BILL REQ. #:  H-2213.1 

Read first time 03/02/2005.   Referred to Committee on Judiciary.

     AN ACT Relating to just compensation for reductions to property values; and adding a new chapter to Title 64 RCW.

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

NEW SECTION.  Sec. 1   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Agency" means the state of Washington, any of its political subdivisions, including any city, town, or county, and any other public body exercising regulatory authority or control over the use of real property in the state.
     (2) "Fair market value" means the most recent property assessment as shown on the tax rolls, or the highest and best use of the property as determined by the county assessor, whichever is higher;
     (3) "Family member" includes the wife, husband, son, daughter, mother, father, brother, brother-in-law, sister, sister-in-law, son-in-law, daughter-in-law, mother-in-law, father-in-law, aunt, uncle, niece, nephew, stepparent, stepchild, grandparent, or grandchild of the owner of the property, an estate of any of the foregoing family members, or a legal entity owned by any one or combination of these family members or the owner of the property.
     (4) "Owner" is the present owner of the property, or any interest therein.
     (5) "Regulation" means any ordinance, resolution, or other rule or regulation adopted pursuant to the authority provided by state or local law, which imposes or alters restrictions, limitations, or conditions on the use of real property. "Regulation" includes, without limitation:
     (a) Any statute regulating the use of land or any interest therein;
     (b) Local government comprehensive plans, zoning ordinances, subdivision ordinances, and transportation ordinances; and
     (c) Statutes and administrative rules regulating farming and forest practices.

NEW SECTION.  Sec. 2   (1) If an agency enacts or enforces a new regulation or enforces a regulation enacted prior to the effective date of this act that restricts the use of private real property, or any interest therein, and has the effect of reducing the fair market value of the property, or any interest therein, then the owner of the property shall be paid just compensation.
     (2) Just compensation shall be equal to the reduction in the fair market value of the affected property interest resulting from enactment or enforcement of the regulation as of the date the owner makes a written demand for compensation under this section.
     (3) Subsection (1) of this section shall not apply to regulations:
     (a) Restricting or prohibiting activities commonly and historically recognized as public nuisances under common law. This subsection (3)(a) shall be construed narrowly in favor of a finding of compensation under this section;
     (b) Restricting or prohibiting activities for the protection of public health and safety, such as fire and building codes, health and sanitation regulations, solid or hazardous waste regulations, and pollution control regulations;
     (c) To the extent the regulation is required to comply with federal law;
     (d) Restricting or prohibiting the use of a property for the purpose of selling pornography or performing nude dancing. Nothing in this subsection (3)(d) is intended to affect or alter rights provided by the Washington or United States Constitutions; or
     (e) Enacted prior to the date of acquisition of the property by the owner or a family member of the owner who owned the subject property prior to acquisition or inheritance by the owner, whichever occurred first.
     (4) Just compensation under subsection (1) of this section shall be due the owner of the property if the regulation continues to be enforced against the property one hundred eighty days after the owner of the property makes written demand for compensation under this section to the agency enacting or enforcing the regulation.
     (5) For claims arising from regulations enacted prior to the effective date of this act, a written demand for compensation under subsection (4) of this section shall be made within two years of the effective date of this act, or the date the agency applies the regulation as an approval criteria to a land use application submitted by the owner of the property, whichever is later. For claims arising from regulations enacted after the effective date of this act, written demand for compensation under subsection (4) of this section shall be made within two years of the enactment of the regulation, or the date the owner of the property submits a land use application in which the regulation is an approval criteria, whichever is later.
     (6) If a regulation continues to apply to the subject property more than one hundred eighty days after the present owner of the property has made a written demand for compensation under this section, the present owner of the property, or any interest therein, shall have a cause of action for compensation under this chapter in the court of appropriate jurisdiction in which the real property is located, and the present owner of the real property shall be entitled to reasonable attorney fees, expenses, costs, and other disbursements reasonably incurred to collect the compensation.
     (7)(a) An agency may adopt or apply procedures for the processing of claims under this section, but in no event shall these procedures act as a prerequisite to the filing of a compensation claim under subsection (6) of this section, nor shall the failure of an owner of property to file an application for a land use permit with the local government serve as grounds for dismissal, abatement, or delay of a compensation claim under subsection (6) of this section.
     (b) An agency adopting or applying procedures in accordance with this subsection (7) shall not require:
     (i) Payment of administrative costs for the processing of claims;
     (ii) Payment for expanded public services associated with any new development; or
     (iii) An administrative or public hearing or appeal process as a condition of receiving compensation under this chapter.

NEW SECTION.  Sec. 3   (1) Claims made under this chapter shall be paid from funds, if any, specifically allocated by the legislature, local governmental authority, or the agency for payment of claims under this chapter. Notwithstanding the availability of funds under this section, an agency shall have discretion to use available funds to pay claims or to modify, remove, or not apply a regulation pursuant to section 2(6) of this act. If a claim has not been paid within two years from the date on which it accrues, the owner shall be allowed to use the property as permitted by law at the time the owner acquired full or partial ownership of the property.
     (2) Notwithstanding any other state statute or the availability of funds under subsection (1) of this section, in lieu of payment of just compensation under this chapter, the agency responsible for enacting or enforcing the regulation may modify, remove, or decide not to apply the regulation to allow the owner to use the property for a use permitted at the time the owner acquired the property.

NEW SECTION.  Sec. 4   The remedy created by this act is in addition to any other remedy under the Washington or United States Constitutions, and is not intended to modify or replace any other remedy.

NEW SECTION.  Sec. 5   If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION.  Sec. 6   Sections 1 through 5 of this act constitute a new chapter in Title 64 RCW.