BILL REQ. #:  H-1762.1 

Read first time 02/26/13.   Referred to Committee on Capital Budget.

     AN ACT Relating to requiring the public works board to submit ranked project lists; amending RCW 43.155.070; and adding a new section to chapter 43.155 RCW.

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

Sec. 1   RCW 43.155.070 and 2012 c 196 s 9 are each amended to read as follows:
     (1) To qualify for loans or pledges under this chapter the board must determine that a local government meets all of the following conditions:
     (a) The city or county must be imposing a tax under chapter 82.46 RCW at a rate of at least one-quarter of one percent;
     (b) The local government must have developed a capital facility plan; and
     (c) The local government must be using all local revenue sources which are reasonably available for funding public works, taking into consideration local employment and economic factors.
     (2) Except where necessary to address a public health need or substantial environmental degradation, a county, city, or town planning under RCW 36.70A.040 must have adopted a comprehensive plan, including a capital facilities plan element, and development regulations as required by RCW 36.70A.040. This subsection does not require any county, city, or town planning under RCW 36.70A.040 to adopt a comprehensive plan or development regulations before requesting or receiving a loan or loan guarantee under this chapter if such request is made before the expiration of the time periods specified in RCW 36.70A.040. A county, city, or town planning under RCW 36.70A.040 which has not adopted a comprehensive plan and development regulations within the time periods specified in RCW 36.70A.040 is not prohibited from receiving a loan or loan guarantee under this chapter if the comprehensive plan and development regulations are adopted as required by RCW 36.70A.040 before submitting a request for a loan or loan guarantee.
     (3) In considering awarding loans for public facilities to special districts requesting funding for a proposed facility located in a county, city, or town planning under RCW 36.70A.040, the board must consider whether the county, city, or town planning under RCW 36.70A.040 in whose planning jurisdiction the proposed facility is located has adopted a comprehensive plan and development regulations as required by RCW 36.70A.040.
     (4) ((The board must develop a priority process for public works projects as provided in this section. The intent of the priority process is to maximize the value of public works projects accomplished with assistance under this chapter. The board must attempt to assure a geographical balance in assigning priorities to projects. The board must consider at least the following factors in assigning a priority to a project:
     (a) Whether the local government receiving assistance has experienced severe fiscal distress resulting from natural disaster or emergency public works needs;
     (b) Except as otherwise conditioned by RCW 43.155.110, whether the entity receiving assistance is a Puget Sound partner, as defined in RCW 90.71.010;
     (c) Whether the project is referenced in the action agenda developed by the Puget Sound partnership under RCW 90.71.310;
     (d) Whether the project is critical in nature and would affect the health and safety of a great number of citizens;
     (e) Whether the applicant's permitting process has been certified as streamlined by the office of regulatory assistance;
     (f) Whether the applicant has developed and adhered to guidelines regarding its permitting process for those applying for development permits consistent with section 1(2), chapter 231, Laws of 2007;
     (g) The cost of the project compared to the size of the local government and amount of loan money available;
     (h) The number of communities served by or funding the project;
     (i) Whether the project is located in an area of high unemployment, compared to the average state unemployment;
     (j) Whether the project is the acquisition, expansion, improvement, or renovation by a local government of a public water system that is in violation of health and safety standards, including the cost of extending existing service to such a system;
     (k) Except as otherwise conditioned by RCW 43.155.120, and effective one calendar year following the development of model evergreen community management plans and ordinances under RCW 35.105.050, whether the entity receiving assistance has been recognized, and what gradation of recognition was received, in the evergreen community recognition program created in RCW 35.105.030;
     (l) The relative benefit of the project to the community, considering the present level of economic activity in the community and the existing local capacity to increase local economic activity in communities that have low economic growth; and
     (m) Other criteria that the board considers advisable.
     (5))) Existing debt or financial obligations of local governments may not be refinanced under this chapter. Each local government applicant must provide documentation of attempts to secure additional local or other sources of funding for each public works project for which financial assistance is sought under this chapter.
     (((6))) (5) Before November 1st of each even-numbered year, the board must develop and submit to the appropriate fiscal committees of the senate and house of representatives:
     (a) A description of the loans made under RCW 43.155.065, 43.155.068, and subsection (((9))) (8) of this section during the preceding fiscal year; and
     (b) A ((prioritized)) ranked list of projects which are recommended for funding by the legislature((, including one copy to the staff of each of the committees)). The board must establish the ranked list based, at a minimum, on the factors provided in section 2 of this act. For each project on the ranked list, as well as for projects not being recommended for funding, the board must document the numerical ratings that were assigned to each evaluation factor. The list must include, but not be limited to, a description of each project and recommended financing, the terms and conditions of the loan or financial guarantee, the local government jurisdiction and unemployment rate, demonstration of the jurisdiction's critical need for the project and documentation of local funds being used to finance the public works project. The list must also include measures of fiscal capacity for each jurisdiction recommended for financial assistance, compared to authorized limits and state averages, including local government sales taxes; real estate excise taxes; property taxes; and charges for or taxes on sewerage, water, garbage, and other utilities.
     (((7))) (6) The board may not sign contracts or otherwise financially obligate funds from the public works assistance account before the legislature has appropriated funds for a specific list of public works projects. The legislature may remove projects from the list recommended by the board. The legislature may not change the order of the priorities recommended for funding by the board.
     (((8))) (7) Subsection (((7))) (6) of this section does not apply to loans made under RCW 43.155.065, 43.155.068, and subsection (((9))) (8) of this section.
     (((9))) (8) Loans made for the purpose of capital facilities plans are exempted from subsection (((7))) (6) of this section.
     (((10))) (9) To qualify for loans or pledges for solid waste or recycling facilities under this chapter, a city or county must demonstrate that the solid waste or recycling facility is consistent with and necessary to implement the comprehensive solid waste management plan adopted by the city or county under chapter 70.95 RCW.
     (((11))) (10) After January 1, 2010, any project designed to address the effects of storm water or wastewater on Puget Sound may be funded under this section only if the project is not in conflict with the action agenda developed by the Puget Sound partnership under RCW 90.71.310.

NEW SECTION.  Sec. 2   A new section is added to chapter 43.155 RCW to read as follows:
     In order to identify high quality public works projects that merit funding by the legislature as required in RCW 43.155.070, the board must develop a process for evaluating, numerically rating, and ranking the applications submitted by local governments. At a minimum, the board must base its ranking on the following factors, in descending order of priority:
     (1) Achieving balanced distribution of funds by geography, system type, and jurisdiction type;
     (2) Whether the project is ready to proceed;
     (3) Whether the project would affect the health and
safety of a large percentage of the affected community's population;
     (4) Whether the project is located in an area of high unemployment, compared to the average state unemployment;
     (5) Whether the project consolidates or regionalizes systems;
     (6) Whether the system is being well-managed in the present and for long-term sustainability; and
     (7) Whether the project promotes the sustainable use of resources and environmental quality.