Z-0514

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.170, 36.70A.060, 36.70A.110, 82.02.050, 19.27.095, 58.17.033, 36.70A.050, 36.70A.190, 43.88.110, 82.44.150, 66.08.190, and 36.93.180; adding a new section to chapter 35.02 RCW; adding a new section to chapter 36.93 RCW; adding a new section to chapter 43.99 RCW; adding a new section to chapter 43.63A RCW; adding new sections to chapter 36.70A RCW; adding a new section to chapter 82.08 RCW; and adding a new section to chapter 82.14 RCW.

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, housing affordability, 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 limited water resources. The legislature further finds that the new system of land use planning must reflect and further the following values:

(1) Land use planning should respect local decision making -- land use planning and growth management should be based on activity in local communities, managed with attention to detail, where diverse citizen concerns can be effectively addressed. Planning should provide greater predictability in the development process by effectively resolving land use disputes earlier in the process.

(2) State government should provide a framework for local planning and environmental and natural resource protection -- state action should support local land use planning and conservation activities. The state should provide guidance and assistance for local planning, assurance of effective local action, and a means for resolving disputes concerning land use planning, development, and the maintenance and protection of environmentally critical areas, natural resource lands, and open space. State government should act consistently with local governments, following common rules governing planning, land use, environmental protection, and natural resource conservation.

(3) Elected officials should be accountable for planning decisions -- land use planning decisions have long-term and complex impacts and affect numerous citizens and communities. Therefore, accountability for such decisions should rest with officials elected by and accountable to the public to the maximum extent feasible.

(4) Land use planning disputes should be resolved, when possible, using methods that recognize the value of the positions and needs of all parties to the dispute, resolving disputes through the judicial system only when such methods are not successful.

(5) Necessary public facilities should be located in a way that the burden of meeting public needs is shared fairly by the communities in a region, and primary responsibility for locating needed facilities should rest with the publicly accountable officials in local regions.

(6) Encouraging strong economies in the state's diverse regions -- the state has a continuing interest in furthering sustainable regional economic growth and vitality. Rapid economic growth has resulted in severe land use and environmental problems in fast-growing regions of the state. The long-term interest of the state's citizens is served best when all of the state's regions have vital economies. A vital regional economy is one which is diverse, competitive in global terms, economically and environmentally sustainable, offers opportunities for new enterprise, and provides ample family-wage employment for its citizens. The state should be an active participant in encouraging economic vitality in the state's regions, in partnership with local government, citizens, and the private sector. Effective action to encourage economic development should include regional economic development planning, adequate infrastructure, and local and state action to increase the economic capacity of the state's regions. 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 address growth management and planning issues from state, regional, and local perspectives, to establish certain requirements on a state-wide basis, to permit such requirements to be met by local governments with maximum local flexibility, to require consistency between local governments planning to encourage cooperative planning between local governments and between local and tribal governments, to provide adequate time to conform with such requirements, to prevent new development which is inconsistent with these requirements from taking place during the interim, and to provide resources to support such efforts in the form of both financial and technical assistance. It is the intent of the legislature to establish a process and system of planning and growth management emphasizing a shared responsibility between the state and local governments and including a fair and open process that allows local governments broad flexibility to meet the goals and requirements contained in this chapter in a manner best adapted to their local circumstances and diversity. It is not the intent of the legislature to establish a single comprehensive plan applicable without variation throughout the state. Instead, local governments are given the flexibility to tailor a custom fit in their comprehensive plan to meet the goals and requirements contained in this chapter.

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 contiguous counties, cities, and federally recognized Indian tribes.

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

((~~(3)~~)) (4) "Board" means the growth management board established to review plans and regulations established under this chapter.

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

((~~(4)~~)) (6) "Committee" means the interagency committee for outdoor recreation established under chapter 43.99 RCW.

(7) "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)~~)) (8) "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)~~)) (9) "Department" means the department of community development.

((~~(7)~~)) (10) "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)~~)) (11) "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)~~)) (12) "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)~~)) (13) "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)~~)) (14) "Mineral((s)) resource lands" include those lands identified and devoted to the long-term commercial extraction of gravel, sand, rock, and valuable metallic substances.

(15) "Natural resource lands" means agricultural lands, forest lands, and mineral resource lands.

(16) "New 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; (b) preservation of open spaces within and around the community; (c) an internal and external transportation system supportive of pedestrian access and mass transit; (d) the new infrastructure needed to serve the proposed community; and (e) the mitigation of off-site impacts.

(17) "Open space lands" include 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 critical areas, natural resource lands, soils, geologically hazardous areas, or 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 visual enjoyment and recreation opportunities, including public access to shoreline areas; (h) protect natural areas and environmental features with significant educational, scientific, wildlife habitat, historic, or scenic value; or (i) retain in its natural state tracts of land not less than five acres situated in an urban environment.

((~~(12)~~)) (18) "Public facilities" include streets, roads, highways, sidewalks, street and road lighting systems, traffic signals, domestic water systems, storm and sanitary sewer systems, parks and recreational facilities, and schools.

((~~(13)~~)) (19) "Public services" include fire protection and suppression, law enforcement, public health, education, recreation, environmental protection, and other governmental services.

(20) "Region" means one or more counties and the cities within the county or counties, including, as a local option, multicounty regions.

(21) "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 transportation benefit areas, 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.

(22) "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)~~)) (23) "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)~~)) (24) "Urban growth areas" means those areas designated by a county pursuant to RCW 36.70A.110.

((~~(16)~~)) (25) "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)~~)) (26) "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 following goals are adopted to guide the development and adoption of comprehensive plans and development regulations of those counties and cities that are required or choose to plan under RCW 36.70A.040. The following goals are not listed in order of priority and shall be used ((~~exclusively~~)) for the purpose of guiding the development of comprehensive plans and development regulations. However, plans, regulations, and actions, including expenditures of state-appropriated funds, of state agencies, counties, and cities required or choosing to plan, and special districts shall conform to and support these goals:

(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 be compact, have concentrated employment centers, and provide opportunities for people to live in a variety of housing types close to where they work. Plans should ensure an adequate supply of land for projected jobs considering the nature and diversity of economic activity and for a variety of housing types. Development densities should be sufficient to: (a) Protect open space, natural features and parks, natural resource lands and critical areas within and outside of urban growth areas; (b) promote affordable housing; and (c) promote transit. Large land areas characterized by significant natural limitations such as steep slopes, seismic hazard areas, flood plains, and wetlands should not be designated for urban growth.

New development should be designed to respect the planned and existing character of neighborhoods. Open spaces and natural features should be preserved within urban areas.

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

(3) Transportation. ((~~Encourage~~)) Develop efficient multimodal transportation systems that are based on regional priorities and coordinated with county and city comprehensive plans. Provide alternatives to single-occupant automobile travel in congested urban areas. Housing should be of sufficient density and employment centers should be concentrated to enable greater efficiency and affordability of transit service.

(4) Housing. Encourage ((~~the availability of~~)) and participate in making available affordable housing ((to)) for all economic segments of the population of this state, promote a variety of residential densities and housing types, ((~~and~~)) encourage preservation of existing housing stock, promote the state and federal fair housing goals, and provide for a fair share of housing needs.

(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, identify and focus assistance on priority economic development areas where there is a need for growth and where there is the realistic capacity and broad local support for such growth, and encourage growth in areas experiencing insufficient economic growth, all within the capacities of the state's natural resources, public services, and public facilities.

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

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

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

(9) Open space and recreation. ((~~Encourage the retention of open space and development of recreational opportunities, conserve fish and wildlife habitat, increase access to natural resource lands and water, and develop parks.~~)) Protect open space and where possible link open space into regional and state-wide networks. Permanent open space networks should separate neighboring cities, where possible, and define distinct urban growth areas to prevent their merging into large continuous urban areas. Open space should be used to: Protect fish and wildlife habitat; protect environmentally sensitive land and water areas; provide park and outdoor recreational opportunities; protect scenic areas and viewsheds; accommodate nonmotorized recreational corridors and trails; and protect views and vistas within and around cities.

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

(11) Citizen participation and coordination. ((~~Encourage~~)) 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.

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

(14) Fair share. Ensure the siting of regional and state public facilities, so that each county and its cities accepts their fair share of public facilities and no community is overburdened.

(15) Water Resources. Land use planning and permit decisions that will both protect water and create demand for water 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 nonconsumptive uses into its land use plan. Water is key for fish, wildlife, domestic use, industrial use, power, agriculture, aesthetics, and recreation.

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 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, as specified in a schedule adopted by the department as provided in section 5 of this act. 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) its 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.

NEW SECTION. Sec. 5. PHASING OF COMPREHENSIVE PLANS SUBMITTAL. The department may adopt a schedule by September 1, 1991, to permit phasing of comprehensive land use plan submittal for counties and cities planning under RCW 36.70A.040. The department shall assess local progress toward meeting the deadline for completion of comprehensive plans and set a schedule which provides for the expeditious completion, submittal, and review of comprehensive plans prepared under this act. The department shall report annually to the governor and the legislature before December 31st each year from 1991 until 1995 on local government progress in preparing comprehensive plans under the provisions of this chapter.

Sec. 6. 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 provide for sufficient developable land and densities for a range of housing types. The land use element shall include population densities, building intensities, and estimates of future population growth. The land use element shall include designation of natural resource lands and lands for outdoor recreation as provided in RCW 36.70A.060. 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 and surface 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.

(2) A housing element recognizing the vitality and character of established residential neighborhoods that: (a) Includes an inventory and analysis of existing and projected housing needs; (b) includes a statement of goals, policies, and objectives for the preservation, improvement, and development of housing and for meeting fair share housing obligations within the county and/or jurisdictions; (c) identifies sufficient land and densities for housing; (d) identifies the existing and projected fair share accommodation of low-income moderate-income housing, including, but not limited to, government-assisted housing, housing for low-income families, manufactured housing, multifamily housing, and group homes and foster care facilities; ((~~and (d)~~)) (e) makes adequate provisions for existing and projected needs of all economic segments of the community; (f) promotes housing that is affordable; and (g) minimizes the displacement of residents from housing.

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

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

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

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

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

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

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

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

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

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

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

(e) Demand-management strategies.

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

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

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

(8) An environmental management element that minimizes development and growth impacts on the environment and enhances the quality of air, water, and land resources.

(9) An open space and outdoor recreation element that provides for local and regional parks, outdoor recreation facilities, trails, resource conservation, natural vistas, and open space.

(10) An annexation element for cities and incorporation element for counties to clearly delineate a local government service delivery plan.

(11) A fair share element for siting state and regional public facilities.

Sec. 7. 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) Historic preservation;

(e) Cultural resources; and

(f) Economic development.

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

Sec. 8. RCW 36.70A.170 and 1990 1st ex.s. c 17 s 17 are each amended to read as follows:

NATURAL 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~~)) comply with the minimum standards established pursuant to RCW 36.70A.050.

(3) Once classified, such lands shall be protected according to RCW 36.70A.060 or section 10 of this act.

Sec. 9. RCW 36.70A.060 and 1990 1st ex.s. c 17 s 6 are each amended to read as follows:

NATURAL 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~~)) ongoing activities allowed prior to their adoption 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, of these designated lands for the production of food, agricultural products, or timber, or for the extraction of minerals.

(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. 10. NATURAL RESOURCE LANDS AND CRITICAL AREAS--REMAINING JURISDICTIONS TO ADOPT DEVELOPMENT REGULATIONS. (1) Each county and city not subject to 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 ongoing activities allowed prior to their adoption and shall remain in effect until the county or city adopts development regulations under this section. 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 their activities, including adoption of development regulations, and make capital budget decisions in conformity with their designations under RCW 36.70A.170.

NEW SECTION. Sec. 11. OPEN SPACE LANDS--IDENTIFICATION. In addition to designation of natural resource lands and critical areas as required under RCW 36.70A.170, every county and city requiring or choosing to plan under this chapter 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.

Sec. 12. 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 in its comprehensive land use plan an urban growth area or areas 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 communities under section 13 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. 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. 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 and federally recognized tribal government located within its boundaries and each city shall propose the location of an urban growth area. The county, cities, and federally recognized Indian tribes electing to participate in the process of designation 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~~)). 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 an urban growth area. A city or federally recognized tribal government 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) The annexation and incorporation plan elements required in RCW 36.70A.070 shall include a map or maps defining all those portions of the designated urban growth area for potential annexation or incorporation. These elements shall also relate potential annexation and incorporation to the area development pattern, address density, identify the needed service providers without proliferating special purpose districts, and include the sequence or timing of the annexation and incorporation.

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

NEW SECTION. Sec. 13. NEW COMMUNITIES. A county required or choosing to plan pursuant to the provisions of RCW 36.70A.040 shall establish a process for reviewing proposals for new communities. A new community may be permitted by a county when the new community is included in its comprehensive plan prepared pursuant to RCW 36.70A.040 and is consistent with the requirements of this chapter. However, new communities may only be approved if the following criteria are met:

(1) New infrastructure and off-site impact are fully considered and provision is made for such infrastructure consistent with the requirements of this chapter and RCW 82.02.050;

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

(3) Buffers are provided between the new community and adjacent urban development;

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

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

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

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

(8) Provision is made to minimize impacts on designated natural resource lands; and

(9) The plan for the new community is consistent with the development regulations established for the protection for critical areas by the county pursuant to RCW 36.70A.170.

NEW SECTION. Sec. 14. 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 state policy goals contained in RCW 36.70A.020, and 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 year after the adoption of development regulations by a county or city pursuant to RCW 36.70A.120, each special district located within such a county or city, that provides one or more of the public facilities or public services listed in this subsection, 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) libraries; (f) schools; and (g) transportation, including mass transit.

Sec. 15. RCW 82.02.050 and 1990 1st ex.s. c 17 s 43 are each amended to read as follows:

IMPACT FEES--INTENT. (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

(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 in the inherent authority of a charter county or charter city derived from its charter. 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

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.

NEW SECTION. Sec. 16. 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. 17. REGIONAL PLANS. In counties required to plan under the provisions of this chapter, a regional plan or strategy shall be developed by the county and the cities within the county and as a tribal option any relevant tribal government to set major directions and policies for fair share siting of public facilities by September 1, 1992. A regional plan or strategy for economic development and/or open space may be added at the option of the county and participating cities. State agencies shall participate in and cooperate with regional open space and fair share planning processes to the maximum extent feasible. Counties may join together to develop multicounty regions for these planning purposes at the option of the county governing bodies of the participating counties. These policies shall be reflected in the individual county and city comprehensive plan elements on open space and fair share siting. After the adoption of such plans, the comprehensive plans prepared under this chapter of participating counties and cities shall be consistent for the subjects covered by the plans.

NEW SECTION. Sec. 18. A new section is added to chapter 43.63A RCW to read as follows:

REGIONAL ECONOMIC DEVELOPMENT PLANS. A regional economic development plan authorized under section 17 of this act 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 department, 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) 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 shall adopt guidelines, definitions, and procedural rules, as necessary, to implement this section.

NEW SECTION. Sec. 19. VESTING DOCTRINE. The following rule is adopted for the vesting of rights in counties and cities that plan under this chapter: A right shall vest upon the issuance of a valid permit or preliminary plat approval. This rule shall cease to be effective on the effective date of the final ordinance containing development regulations adopted under RCW 36.70A.120, that implement in whole the comprehensive plan adopted under this chapter within the entire planning jurisdiction of each county and city that plan under this chapter.

Sec. 20. 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) Except as provided in section 19 of this act, 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.

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

Sec. 21. 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) Except as provided in section 19 of this act, 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.

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

PART III

STATE ROLE

NEW SECTION. Sec. 22. STATE AGENCIES REQUIRED TO PLAN CONSISTENT WITH PLANNING GOALS. State agencies proposing development shall: (1) Plan in conformance with the planning goals contained in RCW 36.70A.020; (2) comply with local comprehensive plans and development regulations adopted pursuant to RCW 36.70A.040 and 36.70A.120; (3) comply with amendments to comprehensive land use plans as provided for in RCW 36.70A.130; and (4) comply with development regulations adopted pursuant to RCW 36.70A.060 and section 10 of this act.

Sec. 23. RCW 36.70A.050 and 1990 1st ex.s. c 17 s 5 are each amended to read as follows:

MINIMUM STANDARDS 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~~)) by June 1, 1991, minimum standards, 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~~)) minimum standards 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~~)) minimum standards.

(3) The ((~~guidelines~~)) rules under subsection (1) of this section shall be minimum ((~~guidelines~~)) standards 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~~)) minimum standards is to ((~~assist~~)) guide 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~~)) minimum standards 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 or section 10 of this act.

NEW SECTION. Sec. 24. RULE MAKING. (1) In addition to the rules adopted by the department under RCW 36.70A.050 regarding natural resource lands and critical areas as defined in RCW 36.70A.030, the department shall adopt guidelines, requirements, and minimum standards as rules under chapter 34.05 RCW to assist local governments in implementing this chapter.

(2) As used in this chapter, the term "guidelines" is intended to describe performance standards or parameters which guide local planning while at the same time allow the exercise of local government direction in choosing among planning and regulatory options. Guidelines are intended to encourage creative and locally appropriate responses to achieving the goals established in RCW 36.70A.020.

(3) As used in this chapter, the terms "requirements" and "minimum standards" are intended to prescribe specific standards, requirements, or procedures that must be followed by local governments in complying with this chapter.

(4) In addition to other guidelines required to be developed by the department, guidelines shall be adopted for the following processes in the following priority order:

(a) To designate and manage urban growth areas, including the phasing of development, determining service levels, and cumulative effects;

(b) To integrate transportation and transit into land use planning and site planning;

(d) To address housing supply, density, and fair sharing of housing needs, including low-income and moderate-income housing;

(e) To address the following plan elements: Land use, annexation and incorporation, and open space and outdoor recreation;

(f) To address regional open space and economic development plans;

(g) To address the need for buffers to minimize conflicts adjacent to resource lands;

(h) To assess the adequacy of public facilities and the phasing of growth and development approvals;

(i) To address mobility and facility needs for low-income and physically challenged persons; and

(j) Other processes as determined by the department.

(5) In addition to other requirements and minimum standards required to be developed by the department, requirements and minimum standards shall be adopted for the following:

(a) Interim controls to protect critical areas and natural resource lands state-wide; and

(b) Procedures, which may include timeframes.

(6) Guidelines, requirements, and minimum standards and regulations adopted under this act shall be issued in a timely manner so that local governments are afforded sufficient time to comply with the requirements of this act.

(7) In carrying out its responsibilities under this section, the department shall coordinate with other state agencies and consult with interested parties as provided in RCW 36.70A.050. Advisory groups shall be used in development of the rules under this act.

NEW SECTION. Sec. 25. CERTIFICATION OF REGIONAL ECONOMIC DEVELOPMENT PLANS. The department shall develop a process for certifying regional economic development plans prepared pursuant to sections 17 and 18 of this act. Counties not required or choosing to plan pursuant to the requirements of RCW 36.70A.040 may also prepare regional economic development plans, following the provisions contained in section 18 of this act. The department shall adopt guidelines for such plans as provided in section 24 of this act. The department shall certify regional economic development plans at the request of the county or counties which compose the region.

NEW SECTION. Sec. 26. A new section is added to chapter 43.99 RCW to read as follows:

STATE OPEN SPACE PLAN. (1) To assist local governments in carrying out the goals and requirements of chapter 36.70A RCW, the interagency committee for outdoor recreation shall prepare a state-wide open space plan identifying existing areas of protected open space lands and networks as described in RCW 36.70A.020.

(2) For the purposes of preparing the plan, the committee shall, in addition to the members specified in RCW 43.99.110, include the directors of ecology and community development, or their designees, and one representative of the association of Washington cities and one representative of the Washington state association of counties as voting members. The committee shall prepare the plan by December 1, 1992, and shall distribute the plan to all counties and cities required 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 required or choosing to plan under this chapter, 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 plan, the committee shall cooperate to the maximum degree feasible with counties and cities preparing comprehensive plans under section 10 of this act and with counties and cities designating and adopting development regulations to protect natural resource lands and critical areas under section 10 of this act. The plan is to be prepared using existing resources information available from federal, state, and local governments, including the designations of critical areas and natural resource lands required under chapter 36.70A RCW, 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 plan.

NEW SECTION. Sec. 27. OPEN SPACE PLAN--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. 28. COMPREHENSIVE PLANS--DEVELOPMENT REGULATIONS--REVIEW AND COMMENT. (1) Each county and city preparing a comprehensive plan and/or development regulations under this chapter shall submit its final draft plan and development regulations to the department before adoption. The county or city shall also then submit a copy of those documents to adjacent jurisdictions.

(2) Counties must submit the regional plans under section 17 of this act to the department for preadoption review.

(3) The department shall review plans and development regulations for compliance with the goals and requirements of this chapter. The department shall compile its comments and forward the comments to the county or city within sixty days of receiving the draft plan and regulations, or the department may be presumed to agree with the plan and regulations as submitted. This presumption of agreement shall not apply to changes in comprehensive plans or development regulations made after submission under this section.

(4) 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, throughout their development. This consultation should supplement the public involvement opportunities under RCW 36.70A.140.

NEW SECTION. Sec. 29. 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 proposed by a county or city local government 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.

NEW SECTION. Sec. 30. DEPARTMENT REQUEST FOR BOARD REVIEW OF COMPREHENSIVE PLANS, DEVELOPMENT REGULATIONS, OR AMENDMENTS. (1) When a county or city comprehensive plan, development regulations, or amendments to such plans or regulations are received by the department pursuant to section 29 of this act, the department shall review the plan, development regulations, or amendment for compliance with the goals and requirements of this chapter. Within ninety days of adoption by the county or city, the department shall determine if the plan, regulations, or amendment is in compliance with the goals and requirements of this chapter. If the plan, development regulations, or amendment is not in compliance, the department shall seek review of the plan, regulations, or amendment by the growth management board established in section 33 of this act, pursuant to the requirements of sections 34 and 35 of this act. The department shall send a copy of the request for review to the county or city that has submitted the plan, regulations, or amendment within five days of seeking such a review from the board.

Sec. 31. 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, and federally recognized Indian tribes 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. 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, 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 classification and protection of natural 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 comprehensive plans 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, and adjacent jurisdictions 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.

(7) The department may also provide planning grants and technical assistance to federally recognized Indian tribes located in a county or counties required or choosing to plan under RCW 36.70A.040.

NEW SECTION. Sec. 32. 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 natural resource lands and critical areas required in this chapter.

PART IV

GROWTH MANAGEMENT BOARD

NEW SECTION. Sec. 33. BOARD ESTABLISHED--MEMBERSHIP--CHAIR--QUORUM FOR DECISION--EXPENSES OF MEMBERS. (1) The growth management board is a quasi-judicial board hereby established within the environmental hearings office under RCW 43.21B.005, to review plans and development regulations pursuant to this chapter. The board shall consist of six members appointed by the governor. Initial members shall be appointed to staggered terms as follows: Two members shall be appointed to two-year terms, two members to four-year terms, and two members to six-year terms. Thereafter, members shall be appointed to six-year terms. The governor shall appoint one of the members as chairperson. The governor may remove a member only for cause.

(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) Four 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 four members to be final.

(5) Board members shall receive compensation, travel, and subsistence expenses as provided in RCW 43.03.050 and 43.03.060.

NEW SECTION. Sec. 34. MATTERS SUBJECT TO BOARD REVIEW--FINAL ORDERS. (1) The board has the power to review the following matters:

(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 review the matter brought before it 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.

(3) The board shall consolidate all requests for review for each plan and for development regulations.

NEW SECTION. Sec. 35. WHO MAY REQUEST REVIEW OF PLANS AND REGULATIONS‑-PROCEDURE. (1) The following persons may request review of comprehensive plans or development regulations adopted by counties or cities required or choosing to plan subject to this chapter, review of development actions taken under such comprehensive plans and development regulations, or review of other matters related to consistency with this chapter:

(a) The department may seek review of comprehensive plans and/or development regulations subject to this chapter;

(b) Adjacent jurisdictions and the department may seek review concerning matters related to interjurisdictional consistency requirements affecting plans;

(c) Any jurisdiction may seek review concerning matters related to consistency of state agency or special district proposals with plans and development regulations subject to this chapter; and

(d) Any person who appeared before a local government and presented testimony orally or in writing or submitted comments in writing to a county, city, or state agency, may seek review concerning a comprehensive plan, or development regulation, or amendment thereof, subject to this chapter.

(2) Requests for review of plans and development regulations or review of consistency of state agency or special district proposals shall be filed with the board within ninety days after adoption by the county, city, or state agency.

(3) Concurrently with the filing of any request for review with the board as provided in this section, the requesting party shall file a copy of the request with the department.

(4) The board shall initially schedule review proceedings on such requests for review without regard as to the merits of the request. If, upon reviewing the request, the board finds that the request should be denied, it shall remove the request from its review schedule.

(5) The review proceedings authorized in this section are subject to the provisions of chapter 34.05 RCW pertaining to procedures in adjudicative proceedings. Judicial review of such proceedings of the board may be had as provided in chapter 34.05 RCW.

NEW SECTION. Sec. 36. 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. 37. 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 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;

(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; or

(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: Motor vehicle excise tax, as provided in RCW 82.44.150; sales and use tax, as provided in chapter 82.14 RCW; liquor profit tax, as provided in RCW 66.08.190; and liquor excise tax, as provided in RCW 82.08.170.

Sec. 38. 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. 39. RCW 82.44.150 and 1990 c 42 s 308 are each amended to read as follows:

APPORTIONMENT AND DISTRIBUTION OF MOTOR VEHICLE EXCISE TAXES GENERALLY. (1) The director of licensing shall, on the twenty-fifth day of February, May, August, and November of each year, advise the state treasurer of the total amount of motor vehicle excise taxes remitted to the department during the preceding calendar quarter ending on the last day of March, June, September, and December, respectively, except for those payable under RCW 82.44.030, from motor vehicle owners residing within each municipality which has levied a tax under RCW 35.58.273, which amount of excise taxes shall be determined by the director as follows:

The total amount of motor vehicle excise taxes remitted to the department, except those payable under RCW 82.44.030, from each county shall be multiplied by a fraction, the numerator of which is the population of the municipality residing in such county, and the denominator of which is the total population of the county in which such municipality or portion thereof is located. The product of this computation shall be the amount of excise taxes from motor vehicle owners residing within such municipality or portion thereof. Where the municipality levying a tax under RCW 35.58.273 is located in more than one county, the above computation shall be made by county, and the combined products shall provide the total amount of motor vehicle excise taxes from motor vehicle owners residing in the municipality as a whole. Population figures required for these computations shall be supplied to the director by the office of financial management, who shall adjust the fraction annually.

(2) On the first day of the months of January, April, July, and October of each year, the state treasurer based upon information provided by the department shall, from motor vehicle excise taxes deposited in the general fund, under RCW 82.44.110(7), make the following deposits:

(a) To the high capacity transportation account created in RCW 47.78.010, a sum equal to four and five-tenths percent of the special excise tax levied under RCW 35.58.273 by those municipalities authorized to levy a special excise tax within a class AA county, or within a class A county contiguous to a class AA county, or within a second class county contiguous to a class A county that is contiguous to a class AA county;

(b) To the central Puget Sound public transportation account created in RCW 82.44.180, for revenues distributed after December 31, 1992, within a class AA county or within a class A county contiguous to a class AA county, a sum equal to the difference between (i) the special excise tax levied and collected under RCW 35.58.273 by those municipalities authorized to levy and collect a special excise tax subject to the requirements of subsections (3) and (4) of this section and (ii) the special excise tax that the municipality would otherwise have been eligible to levy and collect at a tax rate of .815 percent and been able to match with locally generated tax revenues, other than the excise tax imposed under RCW 35.58.273, budgeted for any public transportation purpose. Before this deposit, the sum shall be reduced by an amount equal to the amount distributed under (a) of this subsection for each of the municipalities within the counties to which this subsection (2)(b) applies; however, any transfer under this subsection (2)(b) must be greater than zero;

(c) To the public transportation systems account created in RCW 82.44.180, for revenues distributed after December 31, 1992, within counties not described in (b) of this subsection, a sum equal to the difference between (i) the special excise tax levied and collected under RCW 35.58.273 by those municipalities authorized to levy and collect a special excise tax subject to the requirements of subsections (3) and (4) of this section and (ii) the special excise tax that the municipality would otherwise have been eligible to levy and collect at a tax rate of .815 percent and been able to match with locally generated tax revenues, other than the excise tax imposed under RCW 35.58.273, budgeted for any public transportation purpose. Before this deposit, the sum shall be reduced by an amount equal to the amount distributed under (a) of this subsection for each of the municipalities within the counties to which this subsection (2)(c) applies; however, any transfer under this subsection (2)(c) must be greater than zero; and

(d) To the transportation fund created in RCW 82.44.180, for revenues distributed after June 30, 1991, a sum equal to the difference between (i) the special excise tax levied and collected under RCW 35.58.273 by those municipalities authorized to levy and collect a special excise tax subject to the requirements of subsections (3) and (4) of this section and (ii) the special excise tax that the municipality would otherwise have been eligible to levy and collect at a tax rate of .815 percent notwithstanding the requirements set forth in subsections (3) through (6) of this section, reduced by an amount equal to distributions made under (a), (b), and (c) of this subsection.

(3) On the first day of the months of January, April, July, and October of each year, the state treasurer, based upon information provided by the department, shall remit motor vehicle excise tax revenues imposed and collected under RCW 35.58.273 as follows:

(a) The amount required to be remitted by the state treasurer to the treasurer of any municipality levying the tax shall not exceed in any calendar year the amount of locally-generated tax revenues, excluding the excise tax imposed under RCW 35.58.273 for the purposes of this section, which shall have been budgeted by the municipality to be collected in such calendar year for any public transportation purposes including but not limited to operating costs, capital costs, and debt service on general obligation or revenue bonds issued for these purposes; and

(b) In no event may the amount remitted in a single calendar quarter exceed the amount collected on behalf of the municipality under RCW 35.58.273 during the calendar quarter next preceding the immediately preceding quarter.

(4) At the close of each calendar year accounting period, but not later than April 1, each municipality that has received motor vehicle excise taxes under subsection (3) of this section shall transmit to the director of licensing and the state auditor a written report showing by source the previous year's budgeted tax revenues for public transportation purposes as compared to actual collections. Any municipality that has not submitted the report by April 1 shall cease to be eligible to receive motor vehicle excise taxes under subsection (3) of this section until the report is received by the director of licensing. If a municipality has received more or less money under subsection (3) of this section for the period covered by the report than it is entitled to receive by reason of its locally-generated collected tax revenues, the director of licensing shall, during the next ensuing quarter that the municipality is eligible to receive motor vehicle excise tax funds, increase or decrease the amount to be remitted in an amount equal to the difference between the locally-generated budgeted tax revenues and the locally-generated collected tax revenues. In no event may the amount remitted for a calendar year exceed the amount collected on behalf of the municipality under RCW 35.58.273 during that same calendar year. At the time of the next fiscal audit of each municipality, the state auditor shall verify the accuracy of the report submitted and notify the director of licensing of any discrepancies.

(5) The motor vehicle excise taxes imposed under RCW 35.58.273 and required to be remitted under this section shall be remitted without legislative appropriation.

(6) Any municipality levying and collecting a tax under RCW 35.58.273 which does not have an operating, public transit system or a contract for public transportation services in effect within one year from the initial effective date of the tax shall return to the state treasurer all motor vehicle excise taxes received under subsection (3) of this section.

(7) The governor may notify and direct the state treasurer to withhold the revenues to which a county or city is entitled under subsection (2) of this section if a county or city is found to be in noncompliance pursuant to section 37 of this act.

Sec. 40. 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 37 of this act.

NEW SECTION. Sec. 41. 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 37 of this act.

NEW SECTION. Sec. 42. 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 37 of this act.

NEW SECTION. Sec. 43. 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. 44. 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.

NEW SECTION. Sec. 45. 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. 46. 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, special districts, and other public and municipal corporations including quasi-municipal corporations in the state.

NEW SECTION. Sec. 47. TREATY RIGHTS. Nothing in this act 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 local government land use planning activities cannot be required absent congressional mandate. As a consequence, the coordination between tribes and local government regarding land use planning activities should focus on encouraging the voluntary participation of tribal governments with local governmental planning processes required by this chapter.

NEW SECTION. Sec. 48. RELATION TO OTHER AUTHORITIES. The provisions of this act are cumulative and nonexclusive and are not intended to be preemptive in effect.

PART V

OTHER PROVISIONS

Sec. 49. 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 annexation or incorporation is consistent with local government urban growth area designations and plan elements on annexation and incorporation. However, annexation or incorporation shall not occur outside of an urban growth area.

NEW SECTION. Sec. 50. 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.

NEW SECTION. Sec. 51. 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. 52. HEADINGS. Part and section headings as used in this act do not constitute any part of the law.

NEW SECTION. Sec. 53. Sections 5, 10, 11, 13, 14, 17, 19, 22, 24, 25, 27 through 30, 32 through 37, 43 through 48, and 52 of this act are each added to chapter 36.70A RCW.