HOUSE BILL REPORT
HB 2929
BYRepresentatives Cantwell, R. Fisher, Brough, Haugen, Belcher, Ferguson, Nutley, Phillips, Horn, Rust, Wood, Winsley, Nelson, Locke, Appelwick, Leonard, Wineberry, Scott, Bennett, Pruitt, Cole, Crane, Heavey, Spanel, Forner, Holland, O'Brien, Hine, Fraser, Todd and Wang
Enacting comprehensive growth planning provisions.
House Committe on Appropriations
Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. (21)
Signed by Representatives Locke, Chair; Grant, Vice Chair; H. Sommers, Vice Chair; Appelwick, Belcher, Braddock, Brekke, Dorn, Ebersole, Ferguson, Hine, Holland, Inslee, Peery, Rust, Sayan, Spanel, Sprenkle, Valle, Wang and Wineberry.
Minority Report: Do not pass. (6)
Signed by Representatives Silver, Ranking Republican Member; Youngsman, Assistant Ranking Republican Member; Doty, May, Nealey and Padden.
House Staff:Charlie Gavigan (786-7340)
Nancy Stevenson (786-7130)
AS REPORTED BY COMMITTEE ON APPROPRIATIONS FEBRUARY 8, 1990
BACKGROUND:
Washington state arguably has a dual economy, one in which the central Puget Sound region faces problems associated with rapid growth and much of the rest of the state faces problems associated with too little growth. This has implications for both the state and for local governments.
In Washington state, planning is traditionally done by local governments. Cities and counties have statutory authority, and arguably inherent power, to regulate land use and otherwise manage growth in their areas. Local governments have extensive power to regulate land use to protect the health and safety of their citizenry.
Land use planning and development regulations (zoning) are optional for local governments, except for the requirements of the Shoreline Management Act. Some local governments do not engage in formal land use planning or development regulation. Most local governments do some transportation planning to receive state transportation funds; this transportation planning does not have to be coordinated with local land use planning.
The actions of a local government regarding growth management and land use can affect the region and the state. Therefore, state- wide requirements do exist in several critical areas, such as the State Environmental Protection Act and the Shoreline Management Act. These statewide regulations are sometimes mandated by the federal government.
The Shoreline Management Act is designed to preserve and protect the state's shorelines and major lakes and streams. Development in these areas must be regulated by local governments in accordance with provisions in the Shoreline Management Act.
The State Environmental Protection Act (SEPA) is patterned after federal law and applies to state and local agencies. SEPA applies to most governmental actions, including issuing building permits or approving public or private development projects. SEPA requires that disclosure and consideration be made regarding the impact of the proposed action or development being reviewed by the government on the environment. If it appears that the project will have an adverse environmental impact, the project can be altered to mitigate this perceived impact or an Environmental Impact Statement must be prepared and reviewed.
Platting, subdivision, land development, forest management, water, and building code laws also apply statewide.
Local governments are prohibited from charging impact fees to address the additional public facility and service costs caused by new development.
Current state (and federal) economic development programs focus on improving economic development in general or focus on improving specific areas of economic development, such as rural revitalization. Many of the programs that are not directly related to rural revitalization assist rural communities indirectly. State economic development efforts can be categorized as follows: (1) international and domestic trade promotion; (2) business development, assistance, and investment; (3) tourism promotion; (4) financing programs; (5) tax incentives; (6) local economic assistance programs; and (7) training and education programs.
SUMMARY:
SUBSTITUTE BILL: Washington's growth dichotomy, rapid growth in some areas and slow growth in others, is addressed by implementing provisions to manage growth where necessary and to encourage growth in areas not experiencing economic prosperity. Substantive changes that are made include: (1) statewide goals are provided; (2) comprehensive planning is mandatory for many local governments, and must be coordinated when appropriate; (3) transportation planning must be done regionally and coordinated with land use planning; (4) impact fees are authorized and the vesting doctrine is changed; (5) subdivision and platting law changes give local governments greater ability to analyze the impact of divisions of land on public facilities and services; (6) timber, agriculture, and water conservation measures are provided; and (7) rural communities are given greater capacity to build and absorb economic growth.
Goals
Policy goals are established that are applicable throughout the state. These goals guide the planning and zoning actions of local governments, but also guide all other actions. These goals attempt to contain urban sprawl, to protect sensitive areas, and to encourage economic development in rural areas.
Comprehensive Planning
Comprehensive planning and development regulations are mandatory for all counties (and the cities within such counties) with a population of 100,000 or more or with a growth rate in excess of 10 percent in the last 10 years. The plans must be adopted by July 1, 1993. Zoning ordinances must be consistent with, and implement, the plan within one year from the adoption of the comprehensive plan.
Counties and cities that are required to plan must make interim designations by July 1, 1991. These designations apply to: (1) lands with long-term significance for production of agricultural products, timber, or mineral resources; and (2) sensitive areas. Incompatible land uses must be prohibited. The Department of Community Development, with interested parties, must provide necessary definitions by July 1, 1990.
If other counties reach 100,000 in population or the 10 percent growth rate in a 10 year period, then they, and the cities within these counties, must make interim designations within one year and adopt comprehensive plans within three years (of reaching the threshold population or growth rate). Other counties can choose to comply with the planning requirements. If they do, they must designate land uses within one year and plan within three years (of choosing to comply), and the cities in that county must comply also.
Comprehensive plans must include:
1.Designation and protection of agricultural lands, forest lands, and mineral resource lands;
2.Designation and protection of sensitive areas, such as wetlands and aquifer recharge areas;
3.Designation, by counties, of urban growth areas. Aggrieved cities may object to the Department of Community Development, which may mediate the dispute. Each city's comprehensive plan must allow urban densities. A county's comprehensive plan must allow urban densities within urban growth areas, and must preclude urban growth outside of urban growth areas;
4.Mandatory elements that include: (a) land use, including housing, public facilities, and public utilities sub- elements, and (b) transportation;
5.Coordination with adjacent counties and cities; and
6.Public participation in development of comprehensive plans and zoning ordinances.
Transportation Planning
Regional Transportation Planning Organizations (RTPO) are authorized. These are voluntary associations of local governments within a county, or within geographically contiguous counties. The RTPO's: (1) certify that local comprehensive plans are consistent with regional transportation plans; (2) develop a regional transportation plan; and (3) assist the state Department of Transportation in ensuring that regional transportation plans are consistent statewide.
Impact Fees and Vesting
The prohibition preventing local governments from collecting impact fees to address increased public costs of new development is removed. Local governments are authorized to charge an impact fee or assess an excise tax to offset public costs associated with new development. The impact fees or excise taxes must be based on a formula to avoid double-charging developers, and the fees or taxes must be used within six years.
The vesting-of-rights doctrine is altered from the existing doctrine that allows a right to vest upon the submission of a less- than-complete application to a doctrine that requires both: (1) a permit be issued; and (2) substantial action be taken based on the permit.
Subdivision and Platting Changes
The Platting and Subdivision Act is altered. The minimum lot size of the smallest lot resulting from a division of land that necessitates review and approval is increased from less than five acres to less than 20 acres. Short subdivisions are eliminated, but counties and cities are permitted to adopt local ordinances allowing the administrative approval of certain subdivisions of land as follows: (1) cities may allow up to nine-lot subdivisions; (2) counties may allow two-lot subdivisions anywhere, up to nine-lot subdivisions in urban growth areas, or up to four-lot subdivisions if under current zoning each of the resulting lots is small enough so that it could not be further subdivided.
The standard of local government review for subdivisions is changed from one that allows local governments to deny the subdivision only under certain circumstances to one in which the subdivision may be approved only if written findings are made that adequate provisions have been made for public facilities and that the subdivision is in the public interest.
The "grandfathering" provision of current law that allows a lot created by a subdivision to remain subject to zoning, septic tank, and other standards that existed on the date of approval of the subdivision is eliminated.
Timber, Agriculture, and Water Conservation
The existing water right exemption that allows users of less than 5,000 gallons per day of well water to use water without obtaining a water right is eliminated. After July 1, 1990, all new wells must be registered with the Department of Ecology. A permit may be required in areas that have a ground water management plan or are critical ground water service areas.
Water reservations that allow the applicant to reserve a water right to use a quantity of water in the future will be granted only when the applicant participates in a coordinated water supply plan.
An applicant must provide evidence of a water source for the building in order to obtain a building permit.
Owners of forest land taxed under provisions that allow their property to be assessed at its current use, rather than its highest and best use, will no longer be able to remove the land from the current use tax role simply by paying a penalty of retroactively increased taxes. The landowner must now also wait 10 years before changing the land use.
The 10 year waiting period also applies to lands designated for agricultural or forestry uses in the local comprehensive plan when the landowner requests removal of the land from such designation in the comprehensive plan for an incompatible use.
A city or county may adopt an ordinance waiving the 10 year waiting period when the affected landowner faces an extreme hardship that could not reasonably have been foreseen.
Encouraging Growth Statewide
Urban-rural links between the Puget Sound economy and rural communities are established through: (1) changes to the Marketplace Program, which focus on the demand for products in urban areas that could be met by rural suppliers; and (2) changes to the Export Assistance Center to focus on rural exports and links between Puget Sound exporters and rural businesses and farms.
Delivery of State Services is changed and reviewed by: (1) formalizing the Associate Development Organization (ADO) network in statute to coordinate state economic development services at the local level; (2) creating a Service Delivery Task Force to review the present system and make recommendations for improvement to the legislature and governor; and (3) providing two additional staff persons in the Department of Community Development to help rural communities meet financing needs.
Building local capacity for rural economic growth is the focus of a grant program in the Department of Community Development. The department is to administer grants to rural communities to increase local economic development resources, establish urban-rural links, and increase the export of products from rural areas.
The Business Assistance Center must assist businesses or local governments in permit processing, and must report to the governor or Legislature on how to improve the process.
Other Provisions
Among other significant provisions:
1.The Growth Strategies Commission is required to recommend a structure or process that: (a) ensures state agencies and local governments comply with the goals and other requirements in this legislation, (b) defines, identifies, and protects lands and resources of statewide significance; and (c) identifies incentives and state funds that can be withheld to promote local government compliance;
2.If the Legislature does not enact legislation regarding compliance and certification by July 1, 1991, the Department of Community Development must establish rules and procedures for certifying compliance;
3.Technical assistance and grants are provided to counties and cities for planning;
4.The Department of Community Development, with the Department of Information Services, is directed to prepare procedures and standards for collecting, storing, and disseminating information useful to local governments and to make policy decisions on statewide issues.
SUBSTITUTE BILL COMPARED TO ORIGINAL: The substitute bill makes the following changes: (1) provisions related to SEPA are deleted; (2) impact fees and excise taxes are restricted to preclude double payments by developers and to ensure timely and appropriate use of the funds; (3) counties designate urban growth areas, although cities can object to the Department of Community Development and request mediation; (4) more subdivisions may be approved under the special administrative process that replaces short subdivisions; (5) in comprehensive plans, consideration must be given to the character of existing residential neighborhoods.
The substitute bill also: (1) defines concurrency more specifically for transportation; (2) refines language pertaining to transportation planning; (3) requires notification of all new wells and requires well water permits in some cases; (4) allows a city or county to waive the 10 year waiting period for conversion of forest land when the affected landowner faces extreme hardship, and removes the delayed effective date for the 10 year waiting period; (5) decreases the number of members in the Service Delivery Task Force from 21 to 17; and (6) amends CERB to allow financing of infrastructure to accommodate relocation of businesses from non-distressed urban areas to distressed rural areas.
Fiscal Note: Requested January 23, 1990.
Effective Date:Sections 5 and 17 of the bill contain an emergency clause and take effect immediately; and section 36 of the bill takes effect on July 1, 1990.
House Committee ‑ Testified For: Representative Ruth Fisher, Chair, Transportation; Representative Jennifer Belcher, Chair, Natural Resources and Parks; Representative Busse Nutley, Chair, Housing; Representative Mary Margaret Haugen, Chair, Local Government; Representative Maria Cantwell, Chair, Trade and Economic Development; Jeff Parsons, Citizens for Balanced Growth; Steve Robinson, Northwest Indian Fisheries Commission; Randy Scott, Washington Association of Counties; Elizabeth Tabbutt, Washington Environmental Council; and Kurt Danison, Okanogan County, Circuit Rider Consortium.
House Committee - Testified Against: No one.
House Committee - Testimony For: Support for growth management goals and the strengthening of the planning process was expressed. The legislation should be applied statewide. Growth strategies and land use planning are necessary to protect natural resources. The proposal strengthens the critical elements of the planning process. Technical assistance is needed at the local level. Local government costs are more than one time costs; local governments will require financial assistance.
House Committee - Testimony Against: None.