HOUSE BILL REPORT

EHB 1768

As Amended by the Senate

BYRepresentatives Todd and Nutley; by request of Department of Community Development

Increasing the building permit fee.

House Committe on Housing

Majority Report:  Do pass with amendment.  (7)

      Signed by Representatives Nutley, Chair; Leonard, Vice Chair; Winsley, Ranking Republican Member; Anderson, Inslee, Rector and Todd.

Minority Report:  Do not pass.  (2)

      Signed by Representatives Ballard and Padden.

House Staff:Kenny Pittman (786-7392)

Rereferred House Committee on Appropriations

Majority Report:  Do pass as amended by Committee on Housing and as further amended by Committee on Appropriations.  (17)

      Signed by Representatives Locke, Chair; Grant, Vice Chair; H. Sommers, Vice Chair; Belcher, Brekke, Dorn, Ebersole, Hine, May, Peery, Rust, Sayan, Spanel, Sprenkle, Valle, Wang and Wineberry.

Minority Report:  Do not pass.  (6)

      Signed by Representatives Silver, Ranking Minority Member; Bowman, Brough, Ferguson, McLean and Padden.

House Staff:Susan Nakagawa (786-7136)

AS PASSED HOUSE MARCH 15, 1989

BACKGROUND:

The State Building Code Council was established to develop and maintain the various codes that establish construction standards for residential, commercial and industrial structures in the state.  These codes and related standards comprise the State Building Code.  The State Building Code Council was originally established by the legislature in 1975 as an advisory body.  In 1985, legislation was passed that changed the State Building Code Council's responsibilities from advisory to rule making.

There is imposed a surcharge fee of $1.50 on each building permit issued by a county or city.  The fee is used by the Department of Community Development to provide staff services to the State Building Code Council and to conduct research into code related matters assigned by the legislature.

In 1988, the legislature authorized an additional surcharge of $2.00 on each building permit.  The additional surcharge was necessary to support the activities of the State Building Code Council.  The additional surcharge will expire on June 30, 1989.

SUMMARY:

The building permit surcharge fee is increased from $1.50 to $4.50 on each building permit issued by a county or city plus an additional surcharge of $2.00 per residential unit on buildings with more than one residential unit.  The building permit surcharges are used to support the activities of the State Building Code Council.

EFFECT OF SENATE AMENDMENTS:  Requires the State Building Code Council to adopt rules within one year, under the Administrative Procedures Act, concerning changes in the fee and surcharge used for administrative costs of the State Building Code Council.  The $320,000 appropriation from the building code council account is deleted.

Appropriation:    $320,000 is appropriated from the building code council account to the Department of Community Development.

Revenue:    The bill has a revenue impact.

Fiscal Note:      Available.

House Committee ‑ Testified For:    (Housing) Larry Sundquist, Building Industry Association of Washington; Otto Jensen, Washington State Association of Fire Chiefs; Marc Sullivan, State Building Code Council; Robert Anderson, State Building Code Council; Dorilee Shobert, State Building Code Council; David Williams, Association of Washington Cities (with concerns); Mark Triplett, Building Industry Association of Washington.

(Appropriations) Mark Sullivan, Chair, State Building Code Council; Bob Anderson, Mayor, Town of Steilacoom; Dorilee Shobert, State Building Code Council.

House Committee - Testified Against:      (Housing) Blair Patrick, Washington Association of Building Officials.

(Appropriations) None Presented.

House Committee - Testimony For:    (Housing) Adequate fees to support the activities of the State Building Code Council (council) are needed.  Each year the council is directed by the legislature to conduct more studies or activities.  The fee increase will support needed staff to complete these mandated studies and special projects. The Legislature should look at attaching funds to mandated studies in the future. The flat fee scale causes equity problems. The council should look at implementing a sliding fee schedule.

(Appropriations) An increase in fees will end the general fund subsidy to the State Building Code Council.  The fee increase is also necessary for additional staff.

House Committee - Testimony Against:      (Housing) There is no justification or documented need for the fee increase from $3.50 to $6.00.  The council needs to work on its organization and administrative processes before requesting additional fees.  The current fee of $3.50 is adequate to support the council's activities.

(Appropriations) None Presented.

VOTE ON FINAL PASSAGE:

      Yeas 84; Nays 14

Voting Nay: Representatives Baugher, Bowman, Brooks, Brumsickle, G. Fisher, Fuhrman, Hargrove, Heavey, Inslee, Jones, Kremen, Padden, Rayburn and Rust.