SENATE BILL REPORT

                   SB 5679

              As Reported By Senate Committee On:

            State & Local Government, March 1, 1999

Title:  An act relating to grant and loan requirements.

Brief Description:  Changing grant and loan eligibility requirements for counties, cities, and towns planning under the growth management act.

Sponsors:  Senators Morton, T. Sheldon, McCaslin and Hochstatter.

Brief History:

Committee Activity:  State & Local Government:  2/17/99, 3/1/99 [DPS].

SENATE COMMITTEE ON STATE & LOCAL GOVERNMENT

Majority Report:  That Substitute Senate Bill No. 5679 be substituted therefor, and the substitute bill do pass.

  Signed by Senators Patterson, Chair; Gardner, Vice Chair; Hale, Haugen, Horn, Kline and McCaslin.

Staff:  Sharon Swanson (786-7445)

Background:  To qualify for loans or pledges from the Public Works Board, Community Economic Revitalization Board or the Department of Ecology for water pollution control, there must first be a determination that a local government meets specific conditions.

Summary of Substitute Bill:  A county, city, or town planning under the Growth Management Act (GMA) must have adopted a comprehensive plan and development regulations before qualifying for loans or pledges, except where necessary to address a public health need or substantial environmental degradation.  A county, city, or town planning under GMA is not required to adopt a comprehensive plan and development regulations before requesting or receiving a grant or loan, if such a request is made before the expiration of the time period specified within GMA.  A county, city, or town is not prohibited from receiving a grant or loan if they adopt a comprehensive plan and development regulations before submitting a request for a grant or loan.  A county, city or town must have the capital facilities plan element of the comprehensive plan in place before they can qualify for a grant, loan or loan guarantee.

Current statutes relating to countywide planning policy incentives are repealed.

Substitute Bill Compared to Original Bill:  The substitute bill changes the phrase from Aloan and grant@ to Aloan and loan guarantee.@

Appropriation:  None.

Fiscal Note:  Not requested.

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

Testimony For:  Allowing counties, cities and towns to get money before full implementation of a comprehensive plan is very important for rural counties.  There is a need to have money to keep this long process moving forward.

Testimony Against:  None.

Testified:  PRO:  Jim Potts, Rural Counties; Steve Wells, CTED.