SENATE BILL REPORT

SB 6860

BYSenators Lee, Kreidler, Bailey, Williams, Patrick, Rinehart, Niemi, Metcalf, Talmadge, McMullen and Warnke

Enabling balanced economic development and protecting natural resources through comprehensive land-use planning by local governments.

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 16, 1990

Senate Staff:Eugene Green (786-7405); Barbara Howard (786-7410)

AS OF FEBRUARY 15, 1990

BACKGROUND:

The need for the bill is summarized in the findings and intent sections.

SUMMARY:

Legislative Findings and Intent.  Washington's natural environment is the foundation of its economy and its quality of life.  Neighborhoods and communities provide support for that quality of life.  These attributes are threatened by the consequences of unplanned growth.  Among the implications is the lack of common goals demonstrating the public interest in conservation and planned development.

The intent of the Legislature in remedying these problems is to adopt state land use planning goals expressing common policies and creating a fair and open planning process.

Land Planning Commission

Organization.  The Commission of Land Planning is created in the Governor's Office, consisting of nine members appointed by the Governor.  One member must be selected from each congressional district, and no more than two members may be appointed from one county.  No member of the commission may have a financial conflict of interest which interferes with performing the duties of the position, and no more than two commissioners may receive a substantial income from real property sales or development.

Commission members are subject to recall.  Any legal voter may file a recall petition.  The petitioner has 270 days to obtain signatures equal to 10 percent of the total votes cast for Position One of the State Supreme Court.  If the petitions are sufficient, the recall question is placed on the next general election.  A majority of the vote cast is sufficient to recall the commissioner.

Compensation of commission members is set by the Governor.  The commission may hire sufficient staff to carry out its responsibilities.  The commission selects its own chair and vice-chair.

In reviewing local comprehensive plans and plan amendments, the commission sits in two panels, one composed of commissioners from districts east of the Cascades, and the other from districts west of the Cascades.  To support the activities of the commission, the land planning account is established in the general fund, to consist of general fund appropriations and any other revenue received by the commission.

Powers and Duties.  The commission is authorized to examine the effectiveness of the planning process and make recommendations for needed change in the statute; adopt a standardized system of scale for comprehensive land use maps; determine whether state agency programs conform with the statewide planning goals; and provide for periodic evaluation of local government performance in adopting and implementing comprehensive plans.

In addition, the commission must (1) review all local comprehensive plans for conformance with the statewide goals; (2) provide technical and financial assistance to local governments, giving priority consideration to local governments participating in joint or regional planning; (3) provide for creation of a common data base; (4) establish dispute resolution systems; (5) adopt rules necessary to implement the statewide planning goals and to establish standards for local comprehensive plans, within eight months; (6) ensure widespread citizen participation in all phases of the planning process; and (7) provide for statewide land use inventories.

"Natural heritage lands" are defined to include the Nisqually Delta, the Skagit Flats, the Vancouver Lake lowlands, the Dishman Hills, forest lands and other areas recommended by the commission for such designation by the Legislature or by passage of a local government ordinance.  Management plans consistent with the planning goals must be developed.

State Land Use Planning Goals and Policies.  Detailed planning goals and policies are specified for land use, economic development, conservation, local community protection, transportation, housing, public services, historic preservation, and recreation and open space.

Review and Approval of Local Comprehensive Plans.  The commission is charged with reviewing the comprehensive plan of each city, county and port district.  Within six months of submittal of a local plan, the commission may approve or reject it.  If the commission finds that a local plan fails to comply with the state goals and policies as a result of easily correctable inadequacies, it may grant provisional approval and require corrective action within three months.  A provisional approval can be extended only once, for no more than three additional months.  Local governments must receive commission approval of their plans within four years.

Penalties and Sanctions.  If a local government's comprehensive plan is not approved by the commission before the four-year deadline, the commission must remand it to the local unit for corrections.  If an unapproved plan is less than one year overdue, the commission may either prohibit a city or town from proceeding with proposed annexations or require the State Treasurer to withhold any distribution of local sales and use tax or motor vehicle tax revenues.  If the plan is more than one year overdue, the commission may impose both sanctions.  If local governmental plans are more than two years overdue, successively stronger moratoria are imposed on development within that jurisdiction.

Local Government Responsibilities

Conformity With This Statute.  All city, county and port district actions with respect to land use permits, subdivision approvals, boundary changes, annexations and incorporations, and development of capital budgets must be in accordance with the statewide goals and policies.

Within six months, each local government must develop 10- and 20-year population, housing and employment goals for its jurisdiction.  In addition, each government must prepare or amend its comprehensive plan, make land use and capital budget decisions, and adopt implementing regulations in compliance with the state standards.  Procedures must be established to provide for early and continuous public participation in the process.

Cities with more than 100,000 population must develop community plans for subareas of the city.  Local governments and port districts may develop joint or regional plans, may establish regional planning agencies, and may apply for funds from the land planning account for those purposes.

Requirements of the Comprehensive Plan.  A comprehensive plan must be adopted and filed with the commission within three years.  Each element of the plan must include an inventory of all related existing lands, land uses and facilities, as well as an analysis of existing and future needs and a statement of goals and objectives.  Elements of the comprehensive plan include: land use, economic development, conservation, neighborhood preservation, transportation, housing, public services, recreation and open space.  The local government must demonstrate that its employment and population goals and comprehensive plan elements are consistent with those of surrounding jurisdictions.

Local Option Taxes and Development Fees.  Upon commission approval of a comprehensive plan, the local government is authorized to impose a motor vehicle fuel and special fuel tax in increments of one-tenth of a cent per gallon, not to exceed two cents per gallon.  Local governments are specifically authorized to charge development permit fees, and limits on utility charges are removed.

Miscellaneous Provisions

State agency activities, including capital budget development and proposal for use of public lands, must conform with the statewide goals and local comprehensive plans.  If a comprehensive plan or development regulation does not allow for a proposed state agency land use, the agency must apply for a plan amendment.  If the conflict is not resolved by an amendment, the agency may petition the commission to resolve the dispute.  Provisions are included for judicial review of disputes.

Vesting of a development right occurs only upon issuance of a valid permit and upon both a change of position and substantial reliance being made upon the permit.

Local improvement districts (LIDs) for sewer systems require a petition from the owners of at least 70 percent of the property owners, who must also pay at least 70 percent of the total cost of the sewer LID, or the full cost, whichever is greater, if those landowners are the sole beneficiaries.  In order to assess costs to the other 30 percent of property owners, the proponents must prove that the LID will not work an economic and financial hardship on them.

The life of municipal water and sewer facility contracts is extended from 15 to 25 years, as is the duration of latecomer fee assessments for sewers.  Boundary review boards must deny an annexation of a city or town beyond the urban service areas.  Boundary review board objectives are expanded to include prevention of sprawl.

Balanced Economic Development

Further legislative findings state that, while the Puget Sound region is experiencing the economic prosperity associated with rapid growth, much of the rest of the state faces less favorable economic conditions.  In order to encourage balanced economic growth throughout the state, rural areas must be assisted in building local economic capacity, and rural economies should be linked with prosperous urban economies.

The mission of the Department of Trade and Economic Development (DTED) is expanded to encourage a balanced economic growth between urban and rural areas.  Encouragement for urban-rural links is added to a variety of programs in DTED: the Washington Marketplace Program; the Export Assistance Center; projects of the Public Works Board, the Community Economic Revitalization Board and the Development Loan Fund Committee; a new grant program in the Business Assistance Center to encourage value-added manufacturing and industrial modernization through business networks; and a program to expedite economic development permits through the Business Assistance Center.

Another new program in DTED is the "associate development organization network" under which nonprofit economic development corporations' efforts toward economic development will be coordinated.  A Service Delivery Task Force is created in the department, to be composed of four legislators (one from each caucus in the Senate and House of Representatives); a representative of the Governor; one representative each from DTED, DCD and the Departments of Agriculture and Employment Security; two representatives each appointed by the Association of Washington Cities and the Washington State Association of Counties; four representatives of associate development organizations; two representatives of small business appointed by the Governor; and one representative each from the Northwest Policy Center at the University of Washington and the Public Policy Institute at The Evergreen State College.

The Department of Community Development (DCD) is directed to give priority wherever possible to local communities with the greatest relative need and the fewest resources in its programs and technical and financial assistance.  Two additional staff positions are added for DCD to provide financing and rural revitalization services.

Appropriation:  $39 million to the land planning account, to be apportioned as follows: $1 million for technical assistance in developing comprehensive land use plans; $30 million for grants to cities and counties for development of comprehensive plans; $1 million for developing land use inventories; $390,000 for grants to develop a common data base; and a total of $ million for the rural economic development programs.

Revenue:   yes

Fiscal Note:    requested February 9, 1990

Appointments by Legislature Required: Four members of each caucus, to the Service Delivery Task Force in DTED.