AN ACT Relating to wetlands protection and management; amending RCW 35.13.010; adding a new chapter to Title 90 RCW; adding a new section to chapter 76.09 RCW; creating a new section; and prescribing penalties.

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

NEW SECTION. Sec. 1. PURPOSE AND INTENT. (1) It is the intent of this chapter to preserve, protect, manage, and regulate wetlands for the purposes of promoting public health, safety, and general welfare, while: (a) Conserving fish, wildlife, and other natural resources of the state; (b) protecting the ecological and economic benefits to the public of wetlands functions and values; (c) regulating property use and development while maintaining the natural and economic benefits provided by wetlands, consistent with the general welfare of the state; (d) protecting private property rights; (e) providing private landowners an opportunity, within a regulated environment, to manage and develop their property for economic benefit; (f) providing for the systematic review of activities in and around wetlands so that the public benefits of wetlands are considered and protected; (g) creating a wetlands protection and management program on a cooperative basis between the state and local governments; and (h) avoiding the duplication of permit approvals through integrated regulatory procedures.

(2) It is the short-term goal of the state of Washington to achieve no overall net loss of the remaining wetlands base, defined by acreage and function. The goal does not imply that individual wetlands will in every instance be untouchable or that the overall no-net-loss goal can be achieved solely on an individual permit basis, only that the overall wetlands base reach equilibrium between losses and gains in the short term.

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

(1) "Department" means the department of ecology.

(2) "Director" means the director of the department of ecology.

(3) "Existing and ongoing agriculture" includes those activities conducted on lands defined in RCW 84.34.020(2), private upland fin fish hatching and rearing facilities, and those activities involved in the production of crops, livestock, or commercially reared fish, for example, the operation and maintenance of farm, stock and commercial upland fish ponds or drainage ditches, operation and maintenance of ditches, intake and discharge systems, irrigation systems including irrigation diversions, laterals, canals, or irrigation drainage ditches, changes between agricultural activities, and normal maintenance, repair, or operation of existing serviceable structures, facilities, dikes, or improved areas. Activities which bring a wetland into agricultural use are not part of an ongoing operation. An operation ceases to be ongoing when the area on which it is conducted is proposed for conversion to a nonagricultural use or has lain idle for more than seven years, unless the idle land is registered in a federal or state soils conservation program, or unless the activity is maintenance of irrigation ditches, laterals, canals, or drainage ditches related to an existing and ongoing agricultural activity. Forest practices are not included in this definition.

(4) "Local government" means any county, city, or town that contains within its boundaries any regulated wetland subject to the provisions of this chapter.

(5) "Person" means an individual, partnership, corporation, association, organization, cooperative, public or municipal corporation, or agency of the state, local, or other governmental unit.

(6) "Regulated wetland" means ponds twenty acres or less, including their submerged aquatic beds, and those areas that are covered by shallow water at least ten months of the year and support a prevalence of vegetation typically adapted for life in soils covered by shallow waters. Regulated wetlands do not include those areas that are subject to the shoreline management act, nor do they include those artificial wetlands intentionally created from nonwetland sites. These include, but are not limited to, irrigation and drainage ditches, grass-lined swales, canals, detention facilities, wastewater treatment facilities, farm ponds, and landscape amenities. Wetlands created as mitigation and wetlands modified for approved land use activities shall be considered as regulated wetlands.

(7) "Wetlands permit" is any permit issued by local government to administer the provisions of this chapter.

(8) "Wetlands program" means a program adopted by a local government and approved by the department to protect and manage regulated wetlands.

(9) "Wetlands standards" means those standards defined in this chapter or adopted by the department by rule or by local governments in their wetlands programs pursuant to this chapter.

(10) "Wetlands of state-wide significance" means those regulated wetlands determined by rule of the department that have characteristics of exceptional resource value which should be afforded the highest levels of protection.

NEW SECTION. Sec. 3. ELEMENTS OF A WETLANDS PROGRAM‑-ADOPTION OF WETLANDS PROGRAMS. (1) A wetlands program sufficient to meet the requirements of this chapter shall include:

(a) An inventory for all regulated wetlands, as funding permits;

(b) Specific regulations governing the activities listed in section 4(1) of this act when they occur in a regulated wetland;

(d) A program for administering the permits required under section 4 of this act;

(e) New or amended provisions, where necessary, of local plans, programs, and ordinances;

(f) Provisions relating to enforcement;

(g) A mitigation plan and standards consistent with the requirements of this chapter and rules adopted under this chapter;

(h) A mitigation policy that requires persons undertaking development of upland areas to pay the increased costs including cleaning ditches and canals, draining wetlands created by the run-off caused by development of upland areas, and pumping the additional water from adjacent farmlands that are in an agricultural preservation area as designated by a county;

(i) Any wetlands impact assessment process established under section 9(3) of this act regarding water use efficiency improvements, if appropriate;

(j) A description and location of facilities approved, constructed, or managed for storm water management which utilize regulated wetlands;

(k) An element for monitoring and considering cumulative effects of wetlands alteration from proposed projects; and

(l) An element that requires wetlands owned by or under the management control of state agencies to control noxious weeds identified under RCW 17.10.080.

(2) Local governments shall consider provisions designed to encourage voluntary compliance by landowners including, but not limited to, offsetting or compensatory incentives such as permitting greater density in the adjoining uplands, transferring development rights to other uplands, and/or reduced assessed valuations for property taxes on property in their wetlands program.

(3) The department shall develop and adopt rules for local wetlands programs, and procedures for program implementation and permit review.

(4) Except as provided in section 11(2) of this act, every local government shall prepare a proposed program and submit it to the department according to the following schedule:

(a) All counties bordering Puget Sound and cities and towns within such counties no later than July 1, 1992;

(b) All other counties, cities, and towns no later than July 1, 1993.

(5) Before submission of a proposed program, a local government shall hold public hearings on the proposal.

(6) Local governments that have wetlands programs or equivalent programs in effect by the effective date of this act, or during the period preceding the dates specified in subsection (4) of this section, that substantially comply with the intent, policies, standards, and provisions of this chapter, including the general permit provisions of section 4 of this act, and that are at least as stringent in wetlands protection as this chapter, are deemed in compliance with this chapter and shall be so certified unless the department makes a determination otherwise pursuant to subsection (7) of this section.

(7) Local governments shall submit wetlands programs in effect by the effective date of this act, or those adopted during the period preceding the dates specified in subsection (4) of this section, to the department for certification that the programs substantially comply with the intent, policies, and standards of this chapter and with rules adopted by the department. Local government programs shall be at least as stringent in wetlands protection as this chapter.

(a) The department shall approve or deny approval of the program or provide specific modifications that must be made in order for the program to be approved within ninety days after receipt of the submittal by the local government.

(b) After certification, major and minor amendments to existing programs shall comply with the provisions of subsection (10) of this section.

(8) After adoption of rules by the department, and within ninety days after receipt of a proposed program from a local government, including those programs certified under subsections (6) and (7) of this section, the department shall approve the proposal or notify the local government as to specific modifications that must be made in order for the proposal to be approved. The department's approval shall be based on the program's compliance with the intent, policies, and standards of this chapter and the rules adopted by the department.

(9) Following the department's approval of a proposed program, the local government shall adopt and implement the program.

(10) The department shall adopt rules specifying major and minor program amendments. Major amendments shall be submitted to and acted upon by the department in the same manner as the original program. Notice of minor amendments shall be submitted to the department following local government adoption.

(11) A wetlands management program developed after the dates specified in subsection (4) of this section shall be effective only after approval by the department and subsequent adoption by local government. Local government shall inform the department of the effective date of the program.

(12) Wetlands management rules developed and adopted by the department as criteria for program implementation and permit review for local governments shall govern while local plans are being developed or in the absence of local programs.

NEW SECTION. Sec. 4. WETLANDS PERMITS‑-APPROVED LOCAL PERMITS‑-STANDARDS FOR ISSUANCE‑-NOTICE‑-DEPARTMENT REVIEW. (1) Except as provided in section 5 of this act, a permit shall be obtained from the appropriate local government prior to undertaking the following activities in a regulated wetland:

(a) The removal, excavation, grading, or dredging of soil, sand, gravel, minerals, organic matter, or material of any kind;

(b) The dumping, discharging, or filling with any material;

(d) The driving of pilings;

(e) The placing of obstructions;

(f) The construction, reconstruction, demolition, or expansion of any structure;

(g) The destruction or alteration of wetlands vegetation through clearing, harvesting, shading, intentional burning, or planting of vegetation that would alter the character of a regulated wetland, provided that these activities are not part of a forest practice regulated under section 5 of this act or undertaken to control noxious weeds identified pursuant to RCW 17.10.080;

(h) Activities that result in the introduction of pollutants or a significant change of chemical characteristics of wetlands water sources.

(2) Local governments, consistent with rules of the department, shall designate in their wetlands programs, activities, if any, not requiring a permit under subsection (1) of this section where the activities are minor, including activities of a temporary nature or ongoing uses, and have minimal adverse impacts on regulated wetlands.

(3) Local governments shall establish a program, consistent with rules adopted by the department, for the administration and enforcement of the permit system provided in this section, which shall be included in the wetlands program required by section 3 of this act. Local governments are authorized to incorporate the permit system into existing local government permit systems to avoid duplicate permitting, where the existing permit system is made consistent with the requirements of this chapter.

(4) A permit shall only be granted if the permit, as conditioned, is consistent with the provisions of a local wetlands program.

(5)(a) Local government shall provide notice of applications to the public for wetlands permits pursuant to rules developed by the department and shall use to the extent practical existing permit notification procedures. Notification procedures shall be specified in local programs.

(b) The department shall, by rule, specify procedures for notification of permit applications and time limits for comment by the department for permits related to wetlands of state-wide significance. No permit shall be issued under this subsection prior to receipt of such comments or the expiration of the time period set by rule.

(6) Wetlands permits shall not be effective and no activity thereunder shall be allowed during the time provided to file a permit appeal.

(7) Upon receipt of a complete application for a permit authorizing activities on a wetland of state-wide significance, local governments shall submit the application to the department for its approval or disapproval. The department shall submit its decision and the reasons for the decision within the times established pursuant to rules adopted under subsection (5)(b) of this section.

(8) Notwithstanding the provisions of subsection (1) of this section, a forest practice regulated by chapter 76.09 RCW occurring on lands not being converted to a nonforest use or platted since 1960 or otherwise exempt from local permits is not subject to this section.

NEW SECTION. Sec. 5. (1) Activities described in this section and conducted in compliance with this section may be undertaken without obtaining a permit under section 4 of this act. Except as provided in this section, local governments shall not require wetlands permits or otherwise impose conditions under this chapter on the following activities.

(2) The person conducting the activity shall be required to provide prior notification to the appropriate local government except for activities described in subsection (3) (a), (b), (d), (m), and (n) of this section.

(3) The following activities are governed by this section:

(a) Existing and ongoing agriculture as defined in section 2 of this act. Best management practices as developed by conservation districts shall be encouraged;

(b) Water use efficiency improvements related to existing and ongoing agriculture, provided such improvements are subject to the wetlands impact assessment process developed by the department according to section 9(3) of this act and adopted by local government according to section 3(1)(i) of this act;

(c) Water use efficiency improvements related to existing and ongoing agriculture undertaken to increase supplies in response to prorated water allocations or as a result of a water rights adjudication;

(d) Forest practices as regulated and conducted in accordance with the provisions of chapter 76.09 RCW and forest practice regulations;

(e) Activities to control mosquitoes conducted by public agencies;

(f) Existing and ongoing private upland fin fish facilities;

(g) Activities affecting wetlands where the wetland is up to one-half acre;

(h) Maintenance, operation, and reconstruction of existing private and public roads, streets, railroads, utilities, and associated structures, and serviceable freshwater and marine terminals that are part of an existing and ongoing public port facility. The department shall provide by rule, notification requirements for such activities that may have adverse impacts to adjacent regulated wetlands. Reconstruction of an existing serviceable structure associated with the roads, streets, railroads, utilities, or freshwater and marine public port terminals, shall be allowed if the reconstruction does not increase the ground floor area, unless the local government with wetlands jurisdiction determines that there is an alternate suitable location within the land parcel that would result in less impact to wetlands. Reconstruction of freshwater and marine public port terminals shall be commenced within five years of damage or destruction;

(i) Maintenance or reconstruction of residential structures, commercial structures, or structures related to existing and ongoing agricultural practices as defined in section 2 of this act, under the following conditions:

(i) Reconstruction shall be commenced within five years of the damage or destruction;

(ii) Notification shall be required for reconstruction;

(iii) Reconstruction shall not increase the ground floor area and shall be limited to the existing site. Local government with wetlands jurisdiction may request an alternative location within the land parcel that would result in less adverse impacts to regulated wetlands;

(j) Storm water management facilities approved, constructed, or managed for storm water management prior to the effective date of this act;

(k) Surface coal mining activities licensed under Public Law 95-87 as of the effective date of this act, for so long as these lands are covered by the permit issued pursuant to Public Law 95-87;

(l) Ongoing and future mining operations. Best management practices and operating plan submittals as required by the department of natural resources and nonpoint source water quality protection provisions as developed by the department shall be followed;

(m) Activities and construction necessary on an emergency basis to prevent an immediate threat to public health and safety, or public or private property. Notification as soon as practical to the local government shall be required; and

(n) Activities of a temporary nature, or activities which represent ongoing uses having minimal adverse impact to regulated wetlands, described in local wetlands programs pursuant to rules adopted by the department.

(4) Provisions of this section shall not apply to any activity conducted for the purpose of conversion of a regulated wetland to a use to which it was not previously subjected.

NEW SECTION. Sec. 6. MITIGATION. (1) For activities subject to the permit requirement pursuant to section 4 of this act all adverse impacts to wetlands functions, values, and acreage shall be mitigated.

(2) Mitigation, in the descending order of preference, is as follows:

(a) Avoiding the impact altogether by not taking a certain action or part of an action;

(b) Minimizing impacts by limiting the degree or magnitude of the action and its implementation, by using appropriate technology, or by taking affirmative steps to avoid or reduce impacts;

(d) Reducing or eliminating the impact over time by preservation and maintenance operations during the life of the action;

(e) Compensating for the impact by replacing, enhancing, or providing substitute wetlands resources or utilizing mitigation banking opportunities provided under subsection (8) of this section if available.

(3) In developing rules for the sequencing of mitigation preferences, the department shall include criteria for avoidance whereby avoidance requirements are most stringent for wetlands of state-wide significance and least stringent for other wetlands. Rules governing mitigation sequencing shall further provide for consideration of public benefit, including those which may derive from the enhancement of wetlands or from water dependent uses.

(4) Prior to local government approval of a proposal which includes less preferred mitigation, the applicant must demonstrate that:

(a) No overall net losses will occur in wetland functions, values, and acreage;

(b) The restored, created, or enhanced wetland will be as persistent as the wetland it replaces;

(c) The project applicant demonstrates sufficient scientific expertise, supervisory capability, and financial resources to carry out the proposal; and

(d) The project applicant agrees to demonstrate the capability for monitoring the site for a period of time adequate to determine its long-term success. (5) Where regulated wetlands are altered, the project applicants shall restore or create equivalent areas of wetlands in order to compensate for wetland losses. Equivalent areas shall be determined according to function, acreage, type, location, time factors, and projected success.

(6) A local government shall require an approved mitigation plan as a condition of issuance of a permit under section 4 of this act for activities in regulated wetlands. Mitigation plans for wetlands of state-wide significance shall require approval of the department.

(7) Each mitigation plan shall provide that:

(a) All identified adverse impacts are mitigated;

(b) Monitoring of mitigation be performed for a period adequate to determine its long-term success;

(d) The permittee is financially responsible for additional mitigation action should any element of the mitigation plan fail;

(e) Mitigation shall be implemented concurrently with the regulated activity under the permit, except that local governments may establish performance standards and require mitigation be completed no later than the date upon which the regulated activity may proceed under the permit, if the likelihood of success is substantially doubtful. Financial assurance may be in the form of a bond or other acceptable forms of security.

(8) Any person may participate in wetlands mitigation banking by proposing to create wetlands to compensate for wetlands impacts. A proposal for a wetlands bank creation project shall be submitted for department and local government approval. If approved by the department and the local government, the mitigating wetlands created may upon application by the proponent and concurrence of the owner of the created wetland be counted as mitigation for on-site or off-site wetlands impacts.

(9) Local governments shall not require additional mitigation pursuant to other authorities for impacts to regulated wetlands functions and values when mitigation is required pursuant to this section to minimize those impacts.

(10) This section does not apply to construction, reconstruction, or maintenance of single-family residences on lots platted by the effective date of this act on wetlands one-half acre or less in size.

(11) The department shall adopt rules to implement this section.

NEW SECTION. Sec. 7. ENFORCEMENT‑-CIVIL PENALTY‑-ADMINISTRATIVE ORDERS‑-ACTIONS FOR DAMAGES AND RESTORATION. (1) The department and local governments are authorized to bring appropriate actions at law or equity, including actions for injunctive relief, to ensure that no uses are made of regulated wetlands which are inconsistent with the requirements of this chapter, the rules of the department, or an applicable wetlands program.

(2) Any person who undertakes any activity within a regulated wetland without first obtaining a permit required by this chapter, or any person who violates the conditions of any permit required by this chapter or of any order issued pursuant to subsection (3) of this section shall incur a civil penalty of up to one thousand dollars per violation. In the case of a continuing violation, each permit violation and each day of activity without a required permit shall be a separate and distinct violation. The penalty amount shall be set in consideration of the previous history of the violator and the severity of the environmental impact of the violation. The penalty provided in this subsection by the department shall be imposed pursuant to the procedures set forth in RCW 43.21B.300, except as provided in section 8 of this act. The penalty provided in this subsection and imposed by local government shall be appealable to the superior court within the subject jurisdiction.

(3) Whenever any person violates this chapter or any permit issued thereunder, the department or local government may issue an order reasonably appropriate to cease such violation and to mitigate any environmental damage resulting therefrom. Orders issued pursuant to this subsection by the department may be appealed pursuant to section 8 of this act. Orders issued pursuant to this subsection by local governments may be appealed as provided for by local ordinance or as otherwise allowed by law or as provided in section 8(2) of this act.

(4) The shorelines hearings board shall conduct the reviews authorized by this section as adjudicatory proceedings pursuant to chapter 34.05 RCW. Judicial review of the decisions of the shorelines hearings board shall be pursuant to chapter 34.05 RCW.

(5) Any person subject to the jurisdiction of this chapter who violates any provision of this chapter or a permit issued pursuant thereto shall be liable for all damage to public or private property arising from such violation, including the cost of restoring the affected area to its condition prior to violation. The attorney general or local government attorney shall bring suit for damages under this section on behalf of the state or local governments. Private persons shall have the right to bring suit for damages under this section on their own behalf and on behalf of all persons similarly situated. If liability has been established for the cost of restoring an area affected by a violation, the court shall make provision to assure that restoration will be accomplished within a reasonable time at the expense of the violator. In addition to such relief, including monetary damages, the court in its discretion may award attorneys' fees and costs of the suit to the prevailing party.

NEW SECTION. Sec. 8. APPEALS TO THE SHORELINES HEARINGS BOARD‑-STAY PENDING APPEAL‑-JUDICIAL REVIEW. (1) Any person aggrieved by the issuance, denial, or recision of a wetlands permit governing activity on a wetland of state-wide significance may appeal the same within thirty days to the shorelines hearings board.

(2) Any person aggrieved by the issuance, denial, or recision of any wetlands permit who wishes to appeal to the shorelines hearings board and believes their appeal raises programmatic issues may, within thirty days after exhaustion of local appeals, file a request with the department to certify their appeal to the shorelines hearings board. The department shall rule upon any such request within thirty days of receipt. If the department determines, in its discretion, that the appeal raises programmatic issues it shall certify the case to the shorelines hearings board, which shall take jurisdiction over the appeal. If the department fails to certify, or denies certification, then the time period to otherwise appeal the permit decision begins to run on the date of the department's action, or thirty days after filing the request, whichever is sooner.

(3) Activities authorized by permits appealed to the shorelines hearings board are stayed and may not be undertaken until thirty days from the final order of the shorelines hearings board, affirming the permit, unless the appellant by written stipulation agrees to an earlier lifting of the stay.

(4) The shorelines hearings board shall conduct the review authorized by this section as an adjudicative proceeding pursuant to chapter 34.05 RCW. The determination of a stay pending review shall be pursuant to RCW 34.05.550.

(5) Except as provided in subsections (1) and (2) of this section, appeal of wetland permits at the local level shall be governed by the law otherwise applicable to appeal of local permits used to administer this chapter.

NEW SECTION. Sec. 9. DUTIES, RESPONSIBILITIES, AND POWERS OF THE DEPARTMENT. The department shall have authority to:

(1) Adopt rules for the development and adoption of local wetlands programs, mitigation, wetlands standards, notification procedures, wetlands program implementation and permit review process for local governments to serve in the absence of adopted local programs, criteria for designating location and extent of regulated wetlands, and such other rules as are necessary to carry out the provisions of this chapter. Rules shall be adopted by July 1, 1991. Prior to adopting rules under this subsection, the department shall consult with local governments, agencies with expertise, and affected Indian tribes, and shall provide for adequate public involvement;

(2) Approve, periodically review, require modifications to wetlands programs and major program amendments, and take appropriate actions to ensure compliance with wetlands standards;

(3) Develop a wetlands impact assessment process in conjunction with the demonstration conservation plan required by RCW 90.54.190 to balance the public policies of wetlands protection and water use efficiency to be implemented consistent with chapter 90.03 RCW with input from representatives of water users, members of the public, local governments, tribal governments, and the departments of agriculture, fisheries, and wildlife for adoption into local wetlands programs, where applicable, to assist in local decision making regarding water use efficiency improvements and wetlands protection. Before adopting the impact assessment process, the department shall provide a written report to the legislature on how the process will comply with state water law;

(4) Provide technical assistance to local governments and other affected parties;

(5) Develop a model wetlands ordinance for assistance to local governments by July 1, 1991;

(6) Provide local governments and the public with information on wetlands functions and values, protection, and management;

(7) Accept grants, contributions, and appropriations from any person for the purposes of this chapter;

(8) Cooperate with other persons, including nonprofit organizations, private property owners, federal, state, and local agencies and Indian tribes in protecting and managing wetlands and planning wetlands interpretative sites;

(9) Appoint advisory committees to assist in carrying out the purposes of this chapter; and

(10) Contract for professional or technical services.

NEW SECTION. Sec. 10. REVIEW BY ECOLOGICAL COMMISSION NOT REQUIRED. The department is not required to seek review or advice and guidance from the ecological commission with respect to the adoption of any local wetlands programs and program amendments.

NEW SECTION. Sec. 11. DUTIES AND RESPONSIBILITIES OF LOCAL GOVERNMENTS. (1) Each local government shall:

(a) Develop, adopt, administer, and enforce wetlands programs including wetlands permits, mitigation, and permit appeals;

(b) Participate, as funding permits, in the preparation and verification, jointly with the department, of an inventory of regulated wetlands within its jurisdiction using inventory standards developed by the department; and

(c) Designate a lead or co-lead agency to administer the provisions of this chapter with respect to regulated wetlands that are within the jurisdiction of two or more local governments.

(2) In carrying out the responsibilities of this section, incorporated cities and towns within a county may enter into an interlocal agreement with the county in which they are located for developing and administering wetlands programs. Where cities have entered into an interlocal agreement with a county for the purpose of developing and administering wetlands programs and where the applicable county has elected to institute a conservation futures tax pursuant to RCW 84.34.230, proceeds derived from the conservation futures tax shall be utilized for wetlands acquisition according to a priority acquisition list agreed to by all participants.

NEW SECTION. Sec. 12. NONREGULATORY ELEMENTS. (1) The county assessor shall adjust the assessed valuation of property to take into consideration the change in land value that results from the restrictions imposed by this chapter.

(2) The department shall convene a committee consisting of local governments, resource agencies, Indian tribes, and affected private groups, to examine nonregulatory methods pursuant to section 15(2) of this act.

(3) The department shall work with the departments of wildlife and natural resources and interested private and public parties to identify financial support for wetlands program development activities, inventorying, managing, and wetlands acquisition.

(4) The departments of wildlife and natural resources may accept grants, contributions, and appropriations from nonprofit organizations, and from federal, state, and local agencies for acquisition of converted lands or low category wetlands.

NEW SECTION. Sec. 13. A new section is added to chapter 76.09 RCW to read as follows:

Within twenty-four months after the effective date of this act, the forest practices board and the department of ecology shall jointly adopt forest practices rules to accomplish the purposes and intent of sections 1 through 11 of this act. The forest practices board shall submit to appropriate committees of the house of representatives and senate, status reports every six months on the progress of developing rules to implement this chapter.

The department of natural resources may impose conditions to protect wetlands functions and values and wetlands buffers from adverse effects of forest practices until the effective date of such rules and thereafter to the extent provided in such rules.

Sec. 14. Section 35.13.010, chapter 7, Laws of 1965 and RCW 35.13.010 are each amended to read as follows:

Any portion of a county not incorporated as part of a city or town but lying contiguous thereto may become a part of the city or town by annexation: PROVIDED, That property owned by a county, and used for the purpose of an agricultural fair as provided in chapter 15.76 RCW or chapter 36.37 RCW shall not be subject to annexation without the consent of the majority of the board of county commissioners. Farm and agricultural land in counties with an agricultural land preservation plan adopted by the county council or board of county commissioners, which includes a map or other clear description of such farm and agricultural lands being preserved by the county under the plan, shall not be subject to annexation if they contain wetlands or are contiguous to wetlands. An area proposed to be annexed to a city or town shall be deemed contiguous thereto even though separated by water or tide or shore lands on which no bona fide residence is maintained by any person.

NEW SECTION. Sec. 15. The department shall:

(1) Within twelve months after the effective date of this act, report to the legislature on the progress made in developing the wetlands impacts assessment process required by RCW 90.54.190 according to section 9(3) of this act;

(2) Convene a committee consisting of local governments, resource agencies, Indian tribes, affected private groups, and at least two representatives of private property owners from each side of the Cascade mountains, to:

(a) Conduct a study as to effects, desirability, and compatibility of applying this chapter to the wetlands currently regulated under the shoreline management act, except for first class tidelands. This study shall look in depth at the following issues: Single permit requirement, uniform and consistent standards, clear appeal process, consistency in application and procedure, and uses that are not required to obtain a permit;

(b) Examine nonregulatory methods including but not limited to preservation, conservation easements, restoration, tax incentives, technical assistance, regional planning, education, low-cost, low-impact interpretive sites, and to develop opportunities and processes for shared responsibility between the state and the private sector for restoring and creating wetlands including mitigation banking to meet the goals of this chapter;

(d) Determine funding needs and explore funding sources for nonregulatory wetlands protection methods; and

(e) Report to the legislature by December 15, 1990, on the recommendations and funding needs regarding (a) of this subsection and of the nonregulatory methods report.

NEW SECTION. Sec. 16. SHORT TITLE. This chapter shall be known and cited as the wetlands management act of 1990.

NEW SECTION. Sec. 17. (1) From the appropriation made to the department for the implementation of this chapter, funds shall be allocated to local governments for the costs of developing their wetlands programs and for conducting inventories, provided that a local government may agree to supplement such funds by the utilization of the local government's own resources for these purposes.

(2) Failure to provide these moneys shall result in an extension in the deadline for program development established in section 3(4) of this act.

NEW SECTION. Sec. 18. 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. 19. CAPTIONS. Captions as used in this act do not constitute any part of the law.

NEW SECTION. Sec. 20. Sections 1 through 12 and 16 through 19 of this act shall constitute a new chapter in Title 90 RCW.