BILL REQ. #:  H-4137.1 

Read first time 01/20/2004.   Referred to Committee on State Government.

     AN ACT Relating to establishing a community mitigation program; and adding new sections to chapter 43.31 RCW.

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

NEW SECTION.  Sec. 1   The legislature recognizes that publicly funded projects often benefit local communities, but they can also result in adverse economic impacts on local businesses and citizens. The legislature finds that these impacts are not generally identified, quantified, or assessed in project siting decisions. Further, the legislature finds that individual businesses, citizens, and communities should not bear an inequitable burden of siting public projects and that appropriate mitigation should be provided. Therefore, the legislature finds that during the design and development of public project proposals, the economic impacts to local businesses, citizens, and communities must be analyzed and addressed.

NEW SECTION.  Sec. 2   For the purposes of this chapter, the following definitions apply:
     (1) "Department" means the department of community, trade, and economic development.
     (2) "Major project" means proposals for publicly funded projects that are in excess of one million dollars.
     (3) "Responsible official" means the designated official representing the governmental entity proposing the major project.

NEW SECTION.  Sec. 3   (1) Prior to submitting permit applications for major projects covered under this chapter, the responsible official must make a threshold determination about whether the major project may create a probable significant, adverse economic impact. An economic impact statement shall be prepared on major projects having a probable significant, adverse economic impact. The economic impact statement may be combined with the recommendation or report on the project's proposal or issued as a separate document.
     (2) In developing an economic impact statement, all branches of government of this state, including state agencies, municipal and public corporations, and counties shall:
     (a) Include in every major project proposal, a detailed statement regarding:
     (i) The economic impact of the proposed major project;
     (ii) Any adverse economic effects which cannot be avoided should the major project be completed; and
     (iii) Alternatives to the proposed major project;
     (b) Identify and develop methods and procedures, in consultation with the department of revenue and the department of community, trade, and economic development, which will ensure that appropriate economic and financial indicators are given appropriate consideration in decision making;
     (c) Consult with and obtain the comments of any public agency with special expertise regarding any economic impact involved, prior to completing any detailed statement;
     (d) Study, develop, and describe appropriate alternatives to recommended courses of action in any proposal.
     (3) An economic impact statement is only required to analyze those probable adverse economic impacts which are significant. Beneficial economic impacts may also be discussed. The responsible official shall consult with agencies and the public to identify such impacts and limit the scope of an economic impact statement. These impacts may include, but are not limited to:
     (a) The economic impacts on the regional or local economy such as the impact of the major project on development, tax revenues and public expenditures, employment opportunities, accessibility, and retail sales. Where substantial impacts on the economic viability of affected municipalities are likely to occur, they should also be discussed together with a summary of any efforts undertaken and agreements reached for using the transportation investment to support both public and private economic development plans. To the extent possible, this discussion should rely upon results of coordination with and views of affected state, county, and city officials.
     (b) The impacts on the economic vitality of existing highway-related businesses and the resultant impact, if any, on the local economy. For example, the loss of business or employment resulting from building an alternative in a new location bypassing a local community.
     (c) The impacts of the proposed action on established business districts, and any opportunities to minimize or reduce these impacts by the public or private sectors.
     (4) Where appropriate, analysis under this chapter may be combined with environmental analysis performed under chapter 43.21C RCW.

NEW SECTION.  Sec. 4   (1) A major purpose of this act is to combine economic considerations with public decisions, therefore any appeal brought under this chapter must be linked to a major project proposal.
     (a) Appeals under this chapter shall be linked to decisions regarding the major project and its accompanying environmental determinations under chapter 43.21C RCW.
     (b) Appeals of economic determinations made or lacking under this chapter shall be commenced within the time required to appeal decisions regarding project review. These appeals include, but are not limited to:
     (i) A determination of significance;
     (ii) The adequacy of a determination of significance/nonsignificance or of a final economic impact statement;
     (iii) Procedural issues in making the determination; and
     (iv) Substantive determinations in the decision.

NEW SECTION.  Sec. 5   (1) The department shall adopt rules to provide uniform procedures and guidelines to all branches of government including state agencies, political subdivisions, public and municipal corporations, and counties. The rule authorized in this section includes, but is not limited to, the following:
     (a) Criteria and procedures applicable to the determination of when a major action has a probable significant, adverse economic impact for which a detailed statement must be prepared under section 2 of this act;
     (b) Procedures for the preparation of detailed statements and other economic analysis documents, including but not limited to, rules for timing of economic review, obtaining comments, data, and other information, and providing for and determining areas of public participation which include the scope and review of draft economic impact statements;
     (c) The scope of coverage and contents of detailed statements assuring that statements are simple, uniform, and as short as practicable; statements are required to analyze only reasonable alternatives and probable adverse economic impacts which are significant, and may analyze beneficial impacts;
     (d) Public notification procedures for actions taken and documents prepared;
     (e) The time limits within which the governmental entity responsible for the major action shall comply with the provisions of this act; and
     (f) The implementation of the substantive policies and procedural requirements, including appeals under this chapter.
     (2) Rules adopted must provide for the coordination of economic review with environmental review under chapter 43.21C RCW. The department shall consult with the department of ecology on this aspect of the rule.
     (3) In exercising its powers, functions, and duties under this section, the department may:
     (a) Consult with the state agencies and with representatives of science, industry, agriculture, labor, conservation organizations, state and local governments, and other groups, as it deems advisable; and
     (b) Utilize, to the fullest extent possible, the services, facilities, and information, including statistical information of public and private agencies, organizations, and individuals, in order to avoid duplication of effort and expense, overlap, or conflict with similar activities authorized by law and performed by established agencies.
     (4) Rules adopted under this section are subject to the provisions of chapter 34.05 RCW.

NEW SECTION.  Sec. 6   Sections 1 through 5 of this act are each added to chapter 43.31 RCW.