AN ACT Relating to growth strategies; amending RCW 36.70A.010, 36.70A.030, 36.70A.020, 36.70A.040, 36.70A.070, 36.70A.080, 36.70A.110, 36.70A.130, 82.02.050, 82.02.090, 43.21C.031, 19.27.095, 58.17.033, 58.17.170, 58.17.040, 36.70A.140, 36.93.170, 36.93.180, 35.13.130, 82.46.010, 35.21.685, 36.32.415, 59.18.440, 36.70A.170, 36.70A.060, 36.70A.050, 36.70A.190, 43.155.070, 70.146.070, 43.88.110, 36.79.150, 47.26.080, 82.46.035, 66.08.190, 36.79.080, 36.81.121, 47.05.030, 47.26.084, 47.26.220, 35.58.2795, 35.58.2796, 36.57A.060, and 47.80.040; adding a new section to chapter 8.26 RCW; adding a new section to chapter 19.85 RCW; adding a new section to chapter 35.02 RCW; adding new sections to chapter 35.13 RCW; adding new sections to chapter 35A.14 RCW; adding new sections to chapter 36.70A RCW; adding a new section to chapter 36.93 RCW; adding a new section to chapter 43.01 RCW; adding a new section to chapter 43.17 RCW; adding a new section to chapter 43.31 RCW; adding a new section to chapter 43.63A RCW; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.14 RCW; adding a new chapter to Title 47 RCW; and creating new sections.

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

Sec. 1. RCW 36.70A.010 and 1990 1st ex.s. c 17 s 1 are each amended to read as follows:

LEGISLATIVE FINDINGS. The legislature finds that uncoordinated and unplanned growth, together with a lack of common goals expressing the public's interest in the conservation and the wise use of our lands, pose a threat to the environment, sustainable economic development, and the health, safety, and high quality of life enjoyed by residents of this state. The legislature further finds that the lack of common goals and the absence of effective methods and procedures to plan for environmentally sound land use to accommodate new economic and population growth at the local and regional level have contributed to severe problems and conflicts. These have affected land use, transportation, water quality and availability, air quality, the health of sensitive lands, the maintenance of agricultural and forest lands, the cost of housing, and economic vitality of local communities and regions in the state. It is in the public interest that citizens, communities, regions, state government, local governments, tribal governments, and the private sector cooperate and coordinate with one another in comprehensive land use planning. A new system of land use planning and governance is needed to provide for the growth and continued vitality of the state's diverse communities and regions. It must be built upon and promote local accountability and initiative and the active involvement of citizens. It must also provide effective protection for the state's environmental heritage, conservation of its natural beauty, maintenance of its forest and agricultural lands in a productive and sustainable fashion, and the protection of its critical areas and limited water resources. Further, the legislature finds that it is in the public interest that economic development programs be shared with communities experiencing insufficient economic growth.

It is the intent of the legislature to establish certain state-wide requirements and to designate a state role regarding natural resources of state-wide significance and where natural resources planning involves multiple jurisdictions.

Where appropriate, counties and cities should consult with tribal governments and special districts located within their boundaries when developing comprehensive plans and development regulations.

Sec. 2. RCW 36.70A.030 and 1990 1st ex.s. c 17 s 3 are each amended to read as follows:

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

(1) "Adjacent jurisdictions" include counties and cities that are located in the near vicinity of each other, and a county and the cities located within the county.

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

((~~(2)~~)) (3) "Affordable housing" means housing for income groups who typically have difficulty renting or purchasing market rate housing, and who have incomes that do not exceed eighty percent of the median income for the area. In order for housing to be affordable, total monthly housing costs must not exceed thirty percent of the household's gross monthly income.

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

((~~(3)~~)) (5) "Benchmarks" means quantitative and qualitative thresholds or targets that are used to measure the progress of a county or city to reach the goals contained in its comprehensive plan.

(6) "Board" means the growth management hearings board established to review plans and regulations established under this chapter.

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

((~~(4)~~)) (8) "Comprehensive land use plan," "comprehensive plan," or "plan" means a generalized coordinated land use policy statement of the governing body of a county or city that is adopted pursuant to this chapter.

((~~(5)~~)) (9) "Critical areas" include the following areas and ecosystems: (a) Wetlands; (b) areas with a critical recharging effect on aquifers used for potable water; (c) critical fish and wildlife habitat ((~~conservation areas~~)); (d) frequently flooded areas; and (e) geologically hazardous areas.

((~~(6)~~)) (10) "Department" means the department of community development.

((~~(7)~~)) (11) "Development regulations" means any controls placed on development or land use activities by a county or city, including, but not limited to, zoning ordinances, official controls, planned unit development ordinances, subdivision ordinances, and binding site plan ordinances.

((~~(8)~~)) (12) "Fair share housing" means housing of various types and densities, located within a city or county, that is affordable and available to low-income persons and persons with special needs, in proportion to the county or regional need.

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

((~~(9)~~)) (14) "Geologically hazardous areas" means areas that because of their susceptibility to erosion, sliding, earthquake, or other geological events, are not suited to the siting of commercial, residential, or industrial development consistent with public health or safety concerns.

((~~(10)~~)) (15) "Long-term commercial significance" includes the growing capacity, productivity, and soil composition of the land for long-term commercial production, in consideration with the land's proximity to population areas, and the possibility of more intense uses of the land.

((~~(11)~~)) (16) "Mineral((s)) resource lands" include those lands identified and currently used or having potential for long-term commercial extraction of gravel, sand, rock, and valuable metallic substances.

(17) "Natural resources of state-wide significance" are natural resources that possess outstanding natural, ecological, or scenic values, and are of the highest quality and most significant of their type. Because of their quality, they are of interest to all residents of the state. They include but are not limited to: (a) Lands essential for the protection, management, or public enjoyment of wildlife; (b) rivers or segments of rivers with exceptional scenic or ecological characteristics; (c) scenic landscapes of outstanding value; (d) high quality, regionally important wetland communities; (e) unique or rare ecological systems; (f) prime examples of native plant communities; (g) unique geological features; (h) significant shorelines, estuaries, or aquatic sites; (i) essential water resources; and (j) prime or outstanding features of the Washington landscape.

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

(19) "Open space" includes land areas, the protection of which would: (a) Conserve and enhance scenic or viewshed resources; (b) provide scenic amenities and community identity within and between areas of urban development; (c) protect physical and/or visual buffers within and between areas of urban and rural development, or along transportation corridors; (d) protect lakes, rivers, streams, watersheds, or water supply; (e) promote conservation of soils, tidal marshes, beaches, or other shoreline areas; (f) enhance the value to the public of abutting or neighboring parks, forests, wildlife habitat, trails, or other open space; (g) enhance recreation opportunities, including public access to shoreline areas; (h) protect natural areas and environmental features with significant educational, scientific, wildlife habitat, or historic value; or (i) retain and preserve natural areas and wildlife habitat important to the quality of life which are situated in an urban environment. Open space shall not include setbacks, coverage requirements, restrictions on height, and related conditions.

((~~(12)~~)) (20) "Public facilities" include streets, roads, highways, public transit facilities, sidewalks, trails, street and road lighting systems, traffic signals, domestic water systems, storm and sanitary sewer systems, parks and recreational facilities, and schools.

((~~(13)~~)) (21) "Public services" include fire protection and suppression, law enforcement, public health, education, public transit services, recreation, environmental protection, and other governmental services.

(22) "Public utilities" means the facilities of a public service company, or a radio communications service company, as those terms are defined in RCW 80.04.010, and the facilities of a municipal corporation, mutual association, or cooperative that are used to provide the same kind of services as provided by a public service company.

(23) "Region" means one or more counties and the cities within the county or counties, including multicounty regions.

(24) "Special district" means every municipal and quasi-municipal corporation other than a county or city. Special districts shall include, but are not limited to: Water districts, sewer districts, public transit districts, fire protection districts, port districts, library districts, school districts, public utility districts, county park and recreation service areas, flood control zone districts, irrigation districts, diking districts, and drainage improvement districts.

(25) "State agencies" means all departments, boards, commissions, institutions of higher education, and offices of state government, except those in the legislative or judicial branches, except to the extent otherwise required by law.

((~~(14)~~)) (26) "Urban growth" refers to growth that makes intensive use of land for the location of buildings, structures, and impermeable surfaces to such a degree as to be incompatible with the primary use of such land for the production of food, other agricultural products, or fiber, or the extraction of mineral resources. When allowed to spread over wide areas, urban growth typically requires urban governmental services. "Characterized by urban growth" refers to land having urban growth located on it, or to land located in relationship to an area with urban growth on it as to be appropriate for urban growth.

((~~(15)~~)) (27) "Urban growth areas" means those areas designated by a county pursuant to RCW 36.70A.110.

((~~(16)~~)) (28) "Urban governmental services" include those governmental services historically and typically delivered by cities, and include storm and sanitary sewer systems, domestic water systems, street cleaning services, fire and police protection services, public transit services, and other public utilities associated with urban areas and normally not associated with nonurban areas.

((~~(17)~~)) (29) "Wetland" or "wetlands" means areas that are inundated or saturated by surface water or ground water at a frequency and duration sufficient to support, and that under normal circumstances do support, a prevalence of vegetation typically adapted for life in saturated soil conditions. Wetlands generally include swamps, marshes, bogs, and similar areas. Wetlands do not include those artificial wetlands intentionally created from nonwetland sites, including, but not limited to, irrigation and drainage ditches, grass-lined swales, canals, detention facilities, wastewater treatment facilities, farm ponds, and landscape amenities. However, wetlands may include those artificial wetlands intentionally created from nonwetland areas created to mitigate conversion of wetlands, if permitted by the county or city.

PART I - PLANNING GOALS

Sec. 3. RCW 36.70A.020 and 1990 1st ex.s. c 17 s 2 are each amended to read as follows:

PLANNING GOALS. The plans, regulations, and actions, including expenditures of state-appropriated funds, of state agencies, counties, and cities that are required or choose to plan under RCW 36.70A.040, and special districts located in counties that are required or choose to plan under RCW 36.70A.040, shall conform to and support the following goals ((are adopted to guide the development and adoption of comprehensive plans and development regulations of those counties and cities that are required or choose to plan under RCW 36.70A.040. The following goals)) which are not listed in order of priority ((~~and shall be used exclusively for the purpose of guiding the development of comprehensive plans and development regulations~~)):

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

Urban growth areas should have concentrated employment centers, separated by adequate open space and protection of critical areas, and need not be uniformly urban in nature.

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

(3) Transportation. ((~~Encourage efficient multimodal transportation systems that are~~)) Link transportation systems and land use to maintain acceptable levels of transportation service, coordinate the development of transportation facilities between jurisdictions based on regional priorities ((~~and coordinated with county and city comprehensive plans~~)), and develop efficient multimodal transportation systems that include alternatives to single automobile travel and preserve the operational and structural integrity of the transportation system.

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

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

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

(7) Permits. Applications for both state and local government permits should be processed in a timely and fair manner to ensure predictability. Overlapping, duplicative, and conflicting regulations shall be avoided.

(8) Natural resource industries. Maintain and enhance natural resource-based industries, including productive timber, agricultural, and fisheries industries. Secondary land uses on agricultural lands, forest lands, and mineral resource lands shall be permitted that are related to and are designed to support the primary use of such lands for commercial agricultural, forest, or mineral resource purposes. Limited secondary land uses on agricultural lands, forest lands, and mineral resource lands may be permitted due to unique location factors of such lands, such as locating radio communication facilities. Encourage the conservation of productive forest lands and productive agricultural lands, and discourage incompatible uses.

(9) Open space and recreation. Encourage the retention of open space and development of recreational opportunities, conserve fish and wildlife habitat, increase access to ((~~natural resource lands and~~)) water, and develop parks. Open space networks should separate neighboring cities and, where possible, be linked to regional and state-wide open space networks.

(10) Environment. Protect the environment ((~~and enhance the state's high quality of life~~)), including critical areas, natural resources of state-wide significance, and air and water quality((~~, and the availability of water~~)). To the fullest extent possible, integrate the requirements of RCW 43.21C.030 into the planning process and identify in the comprehensive plan the significant adverse environmental impacts and reasonable alternatives to mitigate cumulative impacts on the environment.

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

(12) Public facilities and services. Ensure that those public facilities and services necessary to support development shall be adequate to serve the development at the time the development is available for occupancy and use without decreasing current service levels below locally established minimum standards. Public facilities shall be sited in such a manner to utilize existing public infrastructure including transportation facilities and services. Ensure the siting of regional and state public facilities, so that each county and city accepts its fair share of public facilities and no community is overburdened.

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

(14) Water resources. Land use planning and all permit decisions should both protect water quality and quantity and if there is a demand for additional water resources, the demand must be compatible with water resource plans. New growth must be related to water availability. Each county and its cities must integrate water resource planning for consumptive and noncomsumptive uses into its land use plan.

(15) Air quality. Land use planning and permit decisions must recognize their effect on air quality and mitigate these effects to the extent possible.

(16) Public utilities. Provide for adequate public utilities by assuring that land will be available for the location of public utilities, including location within transportation corridors, so that efficient, reliable, and cost-effective utility service can be provided.

(17) Support of public institutions. Ensure that state trust lands can be managed for the support of public institutions in accordance with federal law and state law constitutional and statutory requirements. Protect state trust lands from arbitrary or discriminatory land use actions.

PART II - LOCAL PLANNING

Sec. 4. RCW 36.70A.040 and 1990 1st ex.s. c 17 s 4 are each amended to read as follows:

WHO MUST PLAN. (1) ((~~Each county that~~)) The following counties, and the cities located in whole or in part within such counties, shall adopt comprehensive land use plans and development regulations in accordance with this chapter: (a) The county has a population of one hundred thousand or more; (b) the county has both a population of fifty thousand or more and has had its population increase by more than ten percent in the previous ten years((~~, and the cities located within such county,~~)); and (c) any other county regardless of its population that has had its population increase by more than twenty percent in the previous ten years((, and the cities located within such county, shall adopt comprehensive land use plans and development regulations under this chapter. However, the county legislative authority of such a county with a population of less than fifty thousand population may adopt a resolution removing the county, and the cities located within the county, from the requirements of adopting comprehensive land use plans and development regulations under this chapter if this resolution is adopted and filed with the department by December 31, 1990)). Once a county meets ((~~either~~)) one of these criteria, the requirement to conform with ((~~RCW 36.70A.040 through 36.70A.160~~)) this chapter remains in effect, even if the county no longer meets one of these criteria.

(2) The county legislative authority of any county that does not meet the requirements of subsection (1) of this section may adopt a resolution indicating its intention to have subsection (1) of this section apply to the county. Each city, located in whole or in part within a county that chooses to plan under this subsection, shall adopt a comprehensive land use plan in accordance with this chapter. Once such a resolution has been adopted, the county cannot remove itself from the requirements of this chapter.

(3) Any county or city that is required to adopt a comprehensive land use plan under subsection (1) of this section shall adopt the plan and submit a copy of the plan to the department on or before July 1, 1993. Any county or city that is required to adopt a comprehensive land use plan as a result of the actions taken under subsection (2) of this section shall adopt ((~~the~~)): (a) Development regulations under RCW 36.70A.060 within one year from the date the county legislative authority adopts the resolution under subsection (2) of this section; (b) a comprehensive plan not later than three years from the date the county legislative body takes action as required by subsection (2) of this section; and (c) development regulations implementing the comprehensive plan within one year of the date its comprehensive plan is adopted.

(4) If after January 1, 1991, the office of financial management certifies that ((the population of a county has changed sufficiently to meet the requirements of subsection (1) of this section, and the county legislative authority has not adopted a resolution removing the county from these requirements as provided in subsection (1) of this section)) a county, that previously had not been required to plan under this chapter as specified under subsection (1) or (2) of this section, meets the requirements of subsection (1) of this section to become required to plan under this chapter, the county and each city within such county shall adopt: (a) Development regulations under RCW 36.70A.060 within one year of the certification by the office of financial management; (b) a comprehensive land use plan under this chapter within three years of the certification by the office of financial management; and (c) development regulations pursuant to this chapter within one year of having adopted its comprehensive land use plan.

(5) Local governments that are required or choose to plan shall develop an orderly and consistent process that enables them to evaluate whether proposed regulatory or administrative actions may result in a taking of private property. This process shall be consistent with the guidelines and requirements of section 67 of this act. It is not the purpose of this subsection to expand or reduce the scope of private property protections provided in the state and federal Constitutions.

Sec. 5. RCW 36.70A.070 and 1990 1st ex.s. c 17 s 7 are each amended to read as follows:

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

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

(1) A land use element designating the proposed general distribution and general location and extent of the uses of land, where appropriate, for agriculture, timber production, housing, commerce, industry, recreation, open spaces, public utilities, public facilities, and other land uses. The land use element shall include population densities, building intensities, and estimates of future population growth. The land use element shall include designation of agricultural lands, forest lands, mineral resource lands, critical areas, natural resources of state-wide significance, and lands for open space as provided in section 40 of this act. Each county shall include urban growth areas as established in RCW 36.70A.110 in its comprehensive land use plan. The land use element shall provide for protection of the quality and quantity of ground water and surface bodies of water used for public water supplies and shall recognize that water availability and quality are key factors in determining the extent, location, distribution, and intensity of land uses. Where applicable, the land use element shall review drainage, flooding, and storm water run-off in the area and nearby jurisdictions and provide guidance for corrective actions to mitigate or cleanse those discharges that pollute waters of the state, including Puget Sound or waters entering Puget Sound.

The element shall incorporate noise exposure standards as defined by the department of ecology, identification of sources, including those from transportation facilities, and noise mitigation measures.

The land use element shall provide for the protection of air quality by limiting or conditioning development so that the development will not cause either direct or indirect degradation of air quality below acceptable standards.

(2)(a) A housing element recognizing the vitality and character of established residential neighborhoods that: ((~~(a)~~)) (i) Includes an inventory and analysis of existing and projected housing needs; ((~~(b)~~)) (ii) includes a statement of goals, policies, and objectives for the preservation, improvement, and development of housing and for meeting fair share affordable housing goals within the city or county; ((~~(c)~~)) and (iii) identifies and accommodates sufficient developable land for a range of housing types, including, but not limited to, government-assisted housing, housing for people with special needs, housing for low-income families, manufactured housing, multifamily housing, and group homes and foster care facilities((~~; and (d) makes adequate provisions for existing and projected needs of all economic segments of the community~~)).

(b) All counties with a population of one hundred twenty-five thousand or more, and cities with a population of twenty thousand or more located within those counties, are also required to include within the housing element: (i) As part of the analysis of existing and projected housing needs, a jobs-housing balance consisting of at least a comparison between the supply of housing and the number of jobs projected in the next ten years in the city or county. The jobs-housing balance must include an assessment of affordable housing; (ii) identification of sufficient densities for a range of housing types; (iii) identification of zoning restrictions that unduly limit density or which unreasonably increase housing development costs; (iv) at least a ten to twenty-year plan for the preservation and development of affordable housing and for meeting the jurisdiction's fair share affordable housing goals. The plan must realistically project the amount of low-income housing units that will be needed in the jurisdiction in the next ten to twenty years, and alternative public and private financing sources; and (v) identification of ways to minimize the displacement of residents from housing.

(c) The department shall develop rules for exempting cities that are already developed near capacity and consist primarily of single-family homes from any of the provisions of (b) of this subsection.

(d) In furtherance of affordable housing objectives, for land use and zoning purposes, manufactured housing that meets the definition of a designated manufactured home, as provided in RCW 35.63.160, shall be permitted as single-family housing in undeveloped parts of the urban growth area. Cities and counties are also encouraged to facilitate the siting of mobile home parks in furtherance of affordable housing objectives by decreasing lot size and setback requirements, and by allowing mobile home parks to be sited the same as other residential subdivisions.

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

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

(5) Counties shall include a rural element including lands that

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

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

(a) Land use assumptions used in estimating travel;

(b) Facilities and services needs, including:

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

(ii) Level of service standards for all arterials and transit routes to serve as a gauge to judge performance of the system. These standards ((~~should~~)) shall, when practicable, address mode split and vehicle occupancy goals and also be regionally coordinated;

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

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

(v) Identification of transportation system management and system expansion needs ((~~and transportation system management needs~~)) to meet current and future demands, including system management or facilities needed for regional or state-wide purposes;

(vi) Identification of noise mitigation measures needed for existing or planned transportation facilities as identified in the land use element;

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

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

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

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

(e) Strategies for reducing the impact of transportation on air quality in conformity with the state implementation plan on air quality;

(f) Demand-management strategies.

After adoption of the comprehensive plan by ((~~jurisdictions~~)) counties and cities required to plan or who choose to plan under RCW 36.70A.040, ((~~local jurisdictions~~)) such counties and cities must adopt and enforce ordinances which prohibit development approval if the development causes the level of service on a transportation facility to decline below the standards adopted in the transportation element of the comprehensive plan, unless transportation improvements or strategies to accommodate the impacts of development are made concurrent with the development. ((~~These strategies~~)) Counties and cities may exempt limited high-density areas from the level of service standards requirement provided that the level of service for nonsingle occupant vehicles is improved through strategies which may include increased public ((~~transportation~~)) transit service, ride sharing programs, demand management, and other transportation systems management strategies. The purpose of the exemption is to permit higher density development in certain areas which is conducive to alternatives to the single-occupant vehicle, including public transit. For the purposes of this subsection (6) "concurrent with the development" shall mean that improvements or strategies are in place at the time of development, or that a financial commitment is in place to complete the improvements or strategies within six years.

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

(7) An environmental management element that ensures that cumulative impacts and standards are considered and mitigation efforts are incorporated into land use, economic development, and infrastructure to protect, and when appropriate, to enhance environmental quality. Plans should minimize development and growth impacts on the environment so as not to degrade air, water, and natural resources below acceptable standards. Plans should specify service standards for public facilities and services and mitigation polices to provide better certainty in the development process. Before new development is approved, adequate solid waste facilities and opportunities for recycling and source reduction should be provided.

(8) An open space element that provides for local and regional parks, outdoor recreation facilities, trails, resource conservation areas, natural vistas, and greenbelts within and between designated urban growth areas. To the extent possible, open spaces should be linked in a coordinated regional and state-wide network and should be designated permanent open space only if funds or other compensatory techniques are available for acquisition consistent with section 45 of this act.

(9) A fair share element for siting state and regional public facilities for: (a) Holding or housing persons who have been arrested or convicted of crimes; and (b) the reduction, recycling, or disposal of solid waste.

(10) An historic sites and buildings element that includes but is not limited to, sites listed in or eligible for the Washington state register of historic places, the national register of historic places, or for designation under a local historic preservation ordinance.

(11) An economic development element that includes an economic profile of the county or city addressing the economic patterns, potentials, strengths, and weaknesses, and which may include:

(a) Methods to strengthen the economic base of the county or city;

(b) Identification of an adequate supply of sites of suitable sizes, types, locations, and service levels for industrial and commercial uses;

(d) A description that details how the land use and capital facilities elements of the comprehensive plan carry out the goals and objectives of the economic development element.

(12) Each county with a population of four hundred fifty thousand or more, and the cities with a population of twenty thousand or more located within such counties, shall include a design element, which at a minimum, addresses bulk and scale of new buildings in or adjacent to developed areas.

(13) For cities required to include in their comprehensive plans the entire housing element under subsection (2) of this section, a density element that (a) includes a description of plans for increasing housing density within urban growth areas, and (b) requires that development regulations within urban growth areas encourage increased density, and that, at a minimum, they allow: (i) Accessory apartment units, with standards, in all single family districts; (ii) subdivisions with small lot sizes; (iii) reduced or no yard setback and increased lot coverage for multifamily housing; and (iv) the use by multifamily housing facilities of innovative methods for providing parking, including tandem layouts, off-site lots, one space per unit, and credit for on-street availability.

Sec. 6. RCW 36.70A.080 and 1990 1st ex.s. c 17 s 8 are each amended to read as follows:

COMPREHENSIVE PLANS--OPTIONAL ELEMENTS. (1) A comprehensive plan may include additional elements, items, or studies dealing with other subjects relating to the physical development within its jurisdiction, including, but not limited to:

(a) Conservation;

(b) Solar energy; ((~~and~~))

(d) Cultural resources; and

(e) A design element that enables communities to harmoniously fit new development with planned or existing community character and vision.

(2) A comprehensive plan may include, where appropriate, subarea plans, each of which is consistent with the comprehensive plan.

Sec. 7. RCW 36.70A.110 and 1990 1st ex.s. c 17 s 11 are each amended to read as follows:

COMPREHENSIVE PLANS--URBAN GROWTH AREAS. (1) Each county that is required or chooses to ((~~adopt a comprehensive land use~~)) plan under RCW 36.70A.040 shall designate an urban growth area or areas in its comprehensive plan within which urban growth shall be encouraged and outside of which growth can occur only if it is not urban in nature. Each city that is located in such a county shall be included within an urban growth area. An urban growth area may include more than a single city. An urban growth area may include territory that is located outside of a city only if such territory already is characterized by urban growth ((or)), is adjacent to territory already characterized by urban growth, or meets the conditions for establishing new fully contained communities under section 11 of this act.

(2) Based upon the population forecast made for the county by the office of financial management, the urban growth areas in the county shall include areas and densities sufficient to permit the urban growth that is projected to occur in the county for the succeeding ((~~twenty-year~~)) ten-year period. Development densities should be sufficient to: (a) Protect open space, natural features and parks, agricultural lands, forest lands, mineral resource lands, and critical areas within and outside of urban growth areas; (b) promote affordable housing; and (c) promote alternatives to single-occupancy vehicle travel. Additionally, the county shall include a second-tier area to accommodate urban growth that is projected to occur in the county for a twenty-year period. The ten-year tier must be developed substantially before suburban or urban development is permitted beyond the ten-year tier. The ten-year and twenty-year urban growth area tiers in a county shall be established in such a manner as to not permit a significantly greater extent of urban growth than is projected to occur in the county within those time periods. Each urban growth area shall permit urban densities and shall include greenbelt and open space areas. Within one year of July 1, 1990, each county required to designate urban growth areas shall begin consulting with each city located within its boundaries and each city shall propose the location of an urban growth area. The county and cities located within the county shall attempt to reach agreement ((~~with each city~~)) on the location of ((an)) urban growth areas ((~~within which the city is located~~)) within the county. If such an agreement is not reached ((~~with each city located within the urban growth area~~)), the county shall justify in writing why it so designated the area or areas an urban growth area or urban growth areas. A city may object formally ((~~with~~)) to the department over the designation of the urban growth area within which it is located. Where appropriate, the department shall attempt to resolve the conflicts, including the use of mediation services.

(3) Urban growth should be located first in areas already characterized by urban growth that have existing public facility and service capacities to serve such development, and second in areas already characterized by urban growth that will be served by a combination of both existing public facilities and services and any additional needed public facilities and services that are provided by either public or private sources. Further, it is appropriate that urban government services be provided by cities, and urban government services should not be provided in rural areas.

(4) New development should be designed to respect the planned and existing character of neighborhoods and to mitigate the effect on the environment, including air quality.

(5) Areas for potential annexation or potential incorporation shall be designated in portions of urban growth areas outside of cities. These areas shall relate the potential annexation or incorporation areas with local development patterns, address density, and identify the needed service providers without proliferating special purpose districts, and may include possible sequences or timing for the potential annexations or incorporations.

(6) Open space and lands with significant natural limitations shall be excluded in computing urban area density.

(7) At its option, a county may refer to any or all of the urban growth areas that it establishes as urban service areas.

NEW SECTION. Sec. 8. INTERIM URBAN GROWTH AREAS. (1) A city shall not annex territory located beyond an interim urban growth area established by a county planning under RCW 36.70A.040. A city shall not incorporate territory located beyond an interim urban growth area established by a county planning under RCW 36.70A.040.

(2) Counties that designate interim urban growth areas shall do so based on urban growth areas already established as of the effective date of this act or pursuant to the provisions contained in RCW 36.70A.110(1). Urban growth shall not be allowed outside of the interim urban growth areas. The provisions of RCW 36.70A.110 (2) through (7) shall not apply to the designation of interim urban growth areas.

Sec. 9. RCW 36.70A.130 and 1990 1st ex.s. c 17 s 13 are each amended to read as follows:

URBAN GROWTH AREA REVIEW. (1) Each comprehensive land use plan and development regulations shall be subject to continuing evaluation and review by the county or city that adopted them.

Any amendment or revision to a comprehensive land use plan shall conform to this chapter, and any change to development regulations shall be consistent with and implement the comprehensive plan.

(2) Each county and city shall establish procedures whereby proposed amendments or revisions of the comprehensive plan are considered by the governing body of the county or city no more frequently than once every year. All proposals shall be considered by the governing body concurrently so the cumulative effect of the various proposals can be ascertained. However, a county or city may adopt amendments or revisions to its comprehensive plan that conform with this chapter whenever an emergency exists.

(3) Each county that designates urban growth areas under RCW 36.70A.110 shall review, at least every ten years, its designated urban growth area or areas, and the densities permitted within both the incorporated and unincorporated portions of each urban growth area. However, each county with a population of four hundred fifty thousand or more shall review its urban growth area or areas at least every five years. In conjunction with this review by the county, each city located within an urban growth area shall review the densities permitted within its boundaries, and the extent to which the urban growth occurring within the county has located within each city and the unincorporated portions of the urban growth areas. The county comprehensive plan designating urban growth areas, and the densities permitted in the urban growth areas by the comprehensive plans of the county and each city located within the urban growth areas, shall be revised to accommodate the urban growth projected to occur in the county for the succeeding twenty-year period.

NEW SECTION. Sec. 10. A new section is added to chapter 35.02 RCW to read as follows:

NO INCORPORATION BEYOND URBAN GROWTH BOUNDARIES. In a county in which urban growth areas have been designated under RCW 36.70A.110, no city may be incorporated beyond an urban growth area boundary.

NEW SECTION. Sec. 11. NEW FULLY CONTAINED COMMUNITIES. A county required or choosing to plan under RCW 36.70A.040 may establish a process as part of its urban growth areas, that are designated under RCW 36.70A.110, for reviewing proposals to authorize new fully contained communities located outside of the initially designated urban growth areas. Whenever this process is included, the urban growth areas in the county shall be restricted in anticipation of a new fully contained community or communities being approved in the future. When a new fully contained community is approved, the comprehensive plan shall be amended to designate the new fully contained community as an isolated urban growth area. The process contemplates holding in reserve portions of what eventually will become isolated urban growth areas within a county. Whenever the process to allow new fully contained communities is included as part of the urban growth areas within a county, the county shall demonstrate and justify how it restricted its urban growth areas in anticipation of approving a new fully contained community or communities as part of the urban growth areas within the county.

The process for reviewing proposed new fully contained communities shall include broad public participation. The applicant for the proposed new fully contained community shall prepare a proposed subarea plan for the area within which the new fully contained community is proposed to be located that demonstrates how growth-inducing impacts and urban and suburban growth will be precluded from occurring in the vicinity of the new fully contained community. A new fully contained community shall be surrounded by open space corridors and greenbelt areas. The process by which a new fully contained community is approved shall permit the transfer of development rights from property in the near vicinity of the proposed new fully contained community to the proposed new fully contained community. A new fully contained community shall not be located in a critical area or on natural resource lands. New fully contained communities shall be consistent with the requirements of this chapter. In addition, a new fully contained community may be approved only if the following criteria are met:

(1) New infrastructure and off-site impacts are fully considered and fully mitigated;

(2) Transit-oriented site planning and traffic demand management efforts are implemented;

(3) Buffers are provided between the new community and urban growth areas;

(4) Provisions are made for a balance of jobs and housing;

(5) Sufficient affordable housing is provided within the new fully contained community;

(6) Environmental protections have been adequately addressed and provided;

(7) Sufficient protection is provided to ensure the new fully contained community is self-contained and will not stimulate or accelerate urban or suburban growth in adjacent areas;

(8) Provision is made to minimize impacts on designated agricultural lands, forest lands, or mineral resource lands; and

(9) The plan for the new fully contained community is consistent with the development regulations established for the protection of critical areas.

NEW SECTION. Sec. 12. MASTER PLANNED RESORTS. Counties that are required or choose to plan under RCW 36.70A.040 may permit master planned resorts outside of urban growth areas as limited by this section. A master planned resort means a self-contained and fully integrated planned unit development with a primary and dominant focus on overnight accommodations and related visitor accommodations associated with on-site recreational activities, that primarily is retained under common ownership. A master planned resort may include limited subdivision or short subdivision of land within its boundaries, but only if such divisions are a minor part of the dominant resort focus that is retained under common ownership.

A master planned resort may be authorized by a county only if the county: (1) Specifically identifies policies to guide the development of such uses in its comprehensive plan; (2) includes a finding as a part of the approval process that the land is better suited, and has more long-term importance, for the master planned resort than for the commercial harvesting of timber, if located on land that otherwise would be designated as forest land; (3) is not located on or in the near vicinity of agricultural lands; (4) includes a finding as part of the approval process that the development will not adversely affect critical areas, and includes adequate binding restrictions to ensure that the development will not adversely affect critical areas; (5) does not permit or encourage other urban or suburban land uses that are not associated directly with the master planned resort; and (6) includes adequate binding restrictions to ensure that the development will not permit or encourage such land uses.

NEW SECTION. Sec. 13. PLANS AND REGULATIONS--SPECIAL DISTRICTS MUST CONFORM. (1) All special districts shall perform all of their activities which affect land use in conformity with the land use plans and zoning ordinances of the county or city having jurisdiction in the area where the activities occur.

(2) Not later than one and one-half years after the adoption of development regulations by a county or city pursuant to RCW 36.70A.120, each special district that provides one or more of the public facilities or public services listed in this subsection, and is located within such a county or city, shall adopt or amend a capital facilities plan for its facilities that is consistent with the comprehensive plan and development regulations and indicates the existing and projected capital facilities that are necessary to serve the projected growth for the area that is served by the special district. These public facilities or public services are: (a) Sanitary sewers; (b) potable water facilities; (c) park and recreation facilities; (d) fire suppression; (e) emergency medical services; (f) libraries; (g) hospitals; (h) schools; and (i) transportation facilities or services, including public transit.

Sec. 14. RCW 82.02.050 and 1990 1st ex.s. c 17 s 43 are each amended to read as follows:

HOUSING REPLACEMENT FEE. (1) It is the intent of the legislature:

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

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

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

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

(3) The impact fees:

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

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

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

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

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

(d) Cumulative significant adverse environmental impacts.

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

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

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

Sec. 15. RCW 82.02.090 and 1990 1st ex.s. c 17 s 48 are each amended to read as follows:

IMPACT FEES--DEFINITIONS. Unless the context clearly requires otherwise, the following definitions shall apply in RCW 82.02.050 through 82.02.090:

(1) "Development activity" means any construction or expansion of a building, structure, or use, any change in use of a building or structure, or any changes in the use of land, that creates additional demand and need for public facilities.

(2) "Development approval" means any written authorization from a county, city, or town which authorizes the commencement of development activity.

(3) "Impact fee" means a payment of money imposed upon development as a condition of development approval to pay for public facilities needed to serve new growth and development, and that is reasonably related to the new development that creates additional demand and need for public facilities, that is a proportionate share of the cost of the public facilities, and that is used for facilities that reasonably benefit the new development. "Impact fee" does not include a reasonable permit or application fee.

(4) "Owner" means the owner of record of real property, although when real property is being purchased under a real estate contract, the purchaser shall be considered the owner of the real property if the contract is recorded.

(5) "Proportionate share" means that portion of the cost of public facility improvements that are reasonably related to the service demands and needs of new development.

(6) "Project improvements" mean site improvements and facilities that are planned and designed to provide service for a particular development project and that are necessary for the use and convenience of the occupants or users of the project, and are not system improvements. No improvement or facility included in a capital facilities plan approved by the governing body of the county, city, or town shall be considered a project improvement.

(7) "Public facilities" means the following capital facilities owned or operated by government entities: (a) Public streets and roads, sidewalks, bicycle trails, and transit stops; (b) publicly owned parks, open space, and recreation facilities; (c) school facilities; ((~~and~~)) (d) low-income housing; (e) fire protection facilities in jurisdictions that are not part of a fire district; and (f) high-capacity transit systems and alternative transportation accommodations.

(8) "Service area" means a geographic area defined by a county, city, town, or intergovernmental agreement in which a defined set of public facilities provide service to development within the area. Service areas shall be designated on the basis of sound planning or engineering principles.

(9) "System improvements" mean public facilities that are included in the capital facilities plan and are designed to provide service to service areas within the community at large, in contrast to project improvements.

Sec. 16. RCW 43.21C.031 and 1983 c 117 s 1 are each amended to read as follows:

ENVIRONMENTAL IMPACT STATEMENTS. (1) An environmental impact statement (the detailed statement required by RCW 43.21C.030(2)(c)) shall be prepared on proposals for legislation and other major actions having a probable significant, adverse environmental impact. Actions categorically exempt under RCW 43.21C.110(1)(a) do not require environmental review or the preparation of an environmental impact statement under this chapter.

(2)(a) Except as provided in (b) of this subsection, an environmental impact statement is required to analyze only those probable adverse environmental impacts which are significant. Beneficial environmental impacts may be discussed. The responsible official shall consult with agencies and the public to identify such impacts and limit the scope of an environmental impact statement.

(b) An environmental impact statement for a comprehensive plan and development regulations considered for adoption under RCW 36.70A.040 shall analyze the significant adverse environmental impacts of the proposed plan and regulations.

(3) The subjects listed in RCW 43.21C.030(2)(c) need not be treated as separate sections of an environmental impact statement. Discussions of significant short-term and long-term environmental impacts, significant irrevocable commitments of natural resources, significant alternatives including mitigation measures, and significant environmental impacts which cannot be mitigated should be consolidated or included, as applicable, in those sections of an environmental impact statement where the responsible official decides they logically belong.

NEW SECTION. Sec. 17. ENVIRONMENTAL PLANNING PILOT PROJECTS. (1) The legislature intends to determine whether the environmental review process mandated under chapter 43.21C RCW may be enhanced and simplified, and coordination improved, when applied to comprehensive plans mandated by this chapter. The department of ecology shall undertake pilot projects on environmental review to determine if the review process can be improved by fostering more coordination and eliminating duplicative environmental reviews through enhancing the nonproject environmental analysis which is made to assist decision makers approving comprehensive plans pursuant to this chapter. Such pilot projects should be designed and scoped to consider cumulative impacts resulting from plan decisions, plan impacts on environmental quality, impacts on adjacent jurisdictions, and similar factors in sufficient depth to simplify the analysis of subsequent specific projects being carried out pursuant to the approved plan.

(2) The legislature hereby authorizes the department of ecology to establish, in cooperation with at least four counties or cities, pilot projects on enhanced nonproject environmental analysis of comprehensive plans for geographic subparts of such plans, prepared pursuant to this chapter, for the purposes outlined in subsection (1) of this section. The department of ecology may select appropriate subregions within a comprehensive plan if that will best serve the purposes of this section and meet the requirements of chapter 43.21C RCW.

(3) An enhanced draft and final nonproject environmental analysis prepared pursuant to this section shall follow the rules adopted pursuant to chapter 43.21C RCW.

(4) Not later than December 31, 1993, the department shall evaluate the overall effectiveness of the pilot projects under this section regarding preparing enhanced nonproject environmental analysis for the approval process of comprehensive plans and shall:

(a) Provide a report of its findings to the legislature and the department of community development with such recommendations as may be appropriate, including the need, if any, for further legislation;

(b) Consider promulgation of any further regulations or guidelines as may be appropriate to assist counties and cities in meeting requirements of chapter 43.21C RCW when considering comprehensive plans; and

(c) Prepare and circulate to counties and cities such instructional manuals or other information derived from the pilot projects as will assist all counties and cities in meeting the requirements and objectives of chapter 43.21C RCW in the most expeditious and efficient manner in the process of considering comprehensive plans pursuant to this chapter.

Sec. 18. RCW 19.27.095 and 1987 c 104 s 1 are each amended to read as follows:

BUILDING PERMIT APPLICATION‑-CONSIDERATION‑-REQUIREMENTS DEFINED BY LOCAL ORDINANCE. (1) A valid and fully complete building permit application for a structure, that is permitted under the zoning or other land use control ordinances in effect on the date of the application shall be considered under the building permit ordinance in effect at the time of application, and the zoning or other land use control ordinances in effect on the date of application.

(2) The requirements for a fully completed application shall ((~~be defined by local ordinance~~)) include those items required for an application by the state building code and those items required by local ordinance, provided such local ordinance is in effect at the time of the building permit application.

Supplemental information required by the county, city, or town after acceptance of a complete application under this subsection shall not affect the time of vesting under this section for such application.

(3) The limitations imposed by this section shall not restrict conditions imposed under chapter 43.21C RCW.

Sec. 19. RCW 58.17.033 and 1987 c 104 s 2 are each amended to read as follows:

PROPOSED DIVISION OF LAND‑-REQUIREMENTS DEFINED BY LOCAL ORDINANCE. (1) A proposed division of land, as defined in RCW 58.17.020, shall be considered under the subdivision or short subdivision ordinance, and zoning or other land use control ordinances, in effect on the land at the time a fully completed application for preliminary plat approval of the subdivision, or short plat approval of the short subdivision, has been submitted to the appropriate county, city, or town official.

(2) The requirements for a fully completed application shall be defined by local ordinance. If no ordinance is adopted at the time of application, then an application is complete if it contains the following:

(a) For all subdivisions: A complete preliminary plat drawing; a complete state environmental policy act checklist; road profiles; preliminary water, sewer, and storm drainage plans; evidence of compliance with the comprehensive plan and zoning ordinance; certificates of sewer and water availability from the appropriate districts attesting to the adequacy of the proposed water supply and sewage disposal; and proof that the subject lot or lots are recognized as separate lots pursuant to applicable state law.

(b) At the option of the county, city, or town, the following may be required: Site survey; topography map; storm calculations; transportation analysis; soils analysis; wetlands analysis; a clearing plan; and a preliminary landscape plan.

(3) The limitations imposed by this section shall not restrict conditions imposed under chapter 43.21C RCW.

Sec. 20. RCW 58.17.170 and 1981 c 293 s 10 are each amended to read as follows:

SUBDIVISION, ZONING CONTROLS. When the legislative body of the city, town or county finds that the subdivision proposed for final plat approval conforms to all terms of the preliminary plat approval, and that said subdivision meets the requirements of this chapter, other applicable state laws, and any local ordinances adopted under this chapter which were in effect at the time of preliminary plat approval, it shall suitably inscribe and execute its written approval on the face of the plat. The original of said final plat shall be filed for record with the county auditor. One reproducible copy shall be furnished to the city, town or county engineer. One paper copy shall be filed with the county assessor. Paper copies shall be provided to such other agencies as may be required by ordinance. Any lots in a final plat filed for record shall be a valid land use notwithstanding any change in zoning laws for a period of five years from the date of filing, but during this five-year period are subject to any changed conditions on the valid land use contained in the current zoning or other land use control ordinances as long as the valid land use remains possible. These conditions include, but are not limited to, setback requirements and height limitations. A subdivision shall be governed by the terms of approval of the final plat, and the statutes, ordinances, and regulations in effect at the time of approval under RCW 58.17.150 (1) and (3) for a period of five years after final plat approval unless the legislative body finds that a change in conditions creates a serious threat to the public health or safety in the subdivision.

Sec. 21. RCW 58.17.040 and 1989 c 43 s 4-123 are each amended to read as follows:

EXEMPTIONS FROM SUBDIVISION LAWS. The provisions of this chapter shall not apply to:

(1) Cemeteries and other burial plots while used for that purpose;

(2) Divisions of land into lots or tracts each of which is one-one hundred twenty-eighth of a section of land or larger, or five acres or larger if the land is not capable of description as a fraction of a section of land, unless the governing authority of the city, town, or county in which the land is situated shall have adopted a subdivision ordinance requiring plat approval of such divisions: PROVIDED, That for purposes of computing the size of any lot under this item which borders on a street or road, the lot size shall be expanded to include that area which would be bounded by the center line of the road or street and the side lot lines of the lot running perpendicular to such center line;

(3) ((~~Divisions made by testamentary provisions, or the laws of descent;~~

~~(4)~~)) Divisions of land into lots or tracts classified for industrial or commercial use when the city, town, or county has approved a binding site plan for the use of the land in accordance with local regulations;

((~~(5)~~)) (4) A division for the purpose of lease when no residential structure other than mobile homes or travel trailers are permitted to be placed upon the land when the city, town, or county has approved a binding site plan for the use of the land in accordance with local regulations;

((~~(6)~~)) (5) A division made for the purpose of alteration by adjusting boundary lines, between platted or unplatted lots or both, which does not create any additional lot, tract, parcel, site, or division nor create any lot, tract, parcel, site, or division which contains insufficient area and dimension to meet minimum requirements for width and area for a building site; and

((~~(7)~~)) (6) Divisions of land into lots or tracts if: (a) The improvements constructed or to be constructed thereon will be included in one or more condominiums or owned by an association or other legal entity in which the owners of units therein or their owners' associations have a membership or other legal or beneficial interest; (b) a city, town, or county has approved a binding site plan for all such land; and (c) the binding site plan contains thereon the following statement: "All development of the land described herein shall be in accordance with the binding site plan, as it may be amended. Upon completion, the improvements on the land shall be included in one or more condominiums or owned by an association or other legal entity in which the owners of units therein or their owners' associations have a membership or other legal or beneficial interest."

Sec. 22. RCW 36.70A.140 and 1990 1st ex.s. c 17 s 14 are each amended to read as follows:

NEIGHBORHOOD PARTICIPATION. Each county and city that is required or chooses to plan under RCW 36.70A.040 shall establish procedures providing for early and continuous public participation in the development and amendment of comprehensive land use plans and development regulations implementing such plans. 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 shall not render the comprehensive land use plan or development regulations invalid if the spirit of the procedures is observed.

Every city with a population of twenty thousand or more that plans under RCW 36.70A.040 shall establish a neighborhood inclusion process. The process shall allow neighborhood groups an opportunity to develop a neighborhood plan that addresses how their neighborhood can help the city meet its overall goals and requirements for growth management. The neighborhood plan must be consistent with the goals, requirements, and priorities of the city, and shall be given substantial consideration by the city council. The city shall: (1) Provide neighborhood groups with a listing of what the city is required to do in order to comply with growth management provisions; (2) assist neighborhood groups with the development of the neighborhood plan when possible; (3) establish timelines for when the neighborhood plans must be submitted to the city for review; and (4) help in the development of impact mitigation measures for the neighborhood when a neighborhood increases its density, or when state or regional public facilities are sited in the neighborhood. If the neighborhood plan does not proceed in a timely manner, the city may assume control over the process and complete the plan.

Every city with a population of twenty thousand or more shall establish citizen advisory councils to assist in the development of the comprehensive land use plans and development regulations. Counties and cities may establish citizen advisory councils. The councils shall be consulted on the development of methods to meet fair share housing goals, and be consulted at key planning milestones.

Nothing in this section shall require a city to establish a neighborhood inclusion process or a citizen advisory council if the city already has a similar neighborhood inclusion process or a citizen advisory council already established.

Sec. 23. RCW 36.93.170 and 1989 c 84 s 5 are each amended to read as follows:

FACTORS FOR BOUNDARY REVIEW BOARD TO CONSIDER. In reaching a decision on a proposal or an alternative, the board shall consider the factors affecting such proposal, which shall include, but not be limited to the following:

(1) Population and territory; population density; land area and land uses; comprehensive plans and zoning, as adopted under chapter 35.63, 35A.63, or 36.70 RCW; per capita assessed valuation; topography, natural boundaries and drainage basins, proximity to other populated areas; the existence and preservation of prime agricultural soils and productive agricultural uses; the likelihood of significant growth in the area and in adjacent incorporated and unincorporated areas during the next ten years; location and most desirable future location of community facilities;

(2) Municipal services; need for municipal services; effect of ordinances, governmental codes, regulations and resolutions on existing uses; present cost and adequacy of governmental services and controls in area; prospects of governmental services from other sources; probable future needs for such services and controls; probable effect of proposal or alternative on cost and adequacy of services and controls in area and adjacent area; the effect on the finances, debt structure, and contractual obligations and rights of all affected governmental units; the added net costs for a city, town, or special district to provide services and facilities in an area that it proposes to annex; and

(3) The effect of the proposal or alternative on adjacent areas, on mutual economic and social interests, and on the local governmental structure of the county.

The provisions of chapter 43.21C RCW, State Environmental Policy, shall not apply to incorporation proceedings covered by chapter 35.02 RCW.

Sec. 24. RCW 36.93.180 and 1989 c 84 s 6 are each amended to read as follows:

OBJECTIVES OF BOUNDARY REVIEW BOARD. 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) Evaluation of whether the proposed annexation by a city or town, or proposed incorporation of a city or town, in a county that is required or chooses to plan under RCW 36.70A.040, is located within an urban growth area and is consistent with the annexation and incorporation portions of the urban growth area. Cities and towns located in a county that is required or chooses to plan under RCW 36.70A.040 shall not annex areas outside of an urban growth area. A city or town shall not be incorporated outside of an urban growth area in any county that is required or chooses to plan under RCW 36.70A.040.

NEW SECTION. Sec. 25. A new section is added to chapter 36.93 RCW to read as follows:

POWER TO DISBAND BOUNDARY REVIEW BOARD. When a county has adopted a comprehensive plan and consistent development regulations pursuant to the provisions of chapter 36.70A RCW and this act, the county may at the discretion of the county legislative authority, disband the boundary review board in that county.

Sec. 26. RCW 35.13.130 and 1990 c 33 s 566 are each amended to read as follows:

PETITION METHOD--PETITION--SIGNERS--CONTENT. A petition for annexation of an area contiguous to a city or town may be made in writing addressed to and filed with the legislative body of the municipality to which annexation is desired. Except where all the property sought to be annexed is property of a school district, and the school directors thereof file the petition for annexation as in RCW 28A.335.110 authorized, the petition must be signed by the owners of not less than seventy-five percent in value according to the assessed valuation for general taxation of the property for which annexation is petitioned, except the petition for a city or town that is located in a county planning under RCW 36.70A.040, to annex property located in such a county, must be signed by the owners of not less than sixty percent in value according to the assessed valuation for general taxation of the property for which annexation is petitioned: PROVIDED, That in cities and towns with populations greater than one hundred sixty thousand located east of the Cascade mountains, the owner of tax exempt property may sign an annexation petition and have the tax exempt property annexed into the city or town, but the value of the tax exempt property shall not be used in calculating the sufficiency of the required property owner signatures unless only tax exempt property is proposed to be annexed into the city or town. The petition shall set forth a description of the property according to government legal subdivisions or legal plats which is in compliance with RCW 35.02.170, and shall be accompanied by a plat which outlines the boundaries of the property sought to be annexed. If the legislative body has required the assumption of all or of any portion of city or town indebtedness by the area annexed, and/or the adoption of a comprehensive plan for the area to be annexed, these facts, together with a quotation of the minute entry of such requirement or requirements shall be set forth in the petition.

NEW SECTION. Sec. 27. A new section is added to chapter 35.13 RCW to read as follows:

CITY ANNEXATIONS. Each unincorporated area that as of January 1, 1991, lies wholly within the boundaries of a city or town shall become part of the city or town within whose boundaries the unincorporated area lies, as of the effective date of an ordinance adopted by the city or town governing body providing for the annexation of the area, after the governing body holds a public hearing on the proposed annexation of the area. Land which is owned by a county and used for the purposes of an agricultural fair under chapter 15.76 or 36.37 RCW, or a county park, shall not be annexed under this section without the consent of a majority of the members of the county legislative authority of the county that owns the land. For purposes of this section, an unincorporated area that is bounded completely by both a state boundary, or a body or bodies of navigable water, and a city or town shall not be construed to lie wholly within the boundaries of a city or town. Annexations under this section shall not be reviewed by a boundary review board or other annexation review board.

NEW SECTION. Sec. 28. A new section is added to chapter 35.13 RCW to read as follows:

CITY ANNEXATIONS. (1) A city or town shall not annex territory under any method where, after the proposed annexation has occurred, any closed plane figure of unincorporated area could be drawn that includes a portion of the boundary of the newly annexed area so that eighty percent or more of the figure's perimeter is conterminous with any of the annexing city's or town's boundaries. In addition, a city or town shall not annex unincorporated territory under any method of annexation if, as a result of the annexation, an area would become entirely surrounded by a body or bodies of navigable water and the annexing city or town, unless the annexation reduced the size of an area that prior to the annexation was entirely surrounded by a body or bodies of navigable water and the annexing city or town.

(2) However, a city or town may annex territory that lies within a corridor of unincorporated territory which existed before the effective date of this act where, after the annexation has occurred, a closed plane figure could be drawn that is prohibited under subsection (1) of this section, if, after the proposed annexation has occurred, another closed plane figure cannot be drawn within the corridor so that a greater percentage of the perimeter is conterminous with a portion of the boundaries of the city or town than was the case with the perimeter of the original figure.

NEW SECTION. Sec. 29. A new section is added to chapter 35A.14 RCW to read as follows:

CITY ANNEXATIONS. Each unincorporated area that as of January 1, 1991, lies wholly within the boundaries of a code city shall become part of the city within whose boundaries the unincorporated area lies, as of the effective date of an ordinance adopted by the city governing body providing for the annexation of the area, after the governing body holds a public hearing on the proposed annexation of the area. Land which is owned by a county and used for the purposes of an agricultural fair under chapter 15.76 or 36.37 RCW, or a county park, shall not be annexed under this section without the consent of a majority of the members of the county legislative authority of the county that owns the land. For purposes of this section, an unincorporated area that is bounded completely by both a state boundary, or a body or bodies of navigable water, and a city shall not be construed to lie wholly within the boundaries of a city. Annexations under this section shall not be reviewed by a boundary review board or other annexation review board.

NEW SECTION. Sec. 30. A new section is added to chapter 35A.14 RCW to read as follows:

CITY ANNEXATIONS. (1) A code city shall not annex territory under any method where, after the proposed annexation has occurred, any closed plane figure of unincorporated area could be drawn that includes a portion of the boundary of the newly annexed area so that eighty percent or more of the figure's perimeter is coterminous with any of the annexing city's boundaries. In addition, a code city shall not annex unincorporated territory under any method of annexation if, as a result of the annexation, an area would become entirely surrounded by a body or bodies of navigable water and the annexing city, unless the annexation reduced the size of an area that prior to the annexation was entirely surrounded by a body or bodies of navigable water and the annexing city.

(2) However, a code city may annex territory that lies within a corridor of unincorporated territory which existed before the effective date of this act where, after the annexation has occurred, a closed plane figure could be drawn that is prohibited under subsection (1) of this section, if, after the proposed annexation has occurred, another closed plane figure cannot be drawn within the corridor so that a greater percentage of the perimeter is coterminous with a portion of the boundaries of the city than was the case with the perimeter of the original figure.

PART III - HOUSING

Sec. 31. RCW 82.46.010 and 1990 1st ex.s. c 17 s 36 are each amended to read as follows:

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

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

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

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

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

(5) As used in this section, "city" means any city or town; and "housing project" includes the construction, reconstruction, acquisition, or rehabilitation of housing to serve low-income persons by the city or county, or as provided in RCW 35.21.685 and 36.32.415.

NEW SECTION. Sec. 32. FAIR SHARE HOUSING. (1) Each county and city that is required or chooses to plan under RCW 36.70A.040 shall determine its fair share affordable housing goal pursuant to the regional policy plan process established in section 51 of this act. The process shall utilize county-wide data provided by the office of financial management to establish the fair share affordable housing goals, except that data from more than one county may be aggregated when it is appropriate.

(2) The department shall require each city and county to submit a report every five years that describes the progress that is being made to meet its fair share affordable housing goal. Jurisdictions that meet their fair share affordable housing goals shall receive preference points in applications for grants or loans under the public works assistance account and the housing trust fund. A jurisdiction can demonstrate progress at meeting its fair share affordable housing goals by indicating efforts in reducing minimum lot and frontage sizes, the amount of local effort compared to the tax capacity, the submission of any bond and levy measures to the voters for affordable housing, the identification and elimination of restrictive zoning or regulations that unreasonably impact affordable housing, the enactment of density bonuses and land use techniques such as cluster housing and planned unit developments, the siting of affordable higher density mobile home parks, the adoption of a current use classification for assessing low-income housing, and efforts to preserve federally assisted housing developments.

NEW SECTION. Sec. 33. A new section is added to chapter 8.26 RCW to read as follows:

REPLACEMENT HOUSING. Whenever the state or a local public agency demolishes or otherwise eliminates low-income housing as defined in RCW 36.32.415 for a public works project, it shall deposit moneys in a local jurisdiction housing replacement fund in an amount equal to the cost of providing an equal number of new low-income rental housing units in the same location. The moneys may only be used for acquiring, constructing, or rehabilitating low-income housing stock. Nothing in this section shall require a state or local public agency to pay an impact fee for demolishing housing that constitutes a nuisance or a health or safety hazard to the community.

Sec. 34. RCW 35.21.685 and 1986 c 248 s 1 are each amended to read as follows:

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

Sec. 35. RCW 36.32.415 and 1986 c 248 s 2 are each amended to read as follows:

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

Sec. 36. RCW 59.18.440 and 1990 1st ex.s. c 17 s 49 are each amended to read as follows:

HOUSING RELOCATION ASSISTANCE. (1) Any city, town, or county((~~, or municipal corporation~~)) that is required to or chooses to develop a comprehensive plan under RCW ((~~36.70A.040(1)~~)) 36.70A.040 is authorized to require, after reasonable notice to the public and a public hearing, property owners to provide their portion of reasonable relocation assistance to low-income tenants upon the demolition, substantial rehabilitation whether due to code enforcement or any other reason, or change of use of residential property, or upon the removal of use restrictions in an assisted-housing development. No city, town, or county((~~, or municipal corporation~~)) may require property owners to provide relocation assistance to low-income tenants, as defined in this chapter, upon the demolition, substantial rehabilitation, upon the change of use of residential property, or upon the removal of use restrictions in an assisted-housing development, except as expressly authorized herein or when authorized or required by state or federal law. As used in this section, "assisted housing development" means a multifamily rental housing development that either receives government assistance and is defined as federally assisted housing in RCW 59.28.020, or that receives other federal, state, or local government assistance and is subject to use restrictions.

(2) As used in this section, "low-income tenants" means tenants whose combined total income per dwelling unit is at or below fifty percent of the median income, adjusted for family size, in the county where the tenants reside.

The department of community development shall adopt rules defining county median income in accordance with the definitions promulgated by the federal department of housing and urban development.

(3) A requirement that property owners provide relocation assistance shall include the amounts of such assistance to be provided to low-income tenants. In determining such amounts, the ((~~jurisdiction~~)) county, city, or town imposing the requirement shall evaluate, and receive public testimony on, what relocation expenses displaced tenants would reasonably incur in that jurisdiction including:

(a) Actual physical moving costs and expenses;

(b) Advance payments required for moving into a new residence such as the cost of first and last month's rent and security and damage deposits;

(d) Anticipated additional rent and utility costs in the residence for one year after relocation.

(4)(a) Relocation assistance provided to low-income tenants under this section shall not exceed two thousand dollars for each dwelling unit displaced by actions of the property owner under subsection (1) of this section. A city, town, or county((~~, or municipal corporation~~)) may make future annual adjustments to the maximum amount of relocation assistance required under this subsection in order to reflect any changes in the housing component of the consumer price index as published by the United States department of labor, bureau of labor statistics.

(b) The property owner's portion of any relocation assistance provided to low-income tenants under this section shall not exceed one-half of the required relocation assistance under (a) of this subsection in cash or services. A city, town, or county may authorize the cash portion of the relocation assistance provided by the property owner to be in the form of foregone rent, and may establish a value on services provided by the landlord, such as moving, that assist the tenants to relocate.

(c) The portion of relocation assistance not covered by the property owner under (b) of this subsection shall be paid by the city, town, or county((~~, or municipal corporation~~)) authorized to require relocation assistance under subsection (1) of this section. The relocation assistance may be paid from proceeds collected from the excise tax imposed under RCW 82.46.010.

(5) A city, town, or county((~~, or municipal corporation~~)) requiring the provision of relocation assistance under this section shall adopt policies, procedures, or regulations to implement such requirement. Such policies, procedures, or regulations shall include provisions for administrative hearings to resolve disputes between tenants and property owners relating to relocation assistance or unlawful detainer actions during relocation, and shall require a decision within thirty days of a request for a hearing by either a tenant or property owner.

Judicial review of an administrative hearing decision relating to relocation assistance may be had by filing a petition, within ten days of the decision, in the superior court in the county where the residential property is located. Judicial review shall be confined to the record of the administrative hearing and the court may reverse the decision only if the administrative findings, inferences, conclusions, or decision is:

(a) In violation of constitutional provisions;

(b) In excess of the authority or jurisdiction of the administrative hearing officer;

(d) Arbitrary and capricious.

(6) Any city, town, or county((~~, or municipal corporation~~)) may require relocation assistance, under the terms of this section, for otherwise eligible tenants whose living arrangements are exempted from the provisions of this chapter under RCW 59.18.040(3) and if the living arrangement is considered to be a rental or lease pursuant to RCW 67.28.180(1).

(7)(a) Persons who move from a dwelling unit prior to the application by the owner of the dwelling unit for any governmental permit necessary for the demolition, substantial rehabilitation, or change of use of residential property or prior to any notification or filing required for condominium conversion shall not be entitled to the assistance authorized by this section.

(b) Persons who move into a dwelling unit after the application for any necessary governmental permit or after any required condominium conversion notification or filing shall not be entitled to the assistance authorized by this section if such persons receive written notice from the property owner prior to taking possession of the dwelling unit that specifically describes the activity or condition that may result in their temporary or permanent displacement and advises them of their ineligibility for relocation assistance.

PART IV - RESOURCE LANDS, CRITICAL AREAS, AND OPEN SPACE

Sec. 37. RCW 36.70A.170 and 1990 1st ex.s. c 17 s 17 are each amended to read as follows:

FOREST, AGRICULTURE, AND MINERAL RESOURCE LANDS AND CRITICAL AREAS--DESIGNATIONS. (1) On or before September 1, 1991, each county, and each city, shall designate where appropriate:

(a) Agricultural lands that are not already characterized by urban growth and that have long-term significance for the commercial production of food or other agricultural products;

(b) Forest lands that are not already characterized by urban growth and that have long-term significance for the commercial production of timber;

(c) Mineral resource lands that are not already characterized by urban growth and that have long-term significance for the extraction of minerals; and

(d) Critical areas.

(2) In making the designations required by this section, counties and cities shall consider the guidelines established pursuant to RCW 36.70A.050.

(3) Once classified, such lands shall be protected according to RCW 36.70A.060 or section 39 of this act.

Sec. 38. RCW 36.70A.060 and 1990 1st ex.s. c 17 s 6 are each amended to read as follows:

FOREST, AGRICULTURE, AND MINERAL RESOURCE LANDS AND CRITICAL AREAS--DEVELOPMENT REGULATIONS. (1) Each county that is required or chooses to plan under RCW 36.70A.040, and each city within such county, shall adopt development regulations on or before September 1, 1991, to assure the conservation of agricultural, forest, and mineral resource lands designated under RCW 36.70A.170. Regulations adopted under this ((~~section~~)) subsection may not prohibit uses ((~~permitted~~)) legally existing on any parcel prior to their adoption unless provisions are made for amortizing the use and shall remain in effect until ((a)) the county or city adopts development regulations pursuant to RCW 36.70A.120. Such regulations shall assure that the use of lands adjacent to agricultural, forest, or mineral resource lands shall not interfere with the continued use, in the accustomed manner and in accordance with best management practices, of these designated lands for the production of food, agricultural products, or timber, or for the extraction of minerals. Counties and cities shall require that all plats, short plats, development permits, and building permits issued for development activities on, or within three hundred feet of, lands designated as agricultural lands, forest lands, or mineral resource lands, contain a notice that the subject property is within or near designated agricultural lands, forest lands, or mineral resource lands on which a variety of commercial activities may occur that are not compatible with residential development for certain periods of limited duration.

(2) Each county that is required or chooses to plan under RCW 36.70A.040, and each city within such county, shall adopt development regulations on or before September 1, 1991, precluding land uses or development that is incompatible with the critical areas that are required to be designated under RCW 36.70A.170.

((~~(2)~~)) (3) Such counties and cities shall review these designations and development regulations when adopting their comprehensive plans under RCW 36.70A.040 and implementing development regulations under RCW 36.70A.120 and may alter such designations and development regulations to insure consistency.

NEW SECTION. Sec. 39. FOREST, AGRICULTURE, AND MINERAL RESOURCE LANDS AND CRITICAL AREAS--REMAINING JURISDICTIONS TO ADOPT DEVELOPMENT REGULATIONS. (1) Each county and city not planning under RCW 36.70A.060 shall adopt development regulations on or before September 1, 1992, to assure the conservation of agricultural, forest, and mineral resource lands designated under RCW 36.70A.170. Regulations adopted under this subsection may not prohibit uses legally existing on any parcel prior to their adoption unless provisions are made for amortizing the use. Such regulations shall assure that the use of lands adjacent to agricultural, forest, or mineral resource lands shall not interfere with the continued use, in the accustomed manner, of these designated lands for the production of food, agricultural products, or timber, or for the extraction of minerals.

(2) Each county and city covered by this section shall adopt development regulations on or before September 1, 1992, precluding land uses or development that is incompatible with the critical areas that are required to be designated under RCW 36.70A.170.

(3) Each county and city under this section shall perform its activities, including adoption of development regulations, and make capital budget decisions in conformity with their designations under RCW 36.70A.170.

NEW SECTION. Sec. 40. OPEN SPACE LANDS--IDENTIFICATION. In addition to designation of agricultural lands, forest lands, mineral resource lands, and critical areas as required under RCW 36.70A.170, every county and city required or choosing to plan under RCW 36.70A.040 shall identify existing open space lands permanently protected by the county or city by June 30, 1992. This identification shall be consistent with the requirements contained in RCW 36.70A.160.

NEW SECTION. Sec. 41. EXTENSION OF TIME TO DESIGNATE AND PROTECT FOREST, AGRICULTURE, AND MINERAL RESOURCE LANDS AND CRITICAL AREAS. The department may extend the date by which a county or city is required to designate agricultural lands, forest lands, mineral resource lands, and critical areas under RCW 36.70A.170, or the date by which a county or city is required to protect such lands and critical areas under RCW 36.70A.060, if the county or city demonstrates that it is proceeding in an orderly fashion, and is making a good faith effort, to meet these requirements. An extension may be for up to an additional one hundred eighty days. The length of an extension shall be based upon the difficulty of the effort to conform with these requirements.

Sec. 42. RCW 36.70A.050 and 1990 1st ex.s. c 17 s 5 are each amended to read as follows:

MINIMUM GUIDELINES TO CLASSIFY AGRICULTURE, FOREST, AND MINERAL LANDS AND CRITICAL AREAS. (1) Subject to the definitions provided in RCW 36.70A.030, the department shall adopt guidelines, under chapter 34.05 RCW, no later than September 1, 1990, to guide the classification of: (a) Agricultural lands; (b) forest lands; (c) mineral resource lands; and (d) critical areas. The department shall consult with the department of agriculture regarding guidelines for agricultural lands, the department of natural resources regarding forest lands and mineral resource lands, and the department of ecology regarding critical areas.

(2) In carrying out its duties under this section, the department shall consult with interested parties, including but not limited to: (a) Representatives of cities; (b) representatives of counties; (c) representatives of developers; (d) representatives of builders; (e) representatives of owners of agricultural lands, forest lands, and mining lands; (f) representatives of local economic development officials; (g) representatives of environmental organizations; (h) representatives of special districts; (i) representatives of the governor's office and federal and state agencies; and (j) representatives of Indian tribes. In addition to the consultation required under this subsection, the department shall conduct public hearings in the various regions of the state. The department shall consider the public input obtained at such public hearings when adopting the guidelines.

(3) The guidelines under subsection (1) of this section shall be minimum guidelines that apply to all ((~~jurisdictions~~)) counties and cities, but also shall allow for regional differences that exist in Washington state. The intent of these guidelines is to assist counties and cities in designating the classification of agricultural lands, forest lands, mineral resource lands, and critical areas under RCW 36.70A.170.

(4) The guidelines established by the department under this section regarding classification of forest lands shall not be inconsistent with guidelines adopted by the department of natural resources.

(5) Once classified, such lands shall be protected according to RCW 36.70A.060 and section 39 of this act.

NEW SECTION. Sec. 43. OPEN SPACE MAP. (1) To assist counties and cities in carrying out the goals and requirements of this chapter, the committee created in section 46 of this act shall prepare a state-wide open space map identifying existing areas of protected open space lands and networks as described in RCW 36.70A.020.

(2) The committee shall prepare the map and submit it to the governor and the joint select committee on growth management by December 1, 1992. The committee shall distribute the map to all counties and cities planning under RCW 36.70A.040 to adopt comprehensive land use plans under this chapter.

(3) The process shall consist of:

(a) The identification by the committee of existing open space lands protected by state agencies; and

(b) The identification, in those counties or cities planning under RCW 36.70A.040, of existing open space lands protected by counties and cities.

(4) The committee shall assist the department in developing guidelines pursuant to RCW 36.70A.070(9) to encourage open space networks which link together existing lands identified in subsection (3) of this section.

(5) In preparing the map, the committee shall cooperate to the maximum degree feasible with counties and cities preparing comprehensive plans under RCW 36.70A.040 and with counties and cities designating and adopting development regulations to protect forest, agricultural, and mineral resource lands and critical areas. The map is to be prepared using existing resources information available from federal, state, and local governments, including the designations of forest, agricultural, and mineral resource lands, and critical areas required under this chapter, designations of natural resources of state-wide significance required under section 48 of this act, and the identification of open space corridors provided for in RCW 36.70A.160. The committee shall provide opportunities for public review and comment during preparation of the map.

NEW SECTION. Sec. 44. OPEN SPACE MAP--STATE AGENCIES SHALL COOPERATE. To foster the efforts of counties and cities to identify and protect open space networks in their comprehensive plans and development regulations as required in RCW 36.70A.160 and this act, all state agencies with natural resources land management, regulation, or planning authorities shall cooperate with county and city efforts to protect open space lands and networks.

NEW SECTION. Sec. 45. OPEN SPACE PROTECTION. When open space is to be protected permanently for the purpose of public use and access, and is not necessary for protection of critical areas, a county or city shall do so by a permanent conveyance of sufficient interest to prevent its development. County and city governments may utilize a variety of methods to limit the future use of, or otherwise conserve, selected open space including, but not limited to, incentive zoning, the acquisition by gift, purchase, grant, bequest, devise, lease, or otherwise, the fee simple interest or lesser interest, transfer of development right, easement, covenant, or other contractual right.

NEW SECTION. Sec. 46. COMMITTEE ON NATURAL RESOURCES OF STATE-WIDE SIGNIFICANCE. There is created a committee consisting of the commissioner of public lands, the director of parks and recreation, the director of wildlife, the director of fisheries, the director of ecology, the director of community development, the director of the interagency committee for outdoor recreation, or their designees, one representative from the association of Washington cities, one representative from the Washington state association of counties, and by appointment of the governor, three members of the public. In selecting the three members of the public to serve on this committee, the governor shall keep in mind the diversity of the state's natural resources and the diverse needs of state residents. The director of community development shall serve as the chair of the committee and the department shall provide staff to the committee. Members employed by the state shall serve without additional pay, and participation in the work of the committee shall be deemed performance of their employment. Members from the public at large shall be compensated in accordance with RCW 43.03.240 and shall be entitled to reimbursement individually for travel expenses incurred in performance of their duties as members of the committee in accordance with RCW 43.03.050 and 43.03.060.

NEW SECTION. Sec. 47. COMMITTEE ON NATURAL RESOURCES OF STATE-WIDE SIGNIFICANCE. (1) The committee established in section 46 of this act shall: (a) Develop recommendations on criteria to be used in identifying natural resources of state-wide significance; (b) develop recommendations on minimum standards to be used by counties and cities to protect natural resources of state-wide significance within their jurisdictions; and (c) assist the department in reviewing plans and development regulations as provided in section 57(1) of this act. In carrying out the responsibilities under (a) and (b) of this subsection, the committee shall consult with interested parties and shall conduct public hearings in the various regions of the state. The committee shall consider the public input obtained at such public hearings when developing the recommendations. These recommendations shall be submitted to the department on or before September 1, 1991.

(2) The department shall prepare final draft rules, under chapter 34.05 RCW, on criteria for identifying natural resources of state-wide significance and minimum standards for protecting natural resources of state-wide significance based on the recommendations prepared by the committee under subsection (1) of this section. These rules shall be submitted to the joint select committee on growth management created in section 62 of this act for review and shall take effect on May 1, 1992, unless they are rejected by the legislature during the 1992 session.

NEW SECTION. Sec. 48. DESIGNATION OF NATURAL RESOURCES OF STATE-WIDE SIGNIFICANCE. (1)(a) Every county and city shall identify and designate natural resources of state-wide significance located in its jurisdiction based on the criteria adopted by the department pursuant to section 47(2) of this act, to the extent that such natural resources occur within the county or city. Counties and cities may request assistance in identifying these natural resources from the departments of wildlife, ecology, fisheries, and natural resources, and the parks and recreation commission. If requested, these agencies shall, to the maximum extent feasible, provide assessments of which natural resources within the county's or city's jurisdiction meet the criteria established under section 47(2) of this act.

(b) When a county or a city designates a natural resource of state-wide significance that is not wholly contained in the jurisdiction making the designation, the county or city shall notify other counties and/or cities that may share a common interest in the designation.

(2) Every county and city that designates natural resources of state-wide significance shall adopt development regulations on or before September 1, 1992, precluding land uses or development incompatible with the level of protection required by the minimum standards adopted under section 47(2) of this act.

NEW SECTION. Sec. 49. INTERJURISDICTIONAL COORDINATION. When a natural resource of state-wide significance designated under section 48 of this act or a critical area designated under RCW 36.70A.170 crosses a city or county border, or where a designated natural resource of state-wide significance or critical area borders two or more counties or cities, these jurisdictions shall enter into negotiations to arrive at a mutually acceptable set of development regulations that preclude land uses or development that is incompatible with these designations. If the counties or cities cannot reach agreement, then the proposal from the jurisdiction with the strictest provisions for the protection of the shared natural resource of state-wide significance or critical area shall be adopted by all counties or cities involved in the negotiations, except that if a jurisdiction believes that other counties or cities have not negotiated in good faith to reach an agreement, the counties or cities may prepare alternative development regulations and request that the department review the adequacy of the alternative as provided in section 58(2) of this act.

NEW SECTION. Sec. 50. STATE TRUST LANDS. Nothing in this act shall be construed as affecting the state's obligation to manage federally granted trust lands for the primary benefit of the designated beneficiary.

PART V - REGIONAL PLANNING

NEW SECTION. Sec. 51. REGIONAL POLICY PLANS. (1) The legislature recognizes that counties are the regional governments within their boundaries, and cities are the primary providers of urban governmental services within urban growth areas. It is further recognized that cities are responsible to plan for and to provide services within their incorporated boundaries. The adopted regional policy plan shall ensure that city and county comprehensive plans are consistent with county-wide issues specified in subsection (5) of this section. For purposes of this section, a "regional policy plan" is a written policy statement or statements establishing a county-wide framework from which county and city comprehensive plans are developed and adopted pursuant to this chapter.

(2) The legislative authority of a county that plans under RCW 36.70A.040 shall adopt a regional policy plan with the cooperation of cities located in whole or in part within the county as provided in this section. As soon as is practical after the effective date of this act, the legislative authority of the county shall convene a meeting with representatives of each city located in whole or in part within the county to establish a process leading to the adoption of a regional policy plan. No later than July 1, 1992, the legislative authority of the county shall adopt a regional policy plan according to this process and after holding a public hearing or hearings on the proposed regional policy plan. A regional policy plan shall address, at a minimum, the following elements:

(a) Designation of rural lands and urban lands;

(b) Distribution of future population and employment growth;

(d) Regional public capital facilities;

(e) Regional transportation facilities and strategies;

(f) Fair share of affordable housing;

(g) Open space, buffers, and community separators;

(h) New communities;

(i) Annexation and incorporation; and

(j) Economic development.

(3) Federal agencies may participate in and cooperate with the regional policy planning. Adopted regional policy plans shall be adhered to by state agencies to the maximum extent feasible.

(4) Failure to adopt a regional policy plan that does not meet the requirements of subsection (2) of this section may result in the imposition of a sanction or sanctions on a county or city within the county, as specified in section 77 of this act. In imposing a sanction or sanctions, the governor shall determine the precise reasons for failure to adopt a regional policy plan in order that any imposed sanction or sanctions are fairly and equitably related to the failure to adopt a regional policy plan.

(5) The comprehensive plans adopted under this chapter by the county and each city located in whole or in part within the county shall be consistent with the adopted regional policy plan.

(6) Cities and the governor may appeal adopted regional policy plans to the state growth management board within sixty days of the adoption of the regional policy plan.

(7) Regional policy plans may be adopted by two or more counties using the same procedure described in subsection (2) of this section, except that the legislative authorities of all of these counties shall convene the meeting with representatives of each city located in whole or in part within any of these counties to establish a process leading to the adoption of a regional policy plan throughout the multicounty region.

NEW SECTION. Sec. 52. A new section is added to chapter 43.63A RCW to read as follows:

REGIONAL ECONOMIC DEVELOPMENT PLANS. A regional economic development plan shall be developed by regions formed under section 51 of this act or developed voluntarily by counties and cities not planning under RCW 36.70A.040 and shall include, but is not limited to, the following contents:

(1) An economic profile and forecast of the region;

(2) A set of economic development goals, objectives, and policies for the region;

(3) An identification of priority development areas, as defined by the state agency coordinating council created in section 54 of this act, where there is a need for economic growth and where there is the physical capacity, realistic ability, and local support to attract such growth; and

(4) An identification of any economic development-related project of regional or state significance. When such a project is identified, the regional plan shall identify the financial impacts caused by the project and propose alternatives to address these impacts, including financing for infrastructure and transportation and public facilities necessitated by the project. The alternatives should include state assistance the region will seek to help offset the impacts of the project.

(5) A biennial regional economic development strategy that evaluates the results of the preceding economic development strategies; establishes short-term priorities; identifies tasks and responsibilities for implementation of adopted goals, objectives, and policies; and targets implementation efforts to priority development areas.

The plan element, including biennial strategy, must be developed with the full consultation, involvement, and support of cities, economic development organizations, and businesses within the region; and must be consistent with comprehensive plans required by counties and cities within the region. The department of trade and economic development shall adopt guidelines, definitions, and procedural rules, as necessary, to implement this section.

PART VI - STATE AGENCY PLANNING AND REVIEW

NEW SECTION. Sec. 53. STATE AGENCIES REQUIRED TO PLAN CONSISTENT WITH PLANNING GOALS. (1) State agencies proposing development shall: (a) Plan in conformance with the planning goals contained in RCW 36.70A.020; (b) notify the state agency coordinating council of the proposed development; (c) comply with local comprehensive plans and development regulations adopted pursuant to RCW 36.70A.040 and 36.70A.120; (d) comply with amendments to comprehensive land use plans as provided for in RCW 36.70A.130; and (e) comply with development regulations adopted pursuant to RCW 36.70A.060 and section 39 of this act. Nothing in this chapter shall be construed to alter the regulatory practices or policies of the utilities and transportation commission.

(2) State agencies shall develop an orderly and consistent process to determine whether a proposed regulatory or administrative action may result in a taking of private property. This process shall be consistent with the guidelines and requirements of section 67 of this act. It is not the purpose of this subsection to expand or reduce the scope of private property protections provided in the state and federal Constitutions.

NEW SECTION. Sec. 54. STATE AGENCY COORDINATING COUNCIL CREATED. (1) There is hereby created in the office of the governor the state agency coordinating council. The council shall be comprised of thirteen members as follows:

(a) The secretary of transportation;

(b) The director of community development;

(d) The director of trade and economic development;

(e) The director of agriculture;

(f) The commissioner of public lands;

(g) The director of the parks and recreation commission;

(h) The director of the office of financial management;

(i) The director of wildlife;

(j) The state treasurer;

(k) The director of fisheries;

(l) The director of general administration; and

(m) The governor, who shall chair the council.

(2) The council may create an advisory committee to represent the private sector, the environmental community, cities and counties, the general public, and others as determined by the council.

(3) Staffing shall be provided by the state agencies on the council. Staffing shall be coordinated by the chair.

NEW SECTION. Sec. 55. STATE AGENCY COORDINATING COUNCIL‑-DUTIES. The state agency coordinating council shall:

(1) Make recommendations to the legislature and governor regarding:

(a) Developing a capital investment strategy that can coordinate the infrastructure planning and financing of all state agencies based on defined state policies and criteria, and coordinating state infrastructure planning and financing with regional organizations and counties and cities;

(b) Adopting a state policy of catching up and keeping up with infrastructure needs to sustain a healthy economy and a high quality of life. Given limited resources, the state should ensure that public infrastructure spending is efficient and serves desired growth strategies;

(c) Changing state agency programs and existing funds to reprioritize these programs and funds once a state capital investment strategy is adopted;

(d) Creating a new growth management financing account which would finance infrastructure needs based on regional economic planning under section 52 of this act;

(e) Providing incentives to counties and cities to comply with growth management requirements, including counties and cities not required to plan under RCW 36.70A.040; and

(2) Make agencies more responsive to businesses by directing and advising state agencies on improving the state permit process. Specific timeframes should be established by rule for the processing of permits.

(3) Identify priority development areas for the purposes of regional planning under section 52 of this act, and coordinate state assistance to economic development-related projects of regional or state significance under section 52(4) of this act.

(4) Coordinate state agencies in delivering economic development services and in enacting regulations so that the services and regulations are provided or enacted consistently and efficiently across agency lines. This shall include attempting to balance the state's need for environmental protection through regulation with the economic development needs of the state and counties and cities.

(5) Advise the governor on growth management issues, particularly ensuring that state agencies comply with section 53 of this act.

(6) Mediate issues or disputes among state agencies regarding the siting of regional and state public facilities.

NEW SECTION. Sec. 56. LIMITATIONS ON STATE RULE MAKING. In addition to the requirement for adopting guidelines to assist the designation of agricultural lands, forest lands, mineral resource lands, and critical areas, as specified under RCW 36.70A.050, the department shall adopt advisory guidelines, advisory model elements, and benchmarks to assist and provide guidance for counties and cities to adopt creative and locally appropriate comprehensive plans and development regulations meeting the goals and requirements of this chapter. The advisory guidelines shall reflect regional and local variations and the diversity that exist among the different counties and cities that plan under this chapter. The advisory model elements shall include options reflecting the regional and local variations and diversity that exist among the different counties and cities that plan under this chapter. The advisory model elements shall contain those items that, if included in a county's or city's comprehensive plan and development regulations, would meet the goals and requirements of this chapter.

The department shall obtain input from counties, cities, and citizens throughout the state to assist in its development of these model elements and benchmarks.

NEW SECTION. Sec. 57. COMPREHENSIVE PLANS--DEVELOPMENT REGULATIONS--REVIEW AND COMMENT. (1) Each county and city preparing a comprehensive plan and/or development regulations, or amendments thereto, under this chapter shall submit its final draft plan and development regulations, or amendments, to the department during the public review process prior to adoption. The department shall consult with the county or city and provide comments on the proposed comprehensive plan or development regulations, or amendments, within sixty days of submittal prior to the county or city adopting the plan or development regulations, or amendments. In addition, the county or city shall submit a copy of those documents to adjacent jurisdictions.

(2) In addition to the comments provided under this section, counties and cities are encouraged to seek comments from the department, other state agencies, and adjacent jurisdictions on proposed comprehensive plans and development regulations, and any amendments proposed after initial adoption, through their development. This consultation shall occur during the public involvement process under RCW 36.70A.140.

NEW SECTION. Sec. 58. NATURAL RESOURCES OF STATE-WIDE SIGNIFICANCE--DEPARTMENT ASSESSMENT. (1) As part of its comments under section 57 of this act, the department, with the assistance from the committee established under section 46 of this act, shall prepare an assessment of the degree to which these comments: (a) Meet the minimum standards required for protection of natural resources of state-wide significance; (b) cumulatively provide adequate protection of natural resources of state-wide significance; and (c) preclude land uses or development regulations incompatible with critical areas.

(2) If a county or city would be required to adopt stricter development regulations under section 49 of this act than it believes are necessary, the department shall review the county's or city's proposed alternative development regulations as part of its comments under this section. Where the department finds that the proposed alternative development regulations adequately preclude land uses or development incompatible with critical areas and/or natural resources of state-wide significance, it shall recommend that the proposed alternative regulations provided for under section 49 of this act be adopted by the county or city. This recommendation shall be included in the comments prepared by the department under section 57 of this act.

NEW SECTION. Sec. 59. FILING OF PLANS AND DEVELOPMENT REGULATIONS--AMENDMENTS. (1) Each county and city planning under this chapter shall send a complete and accurate copy of its comprehensive plan and/or development regulations, or amendment thereof, to the department within thirty working days after final adoption. The period for filing requests for review of comprehensive plans or development regulations with the board shall start once the department has received a complete submission of all required materials.

(2) Any amendments that are adopted by a county or city to its adopted plan or regulations shall be submitted for comment and filed with the department after adoption in the same manner as for initial plans and regulations under this section.

Sec. 60. RCW 36.70A.190 and 1990 1st ex.s. c 17 s 20 are each amended to read as follows:

TECHNICAL ASSISTANCE, GRANTS, AND MEDIATION SERVICES. (1) The department shall establish a program of technical and financial assistance and incentives to counties and cities to encourage and facilitate the adoption and implementation of comprehensive plans and development regulations throughout the state.

(2) The department shall develop a priority list and establish funding levels for planning and technical assistance grants both for counties and cities that plan under RCW 36.70A.040 and for counties and cities that take actions under this chapter relating to agricultural lands, forest lands, mineral resource lands, and critical areas. Priority for assistance shall be based on a county's or city's population growth rates, commercial and industrial development rates, the existence and quality of a comprehensive plan and development regulations, the need for the assistance, the extent to which the county and adjacent jurisdictions are engaging in cooperative regional planning efforts, and other relevant factors.

(3) The department shall develop and administer a grant program to provide direct financial assistance to counties and cities for ((~~the preparation of comprehensive plans~~)) activities under this chapter. The department may establish provisions for county and city matching funds to conduct activities under this subsection. Grants may be expended for any purpose directly related to the preparation of a county or city comprehensive plan, development regulations, and actions relating to agricultural lands, forest lands, mineral resource lands, and critical areas as the county or city and the department may agree, including, without limitation, the conducting of surveys, inventories and other data gathering and management activities, the retention of planning consultants, contracts with regional councils for planning and related services, and other related purposes.

(4) The department shall establish a program of technical assistance utilizing department staff, the staff of other state agencies, and the technical resources of counties and cities to help in ((~~the development of~~)) preparing comprehensive plans and development regulations, and taking actions relating to agricultural lands, forest lands, mineral resource lands, and critical areas, required under this chapter. The technical assistance may include, but not be limited to, model land use ordinances, regional education and training programs, and information for local and regional inventories.

(5) The department shall provide mediation services to resolve disputes between counties and cities regarding, among other things, coordination of regional issues and designation of urban growth areas.

(6) The department shall provide planning grants to enhance citizen participation under RCW 36.70A.140.

NEW SECTION. Sec. 61. MONITORING AND EVALUATION. The department shall establish a system for monitoring the effectiveness of state, regional, county and city efforts to prepare and to implement comprehensive plans and development regulations in compliance with the goals contained in RCW 36.70A.020, and the designation and protection of agricultural lands, forest lands, mineral resource lands, and critical areas required in this chapter. The monitoring system shall include quantitative and qualitative measures.

NEW SECTION. Sec. 62. MONITORING BY THE LEGISLATURE. A joint select committee on growth management is created that is composed of sixteen members. The speaker of the house of representatives shall appoint four members from each of the two major caucuses in the house of representatives and the president of the senate shall appoint four members from each of the two major caucuses in the senate. A staggering of the chair of the committee shall occur so that a member of each of the four caucuses serves as the chair for a one-year term once every four years.

The committee shall: (1) Advise the department on any matters concerning growth management within the jurisdiction of the department; (2) review and make recommendations to the legislature on the goals, guidelines, and rules adopted by the department and on proposals to improve the growth management regulatory process; and (3) monitor the cumulative effects of the efforts of counties and cities to implement the goals and requirements of this chapter.

NEW SECTION. Sec. 63. AIR QUALITY IMPACTS. The department of community development, in consultation with the department of ecology, the department of transportation, and the Washington state energy office, shall establish a methodology for determining the air quality impacts of new development. The methodology shall measure all direct and indirect sources of air pollution that are generated by various types of residential, commercial, and industrial development and their associated transportation systems. The department shall also develop model strategies for mitigating air quality impacts of new development.

NEW SECTION. Sec. 64. A new section is added to chapter 43.17 RCW to read as follows:

REGULATORY AGENCY STAFF DESIGNATIONS. (1) All state agencies shall designate a staff person within the agency who is knowledgeable regarding the agency's regulations that affect businesses. When requested, this designated staff person shall provide a list of all applicable agency regulations that apply to a specific business. The designated staff person shall, upon request, provide a written statement listing all requirements that must be satisfied to obtain a specified permit or other approval.

(2) The designated staff person under subsection (1) of this section shall provide a list of agency regulations that apply to a specific business to the business assistance center when so requested by the business assistance center.

NEW SECTION. Sec. 65. A new section is added to chapter 43.31 RCW to read as follows:

REGULATION LISTS BY THE BUSINESS ASSISTANCE CENTER. The business assistance center shall coordinate the provision of better and more reliable information by state agencies regarding state regulations that affect specific businesses. When requested, the business assistance center shall compile a list of specific regulations that apply to a specific business by obtaining a list from designated staff persons, under section 64 of this act, in each applicable agency.

NEW SECTION. Sec. 66. A new section is added to chapter 19.85 RCW to read as follows:

BUSINESS INPUT IN AGENCY RULE MAKING. When any rule is proposed for which a small business economic impact statement is required, the agency shall:

(1) Give notice to small businesses of the proposed rule through direct notification of known interested small businesses affected by the proposed rule, notice to business or trade organizations, and publication of a general notice of the proposed rule in a publication likely to be obtained by businesses of the type affected by the proposed rule; and

(2) Appoint a committee, as provided in RCW 34.05.310, to comment on the proposed rule before the publication of the notice of proposed rule adoption under RCW 34.05.320.

NEW SECTION. Sec. 67. PROTECTION OF PRIVATE PROPERTY. (1) The state attorney general shall establish an orderly, consistent process that better enables government agencies to evaluate whether proposed regulatory or administrative actions may result in a taking of private property. It is not the purpose of this section to expand or reduce the scope of private property protections provided in the state and federal Constitutions.

(2) As used in this section:

(a) "Private property" means private real property protected by Amendments V and XIV of the Constitution of the United States or Article I, sections 3 and 16 of the Constitution of the state of Washington.

(b) "Government agency" means any officer, agency, board, commission, department, or similar body of the executive branch of state government, and any county, city, town, or special district exercising regulatory authority or control over the use of private property in the state.

(c) "Taking" means an uncompensated damaging or deprivation of private property in violation of Amendments V and XIV of the Constitution of the United States or Article I, sections 3 and 16 of the Constitution of the state of Washington.

(d) "Policies that have constitutional implications" means current or proposed regulations, ordinances, standards, or state laws that, when implemented, could effect a taking of private property without due process of law. "Policies that have constitutional implications" does not include actions in which the power of eminent domain is formally exercised or law enforcement actions involving seizure of property for forfeiture or as evidence in criminal proceedings.

(3) The attorney general shall develop a checklist and guidelines by October 1, 1991, to assist government agencies in the identification and evaluation of policies that have constitutional implications. The attorney general shall review and update the checklist and guidelines at least on an annual basis to maintain consistency with changes in the law.

(4) The attorney general in consultation with the Washington state bar association, shall develop a continuing education course to implement this section.

(5) The process used by government agencies shall be protected by attorney client privilege. Nothing in this section grants a private party the right to seek judicial relief requiring compliance with the provisions of this section.

PART VII - GROWTH MANAGEMENT HEARINGS BOARD

NEW SECTION. Sec. 68. BOARD ESTABLISHED--MEMBERSHIP--CHAIR--QUORUM FOR DECISION--EXPENSES OF MEMBERS. (1) The growth management hearings board is a quasi-judicial board hereby established within the environmental hearings office under RCW 43.21B.005. The board shall consist of five members, three full time and two part time members:

(a) The full-time members shall be appointed by the governor and subject to confirmation by the senate. Initial members shall be appointed to staggered terms as follows: One member shall be appointed to a four-year term and two members to six-year terms. Thereafter, members shall be appointed to six-year terms. The governor shall appoint one of the full-time members as chairperson. The governor may remove a member only for cause.

(b) The part-time members shall be selected on a rotating basis by the board chairperson from a list provided by the applicable associations. One part-time member shall represent counties or cities, and the other part-time member shall represent the private sector or the general public.

(2) Any member or members of the board, or other person or persons designated by the chairperson, may hold hearings and take testimony so long as a full and complete record is transmitted to the board as required under RCW 34.05.461. In addition to the board's staff, the chairperson may designate a list of presiding officers who are qualified to hold such hearings.

(3) The board may authorize by rule initial orders to be entered by those presiding officers who are not members of the board. The board may also provide by rule that initial orders in specified classes of cases may become final without further board action. However, if a member of the board determines that an initial order should be reviewed, or a party to the proceedings files a petition for administrative review of the initial order, the initial order shall not become final until the board has approved it.

(4) Three or more members of the board shall constitute a quorum for issuance of final orders by the board. A decision of the board must be agreed to by at least three members to be final.

(5) Board members shall receive compensation, travel, and subsistence expenses as provided in RCW 43.21B.050.

NEW SECTION. Sec. 69. MATTERS SUBJECT TO BOARD REVIEW--FINAL ORDERS. (1) The board shall review the following matters if requested by a regional planning organization or a county or city that plans under this chapter if such a request for review is made within sixty days of the action to be reviewed:

(a) The consistency of plans and development regulations subject to this chapter with the goals and requirements of this chapter, and the rules adopted under this chapter;

(b) Compliance by counties, cities, special districts, and state agencies with the interjurisdictional requirements under this chapter, including interjurisdictional consistency, and designation of urban growth areas;

(c) Compliance by counties, cities, special districts, or state agencies with the requirements of this chapter, including deadlines and other matters relating to implementation; and

(d) Determination of issues related to consistency of state agency or special district proposals to locate facilities with plans and development regulations subject to this chapter. Any decisions by the board relating to location of state facilities shall require consistency to the maximum extent practicable, as determined by the board.

(2) The board shall also review the requests, if such requests for review are made within sixty days of the action to be reviewed, by:

(a) Any person requesting review of any matter in subsection (1) of this section if that person testified orally or in writing to the county or city regarding the matter on which a review is being requested; or

(b) Any person requesting review of any matter in subsection (1) of this section if the governor certifies the request within thirty days of the filing of the request with the board. The person requesting board review shall file a copy of the request with the board and the governor within sixty days of the action on which a board review is requested.

(3) The board shall review matters requested by the governor or the commissioner of public lands as provided in section 70 of this act.

(4) The board shall review the matter brought before it, as provided in this section, and issue a final order, as appropriate, affirming, reversing, or remanding the plan, regulation, or other decision subject to review under this chapter. The board shall issue a final order within one hundred eighty days of a request for review, unless an extension is justified for reasons beyond the control of the board. Such a final order shall be based exclusively on whether the plan, regulation, or other decision subject to review under this chapter is consistent with the goals and requirements of this chapter.

(5) The board, when appropriate, shall consolidate all requests for review for each plan and for development regulations.

(6) The review proceedings authorized in this section are subject to the provisions of chapter 34.05 RCW pertaining to procedures in adjudicative proceedings.

(7) Unless clearly contrary to sections 68 and 69 of this act, the following are applicable to the board created in section 68 of this act: RCW 43.21B.040, 43.21B.060, 43.21B.090, and 43.21B.100.

NEW SECTION. Sec. 70. LIMITATIONS ON APPEAL BY THE STATE. (1) An appeal by the state to the growth management hearings board may be made only by the governor, or by the commissioner of public lands only as relating to state trust lands, for the growth management hearings board's review of whether: (a) A county or city that is required or chooses to plan under RCW 36.70A.040 has failed to adopt the comprehensive plans or development regulations that are required by this chapter; (b) a county or city that is required or chooses to plan under this chapter has adopted comprehensive plans or development regulations that do not conform with the goals and requirements of this chapter, as limited in subsection (2) of this section; or (c) where comprehensive plans and development regulations have been adopted conforming with the goals and requirements of this chapter, a substantial pattern of abuse exists by the county or city issuing permits not conforming with its comprehensive plans and development regulations. The department shall make recommendations to the governor on such appeals and the department of transportation shall make recommendations on such appeals relating to transportation matters.

An appeal by the governor or commissioner of public lands shall be in writing and shall detail the alleged violation and include a finding that the violation is of such significance as to warrant review by the growth management hearings board.

(2) An appeal by the governor or the commissioner of public lands, relating to whether comprehensive plans or development regulations conform with the goals and requirements of this chapter, must be filed with the growth management hearings board within sixty days of submittal of the plans or development regulations, or amendments to the plans or development regulations, to the department and is limited to allegations that the comprehensive plans or development regulations:

(a) Do not prevent low-density sprawl by failing to provide: (i) Concentrated employment centers and sufficient residential densities to facilitate public transit; (ii) an adequate balance of housing and job opportunities; or (iii) restrictions precluding suburban or urban development beyond the ten-year tier, until the ten-year tier has been developed substantially;

(b) Do not permit a mix of housing types providing for the fair share distribution of housing opportunities for persons of low and moderate income within the urban growth areas;

(d) Do not prevent the substantial loss of critical areas;

(e) Do not reduce the impact of flooding by protecting storm water and drainage systems or natural systems that lessen surface water runoff, including wetland areas;

(f) Do not include a capital facilities plan element or transportation element that is coordinated or consistent with the land use element or do not include a feasible plan to adequately finance the capital facilities plan element or transportation element;

(g) Do not preclude patterns of development that increase air and water pollution beyond state or federal standards;

(h) Do not: (i) Address existing or projected traffic congestion through demand management or transportation system management strategies; (ii) coordinate and protect existing and future transportation corridors; and (iii) implement regional transportation plans;

(i) Do not include adequate open space or greenbelt areas;

(j) Were prepared without adequate public participation;

(k) Were arbitrary or discriminatory in planning for or regulating state trust lands; or

(l) Do not adequately protect natural resources of state-wide significance.

NEW SECTION. Sec. 71. PRESUMPTION OF VALIDITY--BURDEN OF PROOF‑-PLANS AND REGULATIONS. Comprehensive plans and development regulations adopted under this chapter are presumed valid upon adoption. In any request for review of a comprehensive plan or development regulation permitted under this chapter, the requesting party shall have the burden of demonstrating that the comprehensive plan or development regulation is not consistent with the goals or requirements of this chapter, or the rules adopted under this chapter. In reviews of development regulations, when consistency of the development regulation with the plan of the affected jurisdiction is at issue, the requesting party must also bear the burden of demonstrating that the development regulation is not consistent with the comprehensive plan.

NEW SECTION. Sec. 72. BOARD MAY ADOPT PROCEDURAL RULES. The board may adopt rules under chapter 34.05 RCW governing the administrative practice and procedure in and before the board.

NEW SECTION. Sec. 73. OTHER APPEAL RIGHTS. (1) Any party aggrieved by a final decision of the hearings board may appeal the decision to Thurston county superior court.

(2) Failing to obtain review under this chapter of a plan, regulation, or amendment thereto, development action, or other matter concerning compliance with the requirements of this chapter, rules adopted under this chapter, or order of the board shall not affect other appeal rights otherwise available by law.

PART VIII - INCENTIVES AND SANCTIONS

Sec. 74. RCW 43.155.070 and 1990 1st ex.s. c 17 s 82 are each amended to read as follows:

BOARD TO CONSIDER WHETHER REGIONAL PLANS ARE ADOPTED WHEN MAKING LOANS. (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; and

(d) A county, city, or town that is required or chooses to plan under RCW 36.70A.040 must have adopted a comprehensive plan in conformance with the requirements of chapter 36.70A RCW, after it is required that the comprehensive plan be adopted, and must have adopted development regulations in conformance with the requirements of chapter 36.70A RCW, after it is required that development regulations be adopted.

(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;

(f) Whether the project is the acquisition, expansion, improvement, or renovation by a local government of a public water system that is in violation of health and safety standards, including the cost of extending existing service to such a system;

(g) 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~~))

(h) The existence of regional policy plans as provided in section 76 of this act; and

(i) 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. 75. RCW 70.146.070 and 1986 c 3 s 10 are each amended to read as follows:

DEPARTMENT TO CONSIDER WHETHER REGIONAL PLANS ARE ADOPTED WHEN MAKING GRANTS OR LOANS. When making grants or loans for water pollution control facilities, the department shall consider the following:

(1) The protection of water quality and public health;

(2) The cost to residential ratepayers if they had to finance water pollution control facilities without state assistance;

(3) Actions required under federal and state permits and compliance orders;

(4) The level of local fiscal effort by residential ratepayers since 1972 in financing water pollution control facilities;

(5) The extent to which the applicant county or city, or if the applicant is another public body, the extent to which the county or city in which the applicant public body is located, has established programs to mitigate nonpoint pollution of the surface or subterranean water sought to be protected by the water pollution control facility named in the application for state assistance; ((~~and~~))

(6) The recommendations of the Puget Sound water quality authority and any other board, council, commission, or group established by the legislature or a state agency to study water pollution control issues in the state; and

(7) The existence of regional policy plans as provided in section 76 of this act.

A county, city, or town that is required or chooses to plan under RCW 36.70A.040 may not receive a grant or loan for water pollution control facilities unless it has adopted a comprehensive plan in conformance with the requirements of chapter 36.70A RCW, after it is required that the comprehensive plan be adopted, or unless it has adopted development regulations in conformance with the requirements of chapter 36.70A RCW, after it is required that development regulations be adopted.

NEW SECTION. Sec. 76. A new section is added to chapter 43.01 RCW to read as follows:

REGIONAL PLANNING INCENTIVES. Whenever a state agency is considering awarding grants or loans for a county, city, or town to finance public facilities, it shall consider whether the county, city, or town that is requesting the grant or loan is a party to regional policy plans under section 51 of this act relating to the type of public facility for which the grant or loan is sought, and shall accord additional preference to the county, city, or town if such regional policy plans exist. Whenever a state agency is considering awarding grants or loans to a special district for public facilities, it shall consider whether the county, city, or town in whose planning jurisdiction the proposed facility is located is a party to regional policy plans under section 51 of this act relating to the type of public facility for which the grant or loan is sought, and shall accord additional preference to the special district if such regional policy plans exist.

NEW SECTION. Sec. 77. NONCOMPLIANCE AND SANCTIONS. (1) The department may find a county, city, or state agency in noncompliance if:

(a) A county or city that is required or chooses to plan under RCW 36.70A.040 does not complete its comprehensive land use plan by the dates required or by the department's schedule for submittal; or

(b) The board has heard an appeal and issued a final order on a county's or city's comprehensive plan, development regulations, or a state agency's plans or actions, and the county, city, or state agency has not complied with the order within one year. If the department finds a county, city, or state agency in noncompliance, the department may request the governor to invoke one or more of the sanctions provided in subsection (2) of this section. The department shall attempt to resolve issues causing noncompliance prior to requesting the governor to invoke one or more of the sanctions.

(2) If requested, the governor may either:

(a) Notify and direct the director of the office of financial management to revise allotments in appropriation levels;

(b) Notify and direct the state treasurer to withhold the portion of revenues to which the county or city is entitled under one or more of the following: The motor vehicle fuel tax, as provided in chapter 82.36 RCW; the transportation improvement account as provided in RCW 47.26.084; the urban arterial trust account as provided in RCW 47.26.080; the rural arterial trust account as provided in RCW 36.79.150; the sales and use tax, as provided in chapter 82.14 RCW; the liquor profit tax, as provided in RCW 66.08.190; and the liquor excise tax, as provided in RCW 82.08.170; or

(c) File a notice of noncompliance with the secretary of state and the county or city, which shall temporarily rescind the county or city's authority to collect the real estate excise tax under RCW 82.46.030 until the governor files a notice rescinding the notice of noncompliance.

Sec. 78. RCW 43.88.110 and 1987 c 502 s 5 are each amended to read as follows:

EXPENDITURE PROGRAMS--ALLOTMENTS--RESERVES. This section sets forth the expenditure programs and the allotment and reserve procedures to be followed by the executive branch for public funds. Allotments of an appropriation for any fiscal period shall conform to the terms, limits, or conditions of the appropriation.

(1) The director of financial management shall provide all agencies with a complete set of instructions for preparing a statement of proposed expenditures at least thirty days before the beginning of a fiscal period. The set of instructions need not include specific appropriation amounts for the agency.

(2) Within forty-five days after the beginning of the fiscal period or within forty-five days after the governor signs the omnibus biennial appropriations act, whichever is later, all agencies shall submit to the governor a statement of proposed expenditures at such times and in such form as may be required by the governor. If at any time during the fiscal period the governor projects a cash deficit as defined by RCW 43.88.050, the governor shall make across-the-board reductions in allotments so as to prevent a cash deficit, unless the legislature has directed the liquidation of the cash deficit over one or more fiscal periods. Except for the legislative and judicial branches and other agencies headed by elective officials, the governor shall review the statement of proposed expenditures for reasonableness and conformance with legislative intent. Once the governor approves the statements of proposed expenditures, further revisions shall be made only at the beginning of the second fiscal year and must be initiated by the governor. However, changes in appropriation level authorized by the legislature, changes required by across-the-board reductions mandated by the governor, ((~~and~~)) changes caused by executive increases to spending authority, and changes caused by executive decreases to spending authority for failure to comply with the provisions of chapter 36.70A RCW may require additional revisions. Revisions shall not be made retroactively. Revisions caused by executive increases to spending authority shall not be made after June 30, 1987. However, the governor may assign to a reserve status any portion of an agency appropriation withheld as part of across-the-board reductions made by the governor and any portion of an agency appropriation conditioned on a contingent event by the appropriations act. The governor may remove these amounts from reserve status if the across-the-board reductions are subsequently modified or if the contingent event occurs. The director of financial management shall enter approved statements of proposed expenditures into the state budgeting, accounting, and reporting system within forty-five days after receipt of the proposed statements from the agencies. If an agency or the director of financial management is unable to meet these requirements, the director of financial management shall provide a timely explanation in writing to the legislative fiscal committees.

(3) It is expressly provided that all agencies shall be required to maintain accounting records and to report thereon in the manner prescribed in this chapter and under the regulations issued pursuant to this chapter. Within ninety days of the end of the fiscal year, all agencies shall submit to the director of financial management their final adjustments to close their books for the fiscal year. Prior to submitting fiscal data, written or oral, to committees of the legislature, it is the responsibility of the agency submitting the data to reconcile it with the budget and accounting data reported by the agency to the director of financial management. The director of financial management shall monitor agency expenditures against the approved statement of proposed expenditures and shall provide the legislature with quarterly explanations of major variances.

(4) The director of financial management may exempt certain public funds from the allotment controls established under this chapter if it is not practical or necessary to allot the funds. Allotment control exemptions expire at the end of the fiscal biennium for which they are granted. The director of financial management shall report any exemptions granted under this subsection to the legislative fiscal committees.

Sec. 79. RCW 36.79.150 and 1983 1st ex.s. c 49 s 15 are each amended to read as follows:

RURAL ARTERIAL TRUST ACCOUNT. (1) Whenever the board approves a rural arterial project it shall determine the amount of rural arterial trust account funds to be allocated for such project. The allocation shall be based upon information contained in the six-year plan submitted by the county seeking approval of the project and upon such further investigation as the board deems necessary. The board shall adopt reasonable rules pursuant to which rural arterial trust account funds allocated to a project may be increased upon a subsequent application of the county constructing the project. The rules adopted by the board shall take into account, but shall not be limited to, the following factors: ((~~(1)~~)) (a) The financial effect of increasing the original allocation for the project upon other rural arterial projects either approved or requested; ((~~(2)~~)) (b) whether the project for which an additional allocation is requested can be reduced in scope while retaining a usable segment; ((~~(3)~~)) (c) whether the original cost of the project shown in the applicant's six-year program was based upon reasonable engineering estimates; and ((~~(4)~~)) (d) whether the requested additional allocation is to pay for an expansion in the scope of work originally approved.

(2) The board shall not allocate funds, nor make payments under RCW 36.79.160, to any county or city identified by the governor as not being in compliance with section 77 of this act.

Sec. 80. RCW 47.26.080 and 1988 c 167 s 13 are each amended to read as follows:

URBAN ARTERIAL TRUST ACCOUNT. There is hereby created in the motor vehicle fund the urban arterial trust account. All moneys deposited in the motor vehicle fund to be credited to the urban arterial trust account shall be expended for the construction and improvement of city arterial streets and county arterial roads within urban areas, for expenses of the transportation improvement board, or for the payment of principal or interest on bonds issued for the purpose of constructing or improving city arterial streets and county arterial roads within urban areas, or for reimbursement to the state, counties, cities, and towns in accordance with RCW 47.26.4252 and 47.26.4254, the amount of any payments made on principal or interest on urban arterial trust account bonds from motor vehicle or special fuel tax revenues which were distributable to the state, counties, cities, and towns.

The board shall not allocate funds, nor make payments of the funds under RCW 47.26.260, to any county or city identified by the governor as not being in compliance with section 77 of this act.

Sec. 81. RCW 82.46.035 and 1990 1st ex.s. c 17 s 38 are each amended to read as follows:

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

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

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

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

(5) When the governor files a notice of noncompliance based on section 77 of this act with the secretary of state and the appropriate county or city, the county or city's authority to impose the additional excise tax under this section shall be temporarily rescinded until the governor files a subsequent notice rescinding the notice of noncompliance.

Sec. 82. RCW 66.08.190 and 1988 c 229 s 4 are each amended to read as follows:

LIQUOR REVOLVING FUND--DISBURSEMENT OF EXCESS FUNDS TO STATE, COUNTIES AND CITIES. When excess funds are distributed, all moneys subject to distribution shall be disbursed as follows:

(1) Three-tenths of one percent to the department of community development to be allocated to border areas under RCW 66.08.195; and

(2) From the amount remaining after distribution under subsection (1) of this section, fifty percent to the general fund of the state, ten percent to the counties of the state, and forty percent to the incorporated cities and towns of the state.

(3) The governor may notify and direct the state treasurer to withhold the revenues to which the counties and cities are entitled under this section if the counties or cities are found to be in noncompliance pursuant to section 77 of this act.

NEW SECTION. Sec. 83. A new section is added to chapter 82.14 RCW to read as follows:

WITHHOLDING REVENUE‑-NONCOMPLIANCE. The governor may notify and direct the state treasurer to withhold the revenues to which the county or city is entitled under this chapter if a county or city is found to be in noncompliance pursuant to section 77 of this act.

NEW SECTION. Sec. 84. A new section is added to chapter 82.08 RCW to read as follows:

WITHHOLDING REVENUE‑-NONCOMPLIANCE. The governor may notify and direct the state treasurer to withhold the revenues to which the counties and cities are entitled under RCW 82.08.170 if the counties or cities are found to be in noncompliance pursuant to section 77 of this act.

PART IX - TRANSPORTATION

Sec. 85. RCW 36.79.080 and 1983 1st ex.s. c 49 s 8 are each amended to read as follows:

PROJECT CRITERIA--RURAL ARTERIAL PROGRAM. In preparing their respective six-year programs relating to rural arterial improvements, counties shall select specific priority improvement projects for each functional class of arterial based on the rating of each arterial section proposed to be improved in relation to other arterial sections within the same functional class, taking into account the following:

(1) Its structural ability to carry loads imposed upon it;

(2) Its capacity to ((~~move traffic at reasonable speeds;~~

~~(3)~~)) provide efficient, dependable, and rapid accessibility for movement of people and goods including access management provisions under chapter 47.26 RCW;

(3) Its consistency with local and regional transportation and land use plans;

(4) Its consistency with state, regional, and local transit plans, where applicable;

(5) Its consistency with state, regional, and local freight rail considerations;

(6) Its adequacy of alignment and related geometrics;

((~~(4)~~)) (7) Its accident experience; and

((~~(5)~~)) (8) Its fatal accident experience.

With assistance from regional transportation planning organizations, where applicable, adjacent counties, and the county road administration board, long-term plans shall be used to guide development of the six-year programs. The six-year construction programs shall remain flexible and subject to annual revision as provided in RCW 36.81.121.

Sec. 86. RCW 36.81.121 and 1990 1st ex.s. c 17 s 58 are each amended to read as follows:

SIX-YEAR COUNTY ROAD PLANS. (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, the inherent authority of a charter county derived from its charter, or chapter 36.70A RCW, the program shall be consistent with this 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, and the regional transportation planning organization, where applicable, 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 that reflects the transportation goals set forth in chapter 36.70A RCW. 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. 87. RCW 47.05.030 and 1987 c 179 s 2 are each amended to read as follows:

PRIORITY PROGRAMMING FOR STATE HIGHWAYS. The transportation commission shall adopt and periodically revise, after consultation with the legislative transportation committee, a comprehensive six-year program and financial plan for highway improvements specifying program objectives for each of the highway categories, "A," "B," "C," and "H," defined in this section, and within the framework of estimated funds for such period. The program and plan shall be based upon the improvement needs ((~~for state highways as determined by the department from time to time~~)) identified in the state highway system plan, as required under section 96 of this act.

With such reasonable deviations as may be required to effectively utilize the estimated funds and to adjust to unanticipated delays in programmed projects, the commission shall allocate the estimated funds among the following described categories of highway improvements, so as to carry out the commission's program objectives:

(1) Category A shall consist of those improvements necessary to sustain the structural, safety, and operational integrity of the existing state highway system (other than improvements to the interstate system to be funded with federal aid at the regular interstate rate under federal law and regulations, and improvements designated in subsections (2) through (4) of this section).

(2) Category B shall consist of improvements for the continued development of the interstate system to be funded with federal aid at the regular interstate rate under federal law and regulations.

(3) Category C shall consist of the development of major transportation improvements (other than improvements to the interstate system to be funded with federal aid at the regular interstate rate under federal law and regulations) including designated but unconstructed highways which are vital to the state-wide transportation network.

(4) Category H shall consist of those improvements necessary to sustain the structural and operational integrity of existing bridges on the highway system (other than bridges on the interstate system or bridge work included in another category because of its association with a highway project in such category).

Projects which are financed one hundred percent by federal funds or other agency funds shall, if the commission determines that such work will improve the state highway system, be managed separately from the above categories.

Sec. 88. RCW 47.26.084 and 1988 c 167 s 2 are each amended to read as follows:

PROJECT CRITERIA--TRANSPORTATION IMPROVEMENT ACCOUNT. The transportation improvement account is hereby created in the motor vehicle fund. The board shall adopt rules and procedures which shall govern the allocation of funds in the transportation improvement account at such time as funds become available.

The board shall allocate funds from the account by June 30 of each year for the ensuing fiscal year and shall endeavor to provide geographical diversity in selecting improvement projects to be funded from the account.

Of the amount made available to the transportation improvement board from the transportation improvement account for improvement projects:

(1) Eighty-seven percent shall be allocated to counties, to cities with a population of over five thousand, and to transportation benefit districts. Improvement projects may include, but are not limited to, multi-agency and suburban arterial improvement projects.

((To be eligible to receive these funds, a project must be (a) consistent with state, regional, and local transportation plans and consideration shall be given to the project's relationship, both actual and potential, with rapid mass transit and at such time as a rail plan is developed by the rail development commission, projects must be consistent therewith, (b) necessitated by existing or reasonably foreseeable congestion levels attributable to economic development or growth, and (c) partially funded by local government or private contributions, or a combination of such contributions.)) Before awarding funding for any specific project the transportation improvement board shall determine if the following criteria have been considered:

(a) The project is necessitated by existing or reasonably foreseeable congestion levels attributable to economic development or growth;

(b) The project emphasizes the movement of people and goods rather than vehicles;

(c) The project includes, where appropriate, other modes of transportation such as transit, high occupancy vehicle lanes, and high-capacity transit;

(d) The project conforms to local and regional transportation plans and county, city, and town comprehensive plans including access management provisions;

(e) The project is consistent with local and regional high-capacity transportation considerations;

(f) The project is consistent with state, regional, and local freight rail considerations in accordance with RCW 47.80.030; and

(g) The project is partially funded by local government or private contributions, or a combination of such contributions.

The board shall, for those projects meeting the eligibility criteria, determine what percentage of each project is funded by local and/or private contribution. Priority consideration shall be given to those projects with the greatest percentage of local and/or private contribution.

Within one year after board approval of an application for funding, a county, city, or transportation benefit district shall provide written certification to the board of the pledged local and/or private funding. Funds allocated to an applicant that does not certify its funding within one year after approval may be reallocated by the board.

(2) Thirteen percent shall be allocated by the board to cities with a population of five thousand or less for street improvement projects in a manner determined by the board.

The board shall not allocate funds, nor make payments of the funds under RCW 47.26.265, to any county or city identified by the governor as not being in compliance with section 77 of this act. The board shall reduce its allocation of funds to any public benefit district in proportion to the proportion of improvements being made to the roads of any county or the streets of any city which is identified by the governor as not being in compliance with section 77 of this act.

Sec. 89. RCW 47.26.220 and 1989 c 160 s 1 are each amended to read as follows:

PROJECT CRITERIA--URBAN ARTERIAL TRUST ACCOUNT. Counties and cities, in preparing their respective six year programs relating to urban arterial improvements to be funded by the urban arterial trust account, shall select specific priority improvement projects for each functional class of arterial based on the rating of each arterial section proposed to be improved in relation to other arterial sections within the same functional class, taking into account the following:

(1) Its structural ability to carry loads imposed upon it;

(2) Its capacity to ((~~move traffic and persons at reasonable speeds without undue congestion~~)) provide efficient, dependable, and rapid accessibility for movement of people and goods;

(3) Its adequacy of alignment and related geometrics;

(4) Its accident experience; ((~~and~~))

(5) Its fatal accident experience;

(6) Its consistency with local and regional transportation and land use plans including access management provisions;

(7) Its consistency with regional and local high-capacity transportation considerations;

(8) Its consistency with state, regional, and local freight rail considerations. The six-year construction programs shall remain flexible and subject to annual revision as provided in RCW 36.81.121 and 35.77.010.

Sec. 90. RCW 35.58.2795 and 1990 1st ex.s. c 17 s 60 are each amended to read as follows:

SIX-YEAR TRANSIT PLANS. 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, the inherent authority of a first class city or charter county derived from its charter, or chapter 36.70A RCW. 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 transportation planning ((~~councils~~)) organizations 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.

Sec. 91. RCW 35.58.2796 and 1989 c 396 s 2 are each amended to read as follows:

ANNUAL TRANSIT REPORTS. The department of transportation shall develop an annual report summarizing the status of public transportation systems in the state. By September 1st of each year, copies of the report shall be submitted to the legislative transportation committee and to each municipality, as defined in RCW 35.58.272, and to individual members of the municipality's legislative authority. ((~~The department shall prepare and submit a preliminary report by December 1, 1989.~~))

To assist the department with preparation of the report, each municipality shall file a system report by ((~~April~~)) May 1st of each year with the state department of transportation identifying its public transportation services for the previous calendar year and its objectives for improving the efficiency and effectiveness of those services. The system report shall address those items required for each public transportation system in the department's report.

The department report shall describe individual public transportation systems, including contracted transportation services and dial-a-ride services, and include a state-wide summary of public transportation issues and data. The descriptions shall include the following elements and such other elements as the department deems appropriate after consultation with the municipalities and the legislative transportation committee:

(1) Equipment and facilities, including vehicle replacement standards;

(2) Services and service standards;

(3) Revenues, expenses, and ending balances, by fund source;

(4) Policy issues and system improvement objectives, including community participation in development of those objectives and how those objectives address state-wide transportation priorities;

(5) Operating indicators applied to public transportation services, revenues, and expenses. Operating indicators shall include, but not be limited to, operating cost per unlinked passenger trip, operating cost per ((~~revenue~~)) passenger vehicle service hour, unlinked passenger trips per ((~~revenue~~)) passenger vehicle service hour, unlinked passenger trips per passenger vehicle service mile, passenger vehicle service hours per employee, change in unlinked passenger trips compared to change in population, and farebox revenue as a percent of operating costs;

(6) Mode split trends and objectives that shall be addressed for those public transportation systems deemed appropriate by the department, and on a regional basis as warranted.

Sec. 92. RCW 36.57A.060 and 1975 1st ex.s. c 270 s 16 are each amended to read as follows:

COMPREHENSIVE TRANSIT PLANS--NEW SYSTEMS. The public transportation benefit area authority authorized pursuant to RCW 36.57A.050 shall develop a comprehensive transit plan for the area. Such plan shall include, but not be limited to the following elements:

(1) The levels of transit service that can be reasonably provided for various portions of the benefit area.

(2) The funding requirements, including local tax sources, state and federal funds, necessary to provide various levels of service within the area.

(3) The identification of transportation elements of the county, city, or town comprehensive plans and regional transportation plans with which the comprehensive transit plan must be consistent.

(4) The impact of such a transportation program on other transit systems operating within that county or adjacent counties.

((~~(4)~~)) (5) The future enlargement of the benefit area or the consolidation of such benefit area with other transit systems.

Sec. 93. RCW 47.80.040 and 1990 1st ex.s. c 17 s 56 are each amended to read as follows:

PLANNING ORGANIZATION BOARD. Each regional transportation planning organization shall create a transportation policy board. Transportation policy boards shall provide policy advice to the regional transportation planning organization and shall allow representatives of major employers within the region, the department of transportation, transit districts, port districts, and member cities, towns, and counties within the region to participate in policy making. Citizens or citizen organizations may also be represented on the board.

NEW SECTION. Sec. 94. PLANNING GUIDELINES. The legislature recognizes that the ownership and operation of Washington's transportation system is spread among federal, state, and local government agencies, regional transit agencies, port districts, and the private sector. Therefore, transportation planning must be a comprehensive and coordinated effort. The specific role of the department in transportation planning shall be (1) ongoing coordination and development of state-wide transportation policies that guide all Washington transportation providers, (2) ongoing system planning for state transportation systems that identifies investment needs and meets federal requirements for state-wide transportation plans, (3) coordinating the state high-capacity transportation planning and regional transportation planning programs, and (4) conducting special transportation planning studies that impact state transportation facilities or relate to transportation issues of state-wide significance. Specific requirements for each of these state transportation planning components are described in this chapter.

NEW SECTION. Sec. 95. TRANSPORTATION POLICY PLAN. The department shall develop a state transportation policy plan that (1) establishes a vision and goals for the development of the state-wide transportation system consistent with the state's growth management goals, (2) identifies significant state-wide transportation policy issues, and (3) recommends state-wide transportation policies and strategies to the legislature to fulfill the requirements of RCW 47.01.071(1). The state transportation policy plan shall be the product of an ongoing process that shall involve representatives of significant transportation interests and the general public from across the state.

NEW SECTION. Sec. 96. TRANSPORTATION SYSTEM PLAN. The department shall produce a state-wide transportation plan under RCW 47.01.071(3) consisting of a highway system plan, ferry system plan, airport system plan, freight rail plan, and bicycle plan. These plans shall guide state investment in transportation facilities to ensure the continued mobility of people and goods within regions across the state in a cost-effective manner. These plans must be consistent with the state transportation policy plan and with each other, and shall reflect public involvement and be coordinated with regional transportation planning, high-capacity transportation planning, and county, city, and town comprehensive plans. The specific requirements for these plans are:

(1) State highway system plan - A plan that identifies program needs and specific improvements recommended to preserve the structural integrity of the state highway system and ensure acceptable operating conditions. The state highway system plan must contain the following elements:

(a) System preservation - This element establishes structural preservation standards for the state highway system including bridges, identifies current and future structural deficiencies based upon analysis of current condition and engineering analysis of future deterioration, and recommends program funding levels and specific improvements necessary to preserve the structural integrity of the state highway system at adopted standards. This element shall serve as the basis for the preservation component of the six-year highway construction program.

(b) Capacity and operational improvement - This element establishes operational standards, including safety considerations, for moving people and goods on the state highway system, identifies current and future capacity and operational and safety deficiencies, and proposes program funding levels and specific improvements and strategies necessary to maintain the established operational standards. Forecasts of travel shall be based upon adopted local land use plans, and shall be consistent with those developed for regional transportation planning. Capacity and operational improvement plans shall first assess strategies that enhance the operational efficiency of the existing system before recommending system expansion. Capacity improvement recommendations shall be based upon which alternative moves the most people or goods, or both. Strategies that enhance the operational efficiency include access management, transportation system management, demand management, and high occupancy vehicle facility development.

The capacity and operational improvement element must conform to the state implementation plan for air quality, and be consistent with regional transportation plans adopted under chapter 47.80 RCW, and provide the basis for the capacity and operational improvement portions of the highway construction program.

(c) Scenic and recreational highways element - This element shall identify and recommend designation of scenic and recreational highways, provide for enhanced access to scenic, recreational, and cultural resources associated with designated routes, and ensure, through a variety of appropriate management strategies, the protection, preservation, and enhancement of these resources. The department, affected counties, cities, towns, regional transportation planning organizations, and other state or federal agencies shall jointly develop this element.

(2) The Washington state ferry system plan - A plan to guide state investments in the Washington state ferry system to ensure a mobility link across Puget Sound. The plan shall establish service standards for state ferry routes, forecast travel demand for the various markets served by the state ferry system, and develop strategies for ferry system investment that consider both vehicle and passenger needs, meet regional and state-wide travel purposes, support local land use plans, and are fully integrated into land transportation connections.

The Washington state ferry system plan shall be developed in conjunction with the regional transportation planning organizations designated for counties served by the Washington state ferry system and the ferry advisory committees.

(3) The airport systems plan - A plan to identify the program needs for public use airports in the state, and to fulfill the state-wide aviation planning requirements of the federal government.

(4) The state freight rail plan - A plan to identify light-density freight rail lines threatened with abandonment, establish criteria for the importance of preserving the service or line, recommend priorities for the use of state rail assistance and state rail banking program funds, and fulfill federal state-wide rail planning requirements.

(5) The state bicycle plan - A plan to identify bicycling needs on the state transportation systems and to provide a basis for the investment of state highway funds dedicated to bicycling facilities under chapter 47.30 RCW.

NEW SECTION. Sec. 97. HIGH-CAPACITY TRANSPORTATION PLANNING--DEPARTMENT OF TRANSPORTATION. The department's role in high-capacity transportation planning and regional transportation planning is to administer state planning grants for these purposes, participate in these regional planning processes, and coordinate other department planning with these regional efforts including the provisions of RCW 81.104.060.

NEW SECTION. Sec. 98. SPECIAL PLANNING STUDIES. The department may carry out special transportation planning studies to resolve specific issues with the development of the state transportation system or other state-wide transportation issues.

PART X - MISCELLANEOUS

NEW SECTION. Sec. 99. RULE OF CONSTRUCTION. This chapter is exempted from the rule of strict construction, and shall be liberally construed to give full effect to the objectives and purposes for which it was enacted. In addition, construction of this act shall emphasize the protection of the environment.

NEW SECTION. Sec. 100. CONSTRUCTION. Nothing in this act shall be construed to require cities and counties to adopt a comprehensive plan and development regulations that a county or city determines are less stringent than those that have been enacted by the county or city as of the effective date of this act.

NEW SECTION. Sec. 101. APPLICATION TO STATE, LOCAL, AND OTHER PUBLIC AGENCIES. Except as otherwise provided in this chapter or other state law, the comprehensive plans and development regulations adopted under this chapter shall be applicable to all state agencies, counties, cities, special districts, and other public and municipal corporations including quasi-municipal corporations in the state.

NEW SECTION. Sec. 102. TREATY RIGHTS. Nothing in this chapter affects any rights established by treaty to which the United States is a party.

Coordination of on-reservation land use planning activities where tribes have jurisdiction with county or city land use planning activities cannot be required absent congressional mandate. As a consequence, the coordination between tribes and counties and cities regarding land use planning activities should focus on encouraging the voluntary participation of tribal governments with county and city planning processes required by this chapter.

NEW SECTION. Sec. 103. RELATION TO OTHER AUTHORITIES. The provisions of this act are cumulative and nonexclusive and are not intended to be preemptive in effect.

NEW SECTION. Sec. 104. 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. 105. HEADINGS. Part and section headings and the table of sections as used in this act do not constitute any part of the law.

NEW SECTION. Sec. 106. CODIFICATION. (1) Sections 11 through 13, 17, 32, 40, 43 through 49, 51, 53 through 59, 61 through 63, 68 through 73, 77, 99, 101 through 103, and 105 of this act are each added to chapter 36.70A RCW.

(2) Sections 94 through 98 of this act shall constitute a new chapter in Title 47 RCW.