BILL REQ. #:  H-4790.3 

READ FIRST TIME 02/06/04.   

     AN ACT Relating to the blue ribbon commission on land use and local government finance; creating new sections; providing an expiration date; and declaring an emergency.

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

NEW SECTION.  Sec. 1   The legislature finds that there have been numerous reports in the last decade on city and county finances that focused on the allocation of resources to best meet services needs of their citizens and on the changes affecting state and local revenues needed to provide these services. The information from these reports have presented a general picture of the complex and changing nature of revenues and expenditures in the fiscal systems of city and county governments.
     Difficult economic times and limitations on local revenues have forced local governments to aggressively pursue revenues from all sources. These pursuits may lead to policy decisions that address current budget needs, while simultaneously resulting in land use decisions that may detrimentally affect the long-term health of communities. The legislature finds that there is a need to understand what impact the current trends in city and county revenue sources and expenditures may have on land-use planning and meeting the goals of the growth management act, especially goals regarding locating development where adequate facilities exist, reducing sprawl, encouraging efficient transportation systems, and providing affordable housing.
     The legislature, therefore, intends to create the blue ribbon commission on land use and local government finance to understand and make recommendations on the impact that current trends in city and county revenue sources and expenditures may have on land-use decisions made by counties and cities and meeting the goals of the growth management act.

NEW SECTION.  Sec. 2   The blue ribbon commission on land use and local government finance is hereby established. The commission's goal shall be to understand which revenue sources cities and counties rely on, how these sources have changed over the past decade, and how local government financing structures affect land use decisions. The commission shall review city and county expenditures and their projection for change; the relationship between the state, cities, and counties regarding revenue sources and expenditures; and the relationship between the revenue sources, expenditures, and land development policies.
     In fulfilling its responsibilities, the commission shall evaluate the trends in city and county revenue sources and expenditures and the influence that those trends have on growth, development, and compliance with the goals of the growth management act. The commission shall make recommendations for the purpose of making the state and local government finance structure more equitable in meeting the responsibilities of providing services to their citizens and meeting the goals of the growth management act.

NEW SECTION.  Sec. 3   The commission shall consist of not more than thirteen members. The commission shall consist of four legislative members, seven members appointed by the governor, and two ex officio members. The legislative members shall consist of one member from each major caucus selected by the leadership of each caucus. The seven members appointed by the governor shall include six members with local government finance or land use expertise and one at- large member. Four members appointed by the governor must be nominated by associations chosen by the commission's legislative members and must be:
     (1) One member with expertise in city finance, including taxes, fees, impact fees, and permit fees;
     (2) One member with expertise in county finance, including taxes, fees, impact fees, and permit fees;
     (3) One member with expertise in city land use; and
     (4) One member with expertise in county land use.
     Two members appointed by the governor shall have expertise in environmental land use and intergovernmental finance. One member appointed by the governor shall be a member at large and serve as chair of the commission. The ex officio members are the director of the department of community, trade, and economic development and the director of the department of revenue, or their designees, and such ex officio members may not vote on commission matters.
     Staffing for the commission shall be provided by the department of community, trade, and economic development and the department of revenue, with additional staff to be provided by other state agencies and the legislature, as may be required. State agencies shall provide the commission with information and assistance as needed.

NEW SECTION.  Sec. 4   The commission shall:
     (1) Consider the current system of city and county revenue sources and expenditures, including reviewing previous legislative reports, and how they have changed during the previous ten years;
     (2) Consider the projections of population, revenues, and expenditures in how cities and counties will meet their short-term and long-term needs and obligations;
     (3) Consider the requirements, limits, and flexibility of revenue sources for city and county government in providing the services to their citizens;
     (4) Consider how the current financial structure of city and county governments, including taxes and fees, influence land use and development decisions and compliance with the goals of the growth management act;
     (5) Consider how current financial structures influence annexation and the type of development, including the balance between commercial, residential, and industrial development, the cooperation or competition with adjoining jurisdictions, and the pattern of new development in relationship to existing commercial and residential areas in the community and region and what effect this pattern has on a community's infrastructure and quality of life;
     (6) Detail the progress in each of the buildable land counties to date in achieving annexation or incorporation of its urban growth area since adoption of the county's county-wide planning policies to the present time by documenting:
     (a) The number of acres annexed;
     (b) The number of acres incorporated;
     (c) The number of residents annexed, incorporated, and remaining in urban unincorporated areas; and
     (d) The characteristic of urban land remaining unincorporated in terms of assessed value, infrastructure deficits, service needs, land use, commercial development, and residential development;
     (7) Determine the characteristics of remaining urban unincorporated areas and current statutes, and estimate when all urban unincorporated areas in each county will be annexed or incorporated, based on the rate of progress to date;
     (8) Survey the counties to identify those obstacles which, in their experience, slow or prohibit annexation;
     (9) Survey the cities in each of the subject counties to identify obstacles, which in their experience, slow or prohibit annexation;
     (10) Survey residents of urban unincorporated areas in each of the subject counties to identify their attitudes towards annexation or incorporation;
     (11) Assess the role and statutory authority of the boundary review board and how altering their role and authority might facilitate annexation; and
     (12) Make recommendations to improve the state and local government finance system to encourage cooperation among jurisdictions for solutions that meet the goals of the growth management act. The commission shall also make recommendations to improve the interdependence of state and local governments in providing services, to improve flexibility of revenue sources, and to improve the balance between providing basic services and the revenue base needed to finance them.

NEW SECTION.  Sec. 5   The commission shall convene commencing June 1, 2004, and shall complete its work by June 30, 2006. The commission shall submit a report to the governor and the appropriate committees of the legislature stating its findings, conclusions, and recommendations not later than November 1, 2005.

NEW SECTION.  Sec. 6   Nonlegislative members of the commission shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060. Legislative members shall be reimbursed for travel expenses as provided in RCW 44.04.120.

NEW SECTION.  Sec. 7   This act expires June 30, 2006.

NEW SECTION.  Sec. 8   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.