AN ACT Relating to local government service agreements; adding a new chapter to Title 36 RCW; adding a new section to chapter 36.93 RCW; adding new sections to chapter 43.63A RCW; adding a new section to chapter 46.68 RCW; adding a new section to chapter 66.08 RCW; adding new sections to chapter 82.14 RCW; adding a new section to chapter 82.44 RCW; creating a new section; making an appropriation; and providing a contingent effective date.

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

NEW SECTION. Sec. 1. The purpose of this act is to partially implement the provisions of Article XI, section 17 (HJR ...), of the Washington state Constitution, by establishing a process by which local government service agreements can be established between local governments to determine which local governments should provide what services and facilities within specified geographic areas.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "City" means any city or town, including any city operating under Title 35A RCW.

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

(3) "Governmental service" includes any service provided by government, and any facilities and equipment related to the provision of such services, including utility services, health services, social services, law enforcement services, fire prevention and suppression services, community development activities, environmental protection activities, economic development activities, and transportation services and facilities, but shall not include the generation or distribution of electrical energy nor maritime shipping activities.

(4) "Local government" means any county, city, or special district.

(5) "Local government service agreements" means agreements between local governments established pursuant to this chapter.

(6) "Special district" means any municipal or quasi-municipal corporation in the state, other than a county, city, or school district.

NEW SECTION. Sec. 3. (1) Local government service agreements concerning one or more governmental service may be established for a designated geographic area as provided in this section. A local governmental service agreement shall have a term of ten or fewer years, and may be extended at the end of the term in the same manner by which such an agreement is established.

(2) A local government service agreement must describe: (a) The governmental service or services addressed by the agreement; (b) the geographic area covered by the agreement; (c) which local government or local governments are to provide the governmental services addressed by the agreement within the geographic area covered by the agreement; and (d) the term of the agreement.

(3) A local government service agreement becomes effective when approved by: (a) The county legislative authority of each county that includes territory located within the geographic area covered by the agreement; (b) the governing body or bodies of at least a simple majority of the total number of cities that includes territory located within the geographic area covered by the agreement, which cities or towns include at least seventy-five percent of the total population of all cities that includes territory located within the geographic area covered by the agreement; and (c) the governing body or bodies of at least a majority of the special districts that include territory located within the geographic area covered by the agreement and which provide one or more of the governmental services addressed in the local government service agreement within such territory. A copy of each local government service agreement must be submitted to the department within thirty days of its final approval.

(4) A local government service agreement may cover a geographic area that includes territory located in more than a single county.

NEW SECTION. Sec. 4. A local government service agreement may include, but is not limited to, any or all of the following matters:

(1) A dispute resolution arrangement, including use of mediation services made available by the department pursuant to section 10 of this act, that can be used to resolve disputes over any identified subject matters.

(2) How joint land-use planning and zoning controls by the county and a city or cities, or by two or more cities, may be established, made binding, and enforced.

(3) How common development standards between the county and a city or cities, or between two or more cities, may be established, made binding, and enforced.

(4) How capital improvement plans of the county, cities, and special districts shall be coordinated.

(5) A transfer of revenues between local governments in relationship to their obligations for providing governmental services. Such transfers of revenue may include, but not be limited to: (a) Tax-base sharing; (b) reallocating the distribution of state collected tax receipts that are distributed to the county and cities within the county pursuant to RCW 46.68.100 through 46.68.124, 66.08.200, 66.08.210, and 82.44.150; (c) reallocating the sales tax equalization receipts provided for in RCW 82.14.200 and 82.14.210 for which the county and cities within the county are eligible; (d) altering or eliminating the percentage of a city's sales and use tax receipts that are distributed to the county pursuant to RCW 82.14.030(2); and (e) altering the rate of a city sales and use tax that is imposed under RCW 82.14.030(1), not to exceed a rate of five-tenths of one percent.

(6) The establishment of urban area definitions to include all areas that are urban or designated to become urban, and which should be eventually located within a city or cities.

(7) The designation of additional area-wide governmental services to be provided by the county.

NEW SECTION. Sec. 5. The county legislative authority of every county with a population of one hundred thousand or more shall convene a meeting on or before March 1, 1990, to consider the establishment of local government service agreements. Invitations to attend this meeting shall be sent to the governing body of each city located in the county, and to the governing body of each special district located in the county that provides one or more of the governmental services as defined in section 2(3) of this act.

On or before January 1, 1992, at least one local government service agreement must be in effect in each county with a population of one hundred thousand or more or the county legislative authority must submit an explanation to the department detailing why a local government service agreement was not made.

NEW SECTION. Sec. 6. It is the intent of the legislature to permit the creation of a flexible process to establish local government service agreements and that local governments possess broad authority to shape a variety of local government service agreements to meet their local needs and local circumstances. However, it is noted that in general, cities are the unit of local government most appropriate to provide urban services, counties are the unit of local government most appropriate to provide area-wide services, and some special districts are the units of local government most appropriate to provide those services transitionally required by a growing population and not otherwise available from counties or cities in a given area.

The process to establish local government service agreements should assure that all directly affected local governments, and Indian tribes at their option, are allowed to be heard on issues relevant to them.

NEW SECTION. Sec. 7. A new section is added to chapter 36.93 RCW to read as follows:

A boundary review board in a county shall be abolished if all of the following occur:

(1) The director of community development certifies that a local government service agreement has been adopted formally for the county that is in conformance with the requirements of chapter 36.-- RCW (sections 1 through 6 of this act) that includes a dispute resolution arrangement adequate to resolve disputes over matters within the purview of a boundary review board; and

(2) Resolutions providing for the dissolution of the boundary review board have been adopted by the county legislative authority and the governing body or bodies of the city or cities that constitute at least fifty percent of the population of the county residing within cities.

A boundary review board that is so dissolved shall retain jurisdiction over any matter over which it has taken jurisdiction prior to the adoption of these resolutions and the certification by the director of community development.

NEW SECTION. Sec. 8. A new section is added to chapter 43.63A RCW to read as follows:

The department shall make grants from the moneys appropriated for such purpose to assist in the development of local government service agreements. Such grants shall be made to a county for this purpose only if the director certifies that any agreement addresses services within the included area on a comprehensive basis.

The department shall make rules concerning such grants pursuant to chapter 34.05 RCW.

NEW SECTION. Sec. 9. A new section is added to chapter 43.63A RCW to read as follows:

The department shall design, and make available to local governments, a financial methodology or methodologies to assist local governments in assessing the need for, and the appropriate extent of, financial adjustments between local governments that arise from implementing local government service agreements or from annexations or incorporations of areas by cities.

NEW SECTION. Sec. 10. A new section is added to chapter 43.63A RCW to read as follows:

The department shall develop the capacity for and provide mediation services to local governments participating in the local government service agreement process, which may include a hearings officer, to resolve disputes between local governments arising over any matters addressed in a local government service agreement.

NEW SECTION. Sec. 11. A new section is added to chapter 43.63A RCW to read as follows:

The department may undertake one or more demonstration projects with cities, counties, and special districts to carry out the purposes of chapter 36.-- RCW (sections 1 through 6 of this act). If one or more demonstration projects are to be undertaken, preference shall be given based upon the percentage of local government matching contributions on a per capita basis.

NEW SECTION. Sec. 12. A new section is added to chapter 46.68 RCW to read as follows:

Any funds that are distributed to counties, cities, or towns pursuant to this chapter may be transferred by the recipient county, city, or town to another unit of local government pursuant to a local government service agreement as provided in sections 3 and 4 of this act.

NEW SECTION. Sec. 13. A new section is added to chapter 66.08 RCW to read as follows:

NEW SECTION. Sec. 14. A new section is added to chapter 82.14 RCW to read as follows:

The rate of sales and use tax imposed by a city under RCW 82.14.030(1) may be altered not to exceed a rate of five-tenths of one percent of the selling price, in the case of a sales tax, or value, in the case of a use tax, pursuant to a local government service agreement as provided in sections 3 and 4 of this act.

NEW SECTION. Sec. 15. A new section is added to chapter 82.14 RCW to read as follows:

The percentage of a city's sales and use tax receipts that a county receives under RCW 82.14.030(2) may be altered or eliminated pursuant to a local government service agreement as provided in sections 3 and 4 of this act.

NEW SECTION. Sec. 16. A new section is added to chapter 82.14 RCW to read as follows:

Any funds that are distributed to counties or cities pursuant to RCW 82.14.200 or 82.14.210 may be transferred by the recipient county or city to another unit of local government pursuant to a local government service agreement as provided in sections 3 and 4 of this act.

NEW SECTION. Sec. 17. A new section is added to chapter 82.44 RCW to read as follows:

Any funds that are distributed to cities or towns pursuant to RCW 82.44.150 may be transferred by the recipient city or town to another unit of local government pursuant to a local government service agreement as provided in sections 3 and 4 of this act.

NEW SECTION. Sec. 18. (1) The sum of .......... dollars, or so 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 the provisions of this act, including the provisions of grants under section 8 of this act.

(2) If no funds are appropriated to the department for grants under provisions of section 8 of this act, the provisions of section 5 of this act requiring initiation or completion of a local government service agreement in counties with a population of one hundred thousand or more shall become voluntary at the discretion of the local governments included within such counties.

NEW SECTION. Sec. 19. This act shall take effect on the same date as the proposed amendment to Article XI of the state Constitution takes effect authorizing the legislature to establish processes by which citizens and local officials can alter their local governments, if the proposed amendment is validly submitted and is approved and ratified by the voters of the state at a general election held in November 1989. If this proposed constitutional amendment is not so approved and ratified, this act shall be null and void in its entirety.

NEW SECTION. Sec. 20. Sections 1 through 6 of this act shall constitute a new chapter in Title 36 RCW.