H-1979

AN ACT Relating to growth strategies; amending RCW 36.70A.030, 36.70A.020, 36.70A.070, 36.70A.080, 43.88.110, 66.08.190, 36.79.150, 47.26.080, 47.26.084, and 82.46.035; adding new sections to chapter 36.70A RCW; adding a new section to chapter 43.63A RCW; adding a new section to chapter 43.17 RCW; adding a new section to chapter 43.31 RCW; adding a new section to chapter 19.85 RCW; adding a new section to chapter 82.14 RCW; adding a new section to chapter 82.36 RCW; adding a new section to chapter 82.08 RCW; and making appropriations.

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

Sec. 1. 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.

((~~(12)~~)) (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.

(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.

((~~(14)~~)) (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.

(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. 2. 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. 3. 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.

(12) An economic development element that includes:

(a) An analysis of the economic patterns, potentials, strengths, and weaknesses;

(b) Methods to strengthen the economic base of the county or city, particularly the exporting of goods and services;

(c) An analysis of the need for sites of suitable sizes, types, locations, and service levels for industrial and commercial uses;

(d) Compatible uses on or near sites that are zoned for industrial or commercial activity;

(e) Integration of the economic development element with the land use element and other elements of the comprehensive plan, especially the capital financing plan;

(f) Efforts to encourage economic growth state-wide by establishing rural-urban links where appropriate;

(g) Consideration of matching the fiscal impact of the comprehensive plan with the resources available to the county or city; and

(h) Coordination of the economic development element of the comprehensive plan with the regional economic development plan.

(13) A private property element that establishes an orderly, consistent process that better enables government agencies to evaluate whether proposed regulatory or administrative actions may result in a taking of private property or violation of due process. It is not the purpose of this subsection to expand or reduce the scope of private property protections provided in the state and federal Constitutions.

Sec. 4. 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; and

(e) Cultural resources.

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

NEW SECTION. Sec. 5. REGIONAL PLANS. In counties that 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 and for economic development by September 1, 1992. A regional plan or strategy for open space may be added at the option of the county and participating cities. State agencies shall participate in and cooperate with regional economic development, 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 economic development, 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. 6. A new section is added to chapter 43.63A RCW to read as follows:

REGIONAL ECONOMIC DEVELOPMENT PLANS. A regional economic development plan developed under section 5 of this act or developed voluntarily shall include, but is not limited to, the following contents:

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

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

(3) An identification of priority development areas, as defined by the state agency coordination council created in section 8 of this act, where there is a need for economic growth and where there is the physical capacity, realistic ability, and local support to attract such growth; and

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

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

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

PART III

STATE ROLE

NEW SECTION. Sec. 7. STATE AGENCIES REQUIRED TO PLAN CONSISTENT WITH PLANNING GOALS. (1) State agencies proposing development shall: (a) Plan in conformance with the planning goals contained in RCW 36.70A.020; (b) notify the state agency coordinating council of the proposed development; (c) comply with local comprehensive plans and development regulations adopted pursuant to RCW 36.70A.040 and 36.70A.120; (d) comply with amendments to comprehensive land use plans as provided for in RCW 36.70A.130; and (e) comply with development regulations adopted pursuant to RCW 36.70A.060 and section 10, chapter ... (HB 1025), Laws of 1991.

(2) The state shall also protect private property by evaluating whether proposed regulatory or administrative actions may result in a taking of private property or violation of due process. It is not the purpose of this subsection to expand or reduce the scope of private property protections provided in the state and federal Constitutions.

NEW SECTION. Sec. 8. STATE AGENCY COORDINATING COUNCIL CREATED. (1) There is hereby created in the office of the governor the state agency coordinating council. The council shall be comprised of twelve members as follows:

(a) The secretary of transportation;

(b) The director of community development;

(d) The director of trade and economic development;

(e) The director of agriculture;

(f) The commissioner of public lands;

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

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

(i) The director of wildlife;

(j) The state treasurer;

(k) The director of fisheries; and

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

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

(3) The council shall form a subcommittee to address natural resources of state-wide significance. The subcommittee shall include the directors of wildlife, fisheries, ecology, and community development, and the commissioners of public lands and the parks and recreation commission. The subcommittee shall include one representative from the association of Washington cities appointed by the association, one representative of the Washington state association of counties appointed by the association, one representative of the tribes appointed by the governor, and three representatives of the general public appointed by the governor. This subcommittee shall:

(a) Establish criteria for identifying natural resources of state-wide significance; and

(b) Establish minimum standards for protection of natural resources of state-wide significance.

The nonstate members of the subcommittee shall have responsibilities associated with the subcommittee only, and may be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.

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

NEW SECTION. Sec. 9. STATE AGENCY COORDINATING COUNCIL‑-DUTIES. The state agency coordinating council, in addition to its duties under section 8(3) of this act, shall:

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

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

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

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

(d) Creating a new growth management financing account which would finance infrastructure needs based on regional economic planning under section 6 of this act;

(e) Providing incentives to counties and cities to comply with growth management requirements, including counties and cities not required to plan under this chapter; and

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

(3) Identify priority development areas for the purposes of regional planning under section 6 of this act, and coordinate state assistance to economic development-related projects of regional or state significance under section 6(4) of this act.

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

(5) Advise the governor on growth management issues, particularly ensuring that state agencies comply with section 7 of this act.

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

NEW SECTION. Sec. 10. A new section is added to chapter 43.17 RCW to read as follows:

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

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

NEW SECTION. Sec. 11. A new section is added to chapter 43.31 RCW to read as follows:

REGULATION LISTS BY THE BUSINESS ASSISTANCE CENTER. The business assistance center shall coordinate the provision of better and more reliable information by state agencies regarding state regulations that affect specific businesses. When requested, the business assistance center shall compile a list of specific regulations that apply to a specific business by obtaining a list from designated staff persons, under section 10 of this act, in each applicable agency.

NEW SECTION. Sec. 12. A new section is added to chapter 19.85 RCW to read as follows:

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

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

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

PART IV

GROWTH MANAGEMENT HEARINGS BOARD

NEW SECTION. Sec. 13. BOARD ESTABLISHED--MEMBERSHIP--CHAIR--QUORUM FOR DECISION--EXPENSES OF MEMBERS. (1) The growth management hearings board is a quasi-judicial board hereby established within the environmental hearings office under RCW 43.21B.005. The board shall consist of five members, three full time and two part time members:

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

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

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

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

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

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

NEW SECTION. Sec. 14. MATTERS SUBJECT TO BOARD REVIEW--FINAL ORDERS. (1) The board shall review the following matters if requested by the governor, a regional planning organization, or a county or city that plans under this chapter:

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

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

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

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

(2) The board shall also review the requests by:

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

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

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

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

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

(6) Unless clearly contrary to sections 13 and 14 of this act, the following are applicable to the board created in section 13 of this act: RCW 43.21B.040, 43.21B.060, 43.21B.090, and 43.21B.100.

PART V

SANCTIONS FOR NONCOMPLIANCE

NEW SECTION. Sec. 15. 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; or

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

(2) If requested, the governor may either:

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

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

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

Sec. 16. 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. 17. 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 15 of this act.

Sec. 18. RCW 36.79.150 and 1983 1st ex.s. c 49 s 15 are each amended to read as follows:

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

(2) The board shall not allocate funds, nor make payments under RCW 36.79.160, to any county or city identified by the governor as not being in compliance with section 15 of this act.

Sec. 19. RCW 47.26.080 and 1988 c 167 s 13 are each amended to read as follows:

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

The board shall not allocate funds, nor make payments of the funds under RCW 47.26.260, to any county or city identified by the governor as not being in compliance with section 15 of this act.

Sec. 20. RCW 47.26.084 and 1988 c 167 s 2 are each amended to read as follows:

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

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

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

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

To be eligible to receive these funds, a project must be (a) consistent with state, regional, and local transportation plans and consideration shall be given to the project's relationship, both actual and potential, with rapid mass transit and at such time as a rail plan is developed by the rail development commission, projects must be consistent therewith, (b) necessitated by existing or reasonably foreseeable congestion levels attributable to economic development or growth, and (c) partially funded by local government or private contributions, or a combination of such contributions. The board shall, for those projects meeting the eligibility criteria, determine what percentage of each project is funded by local and/or private contribution. Priority consideration shall be given to those projects with the greatest percentage of local and/or private contribution.

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

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

The board shall not allocate funds, nor make payments of the funds under RCW 47.26.265, to any county or city identified by the governor as not being in compliance with section 15 of this act. The board shall reduce its allocation of funds to any public benefit district in proportion to the proportion of improvements being made to the roads of any county or the streets of any city which is identified by the governor as not being in compliance with section 15 of this act.

Sec. 21. RCW 82.46.035 and 1990 1st ex.s. c 17 s 38 are each amended to read as follows:

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

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

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

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

(5) When the governor files a notice of noncompliance based on section 15 of this act with the secretary of state and the appropriate county or city, the county or city's authority to impose the additional excise tax under this section shall be temporarily rescinded until the governor files a subsequent notice rescinding the notice of noncompliance.

NEW SECTION. Sec. 22. 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 15 of this act.

NEW SECTION. Sec. 23. A new section is added to chapter 82.36 RCW to read as follows:

NEW SECTION. Sec. 24. 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 15 of this act.

NEW SECTION. Sec. 25. 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. 26. OTHER APPEAL RIGHTS. (1) Any party aggrieved by a final decision of the hearings board may appeal the decision to Thurston county superior court, or to the court of appeals or the supreme court if these courts agree to hear the appeal.

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

PART VI

APPROPRIATIONS

NEW SECTION. Sec. 27. RURAL-URBAN LINKS. The sum of one million eighty thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1993, from the general fund to the department of community development for the rural-urban links grant program created pursuant to RCW 43.63A.560.

NEW SECTION. Sec. 28. ASSOCIATE DEVELOPMENT ORGANIZATIONS. The sum of five hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1993, from the general fund to the department of trade and economic development to enhance current level grants to associate development organizations. Associate development organizations who receive grants from the department shall use the grants to build local capacity, to build rural-urban links, and to implement RCW 43.31.097. The department shall award the enhancements based on the following criteria: (1) Need and available resources; (2) encouraging growth in areas experiencing little or no growth; and (3) establishing rural-urban links.

NEW SECTION. Sec. 29. GROWTH MANAGEMENT HEARINGS BOARD. The sum of one million five hundred ninety-six thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1993, from the general fund to the environmental hearings office for the growth management hearings board created in section 13 of this act.

PART VII

OTHER PROVISIONS

NEW SECTION. Sec. 30. HEADINGS. Part and section headings as used in this act do not constitute any part of the law.

NEW SECTION. Sec. 31. Sections 5, 7 through 9, 13 through 15, 25, 26, and 30 of this act are each added to chapter 36.70A RCW.