AN ACT Relating to growth; amending RCW 36.81.121, 35.77.010, 35.58.2795, 82.02.020, 43.21C.060, 43.21C.110, 36.93.180, 58.17.020, 58.17.030, 58.17.040, 58.17.090, 58.17.110, 58.17.140, 58.17.165, 58.17.170, 58.17.195, 58.17.215, 58.17.255, 58.17.310, 90.44.050, 90.03.345, 19.27.095, 43.31.524, 43.31.526, 43.210.010, 43.210.020, 43.31.005, 43.31.035, 43.63A.065, 43.155.070, 43.160.060, and 43.168.050; amending section 1, chapter 417, Laws of 1989 (uncodified); adding a new chapter to Title 36 RCW; adding new sections to chapter 35.63 RCW; adding a new section to chapter 35A.63 RCW; adding new sections to chapter 36.70 RCW; adding new sections to chapter 43.21C RCW; adding a new section to chapter 36.32 RCW; adding a new section to chapter 43.62 RCW; adding a new chapter to Title 47 RCW; adding a new section to chapter 58.17 RCW; adding a new section to chapter 84.33 RCW; adding a new section to chapter 84.34 RCW; adding a new section to chapter 84.28 RCW; adding new sections to chapter 43.31 RCW; adding new sections to chapter 43.63A RCW; creating new sections; repealing RCW 35A.63.061, 35A.63.062, 36.70.330, 36.70.350, 58.17.033, 58.17.060, 58.17.065, 58.17.095, 58.17.155, and 19.27.095; making appropriations; providing effective dates; and declaring an emergency.

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

INDEX

!tp1,1,1 !tj1!tlSections

!ixIntent !tj1!tl1

!ixI. GOALS AND PLANNING !tj1!tl2 - 39.

!ixComprehensive plans.

!sc ,5Agricultural lands !tj1!tl5,6, & 8.

!sc ,5Consistent with transportation plans !tj1!tl17 - 19.

!sc ,5Coordinated among local jurisdictions !tj1!tl9.

!sc ,5Designations !tj1!tl8.

!sc ,5Forest lands !tj1!tl5, 6, & 8.

!sc ,5Housing element added !tj1!tl23.

!sc ,5Mineral resource lands !tj1!tl5, 6, & 8.

!sc ,5Planning elements !tj1!tl22 - 24, 26, & 27.

!sc ,5Prepare by !tj1!tl4.

!sc ,5Sensitive areas !tj1!tl5, 6, & 8.

!sc ,5Time frames for completion !tj1!tl4.

!sc ,5Transportation element changes !tj1!tl23.

!sc ,5Urban growth areas !tj1!tl10.

!sc ,5Zoning and development regulations !tj1!tl12, 25 - 28.

!ixDefinitions !tj1!tl3.

!ixGoals !tj1!tl2.

!ixGrowth Strategies Commission !tj1!tl20.

!ixImpact fees !tj1!tl31, 32, & 36.

!ixIntent !tj1!tl1.

!ixInterim designations !tj1!tl6.

!ixInventories and data collection !tj1!tl38.

!ixPopulation determinations !tj1!tl39.

!ixPublic participation !tj1!tl15.

!ixSEPA !tj1!tl32 - 35.

!ixSpecial districts !tj1!tl14.

!ixTechnical assistance and grants !tj1!tl22.

!ixVesting !tj1!tl29.

!ixII. TRANSPORTATION REGIONAL PLANS !tj1!tl40 - 45.

!ixIII. SUBDIVISIONS !tj1!tl46 - 58.

!ixIV. TIMBER, AGRICULTURE, AND WATER

!sc ,2CONSERVATION !tj1!tl59 - 66.

!ixV. ENCOURAGING ECONOMIC GROWTH STATE-WIDE !tj1!tl67 - 84.

!ixVI. APPROPRIATIONS !tj1!tl85 - 86.

!ixVII. MISCELLANEOUS !tj1!tl 87 - 90.

INTENT

NEW SECTION. Sec. 1. INTENT. The state of Washington is a naturally beautiful, pleasant, and healthy place in which to live. The natural bounty of the state, the health, safety, and quality of life of its residents, and the financial security of the state and local governments are threatened by the consequences of unplanned growth resulting in the conversion of lands that have long-term importance for the production of food or fiber into other uses, loss of sensitive and critical areas and ecosystems, loss of open spaces, wasteful competition between jurisdictions for certain types of growth, location of new growth in areas without adequate public facilities to support the growth, and uncontrolled sprawl.

It is the intent of the legislature to address these issues from both state and local perspectives, to establish some requirements on a state-wide basis, to establish some requirements on less than a state-wide basis, to permit such requirements to be accomplished by counties and cities with maximum local flexibility, to provide adequate time to conform with such requirements, and to provide resources for such efforts in the form of both financial assistance and technical assistance. Further, it is the intent of the legislature to direct state economic development programs to communities that are experiencing insufficient economic growth.

The state of Washington intends to retain the quality of life and economic prosperity enjoyed during its first century of existence. The pressing issues which will shape the second century were only faintly recognized as such as recently as a decade ago. The state's residents share a vision of a state that includes protection of resource values for their significance to all state residents. In certain instances the presence and importance of these values is not appreciated until they become threatened or disappear. Washington must act now to begin developing its vision of the second century and in preparing plans to bring about that future.

PART I

GOALS AND PLANNING

NEW SECTION. Sec. 2. STATE GOALS. The following policy goals are adopted as the fundamental policies of the state to direct the actions of all governments within the state, and are not listed in any order of priority:

(1) Urban growth. Support development in urban areas where adequate facilities and services will be provided in the most efficient manner possible and to enhance the character of those areas through a mix of living, shopping, working, and recreational opportunities.

(2) Reduce sprawl. Reduce the inappropriate conversion of undeveloped land to sprawling, low density development, and to prevent the loss of productive forest and agricultural lands, and important sensitive areas and protect them from incompatible uses.

(3) Transportation. Encourage efficient multimodal transportation systems that are based on regional priorities and linked to local land use planning.

(4) Housing. Promote the increase of affordable and adequate housing for low and moderate-income families and special needs populations and to encourage communities to promote new and unique mixes of affordable housing.

(5) Economic development. Encourage economic development throughout the state, promote economic opportunity for all citizens of this state, especially for the unemployed and for disadvantaged persons, and encourage growth in areas not experiencing economic growth.

(6) Property rights. Protect landowners' property rights from arbitrary and discriminatory actions and promote timely and predictable development decisions.

(7) Open space and recreation. Promote the development of open space and recreation by protecting wildlife habitat, increasing the access to water and natural resource lands, developing parks, and preserving open space.

(8) Environment. Protect the environment and enhance the state's quality of life, including air and water quality, water availability, sensitive areas, and wildlife habitat.

(9) Natural resource industries. Maintain and enhance productive timber, agricultural, fisheries, and other natural resource-based industries.

(10) Citizen participation and coordination. Encourage the widest possible involvement by citizens in all aspects of the planning process and ensure coordination between communities and jurisdictions to reconcile conflicts in planning goals.

(11) Public facilities. Ensure that public facilities and services needed to support development shall be adequate and available concurrent with the impacts of such development.

NEW SECTION. Sec. 3. DEFINITIONS. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Adopt a comprehensive land use plan" means to enact a new comprehensive land use plan or to update an existing comprehensive land use plan.

(2) "Agricultural land" means land primarily devoted to the commercial production of horticultural, viticultural, floricultural, dairy, apiary, vegetable, or animal products or of berries, grain, hay, straw, turf, seed, or livestock, and which has, or might reasonably have, long-term commercial significance for agricultural production.

(3) "City" means any city or town, including a code city.

(4) "Comprehensive land use plan," "comprehensive plan," or "plan" means a generalized coordinated land use policy statement of the governing body of a county or city that is adopted pursuant to chapter 35.63, 35A.63, or 36.70 RCW, or under the authority of a city charter or county charter.

(5) "Concurrent" or "concurrency" means that sufficient public services and facilities are available or will be available to serve the development at the time the development is available for occupancy and use, without decreasing current service levels below established minimum standards.

(6) "Department" means the department of community development.

(7) "Development regulations" mean any controls placed on development or land use activities by a county or city, including, but not limited to, zoning ordinances, official controls, planned unit development ordinances, subdivision ordinances, and binding site plan ordinances.

(8) "Forestry land" means land primarily useful for growing trees, including Christmas trees, for commercial purposes, and which has, or reasonably could have, long-term commercial significance for growing trees commercially.

(9) "Ground water management areas" mean ground water management areas as defined pursuant to RCW 90.44.400.

(10) "Geologically hazardous" means lands which because of their susceptibility to erosion, sliding, earthquake, or other characteristics are not suited to commercial, residential, or industrial development or the placement of utility or transportation corridors.

(11) "Land" means the land, air, and water within the jurisdiction of the state of Washington or its counties or cities.

(12) "Public facilities" include streets, roads, highways, sidewalks, street and road lighting systems, traffic signals, domestic water systems, storm and sanitary sewer systems, parks and recreational facilities, and schools.

(13) "Sensitive areas" include the following sensitive and critical areas and ecosystems: (a) Wetlands; (b) areas that recharge aquifers used for potable water; (c) areas of significant fisheries and wildlife habitat; (d) flood plains; and (e) geologically hazardous areas.

(14) "Special district" means a unit of local government, other than a county or city, authorized and regulated by statute to perform a single function or a limited number of functions, and includes, but is not limited to, water districts, sewer districts, port districts, public utility districts, school districts, community college districts, public hospital districts, irrigation districts, metropolitan park districts, metropolitan municipal corporations, fire protection districts, and public transit benefit areas.

(15) "Urban growth" refers to growth making intensive use of land for the location of buildings, structures, and impermeable surfaces to such a degree as to be incompatible with the primary use of such land for the production of food, other agricultural products, or fiber, or the extraction of mineral resources. When allowed to spread over wide areas, urban growth typically requires urban governmental services. "Characterized by urban growth" refers to land having urban growth located on it, or to land located in relationship to an area with urban growth on it as to be appropriate for urban growth.

(16) "Urban growth areas" mean those areas designated by a county pursuant to section 10 of this act within which urban growth is allowed to locate.

(17) "Urban governmental services" include those governmental services historically and typically delivered by cities, and include storm and sanitary sewer systems, domestic water systems, street cleaning services, fire and police protection services, public transit services, and other public utilities associated with urban areas and normally not associated with nonurban areas.

(18) "Wetland" or "wetlands" means those lands defined by the United States fish and wildlife service as lands transitional between terrestrial and aquatic systems where the water table is usually at or near the surface or the land is covered by shallow water. For purposes of this definition wetlands must have one or more of the following attributes:

(a) At least periodically, the land supports predominantly hydrophytes;

(b) The substrate is predominantly undrained hydric soil; or

(c) The substrate is nonsoil and is saturated with water or covered by shallow water at some time during the growing season of each year.

(19) "Zoning" means the division of a city or county into districts and the prescription and reasonable application of different regulations in each district.

NEW SECTION. Sec. 4. COMPREHENSIVE PLANS--WHO MUST PLAN. (1) Each county that has a population of one hundred thousand or more or that has had its population increase by more than ten percent in the previous ten years, and the cities located within such county, shall adopt a comprehensive land use plan.

(2) Any county that does not meet the requirements of subsection (1) of this section may choose, through its legislative body, to have subsection (1) of this section apply to their county. Each city, located in a county that chooses to plan under this subsection, shall adopt a comprehensive land use plan in accordance with this chapter.

(3) Any county or city that is required to adopt a comprehensive land use plan under subsection (1) of this section shall adopt the plan on or before July 1, 1993. Any county or city that is required to adopt a comprehensive land use plan under subsection (2) of this section shall adopt the plan not later than three years from the date the county legislative body takes action as required by subsection (2) of this section.

(4) Whenever the office of financial management certifies that the population of a county increases from less than one hundred thousand to one hundred thousand or more, or has increased by more than ten percent over the preceding ten-year period, the county and each city within such county shall adopt a comprehensive land use plan under this chapter within three years of the certification by the office of financial management.

NEW SECTION. Sec. 5. DEFINING AGRICULTURE, FOREST, AND MINERAL LANDS AND SENSITIVE AREAS. (1) The department shall define, under chapter 34.05 RCW, no later than July 1, 1990, the following: (a) Agricultural lands; (b) forest lands; (c) mineral lands; and (d) sensitive areas.

(2) In carrying out its duties under this section, the department shall consult with interested parties, including but not limited to: (a) Representatives of cities; (b) representatives of counties; (c) representatives of developers; (d) representatives of owners of agricultural lands, forest lands, and mining lands; (e) representatives of local economic development officials; (f) representatives of environmental organizations; (g) representatives of special districts; (h) representatives of the governor's office and federal and state agencies; and (i) representatives of Indian tribes.

(3) The definitions under subsection (1) of this section shall contain minimum guidelines that apply to all jurisdictions, but shall also allow for regional differences that exist in Washington state.

NEW SECTION. Sec. 6. INTERIM DESIGNATIONS. (1) Each county and city that must adopt a comprehensive plan under section 4(1) of this act shall adopt interim designations, on or before July 1, 1991, of:

(a) Agricultural lands, forest lands, and mineral resource lands within its jurisdiction, that it probably will designate as such under section 8 of this act. In making such designations, the county or city shall consider, at least, the current and historical use of the land within its jurisdiction.

(b) Sensitive areas that it probably will designate as such under section 8 of this act.

(2) In order to protect the health of the environment and the economy, and the general health, safety, and welfare of the citizenry, the county or city shall adopt interim development regulations precluding the designated agricultural lands, forest lands, or mineral resource lands from having uses or development that:

(a) Constitute urban growth; or

(b) Probably would lead to urban growth; or

(c) Would be incompatible with the use of or continued importance of such land for the production of food, other agricultural products, or timber, or for the extraction of mineral resources.

(3) In order to protect the health of the environment and the economy, and the general health, safety, and welfare of the citizenry, the county or city shall adopt interim development regulations precluding land uses or development that are incompatible with the designated sensitive areas.

(4) Each county or city that chooses to adopt comprehensive plans under section 4(2) of this act shall comply with this section not later than one year from the date the county legislative authority takes action under section 4(2) of this act.

(5) Each county or city that is required to adopt comprehensive plans under section 4(4) of this act shall comply with this section not later than one year from the date the office of financial management makes the certification under section 4(4) of this act.

(6) In the event a county or city fails to make the designations required by this section, or makes designations that are inconsistent with the definitions under section 5 of this act, then, upon proper application made therefor, the superior court shall grant such injunctive relief as shall be appropriate to accomplish the designations required by this section.

NEW SECTION. Sec. 7. REPORT ON PLANNING PROGRESS. (1) It is the intent of the legislature that affected counties and cities under section 4(1) of this act begin implementing this chapter on July 1, 1990, including but not limited to: (a) Inventorying, designating, and protecting agricultural, forest, and mineral resource lands, and sensitive areas; and (b) comprehensive land use planning. It is also the intent of the legislature that funds be made available to counties and cities beginning July 1, 1990, to assist counties and cities in meeting the requirements of this chapter.

(2) Each county and city that qualifies under section 4 of this act shall report to the department annually, beginning on January 1, 1991, on the progress made by that county or city in implementing this chapter.

NEW SECTION. Sec. 8. COMPREHENSIVE PLANS--DESIGNATIONS AND ELEMENTS. (1) Each comprehensive land use plan shall include a designation of:

(a) Agricultural lands which are not already characterized by urban growth;

(b) Forest lands that are not already characterized by urban growth; and

(c) Land which is not already characterized by urban growth and which has, or might reasonably have, long-term importance for the extraction of mineral resources, which are designated as mineral resource lands.

(2) In order to protect the health of the environment and the economy, and the general health, safety, and welfare of the citizenry, each comprehensive land use plan shall provide policies for the conservation of lands designated under subsection (1) of this section as agricultural, forest, or mineral resources, and which are designed to restrict future development of these lands which:

(a) Constitutes urban growth; or

(b) Probably would lead to urban growth; or

(c) Would be incompatible with the use or continued importance of these lands for the production of food, other agricultural products, or timber, or for the extraction of mineral resources.

(3) In order to protect the health of the environment and the economy, and the general health, safety, and welfare of the citizenry, each comprehensive land use plan shall include an inventory of sensitive areas, which are located anywhere within the planning jurisdiction of the county or city, and shall provide policies that are designed to restrict future development that is incompatible with such sensitive areas from locating on or encroaching upon such sensitive areas.

(4) Each comprehensive land use plan must be in conformance with the state policy goals adopted in section 2 of this act.

(5) Each comprehensive land use plan shall include a land use element, transportation element, and public utilities element, as specified in section 23 of this act.

(6) Nothing in this chapter shall be construed to affect or limit a county's authority to permit or prohibit development which does not involve the division of land and which is under single, contiguous, private or public ownership and which is used for park or recreational purposes. Such park and recreational development shall be permitted only if the county specifically identifies and limits such uses in its comprehensive plan and if the comprehensive plan contains a finding that such land is better suited and has more long-term importance for such particular park or recreational uses than for the production of food, other agricultural products, or timber, or for the extraction of mineral resources.

NEW SECTION. Sec. 9. COMPREHENSIVE PLANS--MUST BE COORDINATED. Each county or city shall coordinate its comprehensive plan with other counties or cities that have, in part, common borders or related regional issues. This coordination, at minimum, shall include the sharing of comprehensive plans among adjoining jurisdictions and sharing and making public comments regarding the coordination of these plans on issues that affect multiple jurisdictions. The public comments shall include the identification of areas of conflict and attempts taken to resolve these, including mediation under section 22(5) of this act.

NEW SECTION. Sec. 10. COMPREHENSIVE PLANS--URBAN GROWTH AREAS. (1) Each county that is required to adopt a comprehensive land use plan under section 4 of this act shall designate an urban growth area or areas in the county, within which urban growth shall be allowed, and outside of which growth shall be allowed only if it is rural in nature. Each city that is located in such a county shall be included within an urban growth area. An urban growth area may include more than a single city, and may include unincorporated areas adjacent to the included city or cities. An urban growth area may include only territory that is located outside of a city, if such an area already is characterized by substantial urban growth.

(2) The urban growth areas in the county shall include areas and densities sufficient to permit the urban growth that is projected to occur in the county for the succeeding twenty-year period. Each urban growth area shall permit urban densities and must include adequate greenbelt and open space areas. Each county required to designate urban growth areas also shall submit a copy of a resolution or resolutions of each city located within each urban growth area indicating the city's approval of the urban growth area.

(3) Urban growth should be located in areas already characterized by urban growth and that, first, have existing public facility capacities to serve such development, or, second, will be served by a combination of both existing public facilities and any additional needed public facilities that are provided by either public or private sources. Further, it is most appropriate that urban services be provided by cities, and it is unreasonable and inefficient to expect urban services to be provided in rural areas.

(4) The comprehensive plan of each city included within an urban growth area shall permit urban densities and must include adequate greenbelt and open space areas.

NEW SECTION. Sec. 11. COMPREHENSIVE PLANS--DEVELOPMENT REGULATIONS MUST IMPLEMENT. Within one hundred eighty days of the adoption of its comprehensive plan, each county and city shall have enacted development regulations that are consistent with and implement the comprehensive plan adopted pursuant to this chapter.

NEW SECTION. Sec. 12. COMPREHENSIVE PLANS--AMENDMENTS. (1) Each comprehensive land use plan, and development regulations, shall be subject to continuing review by the county or city that adopted them.

Any amendment or revision to a comprehensive land use plan shall conform to this chapter, and any change to development regulations shall be consistent with and implement the comprehensive plan.

(2) Each county that is required to designate urban growth areas under section 10 of this act shall review, at least every ten years, its designated urban growth area or areas, and the densities permitted within both the incorporated and unincorporated portions of each urban growth area. In conjunction with this review by the county, each city located within an urban growth area shall review the densities permitted within its boundaries. The county comprehensive plan designating urban growth areas, and the densities permitted in the urban growth areas by the comprehensive plans of the county and each city located within the urban growth areas, shall be revised to accommodate the urban growth projected to occur in the county for the succeeding twenty-year period.

NEW SECTION. Sec. 13. COMPREHENSIVE PLANS--ANNEXATION BEYOND URBAN GROWTH AREA PROHIBITED. No city located in a county in which urban growth areas have been designated may annex territory beyond the urban growth area.

NEW SECTION. Sec. 14. COMPREHENSIVE PLANS--SPECIAL DISTRICTS MUST CONFORM. All special districts shall perform their activities which affect land use in conformity to the state policy goals and to the comprehensive land use plan of the county or city having jurisdiction in the area where the activities occur.

NEW SECTION. Sec. 15. COMPREHENSIVE PLANS--ENSURE PUBLIC PARTICIPATION. Each county and city shall establish procedures providing for early and continuous public participation in the development and amendment of comprehensive land use plans and development regulations implementing such plans. The procedures shall provide for broad dissemination of proposals and alternatives, opportunity for written comments, public meetings after effective notice, provision for open discussion, communication programs, information services, and consideration of and response to public comments. Each county and city shall establish advisory committees to assist in carrying out its responsibilities under this chapter. Errors in exact compliance with the established procedures shall not render the comprehensive land use plan or development regulations invalid if the spirit of the procedures is observed.

NEW SECTION. Sec. 16. COMPREHENSIVE PLANS--METHODS OF ADOPTION. The comprehensive land use plans shall be adopted pursuant to the provisions of chapter 35.63, 35A.63, or 36.70 RCW, or pursuant to the inherent authority of a first class city or charter county derived from its charter. The comprehensive land use plan of a first class city or charter county that is adopted pursuant to its inherent authority must include those elements specified under section 23 of this act.

Sec. 17. Section 20, chapter 49, Laws of 1983 1st ex. sess. as amended by section 8, chapter 167, Laws of 1988 and RCW 36.81.121 are each amended to read as follows:

TRANSPORTATION PLANS MUST CONFORM TO COMPREHENSIVE PLAN. (1) Before July 1st of each year, the legislative authority of each county with the advice and assistance of the county road engineer, and pursuant to one or more public hearings thereon, shall prepare and adopt a comprehensive road program for the ensuing six calendar years. If the county has adopted a comprehensive plan pursuant to chapter 35.63 or 36.70 RCW, or the inherent authority of a charter county derived from its charter, the program shall be consistent with this comprehensive plan.

The program shall include proposed road and bridge construction work, and for those counties operating ferries shall also include a separate section showing proposed capital expenditures for ferries, docks, and related facilities. Copies of the program shall be filed with the county road administration board and with the state secretary of transportation not more than thirty days after its adoption by the legislative authority. The purpose of this section is to assure that each county shall perpetually have available advanced plans looking to the future for not less than six years as a guide in carrying out a coordinated road construction program. The program may at any time be revised by a majority of the legislative authority but only after a public hearing thereon.

(2) The six-year program of each county having an urban area within its boundaries shall contain a separate section setting forth the six-year program for arterial road construction based upon its long-range construction plan and formulated in accordance with regulations of the transportation improvement board. The six-year program for arterial road construction shall be submitted to the transportation improvement board forthwith after its annual revision and adoption by the legislative authority of each county. The six-year program for arterial road construction shall be based upon estimated revenues available for such construction together with such additional sums as the legislative authority of each county may request for urban arterials from the urban arterial trust account or the transportation improvement account for the six-year period. The arterial road construction program shall provide for a more rapid rate of completion of the long-range construction needs of principal arterial roads than for minor and collector arterial roads, pursuant to regulations of the transportation improvement board.

(3) Each six-year program forwarded to the secretary in compliance with subsection (1) of this section shall contain information as to how a county will expend its moneys, including funds made available pursuant to chapter 47.30 RCW, for bicycles, pedestrians, and equestrian purposes.

Sec. 18. Section 35.77.010, chapter 7, Laws of 1965 as last amended by section 6, chapter 167, Laws of 1988 and RCW 35.77.010 are each amended to read as follows:

TRANSPORTATION PLANS MUST CONFORM TO COMPREHENSIVE PLAN. (1) The legislative body of each city and town, pursuant to one or more public hearings thereon, shall prepare and adopt a comprehensive street program for the ensuing six calendar years ((~~and shall file~~)). If the city or town has adopted a comprehensive plan pursuant to chapter 35.63 or 35A.63 RCW, or the inherent authority of a first class city derived from its charter, the program shall be consistent with this comprehensive plan.

The program shall be filed with the secretary of transportation not more than thirty days after its adoption. Annually thereafter the legislative body of each city and town shall review the work accomplished under the program and determine current city street needs. Based on these findings each such legislative body shall prepare and after public hearings thereon adopt a revised and extended comprehensive street program before July 1st of each year, and each one-year extension and revision shall be filed with the secretary of transportation not more than thirty days after its adoption. The purpose of this section is to assure that each city and town shall perpetually have available advanced plans looking to the future for not less than six years as a guide in carrying out a coordinated street construction program. The program may at any time be revised by a majority of the legislative body of a city or town, but only after a public hearing.

The six-year program of each city lying within an urban area shall contain a separate section setting forth the six-year program for arterial street construction based upon its long range construction plan and formulated in accordance with rules of the transportation improvement board. The six-year program for arterial street construction shall be submitted to the transportation improvement board forthwith after its annual revision and adoption by the legislative body of the city. The six-year program for arterial street construction shall be based upon estimated revenues available for such construction together with such additional sums as the legislative authority may request for urban arterials from the urban arterial trust account or the transportation improvement account for the six-year period. The arterial street construction program shall provide for a more rapid rate of completion of the long-range construction needs of principal arterial streets than for minor and collector arterial streets, pursuant to rules of the transportation improvement board: PROVIDED, That urban arterial trust funds made available to the group of incorporated cities lying outside the boundaries of federally approved urban areas within each region need not be divided between functional classes of arterials but shall be available for any designated arterial street.

(2) Each six-year program forwarded to the secretary in compliance with subsection (1) of this section shall contain information as to how a city or town will expend its moneys, including funds made available pursuant to chapter 47.30 RCW, for bicycle, pedestrian, and equestrian purposes.

Sec. 19. Section 1, chapter 396, Laws of 1989 and RCW 35.58.2795 are each amended to read as follows:

TRANSPORTATION PLANS MUST CONFORM TO COMPREHENSIVE PLAN. By April 1st of each year, the legislative authority of each municipality, as defined in RCW 35.58.272, shall prepare a six-year transit development and financial program for that calendar year and the ensuing five years. The program shall be consistent with the comprehensive plans adopted by counties, cities, and towns, pursuant to chapter 35.63, 35A.63, or 36.70 RCW, or the inherent authority of a first class city or charter county derived from its charter. The program shall contain information as to how the municipality intends to meet state and local long-range priorities for public transportation, capital improvements, significant operating changes planned for the system, and how the municipality intends to fund program needs. Each municipality shall file the six-year program with the state department of transportation, the transportation improvement board, and cities, counties, and regional planning councils within which the municipality is located.

In developing its program, the municipality shall consider those policy recommendations affecting public transportation contained in the state transportation policy plan approved by the state transportation commission and, where appropriate, adopted by the legislature. The municipality shall conduct one or more public hearings while developing its program and for each annual update.

NEW SECTION. Sec. 20. ROLE OF GROWTH STRATEGIES COMMISSION. The growth strategies commission created by executive order shall:

(1) Analyze different methods for assuring county, city, and state agency compliance and consistency with the state goals under section 2 of this act and with other requirements of this chapter; and

(2) Recommend to the legislature and the governor by October 1, 1990, a specific structure or process that, among other things:

(a) Ensures county and city coordination and compliance with state goals and other requirements under this chapter;

(b) Requires state agencies to comply with this chapter and to consider and be consistent with county and city comprehensive plans in actions by state agencies, including the location, financing, and expansion of transportation systems and other public facilities;

(d) Addresses lands and resources of state-wide significance, including to:

(i) Define and identify lands and resources of state-wide significance, such as old growth timber ecosystems, ocean resources and beaches, wildlife, and fisheries and their critical habitat, wetlands, lakes, rivers, and sources of water supply;

(ii) Protect these lands and resources of state-wide significance by developing standards for their preservation and protection and suggesting the appropriate structure to monitor and enforce the preservation of these lands and resources; and

(iii) Consider the environmental, economic, and social values of the lands and resources with state-wide significance;

(e) Identifies potential state funds that may be withheld and incentives that promote county and city compliance with this chapter; and

(f) Increases affordable housing state-wide and promotes linkages between land use and transportation.

NEW SECTION. Sec. 21. DETERMINING STRUCTURE FOR COMPLIANCE AND CERTIFICATION. If the legislature has not enacted provisions regarding certification and coordination to ensure that counties and cities comply with the goals and requirements of this chapter by July 1, 1991, the department shall:

(1) Adopt rules pursuant to chapter 34.05 RCW to implement this chapter. These rules shall be adopted on or before January 1, 1992. These rules shall include a schedule for the submission of comprehensive land use plans adopted pursuant to section 4 of this act, and a certification process.

(2) Review and certify or reject comprehensive plans that are submitted to it pursuant to subsection (1) of this section. Each certification proceeding under this chapter shall constitute an adjudicative proceeding under chapter 34.05 RCW, and any governmental agency, organization, person, or group of persons whose interests might be affected substantially by the outcome of the proceedings shall have the right to intervene in the proceedings and to appeal the decision granting or denying certification.

(3) It is the intent of the legislature that rules enacted by the department under subsection (1) of this section and the review and certification process under subsection (2) of this section effectively implement this chapter and promote compliance with the state goals and requirements of this chapter; the legislature intends that counties and cities do the planning and designations based on the policy direction in this chapter. It is not the intent of the legislature that the department do the planning or designations for the counties and cities, either substantively or procedurally.

(4) Examine the effectiveness and adequacy of the planning process established by this chapter, and make recommendations to the legislature regarding ways to improve the compliance with the goals and requirements of this chapter, including identifying potential state funds that may be withheld and incentives that promote local government compliance with this chapter.

(5) Each county and city that qualifies under section 4 of this act shall submit a copy of its adopted comprehensive plan to the department as required by the department, and shall comply with rules established by the department under this section.

NEW SECTION. Sec. 22. TECHNICAL ASSISTANCE, GRANTS, AND MEDIATION SERVICES. (1) The department shall establish a program of technical and financial assistance and incentives to counties and cities to encourage and facilitate the adoption and implementation of comprehensive plans and development regulations throughout the state.

(2) The department shall develop a priority list and establish funding levels for planning and technical assistance grants for counties and cities that qualify under section 4 of this act. Priority for assistance shall be based on a county's or city's population growth rates, commercial and industrial development rates, the existence and quality of a comprehensive plan and development regulations, and other relevant factors.

(3) The department shall develop and administer a grant program to provide direct financial assistance to counties and cities for the preparation of comprehensive plans under this chapter. The department may establish provisions for county and city matching funds to conduct activities under this subsection. Grants may be expended for any purpose directly related to the preparation of a county or city comprehensive plan as the county or city and the department may agree, including, without limitation, the conducting of surveys, inventories and other data gathering activities, the retention of planning consultants, contracts with regional councils for planning and related services and other related purposes.

(4) The department shall establish a program of technical assistance utilizing department staff, the staff of other state agencies, and the technical resources of counties and cities to help in the development of comprehensive plans required under this chapter. The technical assistance may include, but not be limited to, model land use ordinances, regional education and training programs, and information for local and regional inventories.

(5) The department shall provide mediation services to resolve disputes between counties and cities regarding, among other things, regional coordination issues and designating urban growth areas.

(6) The department shall provide planning grants to enhance citizen participation under section 15 of this act.

NEW SECTION. Sec. 23. COMPREHENSIVE PLANS--MANDATORY ELEMENTS. The comprehensive plan of a county or city shall consist of a map or maps, and descriptive text covering objectives, principles, and standards used to develop it, and shall include a plan, scheme, or design for each of the following:

(1) A land use element designating the proposed general distribution and general location and extent of the uses of land, where appropriate, for agriculture, timber production, housing, commerce, industry, recreation, public utilities, public facilities, and other land uses. The land use element shall include population densities, building intensities, and estimates of future population growth. The land use element shall provide for protection of the quality and quantity of ground water used for public water supplies. Where applicable, the land use element shall review drainage, flooding, and storm water run-off in the area and nearby jurisdictions and provide guidance for corrective actions to mitigate or cleanse those discharges that pollute Puget Sound or waters entering Puget Sound.

The land use element shall include a housing subelement that: (a) Includes an inventory and analysis of existing and projected housing needs; (b) includes a statement of goals, policies, and objectives for the preservation, improvement, and development of housing; (c) identifies adequate sites for housing, including, but not limited to, government assisted housing, housing for low-income and moderate-income families, manufactured housing, multifamily housing, and group and foster care facilities; and (d) makes adequate provisions for existing and projected needs of all economic segments of the community.

The land use element shall include a public facilities subelement consisting of: (i) The general location and capacity of all existing and proposed public facilities, including publicly owned public utilities, but not including facilities included in the transportation element; (ii) a forecast of the future needs for such public facilities; (iii) an analysis of funding capabilities necessary to finance the maintenance of existing public facilities and to provide additional needed public facilities; (iv) a plan to finance public facilities within the projected funding capacities; and (v) a requirement to reassess the land use element if probable funding falls short of meeting existing needs.

(2) A public utilities element consisting of the general location and capacity of all existing and proposed public utilities, other than those shown in the transportation or land use elements, including, but not limited to, electrical lines, telephone lines, and natural gas lines.

(3) A transportation element that implements, and is consistent with, the land use element.

(a) The transportation element shall include the following parts: (i) Circulation and transportation; (ii) transit; (iii) transportation financing; (iv) intergovernmental coordination; and (v) demand management strategies.

(b) The parts of the transportation element shall include:

(i) An inventory of air, water, and land transportation facilities, including transit alignments, to define existing capital facilities and traffic levels as a basis for future planning;

(ii) Levels of service standards for all arterial and transit routes to reflect the traveling expectations of local and regional residents, and to serve as a gauge to judge performance of the system. These levels should be regionally defined;

(iii) Specific actions and requirements for bringing into compliance any facilities or services which are below an established level of service;

(iv) Forecasts of traffic for at least twenty years based on the adopted land use plan to provide information on the location, timing, and capacity needs of future growth;

(v) Identification of system expansion needs and transportation system management programs to meet current and future demands;

(vi) An analysis of funding capability to judge needs against probable funding resources;

(vii) A requirement to reassess the land use element if probable funding falls short of meeting identified needs.

(c) The parts of the transportation element described in this subsection, and the six-year plans required by RCW 35.77.010 for cities, RCW 36.81.121 for counties, and RCW 35.58.2795 for public transportation systems, must be consistent.

NEW SECTION. Sec. 24. OPTIONAL ELEMENTS. A comprehensive plan may include any additional element, including:

(1) A conservation element for the conservation, development, and utilization of natural resources, including water and its hydraulic force, forests, watersheds, soils, rivers and other waters, harbors, fisheries, wildlife, minerals, and other natural resources;

(2) A solar energy element for encouragement and protection of access to direct sunlight for solar energy systems;

(3) A recreation element showing a comprehensive system of areas and public sites for recreation, natural reservations, parks, parkways, beaches, playgrounds, and other recreational areas, including their locations and proposed development; and

(4) Additional elements and studies dealing with other subjects which, in its judgment, relate to the physical development within its jurisdiction.

NEW SECTION. Sec. 25. A new section is added to chapter 35.63 RCW to read as follows:

COMPREHENSIVE PLANS--REFERENCE. A comprehensive plan shall be consistent with sections 23 and 24 of this act.

The zoning controls, development regulations, official controls, or other restrictions on the use of land shall be consistent with, and implement, the comprehensive plan.

NEW SECTION. Sec. 26. A new section is added to chapter 35A.63 RCW to read as follows:

COMPREHENSIVE PLANS--REFERENCE. A comprehensive plan shall be consistent with sections 23 and 24 of this act.

The zoning controls, development regulations, official controls, or other restrictions on the use of land shall be consistent with, and implement, the comprehensive plan.

NEW SECTION. Sec. 27. A new section is added to chapter 36.70 RCW to read as follows:

COMPREHENSIVE PLANS--REFERENCE. A comprehensive plan shall be consistent with sections 23 and 24 of this act.

The zoning controls, development regulations, official controls, or other restrictions on the use of land shall be consistent with, and implement, the comprehensive plan.

NEW SECTION. Sec. 28. A new section is added to chapter 36.70 RCW to read as follows:

ZONING SHALL BE CONSISTENT. Zoning ordinances or other official controls shall be consistent with, and implement, the comprehensive plan.

NEW SECTION. Sec. 29. VESTING DOCTRINE REVISED. The "date certain vesting of rights" common law doctrine, initially established by the supreme court in STATE EX REL. HARDY V. SUPERIOR COURT, 155 Wash. 244 (1930), and more recently described in VALLEY VIEW V. REDMOND, 107 Wn.2d 621 (1987), is abolished. The majority rule for vesting of rights is adopted for the state of Washington under which a right vests only: (1) Upon the issuance of a valid permit; and (2) upon both a change of position and a substantial reliance being made upon the permit.

NEW SECTION. Sec. 30. LEGISLATIVE DIRECTIVE. Sections 2 through 16, 20 through 24, and 29 of this act shall constitute a new chapter in Title 36 RCW.

Sec. 31. Section 82.02.020, chapter 15, Laws of 1961 as last amended by section 6, chapter 179, Laws of 1988 and RCW 82.02.020 are each amended to read as follows:

IMPACT FEES--NOT PROHIBITED. Except only as expressly provided in RCW 67.28.180 and 67.28.190 and the provisions of chapter 82.14 RCW, the state preempts the field of imposing taxes upon retail sales of tangible personal property, the use of tangible personal property, parimutuel wagering authorized pursuant to RCW 67.16.060, conveyances, and cigarettes, and no county, town, or other municipal subdivision shall have the right to impose taxes of that nature. ((No county, city, town, or other municipal corporation shall impose any tax, fee, or charge, either direct or indirect, on the construction or reconstruction of residential buildings, commercial buildings, industrial buildings, or on any other building or building space or appurtenance thereto, or on the development, subdivision, classification, or reclassification of land. However, this section does not preclude dedications of land or easements pursuant to RCW 58.17.110 within the proposed development or plat which the county, city, town, or other municipal corporation can demonstrate are reasonably necessary as a direct result of the proposed development or plat to which the dedication of land or easement is to apply.

This section does not prohibit voluntary agreements with counties, cities, towns, or other municipal corporations that allow a payment in lieu of a dedication of land or to mitigate a direct impact that has been identified as a consequence of a proposed development, subdivision, or plat. A local government shall not use such voluntary agreements for local off-site transportation improvements within the geographic boundaries of the area or areas covered by an adopted transportation program authorized by chapter 39.92 RCW. Any such voluntary agreement is subject to the following provisions:

~~(1) The payment shall be held in a reserve account and may only be expended to fund a capital improvement agreed upon by the parties to mitigate the identified, direct impact;~~

~~(2) The payment shall be expended in all cases within five years of collection; and~~

(3) Any payment not so expended shall be refunded with interest at the rate applied to judgments to the property owners of record at the time of the refund; however, if the payment is not expended within five years due to delay attributable to the developer, the payment shall be refunded without interest.

No county, city, town, or other municipal corporation shall require any payment as part of such a voluntary agreement which the county, city, town, or other municipal corporation cannot establish is reasonably necessary as a direct result of the proposed development or plat.

Nothing in this section prohibits cities, towns, counties, or other municipal corporations from collecting reasonable fees from an applicant for a permit or other governmental approval to cover the cost to the city, town, county, or other municipal corporation of processing applications, inspecting and reviewing plans, or preparing detailed statements required by chapter 43.21C RCW.

This section does not limit the existing authority of any county, city, town, or other municipal corporation to impose special assessments on property specifically benefitted thereby in the manner prescribed by law.

Nothing in this section prohibits counties, cities, or towns from imposing or permits counties, cities, or towns to impose water, sewer, natural gas, drainage utility, and drainage system charges: PROVIDED, That no such charge shall exceed the proportionate share of such utility or system's capital costs which the county, city, or town can demonstrate are attributable to the property being charged: PROVIDED FURTHER, That these provisions shall not be interpreted to expand or contract any existing authority of counties, cities, or towns to impose such charges.

Nothing in this section prohibits a transportation benefit district from imposing fees or charges authorized in RCW 36.73.120 nor prohibits the legislative authority of a county, city, or town from approving the imposition of such fees within a transportation benefit district.

~~Nothing in this section prohibits counties, cities, or towns from imposing transportation impact fees authorized pursuant to chapter 39.92 RCW.~~

~~This section does not apply to special purpose districts formed and acting pursuant to Titles 54, 56, 57, or 87 RCW, nor is the authority conferred by these titles affected.~~))

NEW SECTION. Sec. 32. A new section is added to chapter 43.21C RCW to read as follows:

IMPACT FEES--ALLOWED UNDER SEPA. Impact fees may be required to mitigate potential impacts on public facilities and public services, including impacts arising from the increased use of public facilities or public services, or the increased need for public facilities or public services, arising from development activity that is authorized by the issuance of a permit, or other approval, by any branch of government of this state, including state agencies, municipal and public corporations, or counties. Such impacts could arise from the development activity itself, or the cumulative impact arising from development activity. Development activity that is otherwise categorically exempt from environmental review, or the preparation of an environmental impact statement, shall be subject to potential payment of such impact fees.

Mitigation fee schedules may be developed to measure such impacts and level of impact fees that are required as a condition of the issuance of the permit or other approval.

NEW SECTION. Sec. 33. A new section is added to chapter 43.21C RCW to read as follows:

STATE GOALS PART OF SEPA. The policy goals established under section 2 of this act are part of the policies and goals of this chapter.

Sec. 34. Section 6, chapter 109, Laws of 1971 ex. sess. as last amended by section 3, chapter 117, Laws of 1983 and RCW 43.21C.060 are each amended to read as follows:

COMPREHENSIVE PLANS--POLICY CONSIDERED IN SEPA. The policies and goals set forth in this chapter are supplementary to those set forth in existing authorizations of all branches of government of this state, including state agencies, municipal and public corporations, and counties. Any governmental action may be conditioned or denied pursuant to this chapter: PROVIDED, That such conditions or denials shall be based upon policies identified by the appropriate governmental authority and incorporated into regulations, plans, or codes which are formally designated by the agency (or appropriate legislative body, in the case of local government) as possible bases for the exercise of authority pursuant to this chapter. Such designation shall occur at the time specified by RCW 43.21C.120. The goals, objectives, and statements of policy contained in the comprehensive plan of a county, city, or town are part of the policies of the county, city, or town for purposes of this chapter, unless the county, city, or town has adopted an ordinance expressly removing those goals, objectives, and statements of policy from being considered as policies under this chapter. Such action may be conditioned only to mitigate specific adverse environmental impacts which are identified in the environmental documents prepared under this chapter. These conditions shall be stated in writing by the decisionmaker. Mitigation measures shall be reasonable and capable of being accomplished. In order to deny a proposal under this chapter, an agency must find that: (1) The proposal would result in significant adverse impacts, or sufficient public facilities do not exist to accommodate the proposal, as identified in a final or supplemental environmental impact statement prepared under this chapter; and (2) reasonable mitigation measures are insufficient to mitigate the identified impact, or dedications of land to public bodies, provision of public facilities, and impact fees or excise taxes have not been made or paid by the applicant. Except for permits and variances issued pursuant to chapter 90.58 RCW, when such a governmental action, not requiring a legislative decision, is conditioned or denied by a nonelected official of a local governmental agency, the decision shall be appealable to the legislative authority of the acting local governmental agency unless that legislative authority formally eliminates such appeals. Such appeals shall be in accordance with procedures established for such appeals by the legislative authority of the acting local governmental agency.

Sec. 35. Section 6, chapter 179, Laws of 1974 ex. sess. as amended by section 7, chapter 117, Laws of 1983 and RCW 43.21C.110 are each amended to read as follows:

SEPA--DEFINITION OF BUILT ENVIRONMENT. It shall be the duty and function of the department of ecology, which may utilize proposed rules developed by the environmental policy commission:

(1) To adopt and amend thereafter rules of interpretation and implementation of this chapter (the state environmental policy act of 1971), subject to the requirements of chapter 34.05 RCW, for the purpose of providing uniform rules and guidelines to all branches of government including state agencies, political subdivisions, public and municipal corporations, and counties. The proposed rules shall be subject to full public hearings requirements associated with rule promulgation. Suggestions for modifications of the proposed rules shall be considered on their merits, and the department shall have the authority and responsibility for full and appropriate independent promulgation and adoption of rules, assuring consistency with this chapter as amended and with the preservation of protections afforded by this chapter. The rule making powers authorized in this section shall include, but shall not be limited to, the following phases of interpretation and implementation of this chapter (the state environmental policy act of 1971):

(a) Categories of governmental actions which are not to be considered as potential major actions significantly affecting the quality of the environment, including categories pertaining to applications for water right permits pursuant to chapters 90.03 and 90.44 RCW. The types of actions included as categorical exemptions in the rules shall be limited to those types which are not major actions significantly affecting the quality of the environment. The rules shall provide for certain circumstances where actions which potentially are categorically exempt require environmental review.

(b) Rules for criteria and procedures applicable to the determination of when an act of a branch of government is a major action significantly affecting the quality of the environment for which a detailed statement is required to be prepared pursuant to RCW 43.21C.030.

(c) Rules and procedures applicable to the preparation of detailed statements and other environmental documents, including but not limited to rules for timing of environmental review, obtaining comments, data and other information, and providing for and determining areas of public participation which shall include the scope and review of draft environmental impact statements.

(d) Scope of coverage and contents of detailed statements assuring that such statements are simple, uniform, and as short as practicable; statements are required to analyze only reasonable alternatives and probable adverse environmental impacts which are significant, and may analyze beneficial impacts.

(e) Rules and procedures for public notification of actions taken and documents prepared.

(f) Definition of terms relevant to the implementation of this chapter including the establishment of a list of elements of the environment. Analysis of environmental considerations under RCW 43.21C.030(2) may be required only for those subjects listed as elements of the environment (or portions thereof). The list of elements of the environment shall consist of the "natural" and "built" environment. The elements of the built environment shall consist of public services and utilities (such as water, sewer, schools, fire and police protection), transportation, environmental health (such as explosive materials and toxic waste), ((~~and~~)) land and shoreline use (including housing, and a description of the relationships with land use and shoreline plans and designations, including population), and the costs of providing adequate elements of the built environment arising from a proposal.

(g) Rules for determining the obligations and powers under this chapter of two or more branches of government involved in the same project significantly affecting the quality of the environment.

(h) Methods to assure adequate public awareness of the preparation and issuance of detailed statements required by RCW 43.21C.030(2)(c).

(i) To prepare rules for projects setting forth the time limits within which the governmental entity responsible for the action shall comply with the provisions of this chapter.

(j) Rules for utilization of a detailed statement for more than one action and rules improving environmental analysis of nonproject proposals and encouraging better interagency coordination and integration between this chapter and other environmental laws.

(k) Rules relating to actions which shall be exempt from the provisions of this chapter in situations of emergency.

(l) Rules relating to the use of environmental documents in planning and decisionmaking and the implementation of the substantive policies and requirements of this chapter, including procedures for appeals under this chapter.

(2) In exercising its powers, functions, and duties under this section, the department may:

(a) Consult with the state agencies and with representatives of science, industry, agriculture, labor, conservation organizations, state and local governments and other groups, as it deems advisable; and

(b) Utilize, to the fullest extent possible, the services, facilities, and information (including statistical information) of public and private agencies, organizations, and individuals, in order to avoid duplication of effort and expense, overlap, or conflict with similar activities authorized by law and performed by established agencies.

(3) Rules adopted pursuant to this section shall be subject to the review procedures of RCW ((~~34.05.538 and~~)) 34.05.240.

NEW SECTION. Sec. 36. A new section is added to chapter 36.32 RCW to read as follows:

IMPACT FEES--AUTHORIZED. (1) Counties, cities, and towns are authorized to impose impact fees, excise taxes on development activity, or excise taxes on the privilege of engaging in business that constitutes development, to mitigate potential impacts on any public facilities, including impacts arising from the increased use of public facilities or the increased need for additional or expanded public facilities, arising from development activity that is authorized by the issuance of a permit, or other approval, by the county, city, or town. Such impacts could arise directly or indirectly from the development activity itself or the cumulative impact arising from development activity. The public facilities include those public facilities owned and operated by the county, city, or town, as well as public facilities owned and operated by other units of government within the county, city, or town, including, but not limited to, school districts.

A formula or other method of calculating the amount of the impact fees or excise taxes shall be established for each type of public facility for which the impact fees or excise taxes are imposed. A formula or other method of calculating the amount of the impact fees or excise taxes may provide for a reduction in the impact fees or excise taxes by the fair market value of any land or public facilities that are given to a unit of government to offset the impacts arising from the development activity.

(2) The money from such impact fees or excise taxes shall be placed into a capital account by the county, city, or town, or transferred to the other unit of government that owns and operates the impacted public facilities and that unit of government shall place the money into a capital account, and shall be expended for only capital costs of the type of public facility for which it is imposed. Such other units of government, include, but are not limited to, school districts, metropolitan park districts, park and recreation districts, park and recreation service areas, sewer districts, water districts, public utility districts, metropolitan municipal corporations, and other counties, cities, or towns.

(3) Unless the context clearly requires otherwise, the following definitions apply in this section:

(a) "Development" includes: (i) The construction or reconstruction of any structure, building space, or land; (ii) any division of land for purposes of sale, lease, or transfer of ownership, including subdivisions, short subdivisions, condominium approvals, or binding site plans; and (iii) any planned unit development or other contractual rezoning action.

(b) "Fair market value" means the price in terms of money that a property when developed as authorized by the permit or other approval will bring in a competitive and open market under all conditions of a fair sale, the buyer and seller each prudently knowledgeable.

Sec. 37. Section 18, chapter 189, Laws of 1967 as last amended by section 6, chapter 84, Laws of 1989 and RCW 36.93.180 are each amended to read as follows:

BOUNDARY REVIEW BOARD TO PREVENT SPRAWL. The decisions of the boundary review board shall attempt to achieve the following objectives:

(1) Preservation of natural neighborhoods and communities;

(2) Use of physical boundaries, including but not limited to bodies of water, highways, and land contours;

(3) Creation and preservation of logical service areas;

(4) Prevention of abnormally irregular boundaries;

(5) Discouragement of multiple incorporations of small cities and encouragement of incorporation of cities in excess of ten thousand population in heavily populated urban areas;

(6) Dissolution of inactive special purpose districts;

(7) Adjustment of impractical boundaries;

(8) Incorporation as cities or towns or annexation to cities or towns of unincorporated areas which are urban in character; ((~~and~~))

(9) Protection of agricultural and rural lands which are designated for long term productive agricultural and resource use by a comprehensive plan adopted by the county legislative authority; and

(10) Prevention of urban sprawl, including, but not limited to, denying any annexation of a city or town beyond an urban growth area established pursuant to section 10 of this act.

NEW SECTION. Sec. 38. A new section is added to chapter 43.63A RCW to read as follows:

INVENTORYING AND COLLECTING DATA. (1) The department shall assist in the process of inventorying and collecting data on public and private land for the acquisition of data describing land uses, demographics, infrastructure, environmentally sensitive areas, transportation corridors physical features, housing, and other information useful in managing growth throughout the state. For this purpose the department shall contract with the department of information services and shall form an advisory group consisting of representatives from state, local, and federal agencies, colleges and universities, and private firms with expertise in land planning, and geographic information systems.

(2) The department shall establish a sequence for acquiring data, giving priority to rapidly growing areas. The data shall be retained in a manner to facilitate its use in preparing maps, aggregating with data from multiple jurisdictions, and comparing changes over time. Data shall further be retained in a manner which permits its access via computer.

(3) By December 1, 1990, the department shall report to the appropriate committees of the house of representatives and senate on the availability of existing data; specific data which is needed but not currently available; data compatibility across jurisdictions; the suitability of various types of data for retention on computer; the cost of collecting, storing, updating, mapping, and manipulating data on a computer; and recommendations on how to maintain an inventory of data which is accessible to any user and whether to maintain the data at a central repository or decentralized repositories.

(4) The department shall work with other state agencies, local governments, and private organizations that are inventorying public and private lands to ensure close coordination and to ensure that duplication of efforts does not occur.

NEW SECTION. Sec. 39. A new section is added to chapter 43.62 RCW to read as follows:

DETERMINING POPULATION. The office of financial management shall determine the population of each county of the state annually as of April 1st of each year and on or before July 1st of each year shall file a certificate with the secretary of state showing its determination of the population for each county. The office of financial management also shall determine the percentage increase in population for each county over the preceding ten-year period, as of April 1st, and shall file a certificate with the secretary of state by July 1st showing its determination.

PART II

TRANSPORTATION REGIONAL PLANS

NEW SECTION. Sec. 40. INTENT--TRANSPORTATION PLANNING. The legislature finds that while the transportation system in Washington is owned and operated by numerous public jurisdictions, it should function as one interconnected and coordinated system. Transportation planning, at all jurisdictional levels, should be coordinated with local comprehensive plans. Further, local jurisdictions and the state should cooperate to achieve both state-wide and local transportation goals. To facilitate this coordination and cooperation among state and local jurisdictions, the legislature declares it to be in the state's interest to establish a coordinated planning program for regional transportation systems and facilities throughout the state.

NEW SECTION. Sec. 41. REGIONAL TRANSPORTATION PLANNING ORGANIZATIONS AUTHORIZED. The legislature hereby authorizes creation of regional transportation planning organizations within the state. Each regional transportation planning organization shall be formed through the voluntary association of local governments within a county, or within geographically contiguous counties. Each organization shall:

(1) Encompass at least one complete county;

(2) Have a population of at least one hundred thousand, or contain a minimum of three counties; and

(3) Have as members all counties within the region, and at least sixty percent of the cities and towns within the region representing a minimum of seventy-five percent of the cities' and towns' population.

The state department of transportation must verify that each regional transportation planning organization conforms with the requirements of this section.

In urbanized areas, the regional transportation planning organization is the same as the metropolitan planning organization designated for federal transportation planning purposes.

NEW SECTION. Sec. 42. REGIONAL TRANSPORTATION PLANNING ORGANIZATIONS--DUTIES. (1) Each regional transportation planning organization shall:

(a) Certify that the transportation elements of comprehensive plans adopted by counties, cities, and towns within the region conform with the requirements of section 23 of this act, and are consistent with regional transportation plans as provided for in (b) of this subsection;

(b) Develop and adopt a regional transportation plan that is consistent with county, city, and town comprehensive plans and state transportation plans. Such plans shall address existing or planned transportation facilities and services that exhibit one or more of the following characteristics:

(i) Physically crosses member county lines;

(ii) Is or will be used by a significant number of people who live or work outside the county in which the facility, service, or project is located;

(iii) Significant impacts are expected to be felt in more than one county;

(iv) Potentially adverse impacts of the facility, service, or project can be better avoided or mitigated through adherence to regional policies;

(v) Transportation needs addressed by a project have been identified by the regional transportation planning process and the remedy is deemed to have regional significance;

(c) Designate a lead planning agency to coordinate preparation of the regional transportation plan. The lead planning agency may be a regional council, a county, city, or town agency, or a Washington state department of transportation district;

(d) Review the regional transportation plan biennially for currency; and

(e) Forward the adopted plan, and documentation of the biennial review of it, to the state department of transportation.

(2) All transportation projects within the region that have an impact upon regional facilities or services must be consistent with the plan.

(3) In order to ensure state-wide consistency in the regional transportation planning process, the state department of transportation shall:

(a) In cooperation with regional transportation planning organizations, establish minimum standards for development of a regional transportation plan; and

(b) Facilitate coordination between regional transportation planning organizations.

NEW SECTION. Sec. 43. TRANSPORTATION POLICY BOARDS. Each regional transportation planning organization shall create a transportation policy board. Transportation policy boards shall provide policy advice to the regional transportation planning organization and shall allow representatives of major employers within the region, the department of transportation, transit districts, ports, and member cities, towns, and counties within the region to participate in policy making.

NEW SECTION. Sec. 44. ALLOCATION OF REGIONAL TRANSPORTATION PLANNING FUNDS. Biennial appropriations to the department of transportation to carry out the regional transportation planning program shall set forth the amounts to be allocated as follows:

(1) A base amount per county for each county within each regional transportation planning organization, to be distributed to the lead planning agency;

(2) An amount to be distributed to each lead planning agency on a per capita basis; and

(3) An amount to be administered by the department of transportation as a discretionary grant program for special regional planning projects.

NEW SECTION. Sec. 45. LEGISLATIVE DIRECTIVE. Sections 40 through 44 of this act shall constitute a new chapter in Title 47 RCW.

PART III

SUBDIVISIONS

Sec. 46. Section 1, chapter 121, Laws of 1983 and RCW 58.17.020 are each amended to read as follows:

SUBDIVISIONS--DEFINITIONS. As used in this chapter, unless the context or subject matter clearly requires otherwise, the words or phrases defined in this section shall have the indicated meanings.

(1) "Subdivision" is the division or redivision of land into ((~~five~~)) two or more lots, tracts, parcels, sites or divisions for the purpose of sale, lease, or transfer of ownership((~~, except as provided in subsection (6) of this section~~)).

(2) "Plat" is a map or representation of a subdivision, showing thereon the division of a tract or parcel of land into lots, blocks, streets or roads, and alleys or other divisions and dedications.

(3) "Dedication" is the deliberate appropriation of land by an owner for any general and public uses, reserving to himself no other rights than such as are compatible with the full exercise and enjoyment of the public uses to which the property has been devoted. The intention to dedicate shall be evidenced by the owner by the presentment for filing of a final plat ((~~or short plat~~)) showing the dedication thereon; and, the acceptance by the public shall be evidenced by the approval of such plat for filing by the appropriate governmental unit.

(4) "Preliminary plat" is a neat and approximate drawing of a proposed subdivision showing the general layout of streets or roads and alleys, lots, blocks, and other elements of a subdivision consistent with the requirements of this chapter. The preliminary plat shall be the basis for the approval or disapproval of the general layout of a subdivision.

(5) "Final plat" is the final drawing of the subdivision and dedication prepared for filing for record with the county auditor and containing all elements and requirements set forth in this chapter and in local regulations adopted under this chapter.

(6) (("Short subdivision" is the division or redivision of land into four or fewer lots, tracts, parcels, sites or divisions for the purpose of sale, lease, or transfer of ownership: PROVIDED, That the legislative authority of any city or town may by local ordinance increase the number of lots, tracts, or parcels to be regulated as short subdivisions to a maximum of nine.

~~(7)~~)) "Binding site plan" means a drawing to a scale specified by local ordinance which: (a) Identifies and shows the areas and locations of all streets, roads, improvements, utilities, open spaces, and any other matters specified by local regulations; (b) contains inscriptions or attachments setting forth such appropriate limitations and conditions for the use of the land as are established by the local government body having authority to approve the binding site plan; and (c) contains provisions making any development be in conformity with the binding site plan.

((~~(8) "Short plat" is the map or representation of a short subdivision.~~

~~(9)~~)) (7) "Lot" is a fractional part of divided lands having fixed boundaries, being of sufficient area and dimension to meet minimum zoning requirements for width and area. The term shall include tracts or parcels.

((~~(10)~~)) (8) "Block" is a group of lots, tracts, or parcels within well defined and fixed boundaries.

((~~(11)~~)) (9) "County treasurer" shall be as defined in chapter 36.29 RCW or the office or person assigned such duties under a county charter.

((~~(12)~~)) (10) "County auditor" shall be as defined in chapter 36.22 RCW or the office or person assigned such duties under a county charter.

((~~(13)~~)) (11) "County road engineer" shall be as defined in chapter 36.40 RCW or the office or person assigned such duties under a county charter.

((~~(14)~~)) (12) "Planning commission" means that body as defined in chapters 36.70, 35.63, or 35A.63 RCW as designated by the legislative body to perform a planning function or that body assigned such duties and responsibilities under a city or county charter.

((~~(15)~~)) (13) "County commissioner" shall be as defined in chapter 36.32 RCW or the body assigned such duties under a county charter.

Sec. 47. Section 3, chapter 271, Laws of 1969 ex. sess. as amended by section 1, chapter 134, Laws of 1974 ex. sess. and RCW 58.17.030 are each amended to read as follows:

SUBDIVISIONS--TWO LOTS. Every subdivision shall comply with the provisions of this chapter. ((~~Every short subdivision as defined in this chapter shall comply with the provisions of any local regulation adopted pursuant to RCW 58.17.060.~~))

However, a county, city, or town may adopt an ordinance providing for a special subdivision procedure for the subdivision of land into two lots that, except for having a one-step administrative approval process without a public hearing, must conform with the remainder of the requirements of this chapter, including, but not limited to, review and approval under RCW 58.17.110. Under such a special subdivision procedure, a public hearing shall be held if written demands for a public hearing have been filed with the county, city, or town, within twenty-one days of the posting of the notice of the proposed subdivision, that have been signed by five or more persons who either reside, or own real property located, within two hundred yards of the outer boundary of the land that is proposed to be subdivided. A lot that has been created under this special subdivision procedure may not be divided in any manner within twenty years of its creation without conforming with the regular subdivision procedure.

Sec. 48. Section 4-123, chapter 43, Laws of 1989 and RCW 58.17.040 are each amended to read as follows:

SUBDIVISIONS--EXEMPTIONS. The provisions of this chapter shall not apply to:

(1) Cemeteries and other burial plots while used for that purpose;

(2) Divisions of land into lots or tracts each of which is ((~~one-one hundred twenty-eighth~~)) one thirty-second of a section of land or larger, or ((~~five~~)) twenty acres or larger if the land is not capable of description as a fraction of a section of land, unless the ((~~governing authority~~)) legislative body of the city, town, or county in which the land is situated shall have adopted a subdivision ordinance requiring plat approval of such divisions: PROVIDED, That for purposes of computing the size of any lot under this item which borders on a street or road, the lot size shall be expanded to include that area which would be bounded by the center line of the road or street and the side lot lines of the lot running perpendicular to such center line;

(3) Divisions made by testamentary provisions, or the laws of descent;

(4) Subject to section 49 of this act, divisions of land into lots or tracts classified for industrial or commercial use when the city, town, or county has approved a binding site plan for the use of the land in accordance with local regulations;

(5) A division for the purpose of lease when no residential structure other than mobile homes or travel trailers are permitted to be placed upon the land when the city, town, or county has approved a binding site plan for the use of the land in accordance with local regulations;

(6) Subject to section 49 of this act, a division for purposes of residential lease including, but not limited to, apartments, duplexes, and triplexes, but not including divisions under subsection (5) or (8) of this section, when the city, town, or county has approved a binding site plan for the division in accordance with local regulations;

(7) A division made for the purpose of alteration by adjusting boundary lines, between platted or unplatted lots or both, which does not create any additional lot, tract, parcel, site, or division nor create any lot, tract, parcel, site, or division which contains insufficient area and dimension to meet minimum requirements for width and area for a building site; and

((~~(7)~~)) (8) Subject to section 49 of this act, divisions of land into lots or tracts if: (a) The improvements constructed or to be constructed thereon will be included in one or more condominiums or owned by an association or other legal entity in which the owners of units therein or their owners' associations have a membership or other legal or beneficial interest; (b) a city, town, or county has approved a binding site plan for all such land; and (c) the binding site plan contains thereon the following statement: "All development of the land described herein shall be in accordance with the binding site plan, as it may be amended. Upon completion, the improvements on the land shall be included in one or more condominiums or owned by an association or other legal entity in which the owners of units therein or their owners' associations have a membership or other legal or beneficial interest."

NEW SECTION. Sec. 49. A new section is added to chapter 58.17 RCW to read as follows:

SUBDIVISIONS--BINDING SITE PLANS. Each city, town, or county ordinance establishing a system of binding site plan approvals, that pursuant to RCW 58.17.040 remove the division from review under the remainder of this chapter, shall be subject to the following conditions:

(1) A binding site plan may be approved by a city, town, or county only if, after holding a public hearing on the proposal, the city, town, or county makes written findings that: (a) The public interest will be served by the proposal; and (b) appropriate provisions are made for, but not limited to, the public health, safety, and general welfare, for open spaces, drainage, streets or roads, alleys, other public ways, transit stops and stations, potable water supplies and facilities, sanitary wastes and related facilities, parks and recreation facilities, playgrounds, schools, school facilities, schoolgrounds, and sidewalks and other planning features that assure safe walking conditions for students who walk to and from school;

(2) Violations of the binding site plan ordinance are enforceable in the same manner as a violation of this chapter is enforced; and

(3) Penalties for violating the binding site plan ordinance are the same as for violating this chapter.

Sec. 50. Section 9, chapter 271, Laws of 1969 ex. sess. as last amended by section 5, chapter 293, Laws of 1981 and RCW 58.17.090 are each amended to read as follows:

SUBDIVISIONS--NOTICES. (1) Upon receipt of an application for preliminary plat approval the administrative officer charged by ordinance with responsibility for administration of regulations pertaining to platting and subdivisions shall set a date for a public hearing. At a minimum, notice of the hearing shall be given in the following manner: ((~~(1)~~)) (a) Notice shall be published not less than ten days prior to the hearing in a newspaper of general circulation within the county and a newspaper of general circulation in the area where the real property which is proposed to be subdivided is located; ((~~(2)~~)) and (b) special notice of the hearing shall be given to adjacent landowners by any other reasonable method local authorities deem necessary, but shall include, at a minimum, the conspicuous posting of notice in at least three places in the near vicinity of the land that is proposed to be subdivided. Adjacent landowners are the owners of real property, as shown by the records of the county assessor, located within three hundred feet of any portion of the boundary of the proposed subdivision. If the owner of the real property which is proposed to be subdivided owns another parcel or parcels of real property which lie adjacent to the real property proposed to be subdivided, notice under this subsection shall be given to owners of real property located within three hundred feet of any portion of the boundaries of such adjacently located parcels of real property owned by the owner of the real property proposed to be subdivided. All hearings shall be public. All hearing notices shall include a description of the location of the proposed subdivision. The description may be in the form of either a vicinity location sketch or a written description other than a legal description.

(2) Where a county, city, or town has adopted an ordinance providing for the administrative approval of a subdivision of land into two lots, the county shall provide notice of the proposed subdivision by publication and posting in the manner provided for under subsection (1) of this section. This notice shall be posted within forty-five days of the filing of the application, and shall be published not less than ten days after the posting of the notice.

Sec. 51. Section 11, chapter 271, Laws of 1969 ex. sess. as last amended by section 3, chapter 330, Laws of 1989 and RCW 58.17.110 are each amended to read as follows:

SUBDIVISIONS--APPROVAL CRITERIA. (1) The city, town, or county legislative body shall inquire into the public use and interest proposed to be served by the establishment of the subdivision and dedication. It shall determine: (a) If appropriate provisions are made for, but not limited to, the public health, safety, and general welfare, for open spaces, drainage ((~~ways~~)), streets or roads, alleys, other public ways, transit stops or stations, potable water supplies and facilities, sanitary wastes and related facilities, parks and recreation facilities, playgrounds, ((~~sites for~~)) schools, school facilities, and schoolgrounds, and shall consider all other relevant facts, including sidewalks and other planning features that assure safe walking conditions for students who walk to and from school((~~, and determine~~)); and (b) whether the public interest will be served by the subdivision and dedication. ((~~If it finds that the proposed plat makes~~))

(2) A proposed subdivision and dedication may be not approved unless the city, town, or county legislative body makes a written finding that: (a) Appropriate provisions are made for the public health, safety, and general welfare and for such open spaces, drainage ((~~ways~~)), streets or roads, alleys, other public ways, transit stops or stations, potable water supplies and facilities, sanitary wastes and related facilities, parks and recreation facilities, playgrounds, ((~~sites for~~)) schools, school facilities, and schoolgrounds and all other relevant facts, including sidewalks and other planning features that assure safe walking conditions for students who walk to and from school((~~, and that~~)); and (b) the public use and interest will be served by the ((~~platting of such~~)) subdivision((, then it shall be approved. If it finds that the proposed plat does not make such appropriate provisions or that the public use and interest will not be served, then the legislative body may disapprove the proposed plat)) and dedication. Dedication of land to any public body, provision of public facilities, and/or impact fees or excise taxes in lieu of dedications or provision of public facilities, may be required as a condition of subdivision approval and shall be clearly shown on the final plat. The legislative body shall not as a condition to the approval of any ((~~plat~~)) subdivision require a release from damages to be procured from other property owners.

Sec. 52. Section 14, chapter 271, Laws of 1969 ex. sess. as last amended by section 2, chapter 233, Laws of 1986 and RCW 58.17.140 are each amended to read as follows:

SUBDIVISIONS--APPROVAL TIME FRAMES. Preliminary plats of any proposed subdivision and dedication shall be approved, disapproved, or returned to the applicant for modification or correction within ninety days from date of filing thereof unless the applicant consents to an extension of such time period or the ninety day limitation is extended to include up to twenty-one days as specified under RCW 58.17.095(3): PROVIDED, That ((~~if an environmental impact statement is required as provided in RCW 43.21C.030,~~)) the ninety day period shall not include the time spent ((~~preparing and circulating the environmental impact statement by the local government agency~~)) conforming with the requirements of chapter 43.21C RCW. Final plats ((~~and short plats~~)) shall be approved, disapproved, or returned to the applicant within thirty days from the date of filing thereof, unless the applicant consents to an extension of such time period. A final plat meeting all requirements of this chapter shall be submitted to the legislative body of the city, town, or county for approval within three years of the date of preliminary plat approval((: PROVIDED, That this three-year time period shall retroactively apply to any preliminary plat pending before a city, town, or county as of July 24, 1983, where the authority to proceed with the filing of a final plat has not lapsed under an applicable city, town, or county ordinance containing a shorter time period that was in effect when the preliminary plat was approved)). An applicant who files a written request with the legislative body of the city, town, or county at least thirty days before the expiration of this three-year period shall be granted one one-year extension upon a showing that the applicant has attempted in good faith to submit the final plat within the three-year period. Nothing contained in this section shall act to prevent any city, town, or county from adopting by ordinance procedures which would allow other extensions of time that may or may not contain additional or altered conditions and requirements.

Sec. 53. Section 30, chapter 271, Laws of 1969 ex. sess. as amended by section 9, chapter 293, Laws of 1981 and RCW 58.17.165 are each amended to read as follows:

SUBDIVISIONS--TECHNICAL, SHORT PLATS. Every final plat ((~~or short plat~~)) of a subdivision ((~~or short subdivision~~)) filed for record must contain a certificate giving a full and correct description of the lands divided as they appear on the plat ((~~or short plat~~)), including a statement that the subdivision ((~~or short subdivision~~)) has been made with the free consent and in accordance with the desires of the owner or owners.

If the plat ((~~or short plat~~)) is subject to a dedication, the certificate or a separate written instrument shall contain the dedication of all streets or roads and other areas to the public, and individual or individuals, religious society or societies or to any corporation, public or private as shown on the plat ((~~or short plat~~)) and a waiver of all claims for damages against any governmental authority which may be occasioned to the adjacent land by the established construction, drainage and maintenance of said road. Said certificate or instrument of dedication shall be signed and acknowledged before a notary public by all parties having any ownership interest in the lands subdivided and recorded as part of the final plat.

Every plat ((~~and short plat~~)) containing a dedication filed for record must be accompanied by a title report confirming that the title of the lands as described and shown on said plat is in the name of the owners signing the certificate or instrument of dedication.

An offer of dedication may include a waiver of right of direct access to any street or road from any property, and if the dedication is accepted, any such waiver is effective. Such waiver may be required by local authorities as a condition of approval. Streets or roads not dedicated to the public must be clearly marked on the face of the plat. Any dedication, donation or grant as shown on the face of the plat shall be considered to all intents and purposes, as a quitclaim deed to the said donee or donees, grantee or grantees for his, her or their use for the purpose intended by the donors or grantors as aforesaid.

Sec. 54. Section 17, chapter 271, Laws of 1969 ex. sess. as amended by section 10, chapter 293, Laws of 1981 and RCW 58.17.170 are each amended to read as follows:

SUBDIVISIONS--GRANDFATHERING OF OTHER STANDARDS. When the legislative body of the city, town or county finds that the subdivision proposed for final plat approval conforms to all terms of the preliminary plat approval, and that said subdivision meets the requirements of this chapter, other applicable state laws, and any local ordinances adopted under this chapter which were in effect at the time of preliminary plat approval, it shall suitably inscribe and execute its written approval on the face of the plat. The original of said final plat shall be filed for record with the county auditor. One reproducible copy shall be furnished to the city, town or county engineer. One paper copy shall be filed with the county assessor. Paper copies shall be provided to such other agencies as may be required by ordinance. ((Any lots in a final plat filed for record shall be a valid land use notwithstanding any change in zoning laws for a period of five years from the date of filing. A subdivision shall be governed by the terms of approval of the final plat, and the statutes, ordinances, and regulations in effect at the time of approval under RCW 58.17.150 (1) and (3) for a period of five years after final plat approval unless the legislative body finds that a change in conditions creates a serious threat to the public health or safety in the subdivision.))

Sec. 55. Section 14, chapter 293, Laws of 1981 and RCW 58.17.195 are each amended to read as follows:

SUBDIVISIONS--TECHNICAL, SHORT PLATS. No plat ((~~or short plat~~)) may be approved unless the city, town, or county makes a formal written finding of fact that the proposed subdivision ((~~or proposed short subdivision~~)) is in conformity with any applicable zoning ordinance or other land use controls which may exist.

Sec. 56. Section 4, chapter 354, Laws of 1987 and RCW 58.17.215 are each amended to read as follows:

SUBDIVISIONS--ALTERING. When any person is interested in the alteration of any subdivision or the altering of any portion thereof, except as provided in RCW 58.17.040(6), that person shall submit an application to request the alteration to the legislative authority of the city, town, or county where the subdivision is located. The application shall contain the signatures of the majority of those persons having an ownership interest of lots, tracts, parcels, sites, or divisions in the subject subdivision or portion to be altered. If the subdivision is subject to restrictive covenants which were filed at the time of the approval of the subdivision, and the application for alteration would result in the violation of a covenant, the application shall contain an agreement signed by all parties subject to the covenants providing that the parties agree to terminate or alter the relevant covenants to accomplish the purpose of the alteration of the subdivision or portion thereof. If the subdivision includes a dedication of land, and the application for alteration would result in abandoning or altering all or any part of the dedication, the application shall contain an agreement, signed by all persons having an ownership interest of lots, tracts, parcels, sites, or divisions in the subdivision, to abandon or alter the dedication to accomplish the purpose of the alteration of the subdivision or portion thereof.

Upon receipt of an application for alteration, the legislative body shall provide notice of the application to all owners of property within the subdivision, and as provided for in RCW 58.17.080 and 58.17.090. The notice shall either establish a date for a public hearing or provide that a hearing may be requested by a person receiving notice within fourteen days of receipt of the notice.

The legislative body shall determine the public use and interest in the proposed alteration and may deny or approve the application for alteration. If any land within the alteration is part of an assessment district, any outstanding assessments shall be equitably divided and levied against the remaining lots, parcels, or tracts, or be levied equitably on the lots resulting from the alteration. If any land within the alteration contains a dedication to the general use of persons residing within the subdivision, such land may be altered and divided equitably between the adjacent properties or otherwise provided for pursuant to the agreement.

After approval of the alteration, the legislative body shall order the applicant to produce a revised drawing of the approved alteration of the final plat ((~~or short plat~~)), which after signature of the legislative authority, shall be filed with the county auditor to become the lawful plat of the property.

This section shall not be construed as applying to the alteration or replatting of any plat of state-granted tide or shore lands.

Sec. 57. Section 6, chapter 354, Laws of 1987 and RCW 58.17.255 are each amended to read as follows:

SUBDIVISIONS--SURVEY DISCREPANCIES. Whenever a survey of a proposed subdivision ((~~or short subdivision~~)) reveals a discrepancy, the discrepancy shall be noted on the face of the final plat ((~~or short plat. Any~~)). The discrepancy or discrepancies that are so noted on the final plat shall be disclosed in a title report prepared by a title insurer and issued after the filing of the final plat ((~~or short plat~~)). However, the failure to disclose such a note shall not be subject to RCW 58.17.300. As used in this section, "discrepancy" means: (1) A boundary hiatus; (2) an overlapping boundary; or (3) a physical appurtenance, which indicates encroachment, lines of possession, or conflict of title.

Sec. 58. Section 2, chapter 150, Laws of 1973 as last amended by section 1, chapter 39, Laws of 1986 and RCW 58.17.310 are each amended to read as follows:

SUBDIVISIONS--TECHNICAL, SHORT PLATS. In addition to any other requirements imposed by the provisions of this chapter, the legislative authority of any city, town, or county shall not approve a ((~~short plat or~~)) final plat, as defined in RCW 58.17.020, for any subdivision, ((~~short subdivision,~~)) lot, tract, parcel, or site which lies in whole or in part in an irrigation district organized pursuant to chapter 87.03 RCW unless there has been provided an irrigation water right of way for each parcel of land in such district. In addition, if the subdivision, ((~~short subdivision,~~)) lot, tract, parcel, or site lies within land within ((~~the~~)) an irrigation district that is classified as being irrigable, completed irrigation water distribution facilities for such land may be required by the irrigation district by resolution, bylaw, or rule of general applicability as a condition for approval of the ((~~short plat or~~)) final plat by the legislative authority of the city, town, or county. Rights of way shall be evidenced by the respective plats submitted for final approval to the appropriate legislative authority. Compliance with the requirements of this section together with all other applicable provisions of this chapter shall be a prerequisite, within the expressed purpose of this chapter, to any sale, lease, or development of land in this state.

PART IV

TIMBER, AGRICULTURE, AND WATER CONSERVATION

Sec. 59. Section 5, chapter 263, Laws of 1945 as last amended by section 108, chapter 109, Laws of 1987 and RCW 90.44.050 are each amended to read as follows:

END FIVE THOUSAND GALLON EXEMPTION. (1) After June 6, 1945, but prior to July 1, 1990, no withdrawal of public ground waters of the state shall be begun, nor shall any well or other works for such withdrawal be constructed, unless an application to appropriate such waters has been made to the department and a permit has been granted by it as herein provided: EXCEPT, HOWEVER, That any withdrawal of public ground waters for stock-watering purposes, or for the watering of a lawn or of a noncommercial garden not exceeding one-half acre in area, or for single or group domestic uses in an amount not exceeding five thousand gallons a day, or for an industrial purpose in an amount not exceeding five thousand gallons a day, is and shall be exempt from the provisions of this section, but, to the extent that it is regularly used beneficially, shall be entitled to a right equal to that established by a permit issued under the provisions of this chapter: PROVIDED, HOWEVER, That the department from time to time may require the person or agency making any such small withdrawal to furnish information as to the means for and the quantity of that withdrawal: PROVIDED, FURTHER, That at the option of the party making withdrawals of ground waters of the state not exceeding five thousand gallons per day, applications under this section or declarations under RCW 90.44.090 may be filed and permits and certificates obtained in the same manner and under the same requirements as is in this chapter provided in the case of withdrawals in excess of five thousand gallons ((a)) per day.

(2) On or after July 1, 1990, no withdrawal of public ground waters of the state shall be begun, nor shall any well or other works for such withdrawal be constructed unless an application to appropriate such waters has been made to the department and a permit has been granted by it. The department from time to time may require the person or agency making such withdrawal to furnish information as to the quantity of such withdrawal.

(3) The department may deny an application for withdrawal of public ground water to be used for stock watering, watering a lawn or noncommercial garden not exceeding one-half acre in size, or for industrial, single, or group domestic uses not exceeding five thousand gallons per day only where (a) the approval would not serve the public interest, or (b) where the application serves two or more services within a critical ground water supply service area as defined in chapter 70.116 RCW or in a ground water management area as defined pursuant to RCW 90.44.400 and approval would be inconsistent with the comprehensive plan of the local jurisdiction.

(4) The department may develop an expedited process for applications to withdraw public ground water to be used for stock watering, watering a lawn or noncommercial garden not exceeding one-half acre in size, or for industrial, single, or group domestic uses not exceeding five thousand gallons per day.

Sec. 60. Section 7, chapter 216, Laws of 1979 ex. sess. and RCW 90.03.345 are each amended to read as follows:

WATER RESERVATIONS. The establishment of reservations of water for agriculture, hydroelectric energy, municipal, industrial, and other beneficial uses under RCW 90.54.050(1) or minimum flows or levels under RCW 90.22.010 or 90.54.040 shall constitute appropriations within the meaning of this chapter with priority dates as of the effective dates of their establishment. Whenever an application for a permit to make beneficial use of public waters embodied in a reservation, established after the effective date of this act, is filed with the department of ecology after the effective date of such reservation, the priority date for a permit issued pursuant to an approval by the department of ecology of the application shall be the effective date of the reservation.

Any application for a reservation of water to be used in part or in whole by a public water system, as defined in RCW 70.116.030(3), shall be a participant in a coordinated water supply system plan. The department may condition the acceptance of an application for a water reservation upon the participation of the applicant in a coordinated water supply system plan.

NEW SECTION. Sec. 61. A new section is added to chapter 84.33 RCW to read as follows:

TIMBER CONVERSION WAITING PERIOD. When the owner of any land designated as forest land under RCW 84.33.120(4) or 84.33.130 requests removal of the land from the forest tax designation the county assessor shall notify the appropriate county officials. The county shall not issue any permit, where the issuance of the permit would result in a change in land use on the parcel nor shall the county accept any application for a permit to change the land use on the parcel for a period of ten years following the date upon which application was made to remove the land from forest land classification. In no case will the change in land use be permitted if the new land use is not consistent with the county comprehensive plan.

The provisions of this section shall be in addition to all provisions of this chapter.

NEW SECTION. Sec. 62. A new section is added to chapter 84.34 RCW to read as follows:

TIMBER CONVERSION WAITING PERIOD. When the owner of any land designated as current use classification under this chapter requests removal of the land from the current use classification the county assessor shall notify the appropriate county officials. The county shall not issue any permit, where the issuance of the permit would result in a change in land use nor shall the county accept any application for a permit to change the land use on the parcel for a period of ten years following the date upon which application was made to remove the land from current use classification. In no case will the change in land use be permitted if the new land use is not consistent with the county comprehensive plan.

The provisions of this section shall be in addition to all provisions of this chapter.

NEW SECTION. Sec. 63. A new section is added to chapter 84.28 RCW to read as follows:

TIMBER CONVERSION WAITING PERIOD. When the owner of any land designated as reforestation lands under this chapter requests removal of the land from the reforestation land classification the county assessor shall notify the appropriate county officials. The county shall not issue any permit, where the issuance of the permit would result in a change in land use nor shall the county accept any application for a permit to change the land use on the parcel for a period of ten years following the date upon which application was made to remove the land from reforestation land classification. In no case will the change in land use be permitted if the new land use is not consistent with the county comprehensive plan.

The provisions of this section shall be in addition to all provisions of this chapter.

NEW SECTION. Sec. 64. A new section is added to chapter 35.63 RCW to read as follows:

RESOURCE LAND. When the owner of any land described as agricultural or forestry use in the comprehensive plan of the local jurisdiction requests removal of the land from the agricultural or forestry use the local jurisdiction shall not issue any permit, where the issuance of the permit would result in a change in land use nor shall the local jurisdiction accept any application for a permit to change the land use on the parcel for a period of ten years following the date upon which application was made to remove the land from agricultural or forestry land use.

NEW SECTION. Sec. 65. A new section is added to chapter 36.70 RCW to read as follows:

RESOURCE LAND. When the owner of any land described as agricultural or forestry use in the county comprehensive plan requests removal of the land from the agricultural or forestry use the county shall not issue any permit, where the issuance of the permit would result in a change in land use nor shall the county accept any application for a permit to change the land use on the parcel for a period of ten years following the date upon which application was made to remove the land from agricultural or forestry land use.

Sec. 66. Section 1, chapter 104, Laws of 1987 and RCW 19.27.095 are each amended to read as follows:

PROOF OF WATER RIGHT. (1) A valid and fully complete building permit application for a structure, that is permitted under the zoning or other land use control ordinances in effect on the date of the application shall be considered under the building permit ordinance in effect at the time of application, and the zoning or other land use control ordinances in effect on the date of application.

(2) The requirements for a fully completed application shall be defined by local ordinance.

(3) The limitations imposed by this section shall not restrict conditions imposed under chapter 43.21C RCW.

(4) Each applicant for a building permit shall provide evidence of a water source for the building. Evidence may be in the form of a water right certificate from the department of ecology, a letter from the water purveyor stating the ability to provide water, or another form adequate to verify the existence of a valid water source. An application for a water right shall not be adequate proof of a valid water source.

PART V

ENCOURAGING ECONOMIC GROWTH STATE-WIDE

NEW SECTION. Sec. 67. INTENT--RURAL ECONOMIC DEVELOPMENT. The legislature finds that the Puget Sound region is experiencing economic prosperity and the challenges associated with rapid growth; much of the rest of the state is not experiencing economic prosperity, and faces challenges associated with slow economic growth. It is the intent of the legislature to encourage economic prosperity and balanced economic growth throughout the state.

In order to accomplish this goal, growth must be managed more effectively in the Puget Sound region, and rural areas must build local capacity to accommodate additional economic activity in their communities. Where possible, rural economies should be linked with prosperous urban economies to share economic growth for the benefit of both these areas and the state.

Sec. 68. Section 1, chapter 417, Laws of 1989 (uncodified) is amended to read as follows:

MARKETPLACE--IDENTIFY NEW MARKETS. The legislature finds and declares that substantial benefits in increased employment and business activity can be obtained by assisting businesses in identifying opportunities to purchase the goods and services they need from ((~~in-state~~)) Washington suppliers rather than from out-of-state suppliers and in identifying new markets for which Washington businesses can provide goods and services. The replacement of out-of-state imports with services and manufactured goods produced in-state can be an important source of economic growth in a local community especially in rural areas. Businesses in the state are often unaware that goods and services they purchase from out-of-state suppliers are available from in-state firms with substantial advantages in responsiveness, service, and price. Increasing the economic partnerships between businesses in Washington state can build bridges between urban and rural communities and can result in the identification of additional opportunities for successful economic development initiatives. Providing additional information to businesses regarding in-state sources of goods and services can be a particularly valuable component of revitalization strategies in economically distressed areas. The legislature finds and declares that it is the policy of the state to strengthen the economies of local communities by increasing the economic partnerships between in-state businesses and creating programs to assist businesses in identifying in-state sources of goods and services, and in addition to identify new markets for Washington firms to provide goods and services.

Sec. 69. Section 3, chapter 417, Laws of 1989 and RCW 43.31.524 are each amended to read as follows:

MARKETPLACE. There is established a Washington marketplace program within the business assistance center established under RCW 43.31.083. The program shall assist ((~~Washington~~)) businesses to competitively meet their needs for goods and services within Washington by providing information relating to the replacement of out-of-state imports or the fulfillment of new requirements for goods or services with ((~~in-state~~)) Washington products. The program shall place special emphasis on strengthening rural economies in ((~~economically distressed~~)) eligible areas of the state as defined in RCW 82.60.020(3). The Washington marketplace program shall consult with the community revitalization team established pursuant to chapter 43.165 RCW.

Sec. 70. Section 4, chapter 417, Laws of 1989 and RCW 43.31.526 are each amended to read as follows:

MARKETPLACE--ESTABLISH URBAN-RURAL LINKS. (1) The department shall contract with local nonprofit organizations in at least ((~~four economically distressed~~)) three eligible areas of the state, as defined in RCW 82.60.020(3), to implement the Washington marketplace program in these areas. The department, in order to foster cooperation and linkages between distressed and nondistressed areas and urban and rural areas, may enter into joint contracts with multiple nonprofit organizations. ((Each joint contract must include at least one nonprofit organization that is located in a distressed area. No joint contract may include more than one nonprofit organization located in an urban location.)) In contracting with local nonprofit organizations, the department shall:

(a) Award contracts based on a competitive bidding process, pursuant to chapter 43.19 RCW;

(b) Give preference to nonprofit organizations representing a broad spectrum of community support; ((~~and~~))

(c) Ensure that each location contain sufficient business activity to permit effective program operation and contribute at least twenty percent local funding; and

(d) Require that rural marketplace programs, assisted by the department when possible, seek to establish links with urban businesses.

(2) The contracts with local nonprofit organizations shall ((~~be for~~)) include but not be limited to the performance of the following services for the Washington marketplace program:

(a) Contacting Washington businesses to identify goods and services they are currently buying or are planning in the future to buy out-of-state and determine which of these goods and services could be purchased on competitive terms within the state;

(b) Identifying locally sold goods and services which are currently provided by out-of-state businesses;

(c) Determining, in consultation with local business, goods and services for which the business is willing to make contract agreements;

(d) Advertising market opportunities described in (c) of this subsection; ((~~and~~)) or

(e) Receiving bid responses from potential suppliers and sending them to that business for final selection.

(3) Contracts may include provisions for charging service fees of businesses that profit as a result of participation in the program.

(4) The center shall also perform the following activities in order to promote the goals of the program:

(a) Prepare promotional materials or conduct seminars to inform communities and organizations about the Washington marketplace program;

(b) Provide technical assistance to communities and organizations interested in developing an import replacement program;

(d) Provide continuing management and technical assistance to local contractors; and

(e) Report by December 31 of each year to the senate economic development and labor committee and to the house of representatives trade and economic development committee describing the activities of the Washington marketplace program.

Sec. 71. Section 1, chapter 20, Laws of 1983 1st ex. sess. as amended by section 1, chapter 231, Laws of 1985 and RCW 43.210.010 are each amended to read as follows:

EXPORT ASSISTANCE CENTER--ENCOURAGE URBAN-RURAL LINKS. The legislature finds:

(1) The exporting of goods and services from Washington to international markets is an important economic stimulus to the growth, development, and stability of the state's businesses in both urban and rural areas, and that these economic activities create needed jobs for Washingtonians.

(2) Impediments to the entry of many small and medium-sized businesses into export markets have restricted growth in exports from the state.

(3) Particularly significant impediments for many small and medium-sized businesses are the lack of easily accessible information about export opportunities and financing alternatives.

(4) There is a need for a small business export finance assistance center which will specialize in providing export assistance to small and medium-sized businesses throughout the state in acquiring information about export opportunities and financial alternatives for exporting.

Sec. 72. Section 2, chapter 20, Laws of 1983 1st ex. sess. as amended by section 2, chapter 231, Laws of 1985 and RCW 43.210.020 are each amended to read as follows:

EXPORT ASSISTANCE CENTER--ENCOURAGE URBAN-RURAL LINKS. A nonprofit corporation, to be known as the small business export finance assistance center, and branches subject to its authority, may be formed under chapter 24.03 RCW for the following public purposes:

(1) To assist small and medium-sized businesses in both urban and rural areas in the financing of export transactions.

(2) To provide, singly or in conjunction with other organizations, information and assistance to these businesses about export opportunities and financing alternatives.

(3) To provide information to and assist those businesses interested in exporting products, including the opportunities available to them in organizing export trading companies under the United States export trading company act of 1982, for the purpose of increasing their comparative sales volume and ability to export their products to foreign markets.

Sec. 73. Section 1, chapter 466, Laws of 1985 and RCW 43.31.005 are each amended to read as follows:

DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT--ENCOURAGE GROWTH STATE-WIDE. The legislature of the state of Washington finds that economic development is an essential public purpose which requires the active involvement of state government. The state's primary economic strategy is to encourage the retention and expansion of existing businesses, to attract new businesses and industries, ((~~and~~)) to foster the formation of new businesses, and to economically link rural communities with urban areas. In order to aid the citizens of Washington to obtain desirable employment and achieve adequate incomes, it is necessary for the state to encourage balanced growth and economic prosperity and to promote a more diversified and healthy economy throughout the state.

The legislature finds that the state needs to improve its level of employment, business activity, and revenue growth. In order to increase job opportunities and revenues, a broader and more stable economic base is needed. The state shall take primary responsibility to encourage the balanced growth of the economy consistent with the preservation of Washington's quality of life and environment. A healthy economy can be achieved through partnership efforts with the private sector to facilitate increased investment in Washington. It is the policy of the state of Washington to encourage and promote an economic development program that provides sufficient employment opportunities for our current resident work force and those individuals who will enter the state's work force in the future.

The legislature finds that the state of Washington has the potential to become a major world trade gateway. In order for Washington to fulfill its potential and compete successfully with other states and provinces, it must articulate a consistent, long-term trade policy. It is the responsibility of the state to monitor and ensure that such traditional functions of state government as transportation, infrastructure, education, taxation, regulation and public expenditures contribute to the international trade focus the state of Washington must develop.

Sec. 74. Section 4, chapter 466, Laws of 1985 and RCW 43.31.035 are each amended to read as follows:

DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT--ENCOURAGE GROWTH STATE-WIDE. The department shall pursue a coordinated approach for the state's economic development policies and programs to achieve a more diversified and healthy economy. The department shall support and work cooperatively with other state agencies, public and private organizations, and units of local government, as well as the federal government, to strengthen and coordinate economic development programs ((in)) throughout the state. The department's activities shall include, but not be limited to:

(1) Providing economic development advisory assistance to the governor, other state agencies, and the legislature on economic-related issues, and other matters affecting the economic well-being of the state and all its citizens.

(2) Providing staff and support to cabinet level interagency economic development coordinating activities.

(3) Representing and monitoring the state's interests with the federal government in its formulation of policies and programs in economic development.

(4) Assisting in the development and implementation of a long-term economic strategy for the state that encourages a balance in economic growth between urban and rural areas and that stimulates economic development in areas not experiencing problems associated with rapid growth, and assisting the continual update of information and strategies contained in the long-term economic program for the state.

Sec. 75. Section 5, chapter 125, Laws of 1984 as amended by section 137, chapter 266, Laws of 1986 and RCW 43.63A.065 are each amended to read as follows:

DEPARTMENT OF COMMUNITY DEVELOPMENT--PRIORITIZE BASED ON NEED. The department shall have the following functions and responsibilities:

(1) Cooperate with and provide technical and financial assistance to the local governments and to the local agencies serving the communities of the state for the purpose of aiding and encouraging orderly, productive, and coordinated development of the state, and, unless stipulated otherwise, give priority to local communities with the greatest relative need and the fewest resources.

(2) Administer state and federal grants and programs which are assigned to the department by the governor or the legislature.

(3) Administer community services programs through private, nonprofit organizations and units of general purpose local government; these programs are directed to the poor and infirm and include community-based efforts to foster self-sufficiency and self-reliance, energy assistance programs, head start, and weatherization.

(4) Study issues affecting the structure, operation, and financing of local government as well as those state activities which involve relations with local government and report the results and recommendations to the governor, legislature, local government, and citizens of the state.

(5) Assist the governor in coordinating the activities of state agencies which have an impact on local governments and communities.

(6) Provide technical assistance to the governor and the legislature on community development policies for the state.

(7) Assist in the production, development, rehabilitation, and operation of owner-occupied or rental housing for low and moderate income persons, and qualify as a participating state agency for all programs of the Department of Housing and Urban Development or its successor.

(8) Support and coordinate local efforts to promote volunteer activities throughout the state.

(9) Participate with other states or subdivisions thereof in interstate programs and assist cities, counties, municipal corporations, governmental conferences or councils, and regional planning commissions to participate with other states or their subdivisions.

(10) Hold public hearings and meetings to carry out the purposes of this chapter.

(11) Provide a comprehensive state-level focus for state fire protection services, funding, and policy.

(12) Administer a program to identify, evaluate, and protect properties which reflect outstanding elements of the state's cultural heritage.

(13) Coordinate a comprehensive state program for mitigating, preparing for, responding to, and recovering from emergencies and disasters.

NEW SECTION. Sec. 76. A new section is added to chapter 43.31 RCW to read as follows:

ASSOCIATE DEVELOPMENT ORGANIZATION NETWORK FORMALIZED. (1) There is established in the department the local economic development service program. This program shall coordinate the delivery of economic development services to local communities or regional areas. It shall encourage a partnership between the public and private sectors and between state and local officials to encourage appropriate economic growth in communities throughout the state.

(2) The department's local economic development service program shall promote local economic development by assisting businesses to start-up, maintain, or expand their operations, by encouraging public infrastructure investment and private capital investment in local communities, and by expanding employment opportunities.

(3) The department's local economic development service program shall, among other things, (a) contract with local economic development nonprofit corporations, called "associate development organizations," for the delivery of economic development services to local communities or regional areas; (b) enter into interagency agreements with appropriate state agencies, such as the department of community development, the department of agriculture, and the employment security department, to coordinate the delivery of economic development services to local communities or regional areas; (c) enter into agreements with other public organizations or institutions that provide economic development services, such as the small business development center, the washington technology center, community colleges, vocational-technical institutes, the University of Washington, Washington State University, four-year colleges and universities, the federal small business administration, ports, and others, to coordinate the delivery of economic development services to local communities and regional areas; and (d) provide training, through contracts with public or private organizations, and other assistance to associate development organizations to the extent resources allow.

(4) It is the intent of the legislature that the associate development organizations coordinate, through local service agreements or other methods, the delivery of all available economic development services in their areas that are provided by public and private organizations, including state agencies.

(5) The legislature encourages local associate development organizations to form partnerships with other associate development organizations in their region to combine resources for better access to available services, to encourage regional delivery of state services, and to more effectively build the local capacity of communities in the region.

(6) It is the intent of the legislature that state agencies and other public and private organizations enter into agreements with the department or associate development organizations to enhance the delivery of economic development services to local communities.

NEW SECTION. Sec. 77. A new section is added to chapter 43.63A RCW to read as follows:

ADDITIONAL STAFF FOR RURAL COMMUNITIES. (1) The department, subject to available resources, shall contract with the local economic development service program and selected regional or local associate development organizations to provide two staff persons, one each in two different rural areas, to provide financing and rural revitalization services to that rural area. Both staff persons shall be located in the rural area.

(2) The department, in consultation with the local economic development service program, shall select these two rural areas pursuant to subsection (1) of this section. Criteria the department shall use to make the two selections shall include but not be limited to: (a) The current level of service being provided by the department regarding its community finance, development loan fund, and community revitalization programs; (b) the additional staff time that will be made available to other areas of the state for the department's finance and revitalization programs; (c) the benefit to the local community; and (d) the provision of at least one-third of the cost of the staff person by the local or regional associate development organization. The department shall give priority, when other factors are similar, to joint proposals by two or more associate development organizations.

NEW SECTION. Sec. 78. A new section is added to chapter 43.31 RCW to read as follows:

THE SERVICE DELIVERY TASK FORCE AND URBAN-RURAL SUBCOMMITTEE CREATED. The service delivery task force is established. The purpose of the task force is to review the current system for delivering economic development services in Washington and to make recommendations for improving the effectiveness of state economic development services, especially in rural areas.

(1) The task force shall consider existing studies and reports in its analysis, and shall seek input from the key persons or organizations delivering and receiving state economic development services. These key organizations include: (a) The University of Washington and Washington State University, (b) ports, (c) community colleges, (d) vocational-technical institutes, (e) the small business administration, (f) the Washington technology center, (g) nonprofit community action organizations, (h) local businesses and chambers of commerce.

(2) The recommendations shall consider, but not be limited to, the following: (a) What should be the structure for delivering state economic development services? and (b) What performance standards should be developed to evaluate the state programs and service delivery?

(3) The task force shall consist of: (a) Four legislators, one from each major caucus in the house of representatives appointed by the speaker of the house and one from each major caucus in the senate appointed by the president of the senate; (b) a representative of the governor; (c) a representative from each of the following departments: (i) The department of trade and economic development, (ii) the department of community development, (iii) the department of agriculture, and (iv) the employment security department; (d) four representatives of local governments, two appointed by the association of cities with one from east of the Cascades, and two appointed by the association of Washington counties, with one from east of the Cascades; (e) four representatives of associate development organizations, appointed by the chair of the associate development organization state council; (f) two representatives of small businesses appointed by the governor; and (g) one representative each from the Northwest policy center at the University of Washington and the public policy institute at The Evergreen State College appointed by their directors.

(4) The task force shall form a subcommittee to make recommendations regarding how urban-rural links can be established to enhance rural economic development.

(5) Staff services for the task force shall be jointly provided by the department of trade and economic development and the department of community development.

(6) The governor shall appoint the chair of the task force.

(7) Task force members may be reimbursed as provided by RCW 43.03.050 and 43.03.060.

(8) The task force may create subcommittees and may invite nonmembers of the task force to participate in the subcommittees.

(9) The task force shall report on its findings and make its recommendations to the house of representatives trade and economic development committee, the senate economic development and labor committee, and the governor by November 1, 1990.

NEW SECTION. Sec. 79. A new section is added to chapter 43.31 RCW to read as follows:

GRANT PROGRAM--ENCOURAGE VALUE-ADDED PRODUCTS AND INDUSTRY MODERNIZATION THROUGH BUSINESS NETWORKS. (1) The business assistance center shall administer a grant program to encourage more value-added manufacturing in Washington state. The business assistance center shall award grants on a competitive basis, and when funds are available, to local organizations or individuals to provide industry modernization services in targeted sectors or to form business networks or consortia in targeted sectors.

(2) To receive a grant under subsection (1) of this section, the applicant must demonstrate significant private sector interest from businesses in the targeted sector and must designate a field agent to coordinate the targeted sector effort. The field agent must be, among other things, experienced in organizing business networks or business assistance projects and familiar with businesses in the targeted sector.

(3) The department may accept public and private funds to provide grants under subsection (1) of this section.

(4) The department's efforts under this section shall be coordinated with any department activities under RCW 43.31.434, 43.31.436, or 43.31.438.

NEW SECTION. Sec. 80. A new section is added to chapter 43.31 RCW to read as follows:

IMPROVE STATE PERMIT PROCESS. (1) It is the intent of the legislature that state agencies process requests for permits in a timely and efficient manner, one that balances the need of the organization requesting the permit with the public policy the permit is designed to protect. It is also the intent of the legislature that state agencies coordinate with the business assistance center to accomplish this goal.

(2) The business assistance center shall assist businesses or local governments with the processing of permits that relate to economic development and are required by law to be issued by state agencies; state agencies shall assist the business assistance center to accomplish the purposes of this section consistent with subsection (4) of this section. The business assistance center may enter into interagency contracts with state agencies responsible for issuing permits to develop a process that is coordinated and service oriented. A dispute resolution process should be part of the state permit process.

(3) The business assistance center may make recommendations to the governor or the legislature regarding enhancing the processing of permits by state government.

(4) Nothing in this section is intended to weaken state laws or their effectiveness; the purpose of this section is to improve the administration of requests for state permits that are required by state law.

Sec. 81. Section 12, chapter 446, Laws of 1985 as last amended by section 3, chapter 93, Laws of 1988 and RCW 43.155.070 are each amended to read as follows:

PUBLIC WORKS ASSISTANCE FUND--CONSIDER BENEFITS TO COMMUNITY. (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 long-term plan for financing public works needs; 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) The board shall 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 shall attempt to assure a geographical balance in assigning priorities to projects. The board shall 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) Whether the project is critical in nature and would affect the health and safety of a great number of citizens;

(d) The number of communities served by or funding the project;

(e) Whether the project is located in an area of high unemployment, compared to the average state unemployment; ((~~and~~))

(f) 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

(g) Other criteria that the board considers advisable.

(3) Existing debt or financial obligations of local governments shall not be refinanced under this chapter. Each local government applicant shall 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.

(4) Before November 1 of each year, the board shall develop and submit to the chairs of the ways and means committees of the senate and house of representatives a description of the emergency loans made under RCW 43.155.065 during the preceding fiscal year and a prioritized list of projects which are recommended for funding by the legislature, including one copy to the staff of each of the committees. The list shall 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 shall 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.

(5) The board shall 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 shall not change the order of the priorities recommended for funding by the board.

(6) Subsections (4) and (5) of this section do not apply to loans made for emergency public works projects under RCW 43.155.065.

Sec. 82. Section 6, chapter 40, Laws of 1982 1st ex. sess. as last amended by section 62, chapter 431, Laws of 1989 and RCW 43.160.060 are each amended to read as follows:

COMMUNITY ECONOMIC REVITALIZATION BOARD--CONSIDER BENEFITS TO RURAL COMMUNITY. The board is authorized to make direct loans to political subdivisions of the state for the purposes of assisting the political subdivisions in financing the cost of public facilities, including development of land and improvements for public facilities, as well as the acquisition, construction, rehabilitation, alteration, expansion, or improvement of the facilities. A grant may also be authorized for purposes designated in this chapter, but only when, and to the extent that, a loan is not reasonably possible, given the limited resources of the political subdivision.

Application for funds shall be made in the form and manner as the board may prescribe. In making grants or loans the board shall conform to the following requirements:

(1) The board shall not make a grant or loan:

(a) For a project the primary purpose of which is to facilitate or promote a retail shopping development or expansion.

(b) For any project that probably would result in a development or expansion that would displace existing jobs in any other community in the state.

(2) The board shall only make grants or loans:

(a) For those projects which would result in specific private developments or expansions (i) in manufacturing, production, food processing, assembly, warehousing, and industrial distribution; (ii) for processing recyclable materials or for facilities that support recycling, including processes not currently provided in the state, including but not limited to, de-inking facilities, mixed waste paper, plastics, yard waste, and problem-waste processing; (iii) for manufacturing facilities that rely significantly on recyclable materials, including but not limited to waste tires and mixed waste paper; or (iv) which substantially support the trading of goods or services outside of the state's borders.

(b) For projects which it finds will improve the opportunities for the successful maintenance, establishment, or expansion of industrial or commercial plants or will otherwise assist in the creation or retention of long-term economic opportunities.

(c) When the application includes convincing evidence that a specific private development or expansion is ready to occur and will occur only if the grant or loan is made.

(3) The board shall prioritize each proposed project according to the relative benefits provided to the community by the jobs the project would create, not just the total number of jobs it would create after the project is completed and according to the unemployment rate in the area in which the jobs would be located. As long as there is more demand for loans or grants than there are funds available for loans or grants, the board is instructed to fund projects in order of their priority.

(4) A responsible official of the political subdivision shall be present during board deliberations and provide information that the board requests.

Before any loan or grant application is approved, the political subdivision seeking the loan or grant must demonstrate to the community economic revitalization board that no other timely source of funding is available to it at costs reasonably similar to financing available from the community economic revitalization board.

Sec. 83. Section 5, chapter 164, Laws of 1985 as last amended by section 9, chapter 430, Laws of 1989 and RCW 43.168.050 are each amended to read as follows:

DEVELOPMENT LOAN FUND COMMITTEE--CONSIDER BENEFITS TO RURAL COMMUNITY. (1) The committee may only approve an application providing a loan for a project which the committee finds:

(a) Will result in the creation of employment opportunities or the maintenance of threatened employment;

(b) Has been approved by the director as conforming to federal rules and regulations governing the spending of federal community development block grant funds;

(c) Will be of public benefit and for a public purpose, and that the benefits, including increased or maintained employment, improved standard of living, and the employment of disadvantaged workers, will primarily accrue to residents of the area;

(d) Will probably be successful;

(e) Would probably not be completed without the loan because other capital or financing at feasible terms is unavailable or the return on investment is inadequate.

(2) The committee shall, subject to federal block grant criteria, give higher priority to economic development projects that contain provisions for child care.

(3) The committee may not approve an application if it fails to provide for adequate reporting or disclosure of financial data to the committee. The committee may require an annual or other periodic audit of the project books.

(4) The committee may require that the project be managed in whole or in part by a local development organization and may prescribe a management fee to be paid to such organization by the recipient of the loan or grant.

(5) (a) Except as provided in (b) of this subsection, the committee shall not approve any application which would result in a loan or grant in excess of three hundred fifty thousand dollars.

(b) The committee may approve an application which results in a loan or grant of up to seven hundred thousand dollars if the application has been approved by the director.

(6) The committee shall fix the terms and rates pertaining to its loans.

(7) Should there be more demand for loans than funds available for lending, the committee shall provide loans for those projects which will lead to the greatest amount of employment or benefit to a community. In determining the "greatest amount of employment or benefit" the committee shall also consider the employment which would be saved by its loan and the benefit relative to the community, not just the total number of new jobs or jobs saved.

(8) To the extent permitted under federal law the committee shall require applicants to provide for the transfer of all payments of principal and interest on loans to the Washington state development loan fund created under this chapter. Under circumstances where the federal law does not permit the committee to require such transfer, the committee shall give priority to applications where the applicants on their own volition make commitments to provide for the transfer.

(9) The committee shall not approve any application to finance or help finance a shopping mall.

(10) The committee shall make at least eighty percent of the appropriated funds available to projects located in distressed areas, and may make up to twenty percent available to projects located in areas not designated as distressed. The committee shall not make funds available to projects located in areas not designated as distressed if the fund's net worth is less than seven million one hundred thousand dollars.

(11) If an objection is raised to a project on the basis of unfair business competition, the committee shall evaluate the potential impact of a project on similar businesses located in the local market area. A grant may be denied by the committee if a project is not likely to result in a net increase in employment within a local market area.

NEW SECTION. Sec. 84. A new section is added to chapter 43.63A RCW to read as follows:

GRANT PROGRAM--IMPROVE RURAL ECONOMIES. (1) The department shall administer a grant program which makes grants to the local nonprofit organizations for rural economic development. The grants shall be used to: (a) Build urban-rural links; (b) develop local capacity for economic growth; or (c) improve the export of products or services from rural areas to locations outside the United States.

(2) The department shall use existing advisory councils and the service delivery task force and urban-rural link subcommittee created under section 78 of this act in administering the grant program created under subsection (1) of this section.

(3) The department may enact rules to carry out this section.

PART VI

APPROPRIATIONS

NEW SECTION. Sec. 85. APPROPRIATION--GENERAL FUND. (1) Twelve million two hundred fifty thousand dollars, or as much thereof as may be necessary, is appropriated from the general fund to the department of community development, for the biennium ending June 30, 1991, to implement this act.

(2) The appropriation in this section is subject to the following limitations:

(a) No more than one million dollars may be used to provide technical assistance and mediation services to counties and cities under section 22 of this act;

(b) No more than ten million dollars may be used to make grants to counties and cities under section 22(3) of this act;

(d) No more than one million dollars may be used for rural economic development as follows: (i) Up to one hundred fifty thousand dollars for the marketplace program under RCW 43.31.524 and 43.31.526; (ii) up to one hundred thousand dollars for training for associate development organizations under section 76(3)(d) of this act; (iii) up to fifty thousand dollars for the local economic development service program under section 76 of this act; (iv) up to fifty thousand dollars for the service delivery task force and urban-links subcommittee under section 78 of this act; (v) up to one hundred thousand dollars for grants for business networks and industry modernization under section 79 of this act; (vi) up to fifty thousand dollars for the purposes of section 77 of this act; and (vii) up to five hundred thousand dollars for grants to improve rural economies under section 84 of this act.

NEW SECTION. Sec. 86. APPROPRIATION--MOTOR VEHICLE FUND. One million seven hundred thousand dollars, or as much thereof as may be necessary, is appropriated from the motor vehicle fund to the department of transportation, for the biennium ending June 30, 1991, for regional transportation planning under sections 40 through 45 of this act.

PART VII

MISCELLANEOUS

NEW SECTION. Sec. 87. REPEALER. The following acts or parts of acts are each repealed:

(1) Section 35A.63.061, chapter 119, Laws of 1967 ex. sess., section 2, chapter 253, Laws of 1984, section 2, chapter 126, Laws of 1985 and RCW 35A.63.061;

(2) Section 35A.63.062, chapter 119, Laws of 1967 ex. sess., section 7, chapter 170, Laws of 1979 ex. sess. and RCW 35A.63.062;

(3) Section 36.70.330, chapter 4, Laws of 1963, section 3, chapter 253, Laws of 1984, section 3, chapter 126, Laws of 1985 and RCW 36.70.330;

(4) Section 36.70.350, chapter 4, Laws of 1963, section 10, chapter 170, Laws of 1979 ex. sess. and RCW 36.70.350;

(5) Section 2, chapter 104, Laws of 1987 and RCW 58.17.033;

(6) Section 6, chapter 271, Laws of 1969 ex. sess., section 3, chapter 134, Laws of 1974 ex. sess., section 1, chapter 92, Laws of 1987, section 5, chapter 354, Laws of 1987, section 2, chapter 330, Laws of 1989 and RCW 58.17.060;

(7) Section 12, chapter 134, Laws of 1974 ex. sess. and RCW 58.17.065;

(8) Section 1, chapter 233, Laws of 1986 and RCW 58.17.095;

(9) Section 1, chapter 47, Laws of 1984 and RCW 58.17.155; and

(10) Section 1, chapter 104, Laws of 1987 and RCW 19.27.095.

NEW SECTION. Sec. 88. SEVERABILITY CLAUSE. 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. 89. INFORMATIONAL MATERIALS NOT PART OF LAW. Part headings, section headings, and the index as used in this act do not constitute any part of the law.

NEW SECTION. Sec. 90. EFFECTIVE DATES. (1) Sections 5 and 20 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.

(2) Section 48 of this act shall take effect July 1, 1990.

(3) Sections 61 through 63 of this act shall take effect January 1, 1992.