply with an order of the Puget Sound regional land use board of review in accordance with section 29 of this act.

(4) Fee proceeds withheld by the director under subsection (3) of this section shall be released to the county or city when it submits a comprehensive plan, obtains certification of a comprehensive plan, or complies with the order of the Puget Sound regional land use board of review.

NEW SECTION. Sec. 51. GROWTH FUNDS. Each city and county within the Puget Sound growth authority region shall establish a growth fund. All tax proceeds and development fees received from the authority under sections 44(2) and 50(2) of this act shall be placed in the growth fund.

NEW SECTION. Sec. 52. USE OF GROWTH FUNDS. Growth funds shall be used by the counties and cities to develop and implement their respective comprehensive plans. Implementation shall include, but not be limited to:

(1) The planning, designing, and construction of infrastructure;

(2) The construction of roadways, bridges, and means of mass transportation;

(3) The purchase and development of recreation lands and parks;

(4) The protection of public water supplies;

(5) Preventing the pollution of Puget Sound or waters entering Puget Sound;

(6) Assistance in the construction or acquisition of low-income housing;

(7) Planning for necessary public facilities and utilities;

(8) The conservation of forests, watersheds, soils, rivers, fisheries, wildlife, and natural resources;

(9) The construction or acquisition of public buildings;

(10) The mitigation of existing geologically hazardous conditions resultant from past development; and

(11) The purchase of open space lands and natural boundary lands.

NEW SECTION. Sec. 53. A new section is added to chapter 46.68 RCW to read as follows:

MOTOR VEHICLE FUND DISTRIBUTION. No money may be distributed under RCW 46.68.100 to a city, town, or county within the Puget Sound growth authority region that is not in compliance with the Puget Sound regional growth plan, as determined by the authority in accordance with section 17 of this act or by the board of review in accordance with section 29 of this act.

NEW SECTION. Sec. 54. A new section is added to chapter 66.08 RCW to read as follows:

LIQUOR REVOLVING FUND. No money may be distributed under RCW 66.08.190 to a city, town, or county within the Puget Sound growth authority region that is not in compliance with the Puget Sound regional growth plan, as determined by the authority in accordance with section 17 of this act or by the board of review in accordance with section 29 of this act.

NEW SECTION. Sec. 55. A new section is added to chapter 82.08 RCW to read as follows:

LIQUOR EXCISE TAX FUND. No money may be distributed under RCW 82.08.170 to a city, town, or county within the Puget Sound growth authority region that is not in compliance with the Puget Sound regional growth plan, as determined by the authority in accordance with section 17 of this act or by the board of review in accordance with section 29 of this act.

NEW SECTION. Sec. 56. A new section is added to chapter 82.14 RCW to read as follows:

MUNICIPAL SALES AND USE TAX EQUALIZATION ACCOUNT. (1) No money may be distributed under RCW 82.14.210 to a city or town within the Puget Sound growth authority region that is not in compliance with the Puget Sound regional growth plan, as determined by the authority in accordance with section 17 of this act or by the board of review in accordance with section 29 of this act.

(2) No money may be distributed under RCW 82.14.200 to a county within the Puget Sound growth authority region that is not in compliance with the Puget Sound regional growth plan, as determined by the authority in accordance with section 17 of this act or by the board of review in accordance with section 29 of this act.

NEW SECTION. Sec. 57. A new section is added to chapter 82.44 RCW to read as follows:

MOTOR VEHICLE EXCISE TAX. No money may be distributed under RCW 82.44.150(3)(a) to a city or town within the Puget Sound growth authority region that is not in compliance with the Puget Sound regional growth plan, as determined by the authority in accordance with section 17 of this act or by the board of review in accordance with section 29 of this act.

NEW SECTION. Sec. 58. Sections 1 through 31 of this act shall constitute a new chapter in Title 64 RCW.

NEW SECTION. Sec. 59. Sections 39 through 44 and 46 through 52 of this act shall constitute a new chapter in Title 82 RCW.

NEW SECTION. Sec. 60. 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. 61. Section headings used in this act do not constitute part of the law.

NEW SECTION. Sec. 62. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.