H-3668

AN ACT Relating to impact fees for child care facilities; amending RCW 82.02.020; and adding a new section to chapter 82.02 RCW.

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

Sec. 1. RCW 82.02.020 and 1990 1st ex.s. c 17 s 42 are each amended to read as follows:

Except only as expressly provided in RCW 67.28.180 and 67.28.190 and the provisions of chapter 82.14 RCW, the state preempts the field of imposing taxes upon retail sales of tangible personal property, the use of tangible personal property, parimutuel wagering authorized pursuant to RCW 67.16.060, conveyances, and cigarettes, and no county, town, or other municipal subdivision shall have the right to impose taxes of that nature. Except as provided in RCW 82.02.050 through 82.02.090 and section 2 of this act, no county, city, town, or other municipal corporation shall impose any tax, fee, or charge, either direct or indirect, on the construction or reconstruction of residential buildings, commercial buildings, industrial buildings, or on any other building or building space or appurtenance thereto, or on the development, subdivision, classification, or reclassification of land. However, this section does not preclude dedications of land or easements within the proposed development or plat which the county, city, town, or other municipal corporation can demonstrate are reasonably necessary as a direct result of the proposed development or plat to which the dedication of land or easement is to apply.

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

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

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

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

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

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

This section does not limit the existing authority of any county, city, town, or other municipal corporation to impose special assessments on property specifically benefitted thereby in the manner prescribed by law.

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

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

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

Nothing in this section prohibits counties, cities, or towns from requiring property owners to provide relocation assistance to tenants under RCW 59.18.440 and 59.18.450.

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

NEW SECTION. Sec. 2. A new section is added to chapter 82.02 RCW to read as follows:

(1) The legislature finds that it is an important public purpose to promote the availability of quality and affordable child care. Affordable and quality child care is important for the well-being of children of working parents, for the stability of the family and the work force, and for economic prosperity. The legislature also finds that new development in communities experiencing rapid growth causes a need for additional community child care facilities and services that cannot be absorbed by existing facilities or services. It is the intent of the legislature that:

(a) Counties, cities, and towns may require, by ordinance, that new growth and development pay a proportionate share of the cost of new child care facilities and services needed as a result of the new development; and

(b) Impact fees for child care facilities and services are imposed through established procedures and criteria so that specific developments do not pay arbitrary fees or duplicate 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. The impact fees:

(a) Are only imposed after a finding by the county, city, or town that a shortage of adequate child care facilities and services exist;

(b) Are only imposed after the county, city, or town has adopted, by resolution, a child care plan that addresses the forecasted needs for child care facilities and services, how the needs will be met, and how the needed child care facilities and services are financed through a balance of public and private sources; and

(c) Are only imposed for child care facilities and services that are reasonably related to new development, that do not exceed a proportionate share of the costs of the child care facilities and services, and that are used only for child care facilities and services that will reasonably benefit the new development.

(3) The impact fee ordinance by which impact fees are imposed for child care facilities or services shall:

(a) Include a schedule of fees that is based on a formula or other method to ensure that the fees are reasonable and comply with subsection (2)(c) of this section;

(b) Provide for credit for child care facilities or services provided by the developer;

(c) Allow the county, city, or town to adjust the standard impact fee imposed under this section to consider unusual circumstances in specific cases to ensure that the impact fees are imposed fairly; and

(d) Provide for a refund procedure if the county, city, or town fails to expend or encumber the impact fees within six years of when the fee is collected from the developer or if the developer does not proceed with the development and no impact has resulted.

(4) Impact fees collected under this section shall be deposited in a child care fund. The moneys deposited in the fund shall be used solely to increase the supply of child care facilities and services in the county, city, or town.

(5) The county, city, or town shall establish an advisory committee to evaluate the impact fee schedule, to advise the county, city, or town on the administration of the impact fee ordinance, and to make recommendations periodically to the county, city, or town regarding improving the impact fee process. The advisory committee shall be representative of public officials, developers, and child care providers.

NEW SECTION. Sec. 3. 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.