HOUSE BILL REPORT

                E2SHB 2244

 

                       As Passed House

                       March 19,  1997

 

 

Title:  An act relating to revising the recommendations of the land use study commission.

 

Brief Description:  Revising the recommendations of the land use study commission.

 

Sponsors:  By House Committee on Appropriations (originally sponsored by  Representatives Reams, Mulliken, Bush and Thompson).

 

Brief History:

Committee Activity:

Government Reform & Land Use:  3/5/97 [DPS];

.Appropriations:  3/7/97, 3/8/97 [DP2S(w/o sub GRLU)].

Floor Activity:

Passed House:  3/19/97, 58‑39

 

HOUSE COMMITTEE ON GOVERNMENT REFORM & LAND USE

 

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 7 members:  Representatives Reams, Chairman; Cairnes, Vice Chairman; Sherstad, Vice Chairman; Bush; Mielke; Mulliken and Thompson.

 

Staff:  Kimberly Klaiber (786-7156).

 

HOUSE COMMITTEE ON APPROPRIATIONS

 

Majority Report:  The second substitute bill be substituted therefor and the second substitute bill do pass and do not pass the substitute bill by Committee on Government Reform & Land Use.  Signed by 17 members:  Representatives Huff, Vice Chairman; Alexander, Vice Chairman; Clements, Vice Chairman; Benson; Carlson; Cooke; Crouse; Dyer; Lambert; Lisk; Mastin; McMorris; Parlette; D. Schmidt; Sehlin; Sheahan and Talcott.

 

Minority Report:  Do not pass.  Signed by 14 members:  Representatives Wensman, Vice Chairman; H. Sommers, Assistant Ranking Minority Member; Doumit, Assistant Ranking Minority Member; Gombosky, Assistant Ranking Minority Member; Chopp; Cody; Grant; Keiser; Kenney; Kessler; Linville; Poulsen; Regala and Tokuda.

 

Staff:  Jim Lux (786-7152).

 

Background: 

 

  Growth Management Act

 

Two categories of counties and cities are established under the Growth Management Act (GMA):  those that are required to plan under all GMA requirements, and all other counties in the state.  A county is required to plan under all GMA requirements if it meets one of two separate sets of population and 10-year growth criteria, or if the county legislative authority adopts a resolution placing the county under these requirements.  A city follows the lead of the county in which it is located, and is required to plan under all GMA requirements if the county plans under all of these requirements.

 

Under the GMA, each county uses a procedure that is agreed to by the cities and the county to adopt a county-wide planning policy.  This policy establishes a Aframework@ from which the county and cities in the county develop and adopt comprehensive plans, which must be consistent with the county-wide planning policy.  The GMA requires counties to address certain issues in the comprehensive plan (land use, housing, capital facilities plan, utilities, the rural element, and transportation), and the GMA requires counties to protect critical areas, designate and conserve certain natural resource lands, and designate urban growth areas. Finally, each county and city adopts development regulations consistent with its comprehensive plan.

 

The Land Use Study Commission

 

The Land Use Study Commission was created by the 1995 Legislature as part of major regulatory reform legislation.  The commission is directed to examine the consolidation of state land use and environmental laws and complete a report and recommendations with respect to the GMA and related state laws.

 

Summary of Bill: 

 

  Rural Intent

 

The Legislature recognizes the importance of rural lands and rural character but seeks to recognize regional differences in rural-based economies.  The legislature also recognizes the importance of agricultural lands.  Counties should develop a local vision of rural character and land use patterns that will help preserve rural-based economies and traditional rural lifestyles and enhance the rural sense of community and quality of life.  The legislature intends for there to be a variety of interpretations by counties of how to best implement a rural element.

 

Growth Management Act Definitions

 

The definition of wetlands is changed.  Wetlands must measurably and demonstrably perform a wetland function, and any land not used as a wetland prior to 1987 is deemed a non-wetland.

 

Rural Development:  Provisions Applying to Rural Element

 

New definitions pertaining to the rural element are created.  The rural element provisions do not prohibit agricultural, forest, or resource-based nonresidential uses.

 

ARural character@ is defined to mean the patterns of land use and development established by a county where the following circumstances are present:

 

-Open space, the natural landscape, and vegetation predominate over the built environment;

-Traditional rural lifestyles and rural-based economies are fostered; and

-Extension of urban governmental services is generally not required.

 

ARural development@ is defined as development outside the urban growth area and outside lands that have been designated as agricultural, forest, or mineral resource lands.  Rural development may consist of diverse uses and densities as long as they are consistent with the preservation of rural character and the requirements of the rural element.  The definition refers to non-agricultural and non-forest lands.

 

ARural governmental services@ means public services and public facilities typically delivered at an intensity customarily found in rural areas and may include domestic water systems, fire and police protection services, transportation and public transit services, and other public utilities associated with rural development and normally not associated with urban areas.

 

In addition, the definition of Aurban growth@ is amended to clarify the relationship with the rural element and natural resource lands and urban growth.  The definition provides that a pattern of more intensive rural development is not urban growth.

 

Rural areas may provide for a variety of rural densities and uses.  Rural development must protect the rural character of the area by containing or controlling rural development, reducing low-density sprawl, and must protect against conflict with use of agricultural, forest, and mineral resource lands.  Counties may provide for limited areas of more intensive rural development, including certain necessary public facilities and services.  The county must adopt measures to contain the existing areas or uses of more intensive rural development.

 

Public Participation Requirements

 

Counties and cities planning under the GMA must adopt procedures that are reasonably calculated to notify property owners and others affected by or interested in amendments to a comprehensive plan and development regulations.  The procedures may include, but are not limited to, posting property, publishing notices in a newspaper of general circulation or in other publications, and sending notices to mailing lists.

 

A county or city that considers a change to an amendment to a comprehensive plan or development regulation must provide for public comment on the proposed change before its adoption if it has not been previously available for public comment.  Additional public comment is not required if the proposed change has already been discussed, relates to a capital budget decision, enacts an interim control, or is only technical in nature.

 

Amendments to Comprehensive Plans

 

A county or city may amend its comprehensive plan more frequently than once a year if the amendment pertains to the capital facilities element and occurs simultaneously with the adoption of the county or city budget.

 

Open Space Corridors

 

Counties, and cities in the counties, are required to identify open space corridors in cooperation with adjacent property owners, and in the process, counties and cities must respect private property rights.  Maps indicating open space corridors must designate those corridors as Aprivate land closed to trespass and public use.@  Land use restrictions with respect to open space corridors can only be imposed upon agreement between the property owner and the county or city, or if the county or city acquires sufficient interest to prevent development of the lands.

 

Growth Management Hearings Boards= Compliance with the Administrative Procedures Act

 

The Growth Management Hearings boards must comply with the Administrative Procedure Act (APA) unless the APA conflicts with a specific provision of the GMA.  The board is specifically directed to comply with the APA with respect to ex parte communications.

 

Limitations on Issues the Boards May Address

 

The authority of the boards to render decisions is modified.  The decision must be in writing and must articulate the basis for the board's holding on issues that have been presented to it in a petition.  The board may not render advisory opinions on issues not presented to it for review.

 

Direct Review to Superior Court

 

In lieu of filing a petition with the board, a petition may be filed directly in superior court.  A party against whom a petition is filed may also demand transfer of the matter to superior court.

 

Extension of Time for Board Decisions

 

A board may extend the time for issuing a decision beyond the 180-day period currently provided by the GMA to allow settlement negotiations to proceed if the parties agree to the extension.  The boards may allow up to 90 additional days, and the extension may be renewed.  If a board determines that a plan or development regulation does not comply with the GMA, the board may establish a compliance schedule that goes beyond 180 days if the complexity of the case justifies.  The board may also require periodic updates on progress towards compliance as part of the compliance order.

 

Invalidity

 

Boards can issue orders of noncompliance or invalidity.  Invalidity orders are effective for 30 days.  During the 30-day period, a party may appeal the order of invalidity, but if no appeal is filed, the invalidity order ceases.  An option of expedited review by a court of a board's order of invalidity is provided.  Orders of invalidity do not apply to certain enumerated types of completed development permit applications on lots that existed prior to the board's order.

 

Presumption of Validity

 

Comprehensive plans and development regulations are presumed valid, and the burden is on the petitioner to show that any action by a state agency, county, or city is not in compliance with the requirements of the GMA.

 

Standard of Review for Determining Whether Plan or Regulations in Compliance 

 

The Legislature intends to change the standard of review that applies to the Growth Management Hearings boards= review of county and city comprehensive plans and development regulations.  The intent section refers to the broad range of discretion counties and cities are given under the GMA and increases the deference to local decisions by increasing the standard of review from Apreponderance of the evidence@ (i.e., that it is more likely than not) to Aclearly erroneous.@  The legislature specifically finds that boards must grant substantial deference to rural determinations.

 

In reviewing the actions of a state agency, county, or city, the board must consider whether the action was clearly erroneous in light of the entire record before the board and in light of the goals and requirements of the GMA.

 

Compliance Proceedings

 

The board may modify a compliance order and allow additional time for compliance in appropriate circumstances.  The board is directed to take into account a county or city's progress toward compliance in making its decision as to whether to recommend the imposition of sanctions by the Governor.

 

Sunset of Boards

 

The boards' existence terminates on December 31, 1999 if the Legislature finds, after considering the recommendations of the land use study commission, that there is no continuing need for the growth management hearings boards.

 

Agricultural Zoning

 

A county or city may implement a variety of zoning techniques in designated rural areas.  The techniques should be designed to conserve agricultural lands and encourage the agricultural economy.  Nonagricultural uses should be limited to lands with poor soil or otherwise not suitable for agricultural uses.  Among the zoning techniques that may be considered are:

 

-agricultural zoning;

-clustering;

-large lot zoning;

-quarter/quarter zoning (one residential dwelling on a one acre minimum lot for each one-sixteenth of a section of land); and

-sliding scale zoning.

 

Review and Evaluation of Plans

 

Six western counties (Snohomish, King, Pierce, Kitsap, Thurston, and Clark), in consultation with their cities, must adopt review and evaluation programs.  The counties must determine whether urban growth densities are being achieved.  If the evaluation shows an inconsistency between what has occured and what was envisioned in the comprehensive plans and development regulations as it relates to sufficient suitable land, the county and its cities must adopt measures to increase consistency.  The Department of Community, Trade and Economic Development must provide grants to conduct the review and evaluation program.

 

Counties and cities may establish fees for geographic information system products and services.

 

All counties and cities must review their comprehensive plan and development regulations at least every five years.

 

Planning and Environmental Review Fund

 

The DCTED is directed to encourage participation in the grant program by other public agencies through the provision of grant funds.  The DCTED must also develop the grant criteria, monitor the grant program, and select grant recipients in consultation with state agencies participating in the grant program.  Grants from the planning and environmental review fund are to be provided for proposals designed to improve the project review process (environmental analysis) and that encourage the use of GMA plans to meet the requirements of other state programs.

 

Current Use Taxation

 

The provisions governing access to the current use taxation program are modified to include land designated for agriculture under the GMA.

 

Property Tax Assessment of Designated Agricultural Land

 

In valuing designated natural resource lands (agricultural, forest, or open space) for property tax purposes, a county assessor may not include comparable sales that have been converted to nonagricultural or nonopen-space uses within the five years after the sale.

 

Permit Assistance Center

 

The permit assistance center is part of the DCTED.  Its responsibilities are expanded to include collecting and providing information on programs used by public agencies that use private professional expertise to assist in project review.

 

Petition Annexation Requirements in Code Cities

 

An area contiguous to a city or town may petition for annexation (except where property is owned by a school district or is in an urban growth area) if the signatures of the owners of at least 75 percent of the property to be annexed are obtained.  If the property is within an urban growth area, the petition must be signed by the owners of at least 60 percent of the value of the property to be annexed. 

 

Code City Island Annexations 

 

In addition to the ability to annex Aislands@ of unincorporated territory of less than 100 acres surrounded by the city without using the petition process, a code city planning under the GMA may also annex larger Aislands@ under the following conditions:

 

-at least 80 percent of the island's boundaries were contiguous to the city prior to July 1, 1994; and

-the island contains residential property owners.

 

Territory bounded by a body of water is considered to be contiguous for purposes of determining whether the territory is an island if the city is also bounded by the same river, lake, or other body of water.

 

Additionally, a code city planning under the GMA may annex larger islands in existence prior to July 1, 1994.

 

Charter City Island Annexations

 

The annexation procedures for islands made available to code cities are also made available to charter cities planning under the GMA.

 

Boundary Review Board Review

 


A boundary review board reviewing a proposed annexation must consider GMA comprehensive plans, service agreements, and annexation agreements in reaching its decision.

 

Multifamily Housing Property Tax Exemption

 

The program of tax incentives that allows cities with populations over 150,000 to provide a 10-year property tax exemption for multi-family housing in urban centers is expanded to allow cities with a population of at least 100,000 to be eligible.  In addition, if no city has a population of at least 100,000, the largest city in a county becomes eligible for the property tax exemption.

 

Duties of The Land Use Study Commission

 

The Land Use Study Commission is directed to review long-term approaches for resolving disputes that arise under the GMA, identifying needed changes to the structure of boards that hear environmental appeals, and evaluating whether quasi-judicial bodies are needed to provide continued oversight.

 

Commission Membership

 

The number of members is increased from a maximum of 14 to a maximum of 22.  Fifteen of the members are to be appointed by the Governor.  In addition to existing requirements, membership must also reflect small business operators and small property owners.  The provision under current law requiring representation of agricultural interests is replaced by the following three specific categories: a dryland farmer or major crop commodity producer, a representative from irrigated agriculture, and a livestock producer.  Four members of the commission must be drawn from the Legislature, in equal numbers from each chamber and each caucus.

 

Appropriation:  None.

 

Fiscal Note:  Requested on March 4, 1997.

 

Effective Date:  Ninety days after adjournment of session in which bill is passed.

 

Testimony For:  (Government Reform & Land Use)  None.

 

 (Appropriations)  None.

 

Testimony Against:   (Government Reform & Land Use) None.

 

(Appropriations)  None.

 

Testified:  (Government Reform & Land Use)  Keith Dearborn and Harry Reinert, The Land Use Study Commission (answered questions at the request of the committee).

 

(Appropriations)  None.

 

Effective Date  Ninety days after adjournment of session in which bill is passed.  However, the bill is null and void unless funded in the budget.