H-4343

AN ACT Relating to the effect of rules and ordinances on business; adding a new section to chapter 35.63 RCW; adding a new section to chapter 35A.63 RCW; adding a new section to chapter 36.70 RCW; and creating new sections.

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

NEW SECTION. Sec. 1. (1) The department of trade and economic development shall compile the methods and procedures used by local governments under RCW 43.21H.020 to ensure that economic values are given appropriate consideration in the ordinance-making process.

(2) The department of trade and economic development shall also develop recommendations for methods and procedures to be used under RCW 43.21H.020 to insure that economic values are given appropriate consideration in the rule-making and ordinance-making processes. The recommended methods and procedures shall be based on the following economic values:

(a) The economic health of small business is recognized as a significant indicator of state and local economic health and fiscal stability, and should be a priority when state agencies and local governments consider new rules that are not health or safety related;

(b) Decent, safe, and affordable housing is an economic indicator for business growth. Without available housing for median-income wage earners, small business cannot start up, expand, or be retained;

(c) Land costs should be identified as a primary indicator for location decisions. Urban sprawl, inefficient public services, and artificially escalated land prices occur when state agencies and local governments do not recognize the impact of their rules on the value of land. Expedited permit tracking and relaxed zoning measures should be procedures and methods used to respond when local governments want to impose new rules that are not related to health or safety and that increase the cost of land;

(d) The majority of builders in Washington state are small business builders who respond to burdensome taxes which come in the form of late comer fees, general facilities charges, impact fees, and permit processing fees. If it is determined that small businesses are unable to pay unreasonable combined upfront fees without going out of business, then local government must provide a method of relief;

(e) The burdensome taxes described in (d) of this subsection are financed over the life of a home loan. Existing homeowners have not paid the same share of taxes for the same infrastructure. Unfair tax treatment of state residents should be avoided to improve median wage earners' access to housing; and

(f) Costly public subsidies are an inefficient use of tax dollars to provide affordable housing and should be kept to a minimum.

As used in this section, "small business" has the meaning given in RCW 43.31.025(4).

(3) The department of trade and economic development shall report its findings and recommendations under this section to the legislature on or before January 1, 1993.

NEW SECTION. Sec. 2. The department of trade and economic development shall conduct a study of state agency rules and local government ordinances that affect small businesses in this state. Based on its findings, the department of trade and economic development shall develop recommendations for changes in statutes and rules, such as impact fees, to provide relief to small businesses, in accordance with principles stated in chapters 19.85 and 43.21H RCW. The department of trade and economic development shall report its findings and recommendations to the legislature under this section on or before January 1, 1993.

NEW SECTION. Sec. 3. A new section is added to chapter 35.63 RCW to read as follows:

(1) If, on the effective date of this act, a city or town does not have written methods and procedures under RCW 43.21H.020 to ensure that economic values are given appropriate consideration in the ordinance-making process, the city or town is prohibited from adopting new ordinances that would increase the cost of housing.

(2) Subsection (1) of this section does not apply when the health or safety of the community is at risk.

(3) A moratorium under subsection (1) of this section shall continue until (a) the department of trade and economic development submits recommended methods and procedures to implement RCW 43.21H.020 to the legislature under section 1(2) of this act and (b) the city or town adopts written methods and procedures to implement RCW 43.21H.020.

NEW SECTION. Sec. 4. A new section is added to chapter 35A.63 RCW to read as follows:

(1) If, on the effective date of this act, a city does not have written methods and procedures under RCW 43.21H.020 to ensure that economic values are given appropriate consideration in the ordinance-making process, the city is prohibited from adopting new ordinances that would increase the cost of housing.

(2) Subsection (1) of this section does not apply when the health or safety of the community is at risk.

(3) A moratorium under subsection (1) of this section shall continue until (a) the department of trade and economic development submits recommended methods and procedures to implement RCW 43.21H.020 to the legislature under section 1(2) of this act and (b) the city adopts written methods and procedures to implement RCW 43.21H.020.

NEW SECTION. Sec. 5. A new section is added to chapter 36.70 RCW to read as follows:

(1) If, on the effective date of this act, a county does not have written methods and procedures under RCW 43.21H.020 to ensure that economic values are given appropriate consideration in the ordinance-making process, the county is prohibited from adopting new ordinances that would increase the cost of housing.

(2) Subsection (1) of this section does not apply when the health or safety of the community is at risk.

(3) A moratorium under subsection (1) of this section shall continue until (a) the department of trade and economic development submits recommended methods and procedures to implement RCW 43.21H.020 to the legislature under section 1(2) of this act and (b) the county adopts written methods and procedures to implement RCW 43.21H.020.