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SIXTY-SIXTH DAY

__________


MORNING SESSION


__________


House Chamber, Olympia, Wednesday, March 15, 1995


             The House was called to order at 9:00 a.m. by the Speaker (Representative Horn presiding). The Clerk called the roll and a quorum was present.


             The flag was escorted to the rostrum by a Sergeant at Arms Color Guard, Pages Jake Tomlin and Aaron Mostofi. Prayer was offered by Pastor Galen Olsen, Vancouver Hillcrest Church of the Nazarene.


             Reading of the Journal of the previous day was dispensed with and it was ordered to stand approved.


             There being no objection, the House advanced to the third order of business.


MESSAGE FROM THE SENATE


March 14, 1995


Mr. Speaker:


             The Senate has passed:


ENGROSSED SENATE BILL NO. 5070,

SECOND SUBSTITUTE SENATE BILL NO. 5088,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5201,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5503,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5607,

SENATE BILL NO. 5882,


and the same are herewith transmitted.


Marty Brown, Secretary

             There being no objection, the House advanced to the fourth order of business.


INTRODUCTIONS AND FIRST READING

 

ESB 5070         by Senators Haugen, Winsley, Drew, Sheldon and Fraser

 

Requiring a study of the impact of the growth management act on property values.

 

Referred to Committee on Government Operations.

 

2SSB 5088        by Senate Committee on Ways & Means (originally sponsored by Senator Smith)

 

Revising the law relating to sexual predators.

 

Referred to Committee on Corrections.

 

ESSB 5201       by Senate Committee on Ways & Means (originally sponsored by Senators Bauer, Cantu, McAuliffe, Haugen, Winsley, Snyder, Loveland, Sheldon, Fairley, West, Long, Palmer, Schow, Moyer, Sellar, Rasmussen, Deccio, Heavey, Quigley, C. Anderson, Oke, Roach and Hale; by request of Governor Lowry)

 

Providing tax exemptions for manufacturing and processing.

 

Referred to Committee on Trade & Economic Development.

 

ESSB 5503       by Senate Committee on Financial Institutions & Housing (originally sponsored by Senators Prentice, Deccio, Pelz, Sellar and Fraser)

 

Streamlining temporary worker housing safety and health regulations.

 

Referred to Committee on Trade & Economic Development.

 

ESSB 5607       by Senate Committee on Ways & Means (originally sponsored by Senators Gaspard, Cantu, Haugen, Prentice, Wood, Snyder, Long, A. Anderson, Deccio, Kohl, Wojahn, Oke, Rasmussen and Winsley; by request of State Auditor)

 

Auditing state government.

 

Referred to Committee on Government Operations.

 

SB 5882            by Senators Haugen, Moyer, Loveland and Deccio

 

Concerning the disposal of surplus property by a governmental entity.

 

Referred to Committee on Government Operations.


             There being no objection, the bills listed on today's introduction sheet under the fourth order of business were referred to the committees so designated.


             There being no objection, the House advanced to the sixth order of business.


SECOND READING


             HOUSE BILL NO. 1447, by Representatives Lisk, Romero, Fuhrman and Horn

 

Changing certain local government gambling taxes.


             The bill was read the second time. There being no objection, Substitute House Bill No. 1447 was substituted for House Bill No. 1447 and the substitute bill was placed on second reading.


             Substitute House Bill No. 1447 was read the second time.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representative Lisk spoke in favor of passage of the bill.


             Representatives Conway and Romero spoke against passage of the bill.


MOTION


             On motion of Representative Brown, Representatives Patterson, G. Fisher, Kessler and Chopp were excused.


POINT OF INQUIRY


             Representative Morris yielded to a question by Representative Lisk:


             Representative Lisk: Under current law is there anything that would prohibit the cities and counties from lowering their taxes anyway under current law?


             Representative Morris: I'm not sure what the answer is to that but I would assume that anyone could lower taxes if they want to.


             Representative Lisk again spoke in favor of passage of the bill.


             The Speaker stated the question before the House to be final passage of Substitute House Bill No. 1447.


ROLL CALL


             The Clerk called the roll on the final passage of Substitute House Bill No. 1447, and the bill passed the House by the following vote: Yeas - 62, Nays - 31, Absent - 2, Excused - 3.

             Voting yea: Representatives Ballasiotes, Basich, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Chandler, Chappell, Clements, Cody, Cooke, Crouse, Dyer, Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lisk, Mastin, McMahan, McMorris, Mielke, Mulliken, Ogden, Poulsen, Quall, Radcliff, Reams, Romero, Schmidt, D., Schmidt, K., Schoesler, Sehlin, Sheahan, Sheldon, Sherstad, Skinner, Smith, Stevens, Thomas, B., Thompson, Van Luven, Wolfe and Mr. Speaker - 62.

             Voting nay: Representatives Appelwick, Backlund, Beeksma, Casada, Cole, Conway, Dellwo, Delvin, Dickerson, Ebersole, Elliot, Fisher, R., Hickel, Lambert, Mason, Mitchell, Morris, Padden, Pelesky, Pennington, Regala, Robertson, Rust, Scott, Sommers, Talcott, Thibaudeau, Thomas, L., Tokuda, Valle and Veloria - 31.

             Absent: Representatives Costa and Silver - 2.

             Excused: Representatives Chopp, Fisher, G. and Patterson - 3.


             Substitute House Bill No. 1447, having received the constitutional majority, was declared passed.


             There being no objection, the House resumed consideration of Substitute House Bill No. 1724.


             With the consent of the House, amendment numbers 352, 351, 383 and 403 to Substitute House Bill No. 1724 were withdrawn.


             Representative Reams moved adoption of the following amendment by Representative Reams:


             Strike everything after the enacting clause and insert the following:


             NEW SECTION. Sec. 1. The legislature recognizes by this act that the growth management act is a fundamental building block of regulatory reform. The state and local governments have invested considerable resources in an act that should serve as the integrating framework for all other land-use related laws. The growth management act provides the means to effectively combine certainty for development decisions, reasonable environmental protection, long-range planning for cost-effective infrastructure, and orderly growth and development.


PART I - PLANNING AND ENVIRONMENTAL REVIEW


             NEW SECTION. Sec. 101. In reviewing a development permit application and making permit decisions, a county or city planning under RCW 36.70A.040 shall rely on its development regulations and comprehensive plan to determine permitted land uses, including conditional and special uses, allowable densities, system improvements related to the proposal if the comprehensive plan and development regulations provide for funding of these improvements, and other matters. During the project review the county or city shall not reexamine alternatives to or hear appeals on these matters, except for code interpretation.

             A proposed project's consistency with development regulations shall be determined by the county or city considering the type of land use, the level of development, infrastructure, including public facilities and public services needed to serve the development, and the character of development, such as design and development standards. Determination of a project's consistency does not require documentation or use of any specific procedure.

             Specific project design and conditions relating to the character of development, the payment of impact fees, or other measures to mitigate a proposal's probable adverse environmental impacts, if applicable, shall be identified during the project review.

             If the conditions of section 103 of this act are met, the requirements for environmental analysis and mitigation measures in development regulations are presumed to provide adequate mitigation for the specific adverse environmental impacts to which the requirements apply. Permitting agencies shall continue to have the authority to approve, condition, or deny projects as provided in their development regulations and in their policies adopted under RCW 43.21C.060.


             NEW SECTION. Sec. 102. A new section is added to chapter 36.70A RCW to read as follows:

             Project review by a county or city planning under RCW 36.70A.040 shall be used to make individual project decisions, not land use planning decisions. If, during project review, a county or city identifies deficiencies in plans or regulations, the project review shall continue and shall not be used as a comprehensive planning process, but any deficiencies in the comprehensive plan or development regulations shall be noted for consideration during the periodic review of the comprehensive plan and development regulations. Procedures shall include allowing persons to suggest changes in the comprehensive plan and development regulations.

             For purposes of this section, a deficiency in a comprehensive plan or development regulation refers to the absence of required or potentially desirable contents of a comprehensive plan or development regulation. It does not refer to whether a development regulation addresses a project's probable site-specific adverse environmental impacts that the permitting agency could mitigate in the normal project review process.


             NEW SECTION. Sec. 103. A new section is added to chapter 43.21C RCW to read as follows:

             (1) The legislature finds that a wide range of environmental subjects and impacts have been addressed by counties, cities, and towns in comprehensive plans and development regulations adopted under chapter 36.70A RCW, and by the state and federal government in environmental rules and laws. These plans, regulations, rules, and laws often provide environmental analysis and mitigation measures for project actions without the need for an environmental impact statement or further project mitigation. When existing plans, regulations, rules, or laws provide environmental analysis and mitigation measures for the specific adverse environmental impacts of proposed projects, these requirements should be integrated with, and should not be duplicated by, environmental review under this chapter. The legislature reaffirms that a primary role of environmental review under this chapter is to focus on the gaps and overlaps that may exist, taking into account the other laws and requirements. Review of project actions in counties, cities, and towns planning under RCW 36.70A.040 should integrate environmental review with project review and not use this chapter to substitute for other land use planning and environmental requirements.

             A county or city planning under RCW 36.70A.040 shall attempt to prepare an enhanced detailed statement, or enhanced environmental analysis, of its proposed comprehensive plan, subarea plans, and development regulations that is of sufficient detail in addressing impacts and alternatives to allow the detailed statement to be used in whole or in part by applicants for development permits within the geographic area covered by the statement.

             (2) In reviewing a project action, a county, city, or town planning under RCW 36.70A.040 shall presume that requirements for environmental analysis, protection, and mitigation measures in development regulations, comprehensive plans, and other applicable local, state, or federal laws and rules provide adequate analysis of and mitigation for the specific adverse environmental impacts to which the requirements apply, and shall not conduct environmental analysis or impose mitigation under this chapter if the following has occurred:

             (a)(i) The local government has considered the probable adverse environmental impacts of the proposed action and has determined that these impacts are adequately addressed by the development regulations or other applicable requirements of the comprehensive plan, subarea plan element of the comprehensive plan, or other local, state, or federal rules or laws; and

             (ii) The local government has based or conditioned its approval on compliance with these requirements or mitigation measures.

             (b) If the requirements of (a) of this subsection are not satisfied for some or all of the probable adverse environmental impacts of the project action, environmental review under this chapter shall be limited to those impacts and their effect on and relationship with other impacts, if any, consistent with the intent of this section, and shall be subject to the provisions of RCW 43.21C.060.

             (3) For a county, city, or town planning under RCW 36.70A.040, project review shall not require additional environmental analysis or mitigation if the comprehensive plans, subarea plans, or development regulations already address a project̓s probable site-specific adverse environmental impacts, as determined under subsection (2) of this section. If a comprehensive plan, subarea plan, or development regulation adopted pursuant to chapter 36.70A RCW does not address a project̓s probable site-specific adverse environmental impacts, project review shall be integrated with environmental analysis under this chapter.

             (4) The addressing of impacts in a comprehensive plan, subarea plan, or development regulation shall include but not be limited to the adoption or designation of levels of service, land use designations, or development standards.

             (5) In deciding whether a specific adverse environmental impact has been addressed by an existing rule or law of another agency with jurisdiction with environmental expertise with regard to a specific environmental impact, the local government shall consult with that agency and may expressly defer to that agency. In making this deferral, the local government shall base or condition its project approval on compliance with these other existing rules or laws.


             Sec. 104. RCW 43.21C.075 and 1994 c 253 s 4 are each amended to read as follows:

             (1) Because a major purpose of this chapter is to combine environmental considerations with public decisions, any appeal brought under this chapter shall be linked to a specific governmental action. The State Environmental Policy Act provides a basis for challenging whether governmental action is in compliance with the substantive and procedural provisions of this chapter. The State Environmental Policy Act is not intended to create a cause of action unrelated to a specific governmental action.

             (2) Unless otherwise provided by this section:

             (a) Appeals under this chapter shall be of the governmental action together with its accompanying environmental determinations.

             (b) Appeals of environmental determinations made (or lacking) under this chapter shall be commenced within the time required to appeal the governmental action which is subject to environmental review.

             (3) If an agency has a procedure for appeals of agency environmental determinations made under this chapter, such procedure:

             (a) Shall not allow more than one agency appeal proceeding on a procedural determination (the adequacy of a determination of significance/nonsignificance or of a final environmental impact statement)((, consistent with any state statutory requirements for appeals to local legislative bodies)). The appeal proceeding on a determination of significance((/nonsignificance)) may occur before the agency's final decision on a proposed action. Such an appeal shall also be allowed for a determination of significance/nonsignificance which may be issued by the agency after supplemental review;

             (b) Shall consolidate an appeal of procedural issues and of substantive determinations made under this chapter (such as a decision to require particular mitigation measures or to deny a proposal) with a hearing or appeal on the underlying governmental action by providing for a single simultaneous ((appeal of an)) hearing before one hearing officer or body to consider the agency decision on a proposal and any environmental determinations made under this chapter, with the exception of the ((threshold determination)) appeal, if any, of a determination of significance as provided in (a) of this subsection or an appeal to the local legislative authority under RCW 43.21C.060 or other applicable state statutes;

             (c) Shall provide for the preparation of a record for use in any subsequent appeal proceedings, and shall provide for any subsequent appeal proceedings to be conducted on the record, consistent with other applicable law. An adequate record consists of findings and conclusions, testimony under oath, and taped or written transcript. An electronically recorded transcript will suffice for purposes of review under this subsection; and

             (d) Shall provide that procedural determinations made by the responsible official shall be entitled to substantial weight.

             (4) If a person aggrieved by an agency action has the right to judicial appeal and if an agency has an appeal procedure, such person shall, prior to seeking any judicial review, use such agency procedure if any such procedure is available, unless expressly provided otherwise by state statute.

             (5) ((RCW 43.21C.080 establishes an optional "notice of action" procedure which, if used, imposes a time period for appealing decisions under this chapter.)) Some statutes and ordinances contain time periods for challenging governmental actions which are subject to review under this chapter, such as various local land use approvals (the "underlying governmental action"). RCW 43.21C.080 establishes an optional "notice of action" procedure which, if used, imposes a time period for appealing decisions under this chapter. This ((section)) subsection does not modify any such time periods. ((This section governs when a judicial appeal must be brought under this chapter where a "notice of action" is used, and/or where there is another time period which is required by statute or ordinance for challenging the underlying governmental action.)) In this subsection, the term "appeal" refers to a judicial appeal only.

             (a) If there is a time period for appealing the underlying governmental action, appeals under this chapter shall be commenced within ((thirty days)) such time period. The agency shall give official notice stating the date and place for commencing an appeal. ((If there is an agency proceeding under subsection (3) of this section, the appellant shall, prior to commencing a judicial appeal, submit to the responsible official a notice of intent to commence a judicial appeal. This notice of intent shall be given within the time period for commencing a judicial appeal on the underlying governmental action.))

             (b) If there is no time period for appealing the underlying governmental action, and a notice of action under RCW 43.21C.080 ((may be used. If a notice of action)) is used, ((judicial)) appeals shall be commenced within the time period specified by RCW 43.21C.080((, unless there is a time period for appealing the underlying governmental action in which case (a) of this subsection shall apply.

             (c) Notwithstanding RCW 43.21C.080(1), if there is a time period for appealing the underlying governmental action, a notice of action may be published within such time period)).

             (6)(a) Judicial review under subsection (3) of this section of an appeal decision made by an agency under ((RCW 43.21C.075(5))) subsection (3) of this section shall be on the record, consistent with other applicable law.

             (b) A taped or written transcript may be used. If a taped transcript is to be reviewed, a record shall identify the location on the taped transcript of testimony and evidence to be reviewed. Parties are encouraged to designate only those portions of the testimony necessary to present the issues raised on review, but if a party alleges that a finding of fact is not supported by evidence, the party should include in the record all evidence relevant to the disputed finding. Any other party may designate additional portions of the taped transcript relating to issues raised on review. A party may provide a written transcript of portions of the testimony at the party's own expense or apply to that court for an order requiring the party seeking review to pay for additional portions of the written transcript.

             (c) Judicial review under this chapter shall without exception be of the governmental action together with its accompanying environmental determinations.

             (7) Jurisdiction over the review of determinations under this chapter in an appeal before an agency or superior court shall upon consent of the parties be transferred in whole or part to the shorelines hearings board. The shorelines hearings board shall hear the matter and sign the final order expeditiously. The superior court shall certify the final order of the shorelines hearings board and said certified final order may only be appealed to an appellate court. In the case of an appeal under this chapter regarding a project or other matter that is also the subject of an appeal to the shorelines hearings board under chapter 90.58 RCW, the shorelines hearings board shall have sole jurisdiction over both the appeal under this section and the appeal under chapter 90.58 RCW, shall consider them together, and shall issue a final order within one hundred eighty days as provided in RCW 90.58.180.

             (8) For purposes of this section and RCW 43.21C.080, the words "action", "decision", and "determination" mean substantive agency action including any accompanying procedural determinations under this chapter (except where the word "action" means "appeal" in RCW 43.21C.080(2) and (3)). The word "action" in this section and RCW 43.21C.080 does not mean a procedural determination by itself made under this chapter. The word "determination" includes any environmental document required by this chapter and state or local implementing rules. The word "agency" refers to any state or local unit of government. Except as provided in subsection (5) of this section, the word "appeal" refers to administrative, legislative, or judicial appeals.

             (9) The court in its discretion may award reasonable attorney's fees of up to one thousand dollars in the aggregate to the prevailing party, including a governmental agency, on issues arising out of this chapter if the court makes specific findings that the legal position of a party is frivolous and without reasonable basis.


             Sec. 105. RCW 43.21C.031 and 1983 c 117 s 1 are each amended to read as follows:

             (1) An environmental impact statement (the detailed statement required by RCW 43.21C.030(2)(c)) shall be prepared on proposals for legislation and other major actions having a probable significant, adverse environmental impact. The environmental impact statement may be combined with the recommendation or report on the proposal or issued as a separate document. Actions categorically exempt under RCW 43.21C.110(1)(a) do not require environmental review or the preparation of an environmental impact statement under this chapter. In a county, city, or town planning under RCW 36.70A.040, a planned action, as provided for in subsection (2) of this section, does not require a threshold determination or the preparation of an environmental impact statement under this chapter, but is subject to environmental review and mitigation as provided in this chapter.

             An environmental impact statement is required to analyze only those probable adverse environmental impacts which are significant. Beneficial environmental impacts may be discussed. The responsible official shall consult with agencies and the public to identify such impacts and limit the scope of an environmental impact statement. The subjects listed in RCW 43.21C.030(2)(c) need not be treated as separate sections of an environmental impact statement. Discussions of significant short-term and long-term environmental impacts, significant irrevocable commitments of natural resources, significant alternatives including mitigation measures, and significant environmental impacts which cannot be mitigated should be consolidated or included, as applicable, in those sections of an environmental impact statement where the responsible official decides they logically belong.

             (2)(a) For purposes of this section, a planned action means one or more types of project action that:

             (i) Are designated planned actions by an ordinance or resolution adopted by a county, city, or town planning under RCW 36.70A.040;

             (ii) Have had the significant impacts adequately addressed in an environmental impact statement prepared in conjunction with (A) a comprehensive plan or subarea plan adopted under chapter 36.70A RCW, or (B) a fully contained community, a master planned resort, a master planned development, or a phased project;

             (iii) Are subsequent or implementing projects for the proposals listed in (a)(ii) of this subsection;

             (iv) Are located within an urban growth area, as defined in RCW 36.70A.030;

             (v) Are not essential public facilities, as defined in RCW 36.70A.200; and

             (vi) Are consistent with a comprehensive plan adopted under chapter 36.70A RCW.

             (b) A county, city, or town shall limit planned actions to certain types of development or to specific geographical areas that are less extensive than the jurisdictional boundaries of the county, city, or town and may limit a planned action to a time period identified in the environmental impact statement or the ordinance or resolution adopted under this subsection.


             Sec. 106. RCW 43.21C.110 and 1983 c 117 s 7 are each amended to read as follows:

             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. An action that is determined to be categorically exempted under the rules adopted by the department may not be conditioned or denied under this chapter.

             (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).

             (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 decision making and the implementation of the substantive policies and requirements of this chapter, including procedures for appeals under this chapter.

             (m) Rules and procedures that provide for the integration of environmental review with project review as provided in section 103 of this act. The rules and procedures shall be jointly developed with the department of community, trade, and economic development and shall be applicable to the preparation of environmental documents for actions in counties, cities, and towns planning under RCW 36.70A.040. The rules and procedures shall also include criteria to analyze the consistency of project actions, including planned actions under RCW 43.21C.031(2), with development regulations adopted pursuant to chapter 36.70A RCW, or in the absence of applicable development regulations, the appropriate elements of a comprehensive plan or subarea plan adopted pursuant to chapter 36.70A RCW. Ordinances or procedures adopted by a county, city, or town to implement the provisions of section 103 of this act prior to the effective date of rules adopted pursuant to this subsection (1)(m) shall continue to be effective until the adoption of any new or revised ordinances or procedures that may be required. If any revisions are required as a result of rules adopted pursuant to this subsection (1)(m), those revisions shall be made within the time limits specified in RCW 43.21C.120.

             (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 chapter 34.05 RCW ((34.05.538 and 34.05.240)).


             Sec. 107. RCW 43.21C.080 and 1977 ex.s. c 278 s 1 are each amended to read as follows:

             (1) Notice of any action taken by a governmental agency may be publicized by the acting governmental agency, the applicant for, or the proponent of such action, in substantially the form as set forth in ((subsection (3) of this section and in the following manner)) rules adopted pursuant to RCW 43.21C.110:

             (a) By publishing notice on the same day of each week for two consecutive weeks in a legal newspaper of general circulation in the area where the property which is the subject of the action is located;

             (b) By filing notice of such action with the department of ecology at its main office in Olympia prior to the date of the last newspaper publication; and

             (c) Except for those actions which are of a nonproject nature, by one of the following methods which shall be accomplished prior to the date of ((last)) first newspaper publication;

             (i) Mailing to the latest recorded real property owners, as shown by the records of the county treasurer, who share a common boundary line with the property upon which the project is proposed through United States mail, first class, postage prepaid.

             (ii) Posting of the notice in a conspicuous manner on the property upon which the project is to be constructed.

             (2)(((a))) Except as otherwise provided in RCW 43.21C.075(5)(a), any action to set aside, enjoin, review, or otherwise challenge any such governmental action or subsequent government action for which notice is given as provided in subsection (1) of this section on grounds of noncompliance with the provisions of this chapter shall be commenced within ((thirty)) twenty-one days from the date of last newspaper publication of the notice pursuant to subsection (1) of this section, or be barred((: PROVIDED, HOWEVER, That the time period within which an action shall be commenced shall be ninety days (i) for projects to be performed by a governmental agency or to be performed under government contract, or (ii) for thermal power plant projects: PROVIDED FURTHER, That)).

             Any subsequent governmental action on the proposal for which notice has been given as provided in subsection (1) of this section shall not be set aside, enjoined, reviewed, or otherwise challenged on grounds of noncompliance with the provisions of RCW 43.21C.030(2)(a) through (h) unless there has been a substantial change in the proposal between the time of the first governmental action and the subsequent governmental action that is likely to have adverse environmental impacts beyond the range of impacts previously analyzed, or unless the action now being considered was identified in an earlier detailed statement or declaration of nonsignificance as being one which would require further environmental evaluation.

             (((b) Any action to challenge a subsequent governmental action based upon any provisions of this chapter shall be commenced within thirty days from the date of last newspaper publication of the subsequent governmental action except (i) for projects to be performed by a governmental agency or to be performed under governmental contract, or (ii) for thermal power plant projects which shall be challenged within ninety days from the date of last newspaper publication of the subsequent governmental action, or be barred.

             (3) The form for such notice of action shall be issued by the department of ecology and shall be made available by the governmental agency taking an action subject to being publicized pursuant to this section, by the county auditor, and/or the city clerk to the project applicant or proposer. The form of such notice shall be substantially as follows:


NOTICE OF ACTION BY

. . . . . . . . . . . . . . . .

(Government agency or entity)


             Pursuant to the provisions of chapter 43.21C RCW, notice is hereby given that:

             The . . . . . . . . . (Government agency or entity) did on . . . . . . (date), take the action described below.

             Any action to set aside, enjoin, review, or otherwise challenge such action on the grounds of noncompliance with the provisions of chapter 43.21C RCW (State Environmental Policy Act) shall be commenced within . . . . days or be barred.

             The action taken by . . . . . . . . . (Government agency or entity), notice of which is hereby given, was as follows:

             (1) . . . . . . . . . (Here insert description of action taken such as: Adoption Ordinance No. . . . .; Issued Building Permit; Approved preliminary (or final) plat, etc.)

             (2) . . . . . . . . . (Here insert brief description of the complete project or proposal.)

             (3) Said action pertained to property commonly known as:

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(Sufficient description to locate property, but complete legal description not required)

             (4) Pertinent documents may be examined during regular business hours at the office of: . . . . . . located at:

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(Location, including room number)

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(Name of government agency, proponent, or applicant giving notice)

Filed by . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Signature of individual and capacity in which such individual is signing)))


             NEW SECTION. Sec. 108. A new section is added to chapter 36.70A RCW to read as follows:

             (1) In designating and protecting critical areas under this chapter, counties and cities shall include the best available science in developing policies and development regulations to protect the functions and values of critical areas. In addition, counties and cities shall give special consideration to conservation or protection measures necessary to preserve or enhance anadromous fisheries.

             (2) If it determines that advice from scientific or other experts is necessary or will be of substantial assistance in reaching its decision, a growth management hearings board may retain scientific or other expert advice to assist in reviewing a petition under RCW 36.70A.290 that involves critical areas.


             Sec. 109. RCW 36.70A.140 and 1990 1st ex.s. c 17 s 14 are each amended to read as follows:

             Each county and city that is required or chooses to plan under RCW 36.70A.040 shall establish and broadly disseminate to the public a public participation program identifying 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. The public participation program and procedures shall apply to a response made by a county or city to a decision by a growth management hearings board under RCW 36.70A.300 that the comprehensive plan or development regulations were not in compliance with this chapter. Errors in exact compliance with the established program and procedures shall not render the comprehensive land use plan or development regulations invalid if the spirit of the program and procedures is observed.


             Sec. 110. RCW 36.70A.300 and 1991 sp.s. c 32 s 11 are each amended to read as follows:

             (1) The board shall issue a final order within one hundred eighty days of receipt of the petition for review, or, when multiple petitions are filed, within one hundred eighty days of receipt of the last petition that is consolidated. Such a final order shall be based exclusively on whether or not a state agency, county, or city is in compliance with the requirements of this chapter, chapter 90.58 RCW as it relates to adoption or amendment of shoreline master programs, or chapter 43.21C RCW as it relates to plans, development regulations, and amendments thereto, adopted under RCW 36.70A.040 or chapter 90.58 RCW. In the final order, the board shall either: (a) Find that the state agency, county, or city is in compliance with the requirements of this chapter or chapter 90.58 RCW as it relates to the adoption or amendment of shoreline master programs; or (b) find that the state agency, county, or city is not in compliance with the requirements of this chapter or chapter 90.58 RCW as it relates to the adoption or amendment of shoreline master programs, in which case the board shall remand the matter to the affected state agency, county, or city and specify a reasonable time not in excess of one hundred eighty days within which the state agency, county, or city shall comply with the requirements of this chapter.

             (2) A finding of noncompliance and an order of remand shall not affect the validity of comprehensive plans and development regulations during the period of remand, unless the board's final order also:

             (a) Includes a determination, supported by findings of fact and conclusions of law, that the continued validity of the plan or regulation would substantially interfere with the fulfillment of the goals of this chapter; and

             (b) Specifies the particular part or parts of the plan or regulation that are determined to be invalid, and the reasons for their invalidity.

             (3) A determination of invalidity shall:

             (a) Be prospective in effect and shall not extinguish rights that vested under state or local law before the date of the board's order; and

             (b) Subject any development application that would otherwise vest after the date of the board's order to the development regulations in effect pursuant to subsection (2) or (4) of this section.

             (4) If the ordinance that adopts a plan or development regulation under this chapter includes a savings clause intended to revive prior policies or regulations in the event the new plan or regulations are determined to be invalid, the board shall determine under subsection (2) of this section whether the prior policies or regulations are valid during the period of remand.

             (5) Any party aggrieved by a final decision of the hearings board may appeal the decision as provided in RCW 34.05.514 to ((Thurston county)) superior court within thirty days of the final order of the board.


             Sec. 111. RCW 36.70A.330 and 1991 sp.s. c 32 s 14 are each amended to read as follows:

             (1) After the time set for complying with the requirements of this chapter under RCW 36.70A.300(1)(b) has expired, or at an earlier time upon the motion of a county or city subject to a determination of invalidity under RCW 36.70A.300, the board((, on its own motion or motion of the petitioner,)) shall set a hearing for the purpose of determining whether the state agency, county, or city is in compliance with the requirements of this chapter.

             (2) The board shall conduct a hearing and issue a finding of compliance or noncompliance with the requirements of this chapter. A person with standing to challenge the legislation enacted in response to the board's final order may participate in the hearing along with the petitioner and the state agency, city, or county. A hearing under this subsection shall be given the highest priority of business to be conducted by the board, and a finding shall be issued within forty-five days of the filing of the motion under subsection (1) of this section with the board.

             (3) If the board finds that the state agency, county, or city is not in compliance, the board shall transmit its finding to the governor. The board may recommend to the governor that the sanctions authorized by this chapter be imposed. The board shall also reconsider its final order and decide:

             (a) If a determination of invalidity has been made, whether such a determination should be rescinded or modified under the standards in RCW 36.70A.300(2); or

             (b) If no determination of invalidity has been made, whether one now should be made under the standards in RCW 36.70A.300(2).

             The board shall schedule additional hearings as appropriate pursuant to subsections (1) and (2) of this section.


             NEW SECTION. Sec. 112. A new section is added to chapter 36.70A RCW to read as follows:

             A city planning under RCW 36.70A.040 that operates public facilities and services shall serve within its service area if service is technically feasible and in compliance with local regulations.

             Such a city that provides water or sewer service outside of its corporate boundaries shall not require, as a condition of providing water or sewer service that the property owner who has requested the water or sewer service agree to: (1) Lot sizes different from those authorized by the county or city within whose planning jurisdiction the property is located; or (2) other development or design requirements that are not required by the county or city within whose planning jurisdiction the property is located.


             NEW SECTION. Sec. 113. A new section is added to chapter 36.70A RCW to read as follows:

             Nothing in this chapter shall preclude public sanitary sewer systems and public domestic water systems designed for and serving rural uses in areas included within the rural area designated under RCW 36.70A.070(5).


             NEW SECTION. Sec. 114. A new section is added to chapter 36.70A RCW to read as follows:

             Urban growth areas designated under RCW 36.70A.110 shall include transition areas that are designed to eventually have urban growth but which are temporarily zoned to lower densities and lower intensities of land use.


             Sec. 115. RCW 36.70A.030 and 1994 c 307 s 2 and 1994 c 257 s 5 are each reenacted and amended to read as follows:

             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, Christmas trees not subject to the excise tax imposed by RCW 84.33.100 through 84.33.140, finfish in upland hatcheries, or livestock, and that has 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 this chapter.

             (5) "Critical areas" include the following areas and ecosystems: (a) Wetlands; (b) areas with a critical recharging effect on aquifers used for potable water; (c) fish and wildlife habitat conservation areas; (d) frequently flooded areas; and (e) geologically hazardous areas.

             (6) "Department" means the department of community, trade, and economic development.

             (7) For purposes of RCW 36.70A.065 and 36.70A.440, "development permit application" means any application for a development proposal for a use that could be permitted under a plan adopted pursuant to this chapter and is consistent with the underlying land use and zoning, including but not limited to building permits, subdivisions, binding site plans, planned unit developments, conditional uses or other applications pertaining to land uses, but shall not include rezones, proposed amendments to comprehensive plans or the adoption or amendment of development regulations.

             (8) "Development regulations" means 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.

             (9) "Forest land" means land primarily devoted to growing trees for long-term commercial timber production on land that can be economically and practically managed for such production, including Christmas trees subject to the excise tax imposed under RCW 84.33.100 through 84.33.140, and that has long-term commercial significance. In determining whether forest land is primarily devoted to growing trees for long-term commercial timber production on land that can be economically and practically managed for such production, the following factors shall be considered: (a) The proximity of the land to urban, suburban, and rural settlements; (b) surrounding parcel size and the compatibility and intensity of adjacent and nearby land uses; (c) long-term local economic conditions that affect the ability to manage for timber production; and (d) the availability of public facilities and services conducive to conversion of forest land to other uses.

             (10) "Geologically hazardous areas" means areas that because of their susceptibility to erosion, sliding, earthquake, or other geological events, are not suited to the siting of commercial, residential, or industrial development consistent with public health or safety concerns.

             (11) "Long-term commercial significance" includes the growing capacity, productivity, and soil composition of the land for long-term commercial production, in consideration with the land's proximity to population areas, and the possibility of more intense uses of the land.

             (12) "Minerals" include gravel, sand, and valuable metallic substances.

             (13) "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.

             (14) "Public services" include fire protection and suppression, law enforcement, public health, education, recreation, environmental protection, and other governmental services.

             (15) "Urban growth" refers to growth that makes 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" means those areas designated by a county pursuant to RCW 36.70A.110.

             (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 areas ((that are inundated or saturated by surface water or ground water at a frequency and duration sufficient to support, and that under normal circumstances do support, a prevalence of vegetation typically adapted for life in saturated soil conditions. Wetlands generally include swamps, marshes, bogs, and similar areas. Wetlands do not include those artificial wetlands intentionally created from nonwetland sites, including, but not limited to, irrigation and drainage ditches, grass-lined swales, canals, detention facilities, wastewater treatment facilities, farm ponds, and landscape amenities. However, wetlands may include those artificial wetlands intentionally created from nonwetland areas created to mitigate conversion of wetlands, if permitted by the county or city)) defined as wetlands under section 401 of the clean water act, 33 U.S.C. Sec. 1344. Wetlands do not include inadvertent wetlands unintentionally created after July 1, 1990, as a result of development activity, including the construction of roads, streets, or highways.


             Sec. 116. RCW 90.58.020 and 1992 c 105 s 1 are each amended to read as follows:

             The legislature finds that the shorelines of the state are among the most valuable and fragile of its natural resources and that there is great concern throughout the state relating to their utilization, protection, restoration, and preservation. In addition it finds that ever increasing pressures of additional uses are being placed on the shorelines necessitating increased coordination in the management and development of the shorelines of the state. The legislature further finds that much of the shorelines of the state and the uplands adjacent thereto are in private ownership; that unrestricted construction on the privately owned or publicly owned shorelines of the state is not in the best public interest; and therefore, coordinated planning is necessary in order to protect the public interest associated with the shorelines of the state while, at the same time, recognizing and protecting private property rights consistent with the public interest. There is, therefor, a clear and urgent demand for a planned, rational, and concerted effort, jointly performed by federal, state, and local governments, to prevent the inherent harm in an uncoordinated and piecemeal development of the state's shorelines.

             It is the policy of the state to provide for the management of the shorelines of the state by planning for and fostering all reasonable and appropriate uses. This policy is designed to insure the development of these shorelines in a manner which, while allowing for limited reduction of rights of the public in the navigable waters, will promote and enhance the public interest. This policy contemplates protecting against adverse effects to the public health, the land and its vegetation and wildlife, and the waters of the state and their aquatic life, while protecting generally public rights of navigation and corollary rights incidental thereto.

             The legislature declares that the interest of all of the people shall be paramount in the management of shorelines of state-wide significance. The department, in adopting guidelines for shorelines of state-wide significance, and local government, in developing master programs for shorelines of state-wide significance, shall give preference to uses in the following order of preference which:

             (1) Recognize and protect the state-wide interest over local interest;

             (2) Preserve the natural character of the shoreline;

             (3) Result in long term over short term benefit;

             (4) Protect the resources and ecology of the shoreline;

             (5) Increase public access to publicly owned areas of the shorelines;

             (6) Increase recreational opportunities for the public in the shoreline;

             (7) Provide for any other element as defined in RCW 90.58.100 deemed appropriate or necessary.

             In the implementation of this policy the public's opportunity to enjoy the physical and aesthetic qualities of natural shorelines of the state shall be preserved to the greatest extent feasible consistent with the overall best interest of the state and the people generally. To this end uses shall be preferred which are consistent with control of pollution and prevention of damage to the natural environment, or are unique to or dependent upon use of the state's shoreline. Alterations of the natural condition of the shorelines of the state, in those limited instances when authorized, shall be given priority for single family residences and their appurtenant structures, ports, shoreline recreational uses including but not limited to parks, marinas, piers, and other improvements facilitating public access to shorelines of the state, industrial and commercial developments which are particularly dependent on their location on or use of the shorelines of the state and other development that will provide an opportunity for substantial numbers of the people to enjoy the shorelines of the state. Alterations of the natural condition of the shorelines and ((wetlands)) shorelands of the state shall be recognized by the department. Shorelines and ((wetlands)) shorelands of the state shall be appropriately classified and these classifications shall be revised when circumstances warrant regardless of whether the change in circumstances occurs through man-made causes or natural causes. Any areas resulting from alterations of the natural condition of the shorelines and ((wetlands)) shorelands of the state no longer meeting the definition of "shorelines of the state" shall not be subject to the provisions of chapter 90.58 RCW.

             Permitted uses in the shorelines of the state shall be designed and conducted in a manner to minimize, insofar as practical, any resultant damage to the ecology and environment of the shoreline area and any interference with the public's use of the water.


             Sec. 117. RCW 90.58.030 and 1987 c 474 s 1 are each amended to read as follows:

             As used in this chapter, unless the context otherwise requires, the following definitions and concepts apply:

             (1) Administration:

             (a) "Department" means the department of ecology;

             (b) "Director" means the director of the department of ecology;

             (c) "Local government" means any county, incorporated city, or town which contains within its boundaries any lands or waters subject to this chapter;

             (d) "Person" means an individual, partnership, corporation, association, organization, cooperative, public or municipal corporation, or agency of the state or local governmental unit however designated;

             (e) "Hearing board" means the shoreline hearings board established by this chapter.

             (2) Geographical:

             (a) "Extreme low tide" means the lowest line on the land reached by a receding tide;

             (b) "Ordinary high water mark" on all lakes, streams, and tidal water is that mark that will be found by examining the bed and banks and ascertaining where the presence and action of waters are so common and usual, and so long continued in all ordinary years, as to mark upon the soil a character distinct from that of the abutting upland, in respect to vegetation as that condition exists on June 1, 1971, as it may naturally change thereafter, or as it may change thereafter in accordance with permits issued by a local government or the department: PROVIDED, That in any area where the ordinary high water mark cannot be found, the ordinary high water mark adjoining salt water shall be the line of mean higher high tide and the ordinary high water mark adjoining fresh water shall be the line of mean high water;

             (c) "Shorelines of the state" are the total of all "shorelines" and "shorelines of state-wide significance" within the state;

             (d) "Shorelines" means all of the water areas of the state, including reservoirs, and their associated ((wetlands)) shorelands, together with the lands underlying them; except (i) shorelines of state-wide significance; (ii) shorelines on segments of streams upstream of a point where the mean annual flow is twenty cubic feet per second or less and the wetlands associated with such upstream segments; and (iii) shorelines on lakes less than twenty acres in size and wetlands associated with such small lakes;

             (e) "Shorelines of state-wide significance" means the following shorelines of the state:

             (i) The area between the ordinary high water mark and the western boundary of the state from Cape Disappointment on the south to Cape Flattery on the north, including harbors, bays, estuaries, and inlets;

             (ii) Those areas of Puget Sound and adjacent salt waters and the Strait of Juan de Fuca between the ordinary high water mark and the line of extreme low tide as follows:

             (A) Nisqually Delta--from DeWolf Bight to Tatsolo Point,

             (B) Birch Bay--from Point Whitehorn to Birch Point,

             (C) Hood Canal--from Tala Point to Foulweather Bluff,

             (D) Skagit Bay and adjacent area--from Brown Point to Yokeko Point, and

             (E) Padilla Bay--from March Point to William Point;

             (iii) Those areas of Puget Sound and the Strait of Juan de Fuca and adjacent salt waters north to the Canadian line and lying seaward from the line of extreme low tide;

             (iv) Those lakes, whether natural, artificial, or a combination thereof, with a surface acreage of one thousand acres or more measured at the ordinary high water mark;

             (v) Those natural rivers or segments thereof as follows:

             (A) Any west of the crest of the Cascade range downstream of a point where the mean annual flow is measured at one thousand cubic feet per second or more,

             (B) Any east of the crest of the Cascade range downstream of a point where the annual flow is measured at two hundred cubic feet per second or more, or those portions of rivers east of the crest of the Cascade range downstream from the first three hundred square miles of drainage area, whichever is longer;

             (vi) Those ((wetlands)) shorelands associated with (i), (ii), (iv), and (v) of this subsection (2)(e);

             (f) "((Wetlands)) Shorelands" or "((wetland)) shoreland areas" means those lands extending landward for two hundred feet in all directions as measured on a horizontal plane from the ordinary high water mark; floodways and contiguous floodplain areas landward two hundred feet from such floodways; and all ((marshes, bogs, swamps,)) wetlands and river deltas associated with the streams, lakes, and tidal waters which are subject to the provisions of this chapter; the same to be designated as to location by the department of ecology((: PROVIDED, That)). Any county or city may determine that portion of a one-hundred-year-flood plain to be included in its master program as long as such portion includes, as a minimum, the floodway and the adjacent land extending landward two hundred feet therefrom;

             (g) "Floodway" means those portions of the area of a river valley lying streamward from the outer limits of a watercourse upon which flood waters are carried during periods of flooding that occur with reasonable regularity, although not necessarily annually, said floodway being identified, under normal condition, by changes in surface soil conditions or changes in types or quality of vegetative ground cover condition. The floodway shall not include those lands that can reasonably be expected to be protected from flood waters by flood control devices maintained by or maintained under license from the federal government, the state, or a political subdivision of the state;

             (h) "Wetlands" means areas defined as wetlands under section 401 of the clean water act, 33 U.S.C. Sec. 1344. Wetlands do not include inadvertent wetlands unintentionally created after July 1, 1990, as a result of development activity, including the construction of roads, streets, or highways.

             (3) Procedural terms:

             (a) "Guidelines" means those standards adopted to implement the policy of this chapter for regulation of use of the shorelines of the state prior to adoption of master programs. Such standards shall also provide criteria to local governments and the department in developing master programs;

             (b) "Master program" shall mean the comprehensive use plan for a described area, and the use regulations together with maps, diagrams, charts, or other descriptive material and text, a statement of desired goals, and standards developed in accordance with the policies enunciated in RCW 90.58.020;

             (c) "State master program" is the cumulative total of all master programs approved or adopted by the department of ecology;

             (d) "Development" means a use consisting of the construction or exterior alteration of structures; dredging; drilling; dumping; filling; removal of any sand, gravel, or minerals; bulkheading; driving of piling; placing of obstructions; or any project of a permanent or temporary nature which interferes with the normal public use of the surface of the waters overlying lands subject to this chapter at any state of water level;

             (e) "Substantial development" shall mean any development of which the total cost or fair market value exceeds two thousand five hundred dollars, or any development which materially interferes with the normal public use of the water or shorelines of the state; except that the following shall not be considered substantial developments for the purpose of this chapter:

             (i) Normal maintenance or repair of existing structures or developments, including damage by accident, fire, or elements;

             (ii) Construction of the normal protective bulkhead common to single family residences;

             (iii) Emergency construction necessary to protect property from damage by the elements;

             (iv) Construction and practices normal or necessary for farming, irrigation, and ranching activities, including agricultural service roads and utilities on ((wetlands)) shorelands, and the construction and maintenance of irrigation structures including but not limited to head gates, pumping facilities, and irrigation channels((: PROVIDED, That)). A feedlot of any size, all processing plants, other activities of a commercial nature, alteration of the contour of the ((wetlands)) shorelands by leveling or filling other than that which results from normal cultivation, shall not be considered normal or necessary farming or ranching activities. A feedlot shall be an enclosure or facility used or capable of being used for feeding livestock hay, grain, silage, or other livestock feed, but shall not include land for growing crops or vegetation for livestock feeding and/or grazing, nor shall it include normal livestock wintering operations;

             (v) Construction or modification of navigational aids such as channel markers and anchor buoys;

             (vi) Construction on ((wetlands)) shorelands by an owner, lessee, or contract purchaser of a single family residence for his own use or for the use of his family, which residence does not exceed a height of thirty-five feet above average grade level and which meets all requirements of the state agency or local government having jurisdiction thereof, other than requirements imposed pursuant to this chapter;

             (vii) Construction of a dock, including a community dock, designed for pleasure craft only, for the private noncommercial use of the owner, lessee, or contract purchaser of single and multiple family residences, the cost of which does not exceed two thousand five hundred dollars;

             (viii) Operation, maintenance, or construction of canals, waterways, drains, reservoirs, or other facilities that now exist or are hereafter created or developed as a part of an irrigation system for the primary purpose of making use of system waters, including return flow and artificially stored ground water for the irrigation of lands;

             (ix) The marking of property lines or corners on state owned lands, when such marking does not significantly interfere with normal public use of the surface of the water;

             (x) Operation and maintenance of any system of dikes, ditches, drains, or other facilities existing on September 8, 1975, which were created, developed, or utilized primarily as a part of an agricultural drainage or diking system((;

             (xi) Any action commenced prior to December 31, 1982, pertaining to (A) the restoration of interim transportation services as may be necessary as a consequence of the destruction of the Hood Canal bridge, including, but not limited to, improvements to highways, development of park and ride facilities, and development of ferry terminal facilities until a new or reconstructed Hood Canal bridge is open to traffic; and (B) the reconstruction of a permanent bridge at the site of the original Hood Canal bridge)).


             Sec. 118. RCW 90.58.050 and 1971 ex.s. c 286 s 5 are each amended to read as follows:

             This chapter establishes a cooperative program of shoreline management between local government and the state. Local government shall have the primary responsibility for initiating the planning required by this chapter and administering the regulatory program consistent with the policy and provisions of this chapter. The department shall act primarily in a supportive and review capacity with ((primary)) an emphasis on providing assistance to local government and on insuring compliance with the policy and provisions of this chapter.


             Sec. 119. RCW 90.58.060 and 1971 ex.s. c 286 s 6 are each amended to read as follows:

             (1) ((Within one hundred twenty days from June 1, 1971,)) The department shall ((submit to local governments proposed)) periodically review and adopt guidelines consistent with RCW 90.58.020, containing the elements specified in RCW 90.58.100 for:

             (a) Development of master programs for regulation of the uses of shorelines; and

             (b) Development of master programs for regulation of the uses of shorelines of state-wide significance.

             (2) Before adopting or amending guidelines under this section, the department shall provide an opportunity for public review and comment as follows:

             (a) The department shall mail copies of the proposal to all cities, counties, and federally recognized Indian tribes, and to any other person who has requested a copy, and shall publish the proposed guidelines in the Washington state register. Comments shall be submitted in writing to the department within sixty days from ((receipt of such proposed guidelines, local governments shall submit to the department in writing proposed changes, if any, and comments upon the proposed guidelines.

             (3) Thereafter and within one hundred twenty days from the submission of such proposed guidelines to local governments, the department, after review and consideration of the comments and suggestions submitted to it, shall resubmit final proposed guidelines.

             (4) Within sixty days thereafter public hearings shall be held by)) the date the proposal has been published in the register.

             (b) The department ((in Olympia and Spokane, at which interested public and private parties shall have the opportunity)) shall hold at least four public hearings on the proposal in different locations throughout the state to provide a reasonable opportunity for residents in all parts of the state to present statements and views on the proposed guidelines. Notice of ((such)) the hearings shall be published at least once in each of the three weeks immediately preceding the hearing in one or more newspapers of general circulation in each county of the state. If an amendment to the guidelines addresses an issue limited to one geographic area, the number and location of hearings may be adjusted consistent with the intent of this subsection to assure all parties a reasonable opportunity to comment on the proposed amendment. The department shall accept written comments on the proposal during the sixty-day public comment period and for seven days after the final public hearing.

             (c) At the conclusion of the public comment period, the department shall review the comments received and modify the proposal consistent with the provisions of this chapter. The proposal shall then be published for adoption pursuant to the provisions of chapter 34.05 RCW.

             (((5) Within ninety days following such public hearings, the department at a public hearing to be held in Olympia shall adopt guidelines.)) (3) The department may propose amendments to the guidelines not more than once each year. At least once every five years the department shall conduct a review of the guidelines pursuant to the procedures outlined in subsection (2) of this section.


             Sec. 120. RCW 90.58.080 and 1974 ex.s. c 61 s 1 are each amended to read as follows:

             Local governments ((are directed with regard to shorelines of the state within their various jurisdictions as follows:

             (1) To complete within eighteen months after June 1, 1971, a comprehensive inventory of such shorelines. Such inventory shall include but not be limited to the general ownership patterns of the lands located therein in terms of public and private ownership, a survey of the general natural characteristics thereof, present uses conducted therein and initial projected uses thereof;

             (2) To)) shall develop or amend, within twenty-four months after the adoption of guidelines as provided in RCW 90.58.060, a master program for regulation of uses of the shorelines of the state consistent with the required elements of the guidelines adopted by the department.


             Sec. 121. RCW 90.58.090 and 1971 ex.s. c 286 s 9 are each amended to read as follows:

             (1) A master program((s or segments thereof)), segment of a master program, or an amendment to a master program shall become effective when ((adopted or)) approved by the department ((as appropriate)). Within the time period provided in RCW 90.58.080, each local government shall have submitted a master program, either totally or by segments, for all shorelines of the state within its jurisdiction to the department for review and approval.

             (2) Upon receipt of a proposed master program or amendment, the department shall:

             (a) Provide notice to and opportunity for written comment by all interested parties of record as a part of the local government review process for the proposal and to all persons, groups, and agencies that have requested in writing notice of proposed master programs or amendments generally or for a specific area, subject matter, or issue. The comment period shall be at least thirty days, unless the department determines that the level of complexity or controversy involved supports a shorter period;

             (b) In the department's discretion, conduct a public hearing during the thirty-day comment period in the jurisdiction proposing the master program or amendment;

             (c) Within fifteen days after the close of public comment, request the local government to review the issues identified by the public, interested parties, groups, and agencies and provide a written response as to how the proposal addresses the identified issues;

             (d) Within thirty days after receipt of the local government response pursuant to (c) of this subsection, make written findings and conclusions regarding the consistency of the proposal with the policy of RCW 90.58.020 and the applicable guidelines, provide a response to the issues identified in (c) of this subsection, and either approve the proposal as submitted, recommend specific changes necessary to make the proposal approvable, or deny approval of the proposal in those instances where no alteration of the proposal appears likely to accomplish the purposes for which it was submitted and the requirements of this chapter. The written findings and conclusions shall be provided to the local government, all interested persons, parties, groups, and agencies of record on the proposal;

             (e) If the department recommends changes to the proposed master program or amendment, within thirty days after the department mails the written findings and conclusions to the local government, the local government may:

             (i) Agree to the proposed changes. The receipt by the department of the written notice of agreement constitutes final action by the department approving the amendment; or

             (ii) Submit an alternative proposal. If, in the opinion of the department, the alternative is consistent with the purpose and intent of the changes originally submitted by the department and with this chapter it shall approve the changes and provide written notice to all recipients of the written findings and conclusions. If the department determines the proposal is not consistent with the purpose and intent of the changes proposed by the department, the department may resubmit the proposal for public and agency review pursuant to this section or reject the proposal.

             (((1) As to those segments of the master program relating to shorelines, they shall be approved by))

             (3) The department shall approve the segment of a master program relating to shorelines unless it determines that the submitted segments are not consistent with the policy of RCW 90.58.020 and the applicable guidelines. ((If approval is denied, the department shall state within ninety days from the date of submission in detail the precise facts upon which that decision is based, and shall submit to the local government suggested modifications to the program to make it consistent with said policy and guidelines. The local government shall have ninety days after it receives recommendations from the department to make modifications designed to eliminate the inconsistencies and to resubmit the program to the department for approval. Any resubmitted program shall take effect when and in such form and content as is approved by the department.

             (2) As to)) (4) The department shall approve those segments of the master program relating to shorelines of state-wide significance ((the department shall have full authority following review and evaluation of the submission by local government to develop and adopt an alternative to the local government's proposal if in the department's opinion the program submitted does not)) only after determining the program provides the optimum implementation of the policy of this chapter to satisfy the state-wide interest. ((If the submission by local government is not approved, the department shall suggest modifications to the local government within ninety days from receipt of the submission. The local government shall have ninety days after it receives said modifications to consider the same and resubmit a master program to the department. Thereafter, the department shall adopt the resubmitted program or, if the department determines that said program does not provide for optimum implementation, it may develop and adopt an alternative as hereinbefore provided.)) If the department does not approve a segment of a local government master program relating to a shoreline of state-wide significance, the department may develop and by rule adopt an alternative to the local government̓s proposal.

             (((3))) (5) In the event a local government has not complied with the requirements of RCW 90.58.070 it may thereafter upon written notice to the department elect to adopt a master program for the shorelines within its jurisdiction, in which event it shall comply with the provisions established by this chapter for the adoption of a master program for such shorelines.

             Upon approval of such master program by the department it shall supersede such master program as may have been adopted by the department for such shorelines.

             (6) A master program or amendment to a master program takes effect when and in such form as approved or adopted by the department. The department shall maintain a record of each master program, the action taken on any proposal for adoption or amendment of the master program, and any appeal of the department's action. The department's approved document of record constitutes the official master program.


             Sec. 122. RCW 90.58.100 and 1992 c 105 s 2 are each amended to read as follows:

             (1) The master programs provided for in this chapter, when adopted ((and)) or approved by the department((, as appropriate,)) shall constitute use regulations for the various shorelines of the state. In preparing the master programs, and any amendments thereto, the department and local governments shall to the extent feasible:

             (a) Utilize a systematic interdisciplinary approach which will insure the integrated use of the natural and social sciences and the environmental design arts;

             (b) Consult with and obtain the comments of any federal, state, regional, or local agency having any special expertise with respect to any environmental impact;

             (c) Consider all plans, studies, surveys, inventories, and systems of classification made or being made by federal, state, regional, or local agencies, by private individuals, or by organizations dealing with pertinent shorelines of the state;

             (d) Conduct or support such further research, studies, surveys, and interviews as are deemed necessary;

             (e) Utilize all available information regarding hydrology, geography, topography, ecology, economics, and other pertinent data;

             (f) Employ, when feasible, all appropriate, modern scientific data processing and computer techniques to store, index, analyze, and manage the information gathered.

             (2) The master programs shall include, when appropriate, the following:

             (a) An economic development element for the location and design of industries, transportation facilities, port facilities, tourist facilities, commerce and other developments that are particularly dependent on their location on or use of the shorelines of the state;

             (b) A public access element making provision for public access to publicly owned areas;

             (c) A recreational element for the preservation and enlargement of recreational opportunities, including but not limited to parks, tidelands, beaches, and recreational areas;

             (d) A circulation element consisting of the general location and extent of existing and proposed major thoroughfares, transportation routes, terminals, and other public utilities and facilities, all correlated with the shoreline use element;

             (e) A use element which considers the proposed general distribution and general location and extent of the use on shorelines and adjacent land areas for housing, business, industry, transportation, agriculture, natural resources, recreation, education, public buildings and grounds, and other categories of public and private uses of the land;

             (f) A conservation element for the preservation of natural resources, including but not limited to scenic vistas, aesthetics, and vital estuarine areas for fisheries and wildlife protection;

             (g) An historic, cultural, scientific, and educational element for the protection and restoration of buildings, sites, and areas having historic, cultural, scientific, or educational values;

             (h) An element that gives consideration to the state-wide interest in the prevention and minimization of flood damages; and

             (i) Any other element deemed appropriate or necessary to effectuate the policy of this chapter.

             (3) The master programs shall include such map or maps, descriptive text, diagrams and charts, or other descriptive material as are necessary to provide for ease of understanding.

             (4) Master programs will reflect that state-owned shorelines of the state are particularly adapted to providing wilderness beaches, ecological study areas, and other recreational activities for the public and will give appropriate special consideration to same.

             (5) Each master program shall contain provisions to allow for the varying of the application of use regulations of the program, including provisions for permits for conditional uses and variances, to insure that strict implementation of a program will not create unnecessary hardships or thwart the policy enumerated in RCW 90.58.020. Any such varying shall be allowed only if extraordinary circumstances are shown and the public interest suffers no substantial detrimental effect. The concept of this subsection shall be incorporated in the rules adopted by the department relating to the establishment of a permit system as provided in RCW 90.58.140(3).

             (6) Each master program shall contain standards governing the protection of single family residences and appurtenant structures against damage or loss due to shoreline erosion. The standards shall govern the issuance of substantial development permits for shoreline protection, including structural methods such as construction of bulkheads, and nonstructural methods of protection. The standards shall provide for methods which achieve effective and timely protection against loss or damage to single family residences and appurtenant structures due to shoreline erosion. The standards shall provide a preference for permit issuance for measures to protect single family residences occupied prior to January 1, 1992, where the proposed measure is designed to minimize harm to the shoreline natural environment.


             Sec. 123. RCW 90.58.120 and 1989 c 175 s 182 are each amended to read as follows:

             All rules, regulations, ((master programs,)) designations, and guidelines, issued by the department, and master programs and amendments adopted by the department pursuant to RCW 90.58.070(2) or 90.58.090(4) shall be adopted or approved in accordance with the provisions of RCW 34.05.310 through 34.05.395 insofar as such provisions are not inconsistent with the provisions of this chapter. In addition:

             (1) Prior to the ((approval or)) adoption by the department of a master program, or portion thereof pursuant to RCW 90.58.070(2) or 90.58.090(4), at least one public hearing shall be held in each county affected by a program or portion thereof for the purpose of obtaining the views and comments of the public. Notice of each such hearing shall be published at least once in each of the three weeks immediately preceding the hearing in one or more newspapers of general circulation in the county in which the hearing is to be held.

             (2) All guidelines, regulations, designations, or master programs adopted or approved under this chapter shall be available for public inspection at the office of the department or the appropriate county ((auditor)) and city ((clerk)). The terms "adopt" and "approve" for purposes of this section, shall include modifications and rescission of guidelines.


             Sec. 124. RCW 90.58.140 and 1992 c 105 s 3 are each amended to read as follows:

             (1) A development shall not be undertaken on the shorelines of the state unless it is consistent with the policy of this chapter and, after adoption or approval, as appropriate, the applicable guidelines, rules, or master program.

             (2) A substantial development shall not be undertaken on shorelines of the state without first obtaining a permit from the government entity having administrative jurisdiction under this chapter.

             A permit shall be granted:

             (a) From June 1, 1971, until such time as an applicable master program has become effective, only when the development proposed is consistent with: (i) The policy of RCW 90.58.020; and (ii) after their adoption, the guidelines and rules of the department; and (iii) so far as can be ascertained, the master program being developed for the area;

             (b) After adoption or approval, as appropriate, by the department of an applicable master program, only when the development proposed is consistent with the applicable master program and ((the provisions of)) this chapter ((90.58 RCW)).

             (3) The local government shall establish a program, consistent with rules adopted by the department, for the administration and enforcement of the permit system provided in this section. The administration of the system so established shall be performed exclusively by the local government.

             (4) Except as otherwise specifically provided in subsection (((13))) (11) of this section, the local government shall require notification of the public of all applications for permits governed by any permit system established pursuant to subsection (3) of this section by ensuring that((:

             (a) A notice of such an application is published at least once a week on the same day of the week for two consecutive weeks in a legal newspaper of general circulation within the area in which the development is proposed; and

             (b) Additional)) notice of ((such an)) the application is given by at least one of the following methods:

             (((i))) (a) Mailing of the notice to the latest recorded real property owners as shown by the records of the county assessor within at least three hundred feet of the boundary of the property upon which the substantial development is proposed;

             (((ii))) (b) Posting of the notice in a conspicuous manner on the property upon which the project is to be constructed; or

             (((iii))) (c) Any other manner deemed appropriate by local authorities to accomplish the objectives of reasonable notice to adjacent landowners and the public.

             The notices shall include a statement that any person desiring to submit written comments concerning an application, or desiring to receive ((a copy)) notification of the final ((order)) decision concerning an application as expeditiously as possible after the issuance of the ((order)) decision, may submit the comments or requests for ((orders)) decisions to the local government within thirty days of the last date the notice is to be published pursuant to ((subsection (a) of)) this subsection. The local government shall forward, in a timely manner following the issuance of ((an order)) a decision, a copy of the ((order)) decision to each person who submits a request for the ((order)) decision.

             If a hearing is to be held on an application, notices of such a hearing shall include a statement that any person may submit oral or written comments on an application at the hearing.

             (5) The system shall include provisions to assure that construction pursuant to a permit will not begin or be authorized until ((thirty)) twenty-one days from the date the ((final order)) permit decision was filed as provided in subsection (6) of this section; or until all review proceedings are terminated if the proceedings were initiated within ((thirty)) twenty-one days from the date of filing as defined in subsection (6) of this section except as follows:

             (a) In the case of any permit issued to the state of Washington, department of transportation, for the construction and modification of SR 90 (I-90) on or adjacent to Lake Washington, the construction may begin after thirty days from the date of filing, and the permits are valid until December 31, 1995;

             (b) Construction may be commenced thirty days after the date the appeal of the board's decision is filed if a permit is granted by the local government and (i) the granting of the permit is appealed to the shorelines hearings board within ((thirty)) twenty-one days of the date of filing, (ii) the hearings board approves the granting of the permit by the local government or approves a portion of the substantial development for which the local government issued the permit, and (iii) an appeal for judicial review of the hearings board decision is filed pursuant to chapter 34.05 RCW((, the permittee)). The appellant may request, within ten days of the filing of the appeal with the court, a hearing before the court to determine whether construction ((may begin)) pursuant to the permit approved by the hearings board or to a revised permit issued pursuant to the order of the hearings board should not commence. If, at the conclusion of the hearing, the court finds that construction pursuant to such a permit would ((not)) involve a significant, irreversible damaging of the environment, the court ((may allow)) shall prohibit the permittee ((to begin)) from commencing the construction pursuant to the approved or revised permit ((as the court deems appropriate. The court may require the permittee to post bonds, in the name of the local government that issued the permit, sufficient to remove the substantial development or to restore the environment if the permit is ultimately disapproved by the courts, or to alter the substantial development if the alteration is ultimately ordered by the courts)) until all review proceedings are final. Construction pursuant to a permit revised at the direction of the hearings board may begin only on that portion of the substantial development for which the local government had originally issued the permit, and construction pursuant to such a revised permit on other portions of the substantial development may not begin until after all review proceedings are terminated. In such a hearing before the court, the burden of proving whether the construction may involve significant irreversible damage to the environment and demonstrating whether such construction would or would not be appropriate is on the appellant;

             (c) ((If a permit is granted by the local government and the granting of the permit is appealed directly to the superior court for judicial review pursuant to the proviso in RCW 90.58.180(1), the permittee may request the court to remand the appeal to the shorelines hearings board, in which case the appeal shall be so remanded and construction pursuant to such a permit shall be governed by the provisions of subsection (b) of this subsection or may otherwise begin after review proceedings before the hearings board are terminated if judicial review is not thereafter requested pursuant to chapter 34.05 RCW;

             (d))) If the permit is for a substantial development meeting the requirements of subsection (((13))) (11) of this section, construction pursuant to that permit may not begin or be authorized until ((thirty)) twenty-one days from the date the ((final order)) permit decision was filed as provided in subsection (6) of this section.

             If a permittee begins construction pursuant to subsections (a), (b), or (c)((, or (d))) of this subsection, the construction is begun at the permittee's own risk. If, as a result of judicial review, the courts order the removal of any portion of the construction or the restoration of any portion of the environment involved or require the alteration of any portion of a substantial development constructed pursuant to a permit, the permittee is barred from recovering damages or costs involved in adhering to such requirements from the local government that granted the permit, the hearings board, or any appellant or intervener.

             (6) Any ((ruling)) decision on an application for a permit under the authority of this section, whether it is an approval or a denial, shall, concurrently with the transmittal of the ruling to the applicant, be filed with the department and the attorney general. With regard to a permit other than a permit governed by subsection (((12))) (10) of this section, "date of filing" as used herein means the date of actual receipt by the department. With regard to a permit for a variance or a conditional use, "date of filing" means the date a decision of the department rendered on the permit pursuant to subsection (((12))) (10) of this section is transmitted by the department to the local government. The department shall notify in writing the local government and the applicant of the date of filing.

             (7) Applicants for permits under this section have the burden of proving that a proposed substantial development is consistent with the criteria that must be met before a permit is granted. In any review of the granting or denial of an application for a permit as provided in RCW 90.58.180 (1) and (2), the person requesting the review has the burden of proof.

             (8) Any permit may, after a hearing with adequate notice to the permittee and the public, be rescinded by the issuing authority upon the finding that a permittee has not complied with conditions of a permit. If the department is of the opinion that noncompliance exists, the department shall provide written notice to the local government and the permittee. If the department is of the opinion that the noncompliance continues to exist thirty days after the date of the notice, and the local government has taken no action to rescind the permit, the department may petition the hearings board for a rescission of the permit upon written notice of the petition to the local government and the permittee if the request by the department is made to the hearings board within fifteen days of the termination of the thirty-day notice to the local government.

             (9) The holder of a certification from the governor pursuant to chapter 80.50 RCW shall not be required to obtain a permit under this section.

             (10) ((A permit shall not be required for any development on shorelines of the state included within a preliminary or final plat approved by the applicable state agency or local government before April 1, 1971, if:

             (a) The final plat was approved after April 13, 1961, or the preliminary plat was approved after April 30, 1969; and

             (b) The development is completed within two years after June 1, 1971.

             (11) The applicable state agency or local government is authorized to approve a final plat with respect to shorelines of the state included within a preliminary plat approved after April 30, 1969, and before April 1, 1971: PROVIDED, That any substantial development within the platted shorelines of the state is authorized by a permit granted pursuant to this section, or does not require a permit as provided in subsection (10) of this section, or does not require a permit because of substantial development occurred before June 1, 1971.

             (12))) Any permit for a variance or a conditional use by local government under approved master programs must be submitted to the department for its approval or disapproval.

             (((13))) (11)(a) An application for a substantial development permit for a limited utility extension or for the construction of a bulkhead or other measures to protect a single family residence and its appurtenant structures from shoreline erosion shall be subject to the following procedures:

             (i) The public comment period under subsection (4) of this section shall be twenty days. The notice provided under subsection (4) of this section shall state the manner in which the public may obtain a copy of the local government decision on the application no later than two days following its issuance;

             (ii) The local government shall issue its decision to grant or deny the permit within twenty-one days of the last day of the comment period specified in (i) of this subsection; and

             (iii) If there is an appeal of the decision to grant or deny the permit to the local government legislative authority, the appeal shall be finally determined by the legislative authority within thirty days.

             (b) For purposes of this section, a limited utility extension means the extension of a utility service that:

             (i) Is categorically exempt under chapter 43.21C RCW for one or more of the following: Natural gas, electricity, telephone, water, or sewer;

             (ii) Will serve an existing use in compliance with this chapter; and

             (iii) Will not extend more than twenty-five hundred linear feet within the shorelines of the state.


             Sec. 125. RCW 90.58.180 and 1994 c 253 s 3 are each amended to read as follows:

             (1) Any person aggrieved by the granting, denying, or rescinding of a permit on shorelines of the state pursuant to RCW 90.58.140 may seek review from the shorelines hearings board by filing a ((request for the same)) petition for review within ((thirty)) twenty-one days of the date of filing as defined in RCW 90.58.140(6).

             ((Concurrently with)) Within seven days of the filing of any ((request)) petition for review with the board as provided in this section pertaining to a final ((order)) decision of a local government, the ((requestor)) petitioner shall ((file a copy)) serve copies of ((his or her request with)) the petition on the department and the office of the attorney general. ((If it appears to the department or the attorney general that the requestor has valid reasons to seek review, either the department or the attorney general may certify the request within thirty days after its receipt to the shorelines hearings board following which the board shall then, but not otherwise, review the matter covered by the requestor. The failure to obtain such certification shall not preclude the requestor from obtaining a review in the superior court under any right to review otherwise available to the requestor.)) The department and the attorney general may intervene to protect the public interest and insure that the provisions of this chapter are complied with at any time within fifteen days from the date of the receipt by the department or the attorney general of a copy of the ((request)) petition for review filed pursuant to this section. The shorelines hearings board shall ((initially)) schedule review proceedings on ((such requests)) the petition for review without regard as to whether ((such requests have or have not been certified or as to whether)) the period for the department or the attorney general to intervene has or has not expired((, unless such review is to begin within thirty days of such scheduling. If at the end of the thirty day period for certification neither the department nor the attorney general has certified a request for review, the hearings board shall remove the request from its review schedule)).

             (2) The department or the attorney general may obtain review of any final ((order)) decision granting a permit, or granting or denying an application for a permit issued by a local government by filing a written ((request)) petition with the shorelines hearings board and the appropriate local government within ((thirty)) twenty-one days from the date the final ((order)) decision was filed as provided in RCW 90.58.140(6).

             (3) The review proceedings authorized in subsections (1) and (2) of this section are subject to the provisions of chapter 34.05 RCW pertaining to procedures in adjudicative proceedings. Judicial review of such proceedings of the shorelines hearings board is governed by chapter 34.05 RCW. The board shall issue its decision on the appeal authorized under subsections (1) and (2) of this section within one hundred eighty days after the date the petition is filed with the board or a petition to intervene is filed by the department or the attorney general, whichever is later. The time period may be waived by the parties or may be extended by the board for a period of thirty days upon a showing of good cause.

             (4) ((A local government may appeal to the shorelines hearings board)) Any person may appeal any rules, regulations, or guidelines adopted or approved by the department within thirty days of the date of the adoption or approval. The board shall make a final decision within sixty days following the hearing held thereon.

             ((If the board)) (5) The board shall find the rule, regulation, or guideline to be valid and enter a final decision to that effect unless it determines that the rule, regulation, or guideline:

             (a) Is clearly erroneous in light of the policy of this chapter; or

             (b) Constitutes an implementation of this chapter in violation of constitutional or statutory provisions; or

             (c) Is arbitrary and capricious; or

             (d) Was developed without fully considering and evaluating all material submitted to the department ((by the local government)) during public review and comment; or

             (e) Was not adopted in accordance with required procedures((;)).

             (6) If the board makes a determination under subsection (5) (a) through (e) of this section, it shall enter a final decision declaring the rule, regulation, or guideline invalid, remanding the rule, regulation, or guideline to the department with a statement of the reasons in support of the determination, and directing the department to adopt, after a thorough consultation with the affected local government and any other interested party, a new rule, regulation, or guideline consistent with the board's decision. ((Unless the board makes one or more of the determinations as hereinbefore provided, the board shall find the rule, regulation, or guideline to be valid and enter a final decision to that effect.

             (5) Rules, regulations, and guidelines)) (7) A decision of the board on the validity of a rule, regulation, or guideline shall be subject to review in superior court, if authorized pursuant to ((RCW 34.05.570(2). No review shall be granted by a superior court on petition from a local government unless the local government shall first have obtained review under subsection (4) of this section and the petition for court review is)) chapter 34.05 RCW. A petition for review of the decision of the shorelines hearings board on a rule, regulation, or guideline shall be filed within ((three months)) thirty days after the date of final decision by the shorelines hearings board.


             Sec. 126. RCW 90.58.190 and 1989 c 175 s 184 are each amended to read as follows:

             (1) ((The department and each local government shall periodically review any master programs under its jurisdiction and make such adjustments thereto as are necessary. Any adjustments proposed by a local government to its master program shall be forwarded to the department for review. The department shall approve, reject, or propose modification to the adjustment. If the department either rejects or proposes modification to the master program adjustment, it shall provide substantive written comments as to why the proposal is being rejected or modified.)) The appeal of the department̓s decision to adopt a master program or amendment pursuant to RCW 90.58.070(2) or 90.58.090(4) is governed by RCW 34.05.510 through 34.05.598.

             (2)(a) The department's decision to approve, reject, or modify a proposed master program or amendment adopted by a local government planning under RCW 36.70A.040 shall be appealed to the growth management hearings board with jurisdiction over the local government. The appeal shall be initiated by filing a petition as provided in RCW 36.70A.250 through 36.70A.320.

             (b) If the appeal to the growth management hearings board concerns shorelines, the growth management hearings board shall review the proposed master program or amendment for compliance with the requirements of this chapter and chapter 36.70A RCW, the policy of RCW 90.58.020 and the applicable guidelines, and chapter 43.21C RCW as it relates to the adoption of master programs and amendments under chapter 90.58 RCW.

             (c) If the appeal to the growth management hearings board concerns a shoreline of state-wide significance, the board shall uphold the decision by the department unless the board, by clear and convincing evidence, determines that the decision of the department is inconsistent with the policy of RCW 90.58.020 and the applicable guidelines.

             (d) The appellant has the burden of proof in all appeals to the growth management hearings board under this subsection.

             (e) Any party aggrieved by a final decision of a growth management hearings board under this subsection may appeal the decision to superior court as provided in RCW 36.70A.300.

             (3)(a) Except as provided in subsection (2) of this section, any local government not planning under RCW 36.70A.040 that is aggrieved by the department's decision to approve, reject, or modify ((a)) its proposed master program or master program ((adjustment)) amendment may appeal the department's decision by filing a petition to the shorelines hearings board within thirty days of the date of the department̓s written notice to the local government of the department̓s decision to approve, reject, or modify a proposed master program or master program amendment as provided in RCW 90.58.090(2).

             (b) In an appeal relating to shorelines, the shorelines hearings board shall review the proposed master program or master program ((adjustment)) amendment and, after full consideration of the presentations of the local government and the department, shall determine the validity of the local government's ((adjustment)) master program or amendment in light of the policy of RCW 90.58.020 and the applicable guidelines.

             (c) In an appeal relating to shorelines of state-wide significance, the shorelines hearings board shall uphold the decision by the department unless ((a local government shall)) the board determines, by clear and convincing evidence ((and argument, persuade the board)) that the decision of the department is inconsistent with the policy of RCW 90.58.020 and the applicable guidelines.

             (d) Review by the shorelines hearings board shall be considered an adjudicative proceeding under chapter 34.05 RCW, the Administrative Procedure Act. The aggrieved local government shall have the burden of proof in all such reviews.

             (e) Whenever possible, the review by the shorelines hearings board shall be heard within the county where the land subject to the proposed master program or master program ((adjustment)) amendment is primarily located. The department and any local government aggrieved by a final decision of the hearings board may appeal the decision to ((the)) superior court ((of Thurston county)) as provided in chapter 34.05 RCW.

             (((3))) (4) A master program amendment shall become effective after the approval of the department or after the decision of the shorelines hearings board to uphold the master program or master program ((adjustment)) amendment, provided that the board may remand the master program or master program adjustment to the local government or the department for modification prior to the final adoption of the master program or master program ((adjustment)) amendment.


             Sec. 127. RCW 34.05.461 and 1989 c 175 s 19 are each amended to read as follows:

             (1) Except as provided in subsection (2) of this section:

             (a) If the presiding officer is the agency head or one or more members of the agency head, the presiding officer may enter an initial order if further review is available within the agency, or a final order if further review is not available;

             (b) If the presiding officer is a person designated by the agency to make the final decision and enter the final order, the presiding officer shall enter a final order; and

             (c) If the presiding officer is one or more administrative law judges, the presiding officer shall enter an initial order.

             (2) With respect to agencies exempt from chapter 34.12 RCW or an institution of higher education, the presiding officer shall transmit a full and complete record of the proceedings, including such comments upon demeanor of witnesses as the presiding officer deems relevant, to each agency official who is to enter a final or initial order after considering the record and evidence so transmitted.

             (3) Initial and final orders shall include a statement of findings and conclusions, and the reasons and basis therefor, on all the material issues of fact, law, or discretion presented on the record, including the remedy or sanction and, if applicable, the action taken on a petition for a stay of effectiveness. Any findings based substantially on credibility of evidence or demeanor of witnesses shall be so identified. Findings set forth in language that is essentially a repetition or paraphrase of the relevant provision of law shall be accompanied by a concise and explicit statement of the underlying evidence of record to support the findings. The order shall also include a statement of the available procedures and time limits for seeking reconsideration or other administrative relief. An initial order shall include a statement of any circumstances under which the initial order, without further notice, may become a final order.

             (4) Findings of fact shall be based exclusively on the evidence of record in the adjudicative proceeding and on matters officially noticed in that proceeding. Findings shall be based on the kind of evidence on which reasonably prudent persons are accustomed to rely in the conduct of their affairs. Findings may be based on such evidence even if it would be inadmissible in a civil trial. However, the presiding officer shall not base a finding exclusively on such inadmissible evidence unless the presiding officer determines that doing so would not unduly abridge the parties' opportunities to confront witnesses and rebut evidence. The basis for this determination shall appear in the order.

             (5) Where it bears on the issues presented, the agency's experience, technical competency, and specialized knowledge may be used in the evaluation of evidence.

             (6) If a person serving or designated to serve as presiding officer becomes unavailable for any reason before entry of the order, a substitute presiding officer shall be appointed as provided in RCW 34.05.425. The substitute presiding officer shall use any existing record and may conduct any further proceedings appropriate in the interests of justice.

             (7) The presiding officer may allow the parties a designated time after conclusion of the hearing for the submission of memos, briefs, or proposed findings.

             (8)(a) Except as otherwise provided in (b) of this subsection, initial or final orders shall be served in writing within ninety days after conclusion of the hearing or after submission of memos, briefs, or proposed findings in accordance with subsection (7) of this section unless this period is waived or extended for good cause shown.

             (b) This subsection does not apply to the final order of the shorelines hearings board on appeal under RCW 90.58.180(3).

             (9) The presiding officer shall cause copies of the order to be served on each party and the agency.


             Sec. 128. RCW 34.05.514 and 1994 c 257 s 23 are each amended to read as follows:

             (1) Except as provided in subsection (2) of this section ((and RCW 36.70A.300(3))), proceedings for review under this chapter shall be instituted by filing a petition in the superior court, at the petitioner's option, for (a) Thurston county, (b) the county of the petitioner's residence or principal place of business, or (c) in any county where the property owned by the petitioner and affected by the contested decision is located.

             (2) For proceedings involving institutions of higher education, the petition shall be filed either in the county in which the principal office of the institution involved is located or in the county of a branch campus if the action involves such branch.


             NEW SECTION. Sec. 129. A new section is added to chapter 36.70A RCW to read as follows:

             For shorelines of the state, the goals and policies of the shoreline management act as set forth in RCW 90.58.020 are added as one of the goals of this chapter as set forth in RCW 36.70A.020. The comprehensive plan of a county or city planning under RCW 36.70A.040 must also include a separate shorelines element consisting of the goals, policies, and use guidelines segments of the shoreline master program adopted under chapter 90.58 RCW. All other portions of the shoreline master program, including regulations, shall be considered part of the county's or city's development regulations.

             The shoreline master program shall be adopted pursuant to the procedures of chapter 90.58 RCW rather than the procedures set forth in this chapter for the adoption of a comprehensive plan and development regulations, including approval by the department of ecology, except that an appeal from the actions by the department of ecology are appealable to the appropriate growth management hearings board rather than the shorelines hearings board.


             Sec. 130. RCW 36.70A.130 and 1990 1st ex.s. c 17 s 13 are each amended to read as follows:

             (1) Each comprehensive land use plan and development regulations shall be subject to continuing evaluation and 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)(a) Each county and city shall establish and broadly disseminate to the public a public participation program identifying procedures whereby proposed amendments or revisions of the comprehensive plan are considered by the governing body of the county or city no more frequently than once every year except under the following circumstances:

             (i) The initial adoption of a subarea plan; and

             (ii) The adoption or amendment of a shoreline master program under the procedures set forth in chapter 90.58 RCW.

             (b) All proposals shall be considered by the governing body concurrently so the cumulative effect of the various proposals can be ascertained. However, after appropriate public participation, a county or city may adopt amendments or revisions to its comprehensive plan that conform with this chapter whenever an emergency exists or to resolve an appeal of a comprehensive plan filed with the growth management hearings board or with the court.

             (3) Each county that designates urban growth areas under RCW 36.70A.110 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, and the extent to which the urban growth occurring within the county has located within each city and the unincorporated portions of the urban growth areas. 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.


             Sec. 131. RCW 36.70A.290 and 1994 c 257 s 2 and 1994 c 249 s 26 are each reenacted and amended to read as follows:

             (1) All requests for review to a growth management hearings board shall be initiated by filing a petition that includes a detailed statement of issues presented for resolution by the board.

             (2) All petitions relating to whether or not an adopted comprehensive plan, development regulation, or permanent amendment thereto, is in compliance with the goals and requirements of this chapter or chapter 90.58 or 43.21C RCW must be filed within sixty days after publication by the legislative bodies of the county or city.

             (a) Except as provided in (c) of this subsection, the date of publication for a city shall be the date the city publishes the ordinance, or summary of the ordinance, adopting the comprehensive plan or development regulations, or amendment thereto, as is required to be published.

             (b) Promptly after adoption, a county shall publish a notice that it has adopted the comprehensive plan or development regulations, or amendment thereto.

             Except as provided in (c) of this subsection, for purposes of this section the date of publication for a county shall be the date the county publishes the notice that it has adopted the comprehensive plan or development regulations, or amendment thereto.

             (c) For local governments planning under RCW 36.70A.040, promptly after approval or disapproval of a local government̓s shoreline master program or amendment thereto by the department of ecology as provided in RCW 90.58.090, the local government shall publish a notice that the shoreline master program or amendment thereto has been approved or disapproved by the department of ecology. For purposes of this section, the date of publication for the adoption or amendment of a shoreline master program is the date the local government publishes notice that the shoreline master program or amendment thereto has been approved or disapproved by the department of ecology.

             (3) Unless the board dismisses the petition as frivolous or finds that the person filing the petition lacks standing, the board shall, within ten days of receipt of the petition, set a time for hearing the matter.

             (4) The board shall base its decision on the record developed by the city, county, or the state and supplemented with additional evidence if the board determines that such additional evidence would be necessary or of substantial assistance to the board in reaching its decision.

             (5) The board, shall consolidate, when appropriate, all petitions involving the review of the same comprehensive plan or the same development regulation or regulations.


             Sec. 132. RCW 36.70A.320 and 1991 sp.s. c 32 s 13 are each amended to read as follows:

             (1) Except as provided in subsection (2) of this section, comprehensive plans and development regulations, and amendments thereto, adopted under this chapter are presumed valid upon adoption. In any petition under this chapter, the board, after full consideration of the petition, shall determine whether there is compliance with the requirements of this chapter. In making its determination, the board shall consider the criteria adopted by the department under RCW 36.70A.190(4). The board shall find compliance unless it finds by a preponderance of the evidence that the state agency, county, or city erroneously interpreted or applied this chapter.

             (2) The shoreline element of a comprehensive plan and the applicable development regulations adopted by a county or city shall take effect as provided in chapter 90.58 RCW.


             Sec. 133. RCW 82.02.090 and 1990 1st ex.s. c 17 s 48 are each amended to read as follows:

             Unless the context clearly requires otherwise, the following definitions shall apply ((in RCW 82.02.050 through 82.02.090)) throughout this chapter:

             (1) "Development" means any proposed change in use of land for which review of environmental impacts is required under chapter 43.21C RCW, any proposed construction or expansion of a building, structure, or use, or any proposed change in use of a building or structure.

             (2) "Development activity" means any construction or expansion of a building, structure, or use, any change in use of a building or structure, or any changes in the use of land, that creates additional demand and need for public facilities.

             (((2))) (3) "Development approval" means any written authorization from a county, city, or town which authorizes the commencement of development activity.

             (((3))) (4) "Environmental analysis" means review under chapter 43.21C RCW of environmental impacts of an action required or authorized by chapter 36.70A RCW.

             (5) "Environmental analysis fees" means a payment of money imposed on development as a condition of development approval to pay for environmental analysis needed to establish the system capacity projected to accommodate implementation of a comprehensive plan adopted under chapter 36.70A RCW.

             (6) "Impact fee" means a payment of money imposed upon development as a condition of development approval to pay for public facilities needed to serve new growth and development, and that is reasonably related to the new development that creates additional demand and need for public facilities, that is a proportionate share of the cost of the public facilities, and that is used for facilities that reasonably benefit the new development. "Impact fee" does not include a reasonable permit or application fee.

             (((4))) (7) "Owner" means the owner of record of real property, although when real property is being purchased under a real estate contract, the purchaser shall be considered the owner of the real property if the contract is recorded.

             (((5))) (8) "Proportionate share" means that portion of the cost of public facility improvements that are reasonably related to the service demands and needs of new development.

             (((6))) (9) "Project improvements" mean site improvements and facilities that are planned and designed to provide service for a particular development project and that are necessary for the use and convenience of the occupants or users of the project, and are not system improvements. No improvement or facility included in a capital facilities plan approved by the governing body of the county, city, or town shall be considered a project improvement.

             (((7))) (10) "Public facilities" means the following capital facilities owned or operated by government entities: (a) Public streets and roads; (b) publicly owned parks, open space, and recreation facilities; (c) school facilities; and (d) fire protection facilities in jurisdictions that are not part of a fire district.

             (((8))) (11) "Service area" means a geographic area defined by a county, city, town, or intergovernmental agreement in which a defined set of public facilities provide service to development within the area. Service areas shall be designated on the basis of sound planning or engineering principles.

             (((9))) (12) "System capacity" means the capacity of a county, city, or town to accommodate new development determined by the limiting capacities of specific natural or built systems identified in the comprehensive plan adopted pursuant to RCW 36.70A.040.

             (13) "System improvements" mean public facilities that are included in the capital facilities plan and are designed to provide service to service areas within the community at large, in contrast to project improvements.


             NEW SECTION. Sec. 134. A new section is added to chapter 82.02 RCW to read as follows:

             Except only as expressly provided in RCW 67.28.180 and 67.28.190 and in 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 has the right to impose taxes of that nature.


             Sec. 135. RCW 82.02.020 and 1990 1st ex.s. c 17 s 42 are each amended to read as follows:

             ((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.)) (1) Except as provided in ((RCW 82.02.050 through 82.02.090)) this chapter, ((no)) a county, city, town, or other municipal corporation shall not 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 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.

             (2) This section does not prohibit voluntary agreements with ((counties, cities, towns)) a county, city, town, or other municipal corporation((s)) that allows 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))) (a) 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))) (b) The payment shall be expended in all cases within five years of collection; and

             (((3))) (c) 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)) (3) A county, city, town, or other municipal corporation shall not 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.

             (4)(a) 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.

             (b) 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.

             (c) 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)) may 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.

             (d) 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.

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

             (f) Nothing in this section prohibits counties, cities, or towns from requiring property owners to provide relocation assistance to tenants under RCW 59.18.440 and 59.18.450.

             (5) 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. 136. (1) The legislature finds that:

             (a) As of the effective date of this section, twenty-nine counties and two hundred eight cities are conducting comprehensive planning under the growth management act, chapter 36.70A RCW, which together comprise over ninety percent of the state's population;

             (b) Comprehensive plans for many of the jurisdictions were due by July 1, 1994, and the remaining jurisdictions must complete plans under due dates ranging from October 1994 to September 1997;

             (c) Concurrently with these comprehensive planning activities, local governments must conduct several other planning requirements under the growth management act, such as the adoption of capital facilities plans, urban growth areas, and development regulations;

             (d) Local governments must also comply with the state environmental policy act, chapter 43.21C RCW, in the development of comprehensive plans;

             (e) The combined activities of comprehensive planning and the state environmental policy act present a serious fiscal burden upon counties, cities, and towns;

             (f) This fiscal burden will be experienced over a relatively short period of time, whereas the benefits of growth management and environmental protection achieved through the comprehensive plans will accrue to each area over a much longer period in the future; and

             (g) The revenues from fees assessed at the time of county, city, or town government approval of projects that are consistent with the comprehensive plan may provide the basis for these local governments to issue both general obligations and revenue obligations in order to provide the early funding necessary to carry out their comprehensive planning and accompanying environmental analysis responsibilities.

             (2) Therefore it is the intent of the legislature by enacting this chapter to authorize counties, cities, and towns planning under RCW 36.70A.040 to assess environmental analysis fees at the time of project review, issue both general indebtedness and revenue indebtedness payable from the environmental analysis fees, and assist in financing the enhanced environmental review of comprehensive plans, subarea plans, and development regulations.


             NEW SECTION. Sec. 137. (1) A county, city, or town planning under RCW 36.70A.040 may impose environmental analysis fees on development to partially finance the enhanced environmental analysis of its comprehensive plan, subarea plans, and development regulations, as provided in section 103 of this act.

             (2) Environmental analysis fees may not be assessed or collected on development that is categorically exempt from a threshold determination under chapter 43.21C RCW.

             (3) Environmental analysis fees shall be proportionate to the amount of system capacity or capacities projected to be consumed by the new development.

             (4) Environmental analysis fees shall be collected and spent only for the costs of environmental analysis upon which the system capacity forecast in a comprehensive plan adopted pursuant to RCW 36.70A.070 or subarea plan is based.

             (5) Environmental analysis fees shall not be used to recover more than seventy-five percent of the costs previously incurred by a county, city, or town for environmental analysis required to establish the system capacity forecast in a comprehensive plan or subarea plan.


             NEW SECTION. Sec. 138. A county, city, or town in its ordinance establishing environmental analysis fees shall:

             (1) Include a schedule of environmental analysis fees based upon a formula or other method of calculating such fees. The formula or calculation shall incorporate at least the following:

             (a) The amount of system capacity to be used by the new development;

             (b) The total cost of environmental analysis required to establish the system capacity forecast in the comprehensive plan; and

             (c) The amount of the total cost of environmental analysis allocated to each capacity element used to determine the amount of the fee;

             (2) Allow the county, city, or town to adjust the standard fee at the time the fee is imposed to consider unusual circumstances in specific cases to ensure that environmental analysis fees are imposed fairly;

             (3) Not assess or collect environmental analysis fees to recover costs of environmental analysis that have already been fully recovered through environmental impact fees or through other sources.


             NEW SECTION. Sec. 139. A county, city, or town planning under RCW 36.70A.040 may issue general obligations and revenue obligations payable from environmental analysis fees to assist in financing the enhanced environmental review of comprehensive plans, subarea plans, and development regulations that is in sufficient detail to allow the environmental impact statement to be used in whole or in part by an applicant for a development within the geographic area covered by the plan or regulations that receives the enhanced environmental review. The comprehensive plan, subarea plan, or development regulations must include mechanisms to monitor the usefulness of the enhanced environmental review by applicants for development permits authorizing development consistent with the plan and regulations.

             The obligations issued to finance the enhanced environmental review may not have a maturity in excess of ten years. The obligations shall be issued as provided in chapter 39.46 RCW.

             At least twenty-five percent of the funding for the enhanced environmental review must come from sources other than the environmental analysis fees.


             NEW SECTION. Sec. 140. A new section is added to chapter 36.70A RCW to read as follows:

             The growth management planning and environmental review loan fund is hereby established in the state treasury. Moneys may be placed in the fund from the proceeds of bond sales, tax revenues, budget transfers, federal appropriations, gifts, or any other lawful source. Moneys in the fund may be spent only after appropriation. Moneys in the fund shall be used to make low-interest loans to counties and cities for the purposes set forth in section 103 of this act or RCW 43.21C.031. Loans from the fund shall be made by loan agreement under chapter 39.69 RCW.


             NEW SECTION. Sec. 141. A new section is added to chapter 36.70A RCW to read as follows:

             (1) The department of community, trade, and economic development shall provide management services for the fund created by section 140 of this act. The department by rule shall establish procedures for fund management.

             (2) A county or city applicant must be making substantial progress towards compliance with the requirements of chapter 36.70A RCW in order to qualify for financial assistance from the fund established pursuant to section 140 of this act. A county or city that is more than six months out of compliance with a requirement of this chapter is deemed not to be making substantial progress towards compliance.

             (3) The department by loan agreement may permit a deferred payment on the principal repayment of any loan for a period not to exceed two years. Interest shall continue to accrue during this period.


             NEW SECTION. Sec. 142. Sections 136 through 139 of this act shall constitute a new chapter in Title 36 RCW.


             NEW SECTION. Sec. 143. RCW 82.02.020, 82.02.050, 82.02.060, 82.02.070, 82.02.080, 82.02.090, and 82.02.100 are each recodified as sections within a new chapter created in Title 36 RCW.


             NEW SECTION. Sec. 144. RCW 90.58.145 and 1979 ex.s. c 84 s 4 are each repealed.


PART II - PERMITTING


             NEW SECTION. Sec. 201. The legislature finds and declares the following:

             (1) As the number of environmental laws and development regulations has increased for land uses and development, so has the number of required local land use permits, each with its own separate approval process.

             (2) The increasing number of local and state land use permits and separate environmental review processes required by agencies has generated continuing potential for conflict, overlap, and duplication between the various permit and review processes.

             (3) This regulatory burden has significantly added to the cost and time needed to obtain local and state land use permits and has made it difficult for the public to know how and when to provide timely comments on land use proposals that require multiple permits and have separate environmental review processes.


             NEW SECTION. Sec. 202. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

             (1) "Closed record appeal" means an appeal to a local government body or officer, including the legislative body, following an open record hearing and a decision by the body or officer on a development permit application when the appeal is on the record with no or limited new evidence or information allowed to be submitted and only appeal argument allowed.

             (2) "Development permit" or "development permit application" means any land use or environmental permit or license required from a local government for a project action, including but not limited to building permits, subdivisions, binding site plans, planned unit developments, conditional uses, shoreline substantial development permits, and other land use applications, but does not include proposed amendments to comprehensive plans or the adoption or amendment of development regulations.

             (3) "Development regulations" means the controls placed on development or land use activities by a local government, including, but not limited to, zoning ordinances, critical areas ordinances, shoreline master programs, official controls, planned unit development ordinances, subdivision ordinances, and binding site plan ordinances, together with any amendments, but does not include decisions to approve a development permit application, even though such decisions may be expressed in a resolution or ordinance of the legislative body of the local government.

             (4) "Local government" means a county, city, or town.

             (5) "Open record hearing" means a hearing conducted by a hearing body or officer of the local government that creates a record through testimony and submission of evidence and information, whether the hearing is open to members of the general public for purposes of hearing public comments prior to a decision on a development permit application or is limited to those filing an appeal of a staff decision.


             NEW SECTION. Sec. 203. Not later than December 31, 1996, each local government that does not plan under RCW 36.70A.040 shall provide by ordinance or resolution for review of development permit applications to achieve the following objectives:

             (1) Combine the environmental review process, both procedural and substantive, with the procedure for review of development permits;

             (2) Except as provided in RCW 43.21C.075(3), provide for no more than one open record hearing and one closed record appeal; and

             (3) Eliminate any appeal period for judicial appeals that conflicts with the uniform twenty-one day appeal period provided in section 305 of this act.


             NEW SECTION. Sec. 204. Not later than December 31, 1996, each local government planning under RCW 36.70A.040 shall establish by ordinance or resolution an integrated and consolidated development permit process that includes the following required elements:

             (1) A notice of completion to the applicant as required by RCW 36.70A.440 (as recodified by this act);

             (2) A notice of application to the public and agencies with jurisdiction as required by section 208 of this act;

             (3) With the exception of a determination of significance, which shall be issued in advance of the agency decision or recommendation on the project action as provided in chapter 43.21C RCW, a single report by the decision maker that combines the local government's threshold determination, if required under chapter 43.21C RCW, with the agency's decision or recommendation on all development permits included in the consolidated permit review and also includes any mitigation required pursuant to the development regulations or the agency's authority under RCW 43.21C.060;

             (4) Except as provided in section 211 of this act, the consolidation into a single review process of all development permits requested by an applicant for part or all of a project action, including no more than one consolidated open record hearing before a single hearing body or officer;

             (5) Except for the appeal of a determination of significance as provided in RCW 43.21C.075, if a local government elects to provide an appeal of its threshold determinations or development permit decisions, the local government shall provide for no more than one consolidated open record hearing before a single hearing body or officer. The local government need not provide for any further appeal. If a closed record appeal is provided, the appeal shall be on the record before a single decision-making body or officer;

             (6) A notice of decision as required by section 210 of this act and issued within the time period provided in RCW 36.70A.065 (as recodified by this act) and section 207 of this act; and

             (7) Any other provisions not inconsistent with the requirements of this chapter or chapter 43.21C RCW.


             Sec. 205. RCW 36.70A.440 and 1994 c 257 s 4 are each amended to read as follows:

             ((Each city and county)) (1) Within twenty-eight days after receiving a development permit application, a local government planning pursuant to RCW 36.70A.040 shall((, within twenty working days of receiving a development permit application as defined in RCW 36.70A.030(7),)) mail or provide in person a written ((notice)) determination to the applicant, stating either:

             (a) That the application is complete; or

             (b) That the application is incomplete and what is necessary to make the application complete.

             (2)(a) An application shall be deemed complete under this section if the local government does not provide a written determination to the applicant that the application is incomplete as provided in subsection (1)(b) of this section.

             (b) Within ten days after an applicant has submitted to a local government additional information identified by the local government as being necessary for a complete application, the local government shall notify the applicant whether the information submitted adequately responds to the notice given under (a) of this subsection and thereby makes the application complete or what additional information is necessary.

             (3) To the extent known by the ((city or county)) local government, the ((notice)) local government shall identify other agencies of local, state, or federal governments that may have jurisdiction over some aspect of the application.


             Sec. 206. RCW 36.70A.065 and 1994 c 257 s 3 are each amended to read as follows:

             Development regulations adopted pursuant to RCW 36.70A.040 shall establish time periods consistent with section 207 of this act for local government actions on specific development permit applications and provide timely and predictable procedures to determine whether a completed development permit application meets the requirements of those development regulations. Such development regulations shall specify the contents of a completed development permit application necessary for the application of such time periods and procedures.


             NEW SECTION. Sec. 207. (1) Except as otherwise provided in subsection (2) of this section, a local government planning under RCW 36.70A.040 shall issue its notice of final decision within one hundred twenty days after the local government notifies the applicant for a project that the application is complete or is deemed complete, as provided in RCW 36.70A.440 (as recodified by this act). In determining the number of days that have elapsed after the local government has notified the applicant that the application is complete, the following periods shall be excluded:

             (a) Any period during which an environmental impact statement is being prepared following a determination of significance pursuant to chapter 43.21C RCW, if the local government by ordinance or resolution has established time periods for completion of environmental impact statements, or if the local government and the applicant in writing agree to a time period for completion of an environmental impact statement; and

             (b) A period, not to exceed sixty days, to consider and decide closed record appeals, unless the parties voluntarily agree to extend the period.

             (2) The time limits established by subsection (1) of this section do not apply if a development permit:

             (a) Requires an amendment to the comprehensive plan or a development regulation;

             (b) Involves a new fully contained community as provided in RCW 36.70A.350, a master planned resort as provided in RCW 36.70A.360, or the siting of an essential public facility as provided in RCW 36.70A.200; or

             (c) Involves substantial revisions to the project proposal at the applicant's request, in which case the time period shall start from the date at which the revised project application is determined to be complete under RCW 36.70A.440 (as recodified by this act).

             (3) If the local government has failed to issue its notice of final decision within one hundred twenty days after the local government notifies the applicant for a project that the application is complete or is deemed complete, as provided in RCW 36.70A.440 (as recodified by this act), but not including time excluded under subsections (1) and (2) of this section the application shall be deemed approved, in the absence of extraordinary circumstances.

             (4) After an application is complete as provided in RCW 36.70A.440 (as recodified by this act), the local government may not require the applicant to submit additional information. The local government may, in the course of processing the application, request the applicant to clarify, explain, or correct information the applicant has submitted.

             (5) Failure of an applicant to submit adequate information required pursuant to RCW 36.70A.440 (as recodified by this act) may constitute grounds for disapproving the application.

             (6) The notice of completeness may include the following as optional information:

             (a) A preliminary determination of those development regulations that will be used for project mitigation;

             (b) A preliminary determination of consistency, as provided under section 101 of this act; or

             (c) Other information the local government chooses to include.

             (7) A local government may require the applicant for a development permit to designate a single person or entity to receive notice required by this section.


             NEW SECTION. Sec. 208. (1) Not later than December 31, 1996, a local government planning under RCW 36.70A.040 shall provide a notice of application to the public and the departments and agencies with jurisdiction as provided in this section.

             (2) The notice of application shall include the following:

             (a) The date of application;

             (b) The proposed project action and the development permits included in the application and, if applicable, any studies requested under RCW 36.70A.440 (as recodified by this act) or section 207 of this act;

             (c) The identification of other development or related permits not included in the application to the extent known by the local government;

             (d) A public comment period of not less than fourteen nor more than twenty-eight days following the date of notice of application, and statements of the right of any person to request a copy of the decision once made and any appeal rights;

             (e) The date for open record hearing, if applicable and scheduled at the date of notice of the application;

             (f) A statement of the preliminary determination, if one has been made at the time of notice, of those development regulations that will be used for project mitigation and of consistency as provided in section 101 of this act; and

             (g) Any other information determined appropriate by the local government, including the optional information required in section 207(5) of this act.

             (3) If an open record hearing is required for the requested development permits, the notice of application shall be provided at least fourteen days prior to the open record hearing.

             (4) A local government shall use reasonable methods to give the notice of application to the public and agencies with jurisdiction and may use its existing notice procedures. A local government may use different types of notice for different categories of development permits or types or project actions. Examples of reasonable methods to inform the public are:

             (a) Posting the property for site-specific proposals;

             (b) Publishing notice in the newspaper of general circulation in the local government or general area where the proposal is located;

             (c) Notifying public or private groups with known interest in a certain proposal or in the type of proposal being considered;

             (d) Notifying the news media;

             (e) Placing notices in appropriate regional or neighborhood newspapers or trade journals;

             (f) Publishing notice in agency newsletters or sending notice to agency mailing lists, either general lists or lists for specific proposals or subject areas; and

             (g) Mailing to neighboring property owners.

             (5) A notice of application shall not be required for development permits that are categorically exempt under chapter 43.21C RCW, unless an open record hearing is required.

             (6) The local government may not issue its threshold determination or issue a decision or recommendation on a development permit until expiration of the public comment period. Comments shall be as specific as possible. If an agency with jurisdiction or a member of the public does not respond with written comments within the public comment period, the local government shall assume that such agency or person has no objection to the proposed development permit if the procedures of this section have been met.


             NEW SECTION. Sec. 209. (1) Each local government planning under RCW 36.70A.040 shall establish a permit review process that provides for the integrated and consolidated review and decision on two or more development permits relating to a proposed project action, including a single application review and approval process covering all development permits requested by an applicant for all or part of a project action and a designated permit coordinator. If an applicant elects the consolidated permit review process, the notice of completion, notice of application, and notice of final decision must include all development permits being reviewed through the consolidated permit review process.

             (2) Consolidated permit review may provide different procedures for different categories of development permits, but if a project action requires development permits from more than one category, the local government shall provide for consolidated permit review with a single open record hearing and no more than one closed record appeal. Each local government shall determine which development permits are subject to an open record hearing and a closed record appeal. Examples of categories of development permits include but are not limited to:

             (a) Categorically exempt proposals, such as variances, lot boundary adjustments, and certain construction permits, which require no environmental review or public notice;

             (b) Administrative permits that require environmental review, but no open record hearing except on appeal;

             (c) Administrative permits that require a threshold determination and an open record hearing; and

             (d) Permits that require environmental review and a decision by the local government legislative body.

             (3) A local government is not required to provide for appeals. If provided, an appeal must be filed within fourteen days after notice of the decision being appealed. The applicant for a development permit is deemed to be a participant in any comment period, open record hearing, and closed record appeal.

             (4) A local government may provide by ordinance or resolution for the same or a different decision maker or hearing body or officer for different categories of development permits. In the case of consolidated development permit review, the local government shall specify which decision makers shall make the decision or recommendation, conduct the hearing, or decide the appeal to ensure that consolidated permit review occurs as provided in this section. The consolidated permit review may combine an open record public hearing with an open record appeal hearing. In such cases, the local government by ordinance or resolution shall specify which development permits, if any, shall be subject to a closed record appeal.

             (5) Each local government planning under RCW 36.70A.040 shall adopt procedures for administrative interpretation of its development regulations.


             NEW SECTION. Sec. 210. A local government planning under RCW 36.70A.040 shall provide a notice of decision, which may be a copy of the report, recommendation, or decision, to the applicant and to any person requesting notice of the decision prior to the rendering of the decision. The local government may publish or otherwise provide for additional notice of its decision.


             NEW SECTION. Sec. 211. A local government by ordinance or resolution may exclude the following development permits from the provisions of RCW 36.70A.440 (as recodified by this act), 36.70A.065 (as recodified by this act), sections 204, and 207 through 210 of this act:

             (1) Variances, lot line or boundary adjustments, short subdivision approval, building and other construction permits categorically exempt from environmental review under chapter 43.21C RCW or similar administrative approvals; and

             (2) Landmark designations, street vacations, or other approvals relating to the use of public areas or facilities, or other development permits that the local government by ordinance or resolution has determined present special circumstances that warrant a review process different from that provided in RCW 36.70A.440 (as recodified by this act), 36.70A.065 (as recodified by this act), sections 204, and 207 through 210 of this act.


             NEW SECTION. Sec. 212. A local government not planning under RCW 36.70A.040 may incorporate some or all of the provisions of sections 204 and 207 through 210 of this act and RCW 36.70A.065 and 36.70A.440 (as recodified by this act) into its procedures for review of development permits or other project actions.


             NEW SECTION. Sec. 213. (1) Each local government is encouraged to adopt further project review provisions to provide prompt, coordinated review and ensure accountability to applicants and the public, including expedited review for development permits for projects that are consistent with adopted development regulations and within the capacity of system-wide infrastructure improvements.

             (2) Nothing in this chapter is intended or shall be construed to prevent a local government from requiring by rule, ordinance, or resolution a preapplication conference or meeting, design review, or hearing on some or all proposed projects to obtain public comments on scoping or a draft environmental impact statement pursuant to chapter 43.21C RCW and its applicable rules.

             (3) Each local government is encouraged to develop a system of professional certification whereby qualified engineers or other professionals certify an application's compliance with adopted development regulations for the purpose of expediting or eliminating certain aspects of agency review of compliance with those regulations.

             (4) Each local government shall adopt procedures to monitor and enforce permit decisions and conditions.

             (5) Nothing in this chapter modifies any independent statutory authority for a government agency to appeal a development permit issued by a local government.


             NEW SECTION. Sec. 214. A new section is added to chapter 64.40 RCW to read as follows:

             A local government is not liable for damages under this chapter due to the local government̓s failure to make a final decision within the time limits established in section 207 of this act.


             Sec. 215. RCW 58.17.090 and 1981 c 293 s 5 are each amended to read as follows:

             (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 provide public notice and set a date for a public hearing. Except as provided in section 208 of this act, 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; and

             (((2))) (b) Special notice of the hearing shall be given to adjacent landowners by any other reasonable method local authorities deem necessary. 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 (1)(b) 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.

             (2) 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.


             Sec. 216. RCW 58.17.092 and 1988 c 168 s 12 are each amended to read as follows:

             Any notice made under chapter 58.17 or 36.--- (sections 101, 201 through 204, and 207 through 213 of this act) RCW that identifies affected property may identify this affected property without using a legal description of the property including, but not limited to, identification by an address, written description, vicinity sketch, or other reasonable means.


             Sec. 217. RCW 58.17.100 and 1981 c 293 s 6 are each amended to read as follows:

             If a city, town or county has established a planning commission or planning agency in accordance with state law or local charter, such commission or agency shall review all preliminary plats and make recommendations thereon to the city, town or county legislative body to assure conformance of the proposed subdivision to the general purposes of the comprehensive plan and to planning standards and specifications as adopted by the city, town or county. Reports of the planning commission or agency shall be advisory only: PROVIDED, That the legislative body of the city, town or county may, by ordinance, assign to such commission or agency, or any department official or group of officials, such administrative functions, powers and duties as may be appropriate, including the holding of hearings, and recommendations for approval or disapproval of preliminary plats of proposed subdivisions.

             Such recommendation shall be submitted to the legislative body not later than fourteen days following action by the hearing body. Upon receipt of the recommendation on any preliminary plat the legislative body shall at its next public meeting set the date for the public meeting where it shall consider the recommendations of the hearing body and may adopt or reject the recommendations of such hearing body based on the record established at the public hearing. If, after considering the matter at a public meeting, the legislative body deems a change in the planning commission's or planning agency's recommendation approving or disapproving any preliminary plat is necessary, ((the change of the recommendation shall not be made until)) the legislative body shall ((conduct a public hearing and thereupon)) adopt its own recommendations and approve or disapprove the preliminary plat. ((Such public hearing may be held before a committee constituting a majority of the legislative body. If the hearing is before a committee, the committee shall report its recommendations on the matter to the legislative body for final action.))

             Every decision or recommendation made under this section shall be in writing and shall include findings of fact and conclusions to support the decision or recommendation.

             A record of all public meetings and public hearings shall be kept by the appropriate city, town or county authority and shall be open to public inspection.

             Sole authority to approve final plats, and to adopt or amend platting ordinances shall reside in the legislative bodies.


             Sec. 218. RCW 58.17.330 and 1994 c 257 s 6 are each amended to read as follows:

             (1) As an alternative to those provisions of this chapter requiring a planning commission to hear and issue recommendations for plat approval, the county or city legislative body may adopt a hearing examiner system and shall specify by ordinance the legal effect of the decisions made by the examiner. ((Except as provided in subsection (2) of this section,)) The legal effect of such decisions shall include one of the following:

             (a) The decision may be given the effect of a recommendation to the legislative body;

             (b) The decision may be given the effect of an administrative decision appealable within a specified time limit to the legislative body; or

             (c) The decision may be given the effect of a final decision of the legislative body.

The legislative authority shall prescribe procedures to be followed by a hearing examiner.

             (2) ((The legislative body shall specify the legal effect of a hearing examiner's procedural determination under the state environmental policy act, as defined in RCW 43.21C.075(3)(a). It may have the effect under subsection (1) (a) or (b) of this section, or may be given the effect of a final decision of the legislative body.

             (3))) Each final decision of a hearing examiner shall be in writing and shall include findings and conclusions, based on the record, to support the decision. Each final decision of a hearing examiner, unless a longer period is mutually agreed to by the applicant and the hearing examiner, shall be rendered within ten working days following conclusion of all testimony and hearings.


             NEW SECTION. Sec. 219. The legislature finds that the lack of certainty in the approval of development projects can result in a waste of public and private resources, escalate housing costs for consumers and discourage the commitment to comprehensive planning which would make maximum efficient use of resources at the least economic cost to the public. Assurance to a development project applicant that upon government approval the project may proceed in accordance with existing policies and regulations, and subject to conditions of approval, all as set forth in a development agreement, will strengthen the public planning process, encourage private participation and comprehensive planning, and reduce the economic costs of development. Further, the lack of public facilities and services is a serious impediment to development of new housing and commercial uses. Project applicants and local governments may include provisions and agreements whereby applicants are reimbursed over time for financing public facilities. It is the intent of the legislature by sections 220 through 224 of this act to allow local governments and owners and developers of real property to enter into development agreements.


             NEW SECTION. Sec. 220. A new section is added to chapter 36.70A RCW to read as follows:

             (1) A county or city may enter into a development agreement with a person having ownership or control of real property within its jurisdiction. A city may enter into a development agreement for real property outside its boundaries as part of a proposed annexation or a service agreement. A development agreement must set forth the development standards and other provisions that shall apply to and govern and vest the development, use, and mitigation of the development of the real property for the duration specified in the agreement.

             (2) Sections 219 through 222 of this act do not affect the validity of a contract rezone, concomitant agreement, annexation agreement, or other agreement in existence on the effective date of sections 219 through 222 of this act, or adopted under separate authority, that includes some or all of the development standards provided in subsection (3) of this section.

             (3) For the purposes of this section, "development standards" includes, but is not limited to:

             (a) Project elements such as permitted uses, residential densities, and nonresidential densities and intensities or building sizes;

             (b) The amount and payment of impact fees imposed or agreed to in accordance with chapter 36.-- RCW (the new chapter created in section 143 of this act) or any other applicable provisions of state law, other financial contributions by the property owner, inspection fees, or dedications;

             (c) Mitigation measures, development conditions, and other requirements under chapter 43.21C RCW;

             (d) Design standards such as maximum heights, setbacks, drainage and water quality requirements, landscaping, and other development features;

             (e) Affordable housing;

             (f) Parks and open space preservation;

             (g) Phasing;

             (h) Review procedures and standards for implementing decisions;

             (i) A build-out or vesting period for applicable standards; and

             (j) Any other appropriate development requirement or procedure.

             (4) The execution of a development agreement is a proper exercise of county and city police power and contract authority. A development agreement may obligate a party to fund or provide services, infrastructure, or other facilities. A development agreement shall reserve authority to impose new or different regulations to the extent required by a serious threat to public health and safety.


             NEW SECTION. Sec. 221. A new section is added to chapter 36.70A RCW to read as follows:

             Unless amended or terminated, a development agreement is enforceable during its term by a party. A development agreement and the development standards in the agreement govern during the term of the agreement, or for all or that part of the build-out period specified in the agreement, and may not be subject to an amendment to a zoning ordinance or development standard or regulation or a new zoning ordinance or development standard or regulation adopted after the effective date of the agreement. A permit or approval issued by the county or city after the execution of the development agreement must be consistent with the development agreement.


             NEW SECTION. Sec. 222. A new section is added to chapter 36.70A RCW to read as follows:

             A development agreement may be recorded with the real property records of the county in which the property is located. During the term of the development agreement, the agreement is binding on and will inure to the benefit of the parties and their successors, including a city that assumes jurisdiction through incorporation or annexation of the area covering the property covered by the development agreement.


             NEW SECTION. Sec. 223. A new section is added to chapter 36.70A RCW to read as follows:

             A county or city shall only approve a development agreement by ordinance or resolution after a public hearing. The county or city legislative body or a planning commission, hearing examiner, or other body designated by the legislative body to conduct the public hearing may conduct the hearing. If the development agreement relates to a development permit application, the provisions of chapter 36.-- RCW (sections 301 through 312 of this act) shall apply to the appeal of the decision on the development agreement.


             NEW SECTION. Sec. 224. Nothing in sections 219 through 223 of this act is intended to authorize local governments to impose impact fees, inspection fees, or dedications or to require any other financial contributions or mitigation measures except as authorized in RCW 82.02.020 (as recodified by this act) and as otherwise expressly authorized by other applicable provisions of state law.


             Sec. 225. RCW 35.63.130 and 1994 c 257 s 8 are each amended to read as follows:

             (1) As an alternative to those provisions of this chapter relating to powers or duties of the planning commission to hear and report on any proposal to amend a zoning ordinance, the legislative body of a city or county may adopt a hearing examiner system under which a hearing examiner or hearing examiners may hear and decide applications for amending the zoning ordinance when the amendment which is applied for is not of general applicability. In addition, the legislative body may vest in a hearing examiner the power to hear and decide those issues it believes should be reviewed and decided by a hearing examiner, including but not limited to:

             (a) Applications for conditional uses, variances, subdivisions, shoreline permits, or any other class of applications for or pertaining to development of land or land use((s which the legislative body believes should be reviewed and decided by a hearing examiner));

             (b) Appeals of administrative decisions or determinations; and

             (c) Appeals of administrative decisions or determinations pursuant to chapter 43.21C RCW.

             The legislative body shall prescribe procedures to be followed by the hearing examiner.

             (2) Each city or county legislative body electing to use a hearing examiner pursuant to this section shall by ordinance specify the legal effect of the decisions made by the examiner. ((Except as provided in subsection (2) of this section,)) The legal effect of such decisions may vary for the different classes of applications decided by the examiner but shall include one of the following:

             (a) The decision may be given the effect of a recommendation to the legislative body;

             (b) The decision may be given the effect of an administrative decision appealable within a specified time limit to the legislative body((.

             (2) The legislative body may specify the legal effect of a hearing examiner's procedural determination under the state environmental policy act, as defined in RCW 43.21C.075(3)(a). It may have the effect under subsection (1) (a) or (b) of this section, or)); or

             (c) The decision may be given the effect of a final decision of the legislative body, except that applications for rezones may not be given the effect of a final decision of a legislative body.

             (3) Each final decision of a hearing examiner shall be in writing and shall include findings and conclusions, based on the record, to support the decision. Such findings and conclusions shall also set forth the manner in which the decision would carry out and conform to the city's or county's comprehensive plan and the city's or county's development regulations. Each final decision of a hearing examiner, unless a longer period is mutually agreed to in writing by the applicant and the hearing examiner, shall be rendered within ten working days following conclusion of all testimony and hearings.


             Sec. 226. RCW 35A.63.170 and 1994 c 257 s 7 are each amended to read as follows:

             (1) As an alternative to those provisions of this chapter relating to powers or duties of the planning commission to hear and report on any proposal to amend a zoning ordinance, the legislative body of a city may adopt a hearing examiner system under which a hearing examiner or hearing examiners may hear and decide applications for amending the zoning ordinance when the amendment which is applied for is not of general applicability. In addition, the legislative body may vest in a hearing examiner the power to hear and decide those issues it believes should be reviewed and decided by a hearing examiner, including but not limited to:

             (a) Applications for conditional uses, variances, subdivisions, shoreline permits, or any other class of applications for or pertaining to development of land or land use((s which the legislative body believes should be reviewed and decided by a hearing examiner));

             (b) Appeals of administrative decisions or determinations; and

             (c) Appeals of administrative decisions or determinations pursuant to chapter 43.21C RCW.

             The legislative body shall prescribe procedures to be followed by a hearing examiner. If the legislative authority vests in a hearing examiner the authority to hear and decide variances, then the provisions of RCW 35A.63.110 shall not apply to the city.

             (2) Each city legislative body electing to use a hearing examiner pursuant to this section shall by ordinance specify the legal effect of the decisions made by the examiner. ((Except as provided in subsection (2) of this section,)) The legal effect of such decisions may vary for the different classes of applications decided by the examiner but shall include one of the following:

             (a) The decision may be given the effect of a recommendation to the legislative body;

             (b) The decision may be given the effect of an administrative decision appealable within a specified time limit to the legislative body((.

             (2) The legislative body shall specify the legal effect of a hearing examiner's procedural determination under the state environmental policy act, as defined in RCW 43.21C.075(3)(a). It may have the effect under subsection (1) (a) or (b) of this section, or)); or

             (c) The decision may be given the effect of a final decision of the legislative body, except that applications for a rezone may not be given the effect of a final decision of a legislative body.

             (3) Each final decision of a hearing examiner shall be in writing and shall include findings and conclusions, based on the record, to support the decision. Such findings and conclusions shall also set forth the manner in which the decision would carry out and conform to the city's comprehensive plan and the city's development regulations. Each final decision of a hearing examiner, unless a longer period is mutually agreed to in writing by the applicant and the hearing examiner, shall be rendered within ten working days following conclusion of all testimony and hearings.


             Sec. 227. RCW 36.70.970 and 1994 c 257 s 9 are each amended to read as follows:

             (1) As an alternative to those provisions of this chapter relating to powers or duties of the planning commission to hear and issue recommendations on applications for plat approval and applications for amendments to the zoning ordinance, the county legislative authority may adopt a hearing examiner system under which a hearing examiner or hearing examiners may hear and issue decisions on proposals for plat approval and for amendments to the zoning ordinance when the amendment which is applied for is not of general applicability. In addition, the legislative authority may vest in a hearing examiner the power to hear and decide those issues it believes should be reviewed and decided by a hearing examiner, including but not limited to:

             (a) Applications for conditional uses ((applications)), variances ((applications)), ((applications for)) shoreline permits, or any other class of applications for or pertaining to development of land or land use((s));

             (b) Appeals of administrative decisions or determinations; and

             (c) Appeals of administrative decisions or determinations pursuant to chapter 43.21C RCW.

             The legislative authority shall prescribe procedures to be followed by a hearing examiner.

             Any county which vests in a hearing examiner the authority to hear and decide conditional uses and variances shall not be required to have a zoning adjuster or board of adjustment.

             (2) Each county legislative authority electing to use a hearing examiner pursuant to this section shall by ordinance specify the legal effect of the decisions made by the examiner. ((Except as provided in subsection (2) of this section,)) Such legal effect may vary for the different classes of applications decided by the examiner but shall include one of the following:

             (a) The decision may be given the effect of a recommendation to the legislative authority;

             (b) The decision may be given the effect of an administrative decision appealable within a specified time limit to the legislative authority((.

             (2) The legislative authority may specify the legal effect of a hearing examiner's procedural determination under the state environmental policy act, as defined in RCW 43.21C.075(3)(a). It may have the effect under subsection (1) (a) or (b) of this section, or)); or

             (c) The decision may be given the effect of a final decision of the legislative authority, except that applications for rezones may not be given the effect of a final decision of a legislative authority.

             (3) Each final decision of a hearing examiner shall be in writing and shall include findings and conclusions, based on the record, to support the decision. Such findings and conclusions shall also set forth the manner in which the decision would carry out and conform to the county's comprehensive plan and the county's development regulations. Each final decision of a hearing examiner, unless a longer period is mutually agreed to in writing by the applicant and the hearing examiner, shall be rendered within ten working days following conclusion of all testimony and hearings.


             NEW SECTION. Sec. 228. The legislature hereby finds and declares:

             (1) Washington's environmental protection programs have established strict standards to reduce pollution and protect the public health and safety and the environment. The single-purpose programs instituted to achieve these standards have been successful in many respects, and have produced significant gains in protecting Washington's environment in the face of substantial population growth.

             (2) Continued progress to achieve the environmental standards in the face of continued population growth will require greater coordination between the single-purpose environmental programs and more efficient operation of these programs overall. Pollution must be prevented and controlled and not simply transferred to another media or another place. This goal can only be achieved by maintaining the current environmental protection standards and by greater integration of the existing programs.

             (3) As the number of environmental laws and regulations have grown in Washington, so have the number of permits required of business and government. This regulatory burden has significantly added to the cost and time needed to obtain essential permits in Washington. The increasing number of individual permits and permit authorities has generated the continuing potential for conflict, overlap, and duplication between the various state, local, and federal permits.

             (4) To ensure that local needs and environmental conditions receive the proper attention, the issuance and renewal of permits should continue to be made, to the extent feasible, at the regional and local levels of the environmental programs.

             (5) The purpose of this chapter is to require the department of ecology to institute new, efficient procedures that will assist businesses and public agencies in complying with the environmental quality laws in an expedited fashion, without reducing protection of public health and safety and the environment.

             (6) Those procedures need to provide a permit process that promotes effective dialogue and ensures ease in the transfer and clarification of technical information, while preventing duplication. It is necessary that the procedures establish a process for preliminary and ongoing meetings between the applicant, the consolidated permit agency, and the participating permit agencies, but do not preclude the applicant or participating permit agencies from individually coordinating with each other.

             (7) It is necessary, to the maximum extent practicable, that the procedures established in this chapter ensure that the consolidated permit agency process and applicable permit requirements and criteria are integrated and run concurrently, rather than consecutively.

             (8) It is necessary to provide a reliable and consolidated source of information concerning the environmental and land use laws and procedures that apply to any given proposal. This information is to be current and encompass all state and local jurisdictions. To the extent possible, it is to encompass federal jurisdictions and functions, as well.

             (9) The process shall provide an optional process by which a project proponent may obtain active coordination of all applicable regulatory and land-use permitting procedures. This process is not to replace individual laws, or diminish the substantive decision-making role of individual jurisdictions. Rather it is to provide predictability, administrative consolidation, and, where possible, consolidation of appeal processes.

             (10) The process shall provide consolidated, effective, and easier opportunities for members of the public to receive information and present their views about proposed projects.


             NEW SECTION. Sec. 229. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

             (1) "Center" means the permit assistance center established in the department by section 230 of this act.

             (2) "Consolidated permit agency" means the permit agency that has the greatest overall jurisdiction over a project.

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

             (4) "Participating permit agency" means a permit agency, other than the consolidated permit agency, that is responsible for the issuance of a permit for a project.

             (5) "Permit" means any license, certificate, registration, permit, or other form of authorization required by a permit agency to engage in a particular activity.

             (6) "Permit agency" means:

             (a) The department of ecology, an air pollution control authority, the department of natural resources, the department of fish and wildlife, and the department of health; and

             (b) Any other state or federal agency, county, city, or town for the project that participates at the request of the permit applicant and upon the agency's agreement to be subject to this chapter.

             (7) "Project" means an activity, the conduct of which requires a permit from two or more permit agencies.


             NEW SECTION. Sec. 230. The permit assistance center is established within the department. The center shall:

             (1) Publish and keep current one or more handbooks containing lists and explanations of all permit laws. The center shall coordinate with the business assistance center in providing and maintaining this information to applicants and others. To the extent possible, the handbook shall include relevant federal laws. A state agency or local government shall provide a reasonable number of copies of application forms, statutes, ordinances, rules, handbooks, and other informational material requested by the center and shall otherwise fully cooperate with the center. The center shall seek the cooperation of relevant federal agencies;

             (2) Establish, and make known, a point of contact for distribution of the handbook and advice to the public as to its interpretation in any given case;

             (3) Work closely and cooperatively with the business license center and the business assistance center in providing efficient and nonduplicative service to the public; and

             (4) Provide a permit coordination training program designed to:

             (a) Educate project facilitators as to the role and requirements of all jurisdictions;

             (b) Share permit coordination experiences;

             (c) Improve the quality and efficiency of project facilitation; and

             (d) Certify project facilitators.


             NEW SECTION. Sec. 231. (1) Not later than January 1, 1996, the center shall establish by rule an administrative process for the designation of a consolidated permit agency for a project.

             (2) The administrative process shall consist of the establishment of guidelines for designating the consolidated permit agency for a project. If a permit agency is the lead agency for purposes of chapter 43.21C RCW, that permit agency shall be the consolidated permit agency. In other cases, the guidelines shall require that at least the following factors be considered in determining which permit agency has the greatest overall jurisdiction over the project:

             (a) The types of facilities or activities that make up the project;

             (b) The types of public health and safety and environmental concerns that should be considered in issuing permits for the project;

             (c) The environmental medium that may be affected by the project, the extent of those potential effects, and the environmental protection measures that may be taken to prevent the occurrence of, or to mitigate, those potential effects;

             (d) The regulatory activity that is of greatest importance in preventing or mitigating the effects that the project may have on public health and safety or the environment; and

             (e) The statutory and regulatory requirements that apply to the project and the complexity of those requirements.


             NEW SECTION. Sec. 232. Upon the request of a project applicant, the center shall appoint a project facilitator to assist the applicant in determining which regulatory requirements, processes, and permits may be required for development and operation of the proposed project. The project facilitator shall provide the information to the applicant and explain the options available to the applicant in obtaining the required permits. If the applicant requests, the center shall designate a coordinating permit agency as provided in section 233 of this act.


             NEW SECTION. Sec. 233. (1) A permit applicant who requests the designation of a consolidated permit agency shall provide the center with a description of the project, a preliminary list of the permits that the project may require, the identity of any public agency that has been designated the lead agency for the project pursuant to chapter 43.21C RCW, and the identity of the participating permit agencies. The center may request any information from the permit applicant that is necessary to make the designation under this section, and may convene a scoping meeting of the likely consolidated permit agency and participating permit agencies in order to make that designation.

             (2) The consolidated permit agency shall serve as the main point of contact for the permit applicant with regard to the processing of the consolidated permit process for the project and shall manage the procedural aspects of that processing consistent with existing laws governing the consolidated permit agency and participating permit agencies, and with the procedures agreed to by those agencies in accordance with section 234 of this act. In carrying out these responsibilities, the consolidated permit agency shall ensure that the permit applicant has all the information needed to apply for all the component permits that are incorporated in the consolidated permit process for the project, coordinate the review of those permits by the respective participating permit agencies, ensure that timely permit decisions are made by the participating permit agencies, and assist in resolving any conflict or inconsistency among the permit requirements and conditions that are to be imposed by the participating permit agencies with regard to the project. The coordinating permit agency shall keep in contact with the applicant as well as other permit agencies in order to assure that the process is progressing as scheduled. The coordinating permit agency shall recommend appropriate alternatives that may be more efficient and identify potential problems to successful completion of the process.

             (3) This chapter shall not be construed to limit or abridge the powers and duties granted to a participating permit agency under the law that authorizes or requires the agency to issue a permit for a project. Each participating permit agency shall retain its authority to make all decisions on all nonprocedural matters with regard to the respective component permit that is within its scope of its responsibility, including, but not limited to, the determination of permit application completeness, permit approval or approval with conditions, or permit denial. The consolidated permit agency may not substitute its judgment for that of a participating permit agency on any such nonprocedural matters.


             NEW SECTION. Sec. 234. (1) Within twenty-one days of the date that the consolidated permit agency is designated, it shall convene a meeting with the permit applicant for the project and the participating permit agencies. The meeting agenda shall include at least all of the following matters:

             (a) A determination of the permits that are required for the project;

             (b) A review of the permit application forms and other application requirements of the agencies that are participating in the consolidated permit process;

             (c)(i) A determination of the timelines that will be used by the consolidated permit agency and each participating permit agency to make permit decisions, including the time periods required to determine if the permit applications are complete, to review the application or applications, and to process the component permits, and the timelines that will be used by the consolidated permit agency to aggregate the component permits into, and to issue the consolidated permit process. In the development of this time line, full attention shall be given to achieving the maximum efficiencies possible through concurrent studies, consolidated applications, hearings, and comment periods. Except as provided in (c)(ii) of this subsection, the timelines established under this subsection, with the assent of the consolidated permit agency and each participating permit agency, shall commit the consolidated permit agency and each participating permit agency to act on the component permit within time periods that are different than those required by other applicable provisions of law.

             (ii) An accelerated time period for the consideration of a permit application may not be set if that accelerated time period would be inconsistent with, or in conflict with, any time period or series of time periods set by statute for that consideration, or with any statute, rule, or regulation, or adopted state policy, standard, or guideline that requires any of the following:

             (A) Other agencies, interested persons, federally recognized Indian tribes, or the public to be given adequate notice of the application;

             (B) Other agencies to be given a role in, or be allowed to participate in, the decision to approve or disapprove the application; or

             (C) Interested persons or the public to be provided the opportunity to challenge, comment on, or otherwise voice their concerns regarding the application;

             (d) The scheduling of any public hearings that are required to issue permits for the project and a determination of the feasibility of coordinating or consolidating any of those required public hearings; and

             (e) A discussion of fee arrangements for the consolidated permit process, including an estimate of the costs allowed under section 237 of this act and the billing schedule.

             (2) Each agency shall send at least one representative qualified to make decisions concerning the applicability and timelines associated with all permits administered by that jurisdiction. At the request of the applicant, the consolidated permit agency shall notify any relevant federal agency of the date of the meeting and invite that agency's participation in the process.

             (3) If a permit agency or the applicant foresees, at any time, that it will be unable to meet its obligations under the agreement, it shall notify the consolidated permit agency of the problem. The coordinating permit agency shall notify the permit agencies and the applicant and, upon agreement of all parties, adjust the schedule, or, if necessary, schedule another work plan meeting.

             (4) The consolidated permit agency may request any information from the applicant that is necessary to comply with its obligations under this section, consistent with the timelines set pursuant to this section.

             (5) A summary of the decisions made under this section shall be made available for public review upon the filing of the consolidated permit process application or permit applications.


             NEW SECTION. Sec. 235. (1) The permit applicant may withdraw from the consolidated permit process by submitting to the consolidated permit agency a written request that the process be terminated. Upon receipt of the request, the consolidated permit agency shall notify the center and each participating permit agency that a consolidated permit process is no longer applicable to the project.

             (2) The permit applicant may submit a written request to the consolidated permit agency that the permit applicant wishes a participating permit agency to withdraw from participation on the basis of a reasonable belief that the issuance of the consolidated permit process would be accelerated if the participating permit agency withdraws. In that event, the participating permit agency shall withdraw from participation if the consolidated permit agency approves the request.


             NEW SECTION. Sec. 236. The consolidated permit agency shall ensure that the participating permit agencies make all the permit decisions that are necessary for the incorporation of the permits into the consolidated permit process and act on the component permits within the time periods established pursuant to section 234 of this act.


             NEW SECTION. Sec. 237. (1) The consolidated permit agency may enter into a written agreement with the applicant to recover from the applicant the reasonable costs incurred by the consolidated permit agency in carrying out the requirements of this chapter.

             (2) The consolidated permit agency may recover only the costs of performing those consolidated permit services and shall be negotiated with the permit applicant in the meeting required pursuant to section 234 of this act. The billing process shall provide for accurate time and cost accounting and may include a billing cycle that provides for progress payments.


             NEW SECTION. Sec. 238. A petition by the permit applicant for review of an agency action in issuing, denying, or amending a permit, or any portion of a consolidated permit agency permit, shall be submitted by the permit applicant to the consolidated permit agency or the participating permit agency having jurisdiction over that permit and shall be processed in accordance with the procedures of that permit agency. Within thirty days of receiving the petition, the consolidated permit agency shall notify the other environmental agencies participating in the original consolidated permit process.


             NEW SECTION. Sec. 239. If an applicant petitions for a significant amendment or modification to a consolidated permit process application or any of its component permit applications, the consolidated permit agency shall reconvene a meeting of the participating permit agencies, conducted in accordance with section 234 of this act.


             NEW SECTION. Sec. 240. If an applicant fails to provide information required for the processing of the component permit applications for a consolidated permit process or for the designation of a consolidated permit agency, the time requirements of this chapter shall be tolled until such time as the information is provided.


             NEW SECTION. Sec. 241. (1) The center, by rule, shall establish an expedited appeals process by which a petitioner or applicant may appeal any failure by a permit agency to take timely action on the issuance or denial of a permit in accordance with the time limits established under this chapter.

             (2) If the center finds that the time limits under appeal have been violated without good cause, it shall establish a date certain by which the permit agency shall act on the permit application with adequate provision for the requirements of section 234(1)(c)(ii) (A) through (C) of this act, and provide for the full reimbursement of any filing or permit processing fees paid by the applicant to the permit agency for the permit application under appeal.


             NEW SECTION. Sec. 242. By December 1, 1997, the center shall submit a report to the appropriate committees of both houses of the legislature detailing the following information:

             (1) The number of instances in which a consolidated permit agency has been requested and used, and the disposition of those cases;

             (2) The amount of time elapsed between an initial request by a permit applicant for a consolidated permit process and the ultimate approval or disapproval of the permits included in the process;

             (3) The number of instances in which the expedited appeals process was requested, and the disposition of those cases; and

             (4) Potential conflicts and perceived inconsistencies among existing statutes.


             NEW SECTION. Sec. 243. A new section is added to chapter 43.131 RCW to read as follows:

             The permit assistance center and its powers and duties shall be terminated June 30, 1999, as provided in section 244 of this act.


             NEW SECTION. Sec. 244. A new section is added to chapter 43.131 RCW to read as follows:

             The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, 2000:

             (1) RCW 90.--.--- and 1995 c -- s 228 (section 228 of this act);

             (2) RCW 90.--.--- and 1995 c -- s 229 (section 229 of this act);

             (3) RCW 90.--.--- and 1995 c -- s 230 (section 230 of this act);

             (4) RCW 90.--.--- and 1995 c -- s 231 (section 231 of this act);

             (5) RCW 90.--.--- and 1995 c -- s 232 (section 232 of this act);

             (6) RCW 90.--.--- and 1995 c -- s 233 (section 233 of this act);

             (7) RCW 90.--.--- and 1995 c -- s 234 (section 234 of this act);

             (8) RCW 90.--.--- and 1995 c -- s 235 (section 235 of this act);

             (9) RCW 90.--.--- and 1995 c -- s 236 (section 236 of this act);

             (10) RCW 90.--.--- and 1995 c -- s 237 (section 237 of this act);

             (11) RCW 90.--.--- and 1995 c -- s 238 (section 238 of this act);

             (12) RCW 90.--.--- and 1995 c -- s 239 (section 239 of this act);

             (13) RCW 90.--.--- and 1995 c -- s 240 (section 240 of this act); and

             (14) RCW 90.--.--- and 1995 c -- s 241 (section 241 of this act).


             NEW SECTION. Sec. 245. The following acts or parts of acts are each repealed:

             (1) RCW 90.62.010 and 1982 c 179 s 1, 1977 c 54 s 1, & 1973 1st ex.s. c 185 s 1;

             (2) RCW 90.62.020 and 1994 c 264 s 96, 1988 c 36 s 71, 1977 c 54 s 2, & 1973 1st ex.s. c 185 s 2;

             (3) RCW 90.62.030 and 1973 1st ex.s. c 185 s 3;

             (4) RCW 90.62.040 and 1990 c 137 s 1, 1977 c 54 s 3, & 1973 1st ex.s. c 185 s 4;

             (5) RCW 90.62.050 and 1977 c 54 s 4 & 1973 1st ex.s. c 185 s 5;

             (6) RCW 90.62.060 and 1982 c 179 s 2, 1977 c 54 s 5, & 1973 1st ex.s. c 185 s 6;

             (7) RCW 90.62.070 and 1973 1st ex.s. c 185 s 7;

             (8) RCW 90.62.080 and 1987 c 109 s 156, 1977 c 54 s 6, & 1973 1st ex.s. c 185 s 8;

             (9) RCW 90.62.090 and 1977 c 54 s 7 & 1973 1st ex.s. c 185 s 9;

             (10) RCW 90.62.100 and 1977 c 54 s 8 & 1973 1st ex.s. c 185 s 10;

             (11) RCW 90.62.110 and 1973 1st ex.s. c 185 s 11;

             (12) RCW 90.62.120 and 1973 1st ex.s. c 185 s 12;

             (13) RCW 90.62.130 and 1977 c 54 s 9;

             (14) RCW 90.62.900 and 1973 1st ex.s. c 185 s 13;

             (15) RCW 90.62.901 and 1973 1st ex.s. c 185 s 14;

             (16) RCW 90.62.904 and 1973 1st ex.s. c 185 s 15;

             (17) RCW 90.62.905 and 1973 1st ex.s. c 185 s 16;

             (18) RCW 90.62.906 and 1973 1st ex.s. c 185 s 18;

             (19) RCW 90.62.907 and 1973 1st ex.s. c 185 s 19; and

             (20) RCW 90.62.908 and 1977 c 54 s 10.


             NEW SECTION. Sec. 246. Sections 101, 201 through 204, and 207 through 213 of this act shall constitute a new chapter in Title 36 RCW.


             NEW SECTION. Sec. 247. Sections 228 through 241 of this act shall constitute a new chapter in Title 90 RCW.


             NEW SECTION. Sec. 248. RCW 36.70A.065 and 36.70A.440 are recodified as sections within the new chapter created in section 246 of this act.


             NEW SECTION. Sec. 249. The department of community, trade, and economic development shall provide training and technical assistance to counties and cities to assist them in fulfilling the requirements of chapter 36.-- RCW (sections 101, 201 through 204, and 207 through 213 of this act). The land use study commission created by section 401 of this act shall monitor local government consolidated permit procedures and the effectiveness of the timelines established by section 207 of this act. The commission shall include in its report submitted to the governor and the legislature on November 30, 1997, its recommendation about what timelines, if any, should be imposed on the local government consolidated permit process required by chapter 36.-- RCW (sections 101, 201 through 204, and 207 through 213 of this act).


PART III - APPEALS


             NEW SECTION. Sec. 301. This chapter may be known and cited as the land use petition act. A petition brought under this chapter must be called a land use petition.


             NEW SECTION. Sec. 302. The purpose of this chapter is to reform the process for judicial review of land use decisions made by local jurisdictions, by establishing uniform, expedited appeal procedures and uniform criteria for reviewing such decisions, in order to provide consistent, predictable, and timely judicial review.


             NEW SECTION. Sec. 303. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

             (1) "Land use decision" means a final determination by a local jurisdiction's body or officer with the highest level of authority to make the determination, including those with authority to hear appeals, on:

             (a) An application for a development permit or other governmental approval required by law before real property may be improved, developed, modified, sold, transferred, or used, but excluding applications for permits or approvals to use streets, parks, and similar types of public property and excluding applications for legislative approvals such as rezones;

             (b) An interpretative or declaratory decision regarding the application to a specific property of zoning or other ordinances or rules regulating the development, modification, maintenance, or use of real property; and

             (c) The enforcement of ordinances regulating the development, modification, maintenance, or use of real property. However, when a local jurisdiction is required by law to enforce the ordinances in a court of limited jurisdiction, a petition may not be brought under this chapter.

             (2) "Local jurisdiction" means a county, city, or town, or special purpose district as defined in RCW 36.96.010.

             (3) "Person" means an individual, partnership, corporation, association, public or private organization, or governmental agency.


             NEW SECTION. Sec. 304. (1) This chapter replaces the writ of certiorari for judicial review of local jurisdictions' land use decisions.

             (2) This chapter does not apply to judicial review procedures established by other laws, including, but not limited to judicial review of:

             (a) Land use decisions made by bodies that are not part of a local jurisdiction;

             (b) Land use decisions of a local jurisdiction that are subject to review by a quasi-judicial body created by state law, such as the shorelines hearings board or the growth management hearings board;

             (c) Claims provided by any law for monetary damages or compensation; or

             (d) Applications for injunctive relief, including a writ of prohibition or mandamus.

             (3) If one or more claims for damages or compensation are set forth in the same complaint with a land use petition brought under this chapter, the procedures and standards, including deadlines, provided in this chapter for review of the petition do not apply to the claims for damages or compensation. The judge who hears the land use petition may, if appropriate, preside at a trial for damages or compensation.

             (4) The court rules govern procedural matters under this chapter to the extent that the rules are consistent with this chapter.


             NEW SECTION. Sec. 305. (1) Proceedings for review under this chapter must be commenced by filing a land use petition in superior court.

             (2) A land use petition is barred, and the court may not grant review, unless the petition is timely filed with the court. The petition must be served on the following parties:

             (a) The local jurisdiction, which for purposes of the petition shall be the jurisdiction's corporate entity and not an individual decision maker or department; and

             (b) Each of the following, if not the petitioner:

             (i) Any person identified by name and address in the local jurisdiction's written decision as an applicant for the permit or approval at issue or as a property owner of the property at issue;

             (ii) If no person is named in the decision as provided in (b)(i) of this subsection, any such person identified in the application for a permit or approval at issue; and

             (iii) Any person who filed an appeal to a quasi-judicial decision maker regarding the land use decision at issue, unless the person has abandoned the appeal or the person's claims were dismissed before the quasi-judicial decision was rendered. Any person who later intervened or joined in the appeal is not required to be made a party under this subsection.

             (3) The petition is timely if it is filed within twenty-one days of the issuance of the land use decision.

             (4) For the purposes of this section, a land use decision is issued on the date on which a written decision is mailed or if not mailed, the date on which the local jurisdiction provides notice that a written decision is publicly available. However, if written notification is not required to be provided, the decision is issued on the later of:

             (a) The date that the decision is made at a public meeting; or

             (b) The date that the decision is entered into the public record.

             (5) Service on the local jurisdiction must be by delivery of a copy of the petition pursuant to RCW 4.28.080. Service on other parties must be in accordance with the civil rules or, for parties who provided an address to the local jurisdiction during a quasi-judicial proceeding regarding the land use decision at issue, service may be by deposit in the United States mail to the address. Service by mail is effective on the date of mailing. Proof of service must be evidenced by affidavit.


             NEW SECTION. Sec. 306. Standing to bring a land use petition under this chapter, and to intervene in a proceeding under this chapter, is limited to the following parties:

             (1) The applicant and the owner of property to which the land use decision is directed;

             (2) Another person aggrieved or adversely affected by the land use decision, or who would be aggrieved or adversely affected by a reversal or modification of the land use decision, and who will suffer direct and substantial impacts from the decision, reversal, or modification.


             NEW SECTION. Sec. 307. (1) A petitioner shall set forth in a land use petition:

             (a) The name and mailing address of the petitioner;

             (b) The name and mailing address of the petitioner's attorney, if any;

             (c) The name and mailing address of the local jurisdiction whose land use decision is at issue;

             (d) Identification of the decision-making body or officer, together with a duplicate copy of the decision, or if not a written decision, a summary or brief description of it;

             (e) Identification of persons who were named petitioners or appellants in any quasi-judicial proceedings regarding the land use decision at issue;

             (f) Facts demonstrating that the petitioner is entitled to seek judicial review; and

             (g) A request for relief, specifying the type of relief requested.

             (2) Within sixty days of service of a land use petition on the local jurisdiction, the local jurisdiction must certify and submit to the court and serve on all parties to the petition a complete record of the proceedings leading to the decision identified in the land use petition pursuant to subsection (1)(d) of this section.

             (3) The local jurisdiction need not certify the record, if the court determines that the petition should be dismissed for any reason, including improper service, lack of standing, failure to join an indispensable party, or failure to comply with subsection (1) of this section.

             (4) The court may grant additional time for the certification of the record, if additional time is determined by the court to be necessary.

             (5) Within fifteen days of service of the petition, the local jurisdiction shall notify the petitioner of the estimated cost of preparing the record.

             (6) The petitioner shall pay the cost of preparing the record within fifteen days of service of the record on the petitioner.


             NEW SECTION. Sec. 308. The court shall provide expedited review of petitions filed under this chapter. If judicial review is granted, the matter must be set for hearing within sixty days of the date set for submitting the local jurisdiction's record, absent a showing of compelling reasons for a different date or a stipulation of the parties.


             NEW SECTION. Sec. 309. (1) A petitioner for judicial review of a land use decision may request the court to stay or suspend an action by the local jurisdiction or another party to implement the decision under review, by including the request in the petition. The request must set forth a statement of grounds for the stay and the factual basis for the request. The court shall rule on the request at the hearing on the order to show cause.

             (2) Another party to the judicial review proceedings may request a stay by making a motion in accordance with the court rules. The motion must be filed with the party's first pleading in the matter.

             (3) The court shall deny a request for a stay that is made after the times required by subsections (1) and (2) of this section unless the party requesting the stay establishes that the reasons justifying the stay did not exist, or could not have been discovered, at the times set forth in subsections (1) and (2) of this section.

             (4) A court may grant a stay only if the court finds that:

             (a) The party requesting the stay is likely to prevail on the merits;

             (b) Without the stay the party requesting it will suffer irreparable harm; and

             (c) The grant of a stay will not substantially harm other parties to the proceedings or the public.

             (5) The court may grant the request for a stay upon such terms and conditions, such as the filing of security, as are necessary to prevent harm to other parties from the stay.


             NEW SECTION. Sec. 310. (1) If the land use decision being reviewed was made by a quasi-judicial body or officer who was making factual determinations and the parties had the opportunity to make a record on the factual issues, judicial review of factual issues, and the conclusions drawn from the factual issues, must be confined to the record created by the quasi-judicial body or officer, except as provided in this section.

             (2) For decisions described in subsection (1) of this section, the record may be supplemented by additional evidence only if the additional evidence relates to:

             (a) Disputed factual issues regarding the authority or jurisdiction of the body or officer that made the land use decision;

             (b) Grounds for disqualification of a member of the body or of the officer that made the land use decision;

             (c) Unlawfulness of the procedure used to make the decision;

             (d) Matters that were improperly excluded from the record after being offered by a party to the quasi-judicial proceeding; or

             (e) Matters that were outside the jurisdiction of the body or officer that made the land use decision.

             (3) For land use decisions other than those described in subsection (1) of this section, the record for judicial review may be supplemented by evidence of material facts that were not required to be made part of the local jurisdiction's record.

             (4) The parties may not conduct civil discovery prior to the determination of the land use petition except in regard to the issues listed in subsection (2) of this section. Requests made under chapter 42.17 RCW for records relating to the matters at issue in the pending land use petition must be treated as requests for civil discovery and must meet the requirements of this section and the court rules.


             NEW SECTION. Sec. 311. (1) The superior court, acting without a jury, shall review the record and such supplemental evidence as is permitted under RCW 36.70B.100. The court may grant relief only if the party seeking relief has carried the burden of establishing that one of the standards set forth in (a), (b), and (c) of this subsection have been met. The standards are:

             (a) The party seeking relief has been substantially prejudiced as a result of the claimed error or errors, and:

             (i) The body or officer that made the land use decision engaged in unlawful procedure or failed to follow a prescribed process;

             (ii) The land use decision under review is a clearly erroneous interpretation or application of the law, in light of the law's purpose; or

             (iii) The land use decision under review is not supported by substantial evidence;

             (b) The land use decision under review was outside the authority or jurisdiction of the body or officer making the decision; and

             (c) The land use decision violates the constitutional rights of the party seeking relief.

             (2) In order to grant relief under this chapter, it is not necessary for the court to find that the local jurisdiction engaged in arbitrary and capricious conduct.


             NEW SECTION. Sec. 312. The court may affirm or reverse the land use decision under review, modify it, or remand it for modification or further proceedings. If the decision is remanded for modification or further proceedings, the court may make the order as it finds necessary to preserve the interests of the parties and the public, pending further proceedings or action by the local jurisdiction.


             Sec. 313. RCW 7.16.360 and 1989 c 175 s 38 are each amended to read as follows:

             This chapter does not apply to state agency action reviewable under chapter 34.05 RCW or the land use decisions of local jurisdictions reviewable under chapter 36.-- RCW (sections 301 through 312 of this act).


             Sec. 314. RCW 58.17.180 and 1983 c 121 s 5 are each amended to read as follows:

             Any decision approving or disapproving any plat shall be reviewable for ((unlawful, arbitrary, capricious or corrupt action or nonaction by writ of review before)) under chapter 36.-- RCW (sections 301 through 312 of this act) by the superior court of the county in which such matter is pending. ((Standing to bring the action is limited to the following parties:

             (1) The applicant or owner of the property on which the subdivision is proposed;

             (2) Any property owner entitled to special notice under RCW 58.17.090;

             (3) Any property owner who deems himself aggrieved thereby and who will suffer direct and substantial impacts from the proposed subdivision.

             Application for a writ of review shall be made to the court within thirty days from any decision so to be reviewed. The cost of transcription of all records ordered certified by the court for such review shall be borne by the appellant.))


             NEW SECTION. Sec. 315. A new section is added to chapter 4.84 RCW to read as follows:

             Notwithstanding any other provisions of this chapter, reasonable attorneys̓ fees and costs shall be awarded to the prevailing party or substantially prevailing party on appeal before the superior court, court of appeals, or the supreme court of a decision by a county, city, or town to issue, condition, or deny a development permit involving a site-specific rezone, zoning, plat, conditional use, variance, shoreline permit, building permit, site plan, or similar land use approval or decision.


             NEW SECTION. Sec. 316. Sections 301 through 312 of this act constitute a new chapter in Title 36 RCW.


PART IV - STUDY


             NEW SECTION. Sec. 401. The land use study commission is hereby established. The commission̓s goal shall be the integration and consolidation of the state̓s land use and environmental laws into a single, manageable statute. In fulfilling its responsibilities, the commission shall evaluate the effectiveness of the growth management act, the state environmental policy act, the shoreline management act, and other state land use, planning, environmental, and permitting statutes.


             NEW SECTION. Sec. 402. The commission shall consist of not more than thirteen members. Seven members of the commission shall be appointed by the governor, two members shall be appointed by the speaker of the house of representatives, and two members shall be appointed by the president of the senate. Membership shall reflect the interests of business, agriculture, labor, the environment, other citizens, the legislature, cities, counties, federally recognized Indian tribes, and state agencies. The director of the department of community, trade, and economic development, or the director̓s designee, shall serve in a nonvoting capacity as chair of the commission. The director of the department of ecology, or the director̓s designee, shall also be a member of the commission in a nonvoting capacity. Staff for the commission shall be provided by the department of community, trade, and economic development, with additional staff to be provided by other state agencies and the legislature, as may be required. State agencies shall provide the commission with information and assistance as needed.


             NEW SECTION. Sec. 403. The commission shall convene commencing June 1, 1995, and shall complete its work by June 30, 1998. The commission shall submit a report to the governor and the legislature stating its findings, conclusions, and recommendations not later than November 1 of each year. The commission shall submit its final report to the governor and the legislature not later than November 1, 1997.


             NEW SECTION. Sec. 404. The commission shall:

             (1) Consider the effectiveness of state and local government efforts to consolidate and integrate the growth management act, the state environmental policy act, the shoreline management act, and other land use, planning, environmental, and permitting laws.

             (2) Identify the revisions and modifications needed in state land use, planning, and environmental law and practice to adequately plan for growth, to adequately assess environmental impacts of comprehensive plans, development regulations, and growth, and to reduce the time and cost of obtaining project permits.

             (3) Draft a consolidated land use procedure, following these guidelines:

             (a) Conduct land use planning through the comprehensive planning process under chapter 36.70A RCW rather than through review of individual projects;

             (b) Involve diverse sectors of the public in the planning process. Early and informal environmental analysis should be incorporated into planning and decision making;

             (c) Recognize that different questions need to be answered and different levels of detail applied at each planning phase, from the initial development of plan concepts or plan elements to implementation programs;

             (d) Integrate and combine to the fullest extent possible the processes, analysis, and documents currently required under chapters 36.70A and 43.21C RCW, so that subsequent plan decisions and subsequent implementation will incorporate measures to promote the environmental, economic, and other goals and to mitigate undesirable or unintended adverse impacts on a community's quality of life;

             (e) Focus environmental review and the level of detail needed for different stages of plan and project decisions on the environmental considerations most relevant to that stage of the process;

             (f) Avoid duplicating review that has occurred for plan decisions when specific projects are proposed;

             (g) Use environmental review on projects to: (i) Review and document consistency with comprehensive plans and development regulations; (ii) provide prompt and coordinated review by agencies, tribes, and the public on compliance with applicable environmental laws and plans, including mitigation for site specific project impacts that have not been considered and addressed at the plan or development regulation level; and (iii) ensure accountability by local government to applicants and the public for requiring and implementing mitigation measures;

             (h) Maintain or improve the quality of environmental analysis both for plan and for project decisions, while integrating these analyses with improved state and local planning and permitting processes;

             (i) Examine existing land use and environmental permits for necessity and utility. To the extent possible, existing permits should be combined into fewer permits, assuring that the values and principles intended to be protected by those permits remain protected; and

             (j) Consolidate local government appeal processes to allow a single appeal of permits at local government levels, a single state level administrative appeal, and a final judicial appeal.

             (4) These guidelines are intended to guide the work of the commission, without limiting its charge to integrate and consolidate Washington's land use and environmental laws into a single, manageable code.


             NEW SECTION. Sec. 405. Members of the commission shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.


             NEW SECTION. Sec. 406. Sections 401 through 405 of this act shall expire June 30, 1998.


PART V - MISCELLANEOUS


             NEW SECTION. Sec. 501. 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. 502. Part headings and the table of contents as used in this act do not constitute any part of the law.


             NEW SECTION. Sec. 503. Sections 401 through 406 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 June 1, 1995."


             On page 1, line 3 of the title, after "review;" strike the remainder of the title and insert "amending RCW 43.21C.075, 43.21C.031, 43.21C.110, 43.21C.080, 36.70A.140, 36.70A.300, 36.70A.330, 90.58.020, 90.58.030, 90.58.050, 90.58.060, 90.58.080, 90.58.090, 90.58.100, 90.58.120, 90.58.140, 90.58.180, 90.58.190, 34.05.461, 34.05.514, 36.70A.130, 36.70A.320, 82.02.090, 82.02.020, 36.70A.440, 36.70A.065, 58.17.090, 58.17.092, 58.17.100, 58.17.330, 35.63.130, 35A.63.170, 36.70.970, 7.16.360, and 58.17.180; reenacting and amending RCW 36.70A.030 and 36.70A.290; adding new sections to chapter 36.70A RCW; adding a new section to chapter 43.21C RCW; adding a new section to chapter 82.02 RCW; adding a new section to chapter 64.40 RCW; adding new sections to chapter 43.131 RCW; adding a new section to chapter 4.84 RCW; adding new chapters to Title 36 RCW; adding a new chapter to Title 90 RCW; creating new sections; recodifying RCW 82.02.020, 82.02.050, 82.02.060, 82.02.070, 82.02.080, 82.02.090, 82.02.100, 36.70A.065, and 36.70A.440; repealing RCW 90.58.145, 90.62.010, 90.62.020, 90.62.030, 90.62.040, 90.62.050, 90.62.060, 90.62.070, 90.62.080, 90.62.090, 90.62.100, 90.62.110, 90.62.120, 90.62.130, 90.62.900, 90.62.901, 90.62.904, 90.62.905, 90.62.906, 90.62.907, and 90.62.908; providing an effective date; providing an expiration date; and declaring an emergency."


POINT OF ORDER


             Representative B. Thomas: Thank you Mr. Speaker. Amendment number 417 is drawn to the striker.


             Representative B. Thomas moved adoption of the following amendment to the striking amendment by Representative B. Thomas:


             On page 58, after line 5, insert the following:

             "Sec. 142. RCW 35.44.020 and 1987 c 242 s 4 are each amended to read as follows:

             There shall be included in the cost and expense of every local improvement for assessment against the property in the district created to pay the same, or any part thereof:

             (1) The cost of all of the construction or improvement authorized for the district including, but not limited to, that portion of the improvement within the street intersections;

             (2) The estimated cost and expense of all engineering and surveying necessary for the improvement done under the supervision of the city or town engineer;

             (3) The estimated cost and expense of ascertaining the ownership of the lots or parcels of land included in the assessment district;

             (4) The estimated cost and expense of advertising, mailing, and publishing all necessary notices;

             (5) The estimated cost and expense of accounting, clerical labor, and of books and blanks extended or used on the part of the city or town clerk and city or town treasurer in connection with the improvement;

             (6) All cost of the acquisition of rights of way, property, easements, or other facilities or rights, including without limitation rights to use property, facilities, or other improvements appurtenant, related to, and/or useful in connection with the local improvement, whether by eminent domain, purchase, gift, payment of connection charges, capacity charges, or other similar charges, or in any other manner;

             (7) The cost for legal, financial, and appraisal services and any other expenses incurred by the city, town, or public corporation for the district or in the formation thereof, or by the city, town, or public corporation in connection with such construction or improvement and in the financing thereof, including the issuance of any bonds and the cost of providing for increases in the local improvement guaranty fund, or providing for a separate reserve fund or other security for the payment of principal of and interest on such bonds.

             Any of the costs set forth in this section may be excluded from the cost and expense to be assessed against the property in such local improvement district and may be paid from any other moneys available therefor if the legislative body of the city or town so designates by ordinance at any time."


             Representatives B. Thomas and Reams spoke in favor of the adoption of the amendment to the striking amendment.


             Representative Rust spoke against the adoption of the amendment to the striking amendment.


             The amendment to the striking amendment was adopted.


             The striking amendment as amended was adopted.


             The bill was ordered engrossed.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representative Reams spoke in favor of passage of the bill.


             Representatives Rust and Chopp spoke against passage of the bill.


             The Speaker (Representative Horn presiding) stated the question before the House to be final passage of Engrossed Substitute House Bill No. 1724.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 1724, and the bill passed the House by the following vote: Yeas - 70, Nays - 28, Absent - 0, Excused - 0.

             Voting yea: Representatives Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Clements, Cooke, Crouse, Delvin, Dyer, Elliot, Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Padden, Pennington, Quall, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven and Mr. Speaker - 70.

             Voting nay: Representatives Appelwick, Brown, Chopp, Cody, Cole, Conway, Costa, Dellwo, Dickerson, Ebersole, Fisher, G., Fisher, R., Jacobsen, Mason, Ogden, Patterson, Pelesky, Poulsen, Regala, Romero, Rust, Scott, Sommers, Thibaudeau, Tokuda, Valle, Veloria and Wolfe - 28.


             Engrossed Substitute House Bill No. 1724, having received the constitutional majority, was declared passed.


STATEMENT FOR THE JOURNAL


             I intended to vote NAY on Engrossed Substitute House Bill No. 1724.


SARAH CASADA, 25th District


             The Speaker assumed the chair.


             There being no objection, the House considered the following bills in the following order: Substitute House Bill No. 1523, House Bill No. 1066, House Bill No. 1570, House Bill No. 1851, House Bill No. 1860 and House Bill No. 1941.


             There being no objection, the House resumed consideration of Substitute House Bill No. 1523.


             Representatives Padden, Backlund, Mulliken, Pelesky spoke in favor of passage of the bill.


             Representatives Thibaudeau, Ebersole, Cole, Mastin, Tokuda, Cody, Mason, Romero, Appelwick, Hatfield and Conway spoke against passage of the bill.


             The Speaker declared the House to be at ease.


             The Speaker called the House to order.


             The bill was ordered engrossed.


             The Speaker stated the question before the House to be final passage of Engrossed Substitute House Bill No. 1523.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 1523, and the bill passed the House by the following vote: Yeas - 54, Nays - 44, Absent - 0, Excused - 0.

             Voting yea: Representatives Backlund, Basich, Beeksma, Benton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Clements, Crouse, Delvin, Elliot, Foreman, Fuhrman, Goldsmith, Hargrove, Hickel, Honeyford, Huff, Hymes, Johnson, Koster, Kremen, Lambert, Lisk, McMahan, McMorris, Mielke, Morris, Mulliken, Padden, Pelesky, Pennington, Quall, Robertson, Schmidt, D., Schoesler, Sheahan, Sheldon, Sherstad, Silver, Smith, Stevens, Talcott, Thomas, L., Thompson, Van Luven and Mr. Speaker - 54.

             Voting nay: Representatives Appelwick, Ballasiotes, Blanton, Brown, Chopp, Cody, Cole, Conway, Cooke, Costa, Dellwo, Dickerson, Dyer, Ebersole, Fisher, G., Fisher, R., Grant, Hankins, Hatfield, Horn, Jacobsen, Kessler, Mason, Mastin, Mitchell, Ogden, Patterson, Poulsen, Radcliff, Reams, Regala, Romero, Rust, Schmidt, K., Scott, Sehlin, Skinner, Sommers, Thibaudeau, Thomas, B., Tokuda, Valle, Veloria and Wolfe - 44.


             Engrossed Substitute House Bill No. 1523, having received the constitutional majority, was declared passed.


POINT OF PERSONAL PRIVILEGE


             Representative Ebersole: Thank you Mr. Speaker. I wanted to compliment you in the decorous and fair way that you conducted this debate. And I wanted to compliment the Chair of the Law & Justice Committee for his dedication and commitment to something I know that he feels very strong about and also to our Ranking Member of the Committee. And to all the members of the House, I think we've just seen here a very civil and well reasoned and fair debate and I think we should be proud of that. Thank you Mr. Speaker.


SPEAKER'S PRIVILEGE


             Thank you. The Speaker would like to follow on the words of the Minority Leader. I think a test of a group of people on an issue of this deep emotion can certainly stretch the limits. You have conducted yourselves in an outstanding manner and I know the emotions and the seriousness of the issue. So the Speaker would like to say, Thank you very much for having that kind of decorum and respect and it gives us encouragement as we continue through difficult times. Thank you.


             HOUSE BILL NO. 1066, by Representatives Lisk, Dyer, R. Fisher, Cairnes, Grant, Chandler, Sheldon, Scott and Ballasiotes

 

Authorizing agreements regarding smoking in the workplace that provide for a designated enclosed smoking room.


             The bill was read the second time. There being no objection, Substitute House Bill No. 1066 was substituted for House Bill No. 1066 and the substitute bill was placed on second reading.


             Substitute House Bill No. 1066 was read the second time.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives Lisk, Carlson, Dyer, Thompson and Horn spoke in favor of passage of the bill.


             Representatives Valle, Cody, Conway and Quall spoke against passage of the bill.


             The Speaker stated the question before the House to be final passage of Substitute House Bill No. 1066.


ROLL CALL


             The Clerk called the roll on the final passage of Substitute House Bill No. 1066, and the bill passed the House by the following vote: Yeas - 74, Nays - 24, Absent - 0, Excused - 0.

             Voting yea: Representatives Backlund, Ballasiotes, Benton, Blanton, Boldt, Buck, Cairnes, Carlson, Carrell, Casada, Chandler, Chappell, Clements, Cooke, Crouse, Delvin, Dyer, Elliot, Fisher, G., Fisher, R., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Honeyford, Horn, Huff, Hymes, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Padden, Patterson, Pelesky, Pennington, Poulsen, Radcliff, Reams, Regala, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Tokuda, Van Luven and Mr. Speaker - 74.

             Voting nay: Representatives Appelwick, Basich, Beeksma, Brown, Brumsickle, Campbell, Chopp, Cody, Cole, Conway, Costa, Dellwo, Dickerson, Ebersole, Hickel, Jacobsen, Mason, Quall, Rust, Sommers, Thibaudeau, Valle, Veloria and Wolfe - 24.


             Substitute House Bill No. 1066, having received the constitutional majority, was declared passed.


             HOUSE BILL NO. 1851, by Representatives Pennington, Morris, Crouse, Sherstad, Dyer, Radcliff, Honeyford, Mielke, Kremen, Carlson, Sheldon, Campbell, Reams, Mitchell, Horn, Koster, Padden, Elliot, Robertson, Van Luven, D. Schmidt, Schoesler, L. Thomas, Smith, Lisk, Chandler, Fuhrman, McMorris, Benton, Sehlin, Foreman, Hargrove, Brumsickle, Hymes, Buck, Skinner, Blanton, Thompson, B. Thomas and Hickel

 

Deleting the increased tax on beer allocable to the health services account.


             The bill was read the second time.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives Pennington, Morris, Horn and Dyer spoke in favor of passage of the bill.


             Representative Cody spoke against passage of the bill.


MOTION


             On motion of Representative Talcott, Representative Pelesky was excused.


             Representative Morris again spoke in favor of passage of the bill.


             The Speaker stated the question before the House to be final passage of House Bill No. 1851.


ROLL CALL


             The Clerk called the roll on the final passage of House Bill No. 1851, and the bill passed the House by the following vote: Yeas - 80, Nays - 17, Absent - 0, Excused - 1.

             Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Clements, Cooke, Costa, Crouse, Delvin, Dyer, Ebersole, Elliot, Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Padden, Patterson, Pennington, Quall, Radcliff, Reams, Regala, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven, Wolfe and Mr. Speaker - 80.

             Voting nay: Representatives Chopp, Cody, Cole, Conway, Dellwo, Dickerson, Fisher, G., Fisher, R., Jacobsen, Mason, Poulsen, Rust, Sommers, Thibaudeau, Tokuda, Valle and Veloria - 17.

             Excused: Representative Pelesky - 1.


             House Bill No. 1851, having received the constitutional majority, was declared passed.


             HOUSE BILL NO. 1860, by Representatives L. Thomas, Goldsmith and Robertson

 

Regulating real estate appraisers.


             The bill was read the second time. There being no objection, Substitute House Bill No. 1860 was substituted for House Bill No. 1860 and the substitute bill was placed on second reading.


             Substitute House Bill No. 1860 was read the second time.


             Representative L. Thomas moved adoption of the following amendment by Representative L. Thomas:


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 18.140.005 and 1993 c 30 s 1 are each amended to read as follows:

             It is the intent of the legislature that only individuals who meet and maintain minimum standards of competence and conduct ((may provide)) established under this chapter for certified or licensed real estate appraisers may provide real estate appraisal services to the public.


             Sec. 2. RCW 18.140.010 and 1993 c 30 s 2 are each amended to read as follows:

             As used in this chapter, the following terms have the meanings indicated unless the context clearly requires otherwise.

             (1) "Appraisal" ((or "real estate appraisal")) means ((an analysis, opinion, or conclusion relating to the nature, quality, value, or utility of specified interests in, or aspects of, identified real estate, for or in expectation of compensation. An appraisal may be classified by subject matter into either a valuation or an analysis. A "valuation" is an estimate of the value of real estate or real property. An "analysis" is a study of real estate or real property other than estimating value)) the act or process of estimating value; an estimate of value; or of or pertaining to appraising and related functions.

             (2) "Appraisal report" means any communication, written or oral, of an appraisal, ((except that all appraisal reports in federally related transactions are required to be written reports)) review, or consulting service in accordance with the standards of professional conduct or practice, adopted by the director, that is transmitted to the client upon completion of an assignment.

             (3) "Appraisal assignment" means an engagement for which an appraiser is employed or retained to act, or would be perceived by third parties or the public as acting, as a disinterested third party in rendering an unbiased analysis, opinion, or conclusion relating to the ((nature, quality,)) value((, or utility)) of specified interests in, or aspects of, identified real estate. The term "appraisal assignment" may apply to valuation work and analysis work.

             (4) "Brokers price opinion" means an oral or written report of property value that is prepared by a real estate broker or salesperson licensed under chapter 18.85 RCW for listing, sale, purchase, or rental purposes.

             (5) "Certified appraisal" means an appraisal prepared or signed by a state-certified real estate appraiser. A certified appraisal represents to the public that it meets the appraisal standards defined in this chapter.

             (((5))) (6) "Client" means any party for whom an appraiser performs a service.

             (7) "Committee" means the real estate appraiser advisory committee of the state of Washington.

             (((6))) (8) "Comparative market analysis" means a brokers price opinion.

             (9) "Department" means the department of licensing.

             (((7))) (10) "Director" means the director of the department of licensing.

             (((8))) (11) "Expert review appraiser" means a state-certified or state-licensed real estate appraiser chosen by the director for the purpose of providing appraisal review assistance to the director.

             (12) "Federal department" means an executive department of the United States of America specifically concerned with housing finance issues, such as the department of housing and urban development, the department of veterans affairs, or their legal federal successors.

             (13) "Federal financial institutions regulatory agency" means the board of governors of the federal reserve system, the federal deposit insurance corporation, the office of the comptroller of the currency, the office of thrift supervision, the national credit union administration, their successors and/or such other agencies as may be named in future amendments to 12 U.S.C. Sec. 3350(6).

             (14) "Federal secondary mortgage marketing agency" means the federal national mortgage association, the government national mortgage association, the federal home loan mortgage corporation, their successors and/or such other similarly functioning housing finance agencies as may be federally chartered in the future.

             (15) "Financial institution" means any person doing business under the laws of this state or the United States relating to banks, bank holding companies, savings banks, trust companies, savings and loan associations, credit unions, consumer loan companies, and the affiliates, subsidiaries, and service corporations thereof.

             (16) "Licensed appraisal" means an appraisal prepared or signed by a state-licensed real estate appraiser. A licensed appraisal represents to the public that it meets the appraisal standards defined in this chapter.

             (((9))) (17) "Mortgage broker" for the purpose of this chapter means a mortgage broker licensed under chapter 19.146 RCW, any mortgage broker approved and subject to audit by the federal national mortgage association, the government national mortgage association, or the federal home loan mortgage corporation as provided in RCW 19.146.020, any mortgage broker approved by the United States secretary of housing and urban development for participation in any mortgage insurance under the national housing Act, 12 U.S.C. Sec. 1201, and the affiliates, subsidiaries, and service corporations thereof.

             (18) "Real estate" means an identified parcel or tract of land, including improvements, if any.

             (((10))) (19) "Real property" means one or more defined interests, benefits, or rights inherent in the ownership of real estate.

             (((11))) (20) "Review" means the act or process of critically studying an appraisal report prepared by another.

             (21) "Specialized appraisal services" means all appraisal services which do not fall within the definition of appraisal assignment. The term "specialized appraisal service" may apply to valuation work and to analysis work. Regardless of the intention of the client or employer, if the appraiser would be perceived by third parties or the public as acting as a disinterested third party in rendering an unbiased analysis, opinion, or conclusion, the work is classified as an appraisal assignment and not a specialized appraisal service.

             (((12))) (22) "State-certified general real estate appraiser" means a person certified by the director to develop and communicate real estate appraisals of all types of property. A state-certified general real estate appraiser may designate or identify an appraisal rendered by him or her as a "certified appraisal."

             (((13))) (23) "State-certified residential real estate appraiser" means a person certified by the director to develop and communicate real estate appraisals of all types of residential property of one to four units without regard to transaction value or complexity and nonresidential property having a transaction value as specified in rules adopted by the director. A state certified residential real estate appraiser may designate or identify an appraisal rendered by him or her as a "certified appraisal."

             (((14))) (24) "State-licensed real estate appraiser" means a person licensed by the director to develop and communicate real estate appraisals of noncomplex one to four residential units and complex one to four residential units and nonresidential property having transaction values as specified in rules adopted by the director.


             Sec. 3. RCW 18.140.020 and 1993 c 30 s 3 are each amended to read as follows:

             (1) No person other than a state-certified or state-licensed real estate appraiser may receive compensation of any form for a real estate appraisal or an appraisal review.

             (2) No person, other than a state-certified or state-licensed real estate appraiser, may assume or use that title or any title, designation, or abbreviation likely to create the impression of certification or licensure as a real estate appraiser by this state.

             (3) A person who is not certified or licensed under this chapter shall not ((describe or refer to)) prepare any appraisal of real estate located in this state ((by the term "certified" or "licensed."

             (2) This section does not preclude a person who is not certified or licensed as a state-certified or state-licensed real estate appraiser from appraising real estate in this state for compensation, except in federally related transactions requiring licensure or certification to perform appraisal services)), except as provided under subsection (1) of this section.

             (4) This section does not preclude a staff employee of a governmental entity from performing an appraisal or an appraisal assignment within the scope of his or her employment insofar as the performance of official duties for the governmental entity are concerned. Such an activity for the benefit of the governmental entity is exempt from the requirements of this chapter.

             (5) This section does not preclude an individual person licensed by the state of Washington as a real estate broker or as a real estate salesperson and who performs a brokers price opinion as a service to a prospective seller, buyer, lessor, or lessee as the only intended user, and not for dissemination to a third party, within the scope of his or her employment or agency. Such an activity for the sole benefit of the prospective seller, buyer, lessor, or lessee is exempt from the requirements of this chapter.

             (6) This section does not apply to an appraisal or an appraisal review performed for a financial institution or mortgage broker, whether conducted by an employee or third party, when such appraisal or appraisal review is not required to be performed by a state-certified or state-licensed real estate appraiser by the appropriate federal financial institutions regulatory agency.

             (7) This section does not apply to a certified public accountant, as defined in RCW 18.04.025, who evaluates real property in the normal scope of his or her professional services.


             Sec. 4. RCW 18.140.030 and 1993 c 30 s 4 are each amended to read as follows:

             The director shall have the following powers and duties:

             (1) To adopt rules in accordance with chapter 34.05 RCW necessary to implement this chapter;

             (2) To receive and approve or deny applications for certification or licensure as a state-certified or state-licensed real estate appraiser under this chapter; to establish appropriate administrative procedures for the processing of such applications; to issue certificates or licenses to qualified applicants pursuant to the provisions of this chapter; and to maintain a register of the names and addresses of individuals who are currently certified or licensed under this chapter;

             (3) To establish, provide administrative assistance, and appoint the members for the real estate appraiser advisory committee to enable the committee to act in an advisory capacity to the director;

             (4) To solicit bids and enter into contracts with educational testing services or organizations for the preparation of questions and answers for certification or licensure examinations;

             (5) To administer or contract for administration of certification or licensure examinations at locations and times as may be required to carry out the responsibilities under this chapter;

             (6) To enter into contracts for professional services determined to be necessary for adequate enforcement of this chapter;

             (7) To consider recommendations by the real estate appraiser advisory committee relating to the experience, education, and examination requirements for each classification of state-certified appraiser and for licensure;

             (8) To impose continuing education requirements as a prerequisite to renewal of certification or licensure;

             (9) To consider recommendations by the real estate appraiser advisory committee relating to standards of professional appraisal practice in the enforcement of this chapter;

             (10) To investigate all complaints or reports of unprofessional conduct as defined in this chapter and to hold hearings as provided in this chapter;

             (11) To establish appropriate administrative procedures for disciplinary proceedings conducted pursuant to the provisions of this chapter;

             (12) To compel the attendance of witnesses and production of books, documents, records, and other papers; to administer oaths; and to take testimony and receive evidence concerning all matters within their jurisdiction. These powers may be exercised directly by the director or the director's authorized representatives acting by authority of law;

             (13) To take emergency action ordering summary suspension of a license or certification pending proceedings by the director;

             (14) To employ such professional, clerical, and technical assistance as may be necessary to properly administer the work of the director;

             (15) To establish forms necessary to administer this chapter;

             (16) To adopt standards of professional conduct or practice; ((and))

             (17) To establish an expert review appraiser roster comprised of state-certified or licensed real estate appraisers whose purpose is to assist the director by applying their individual expertise by reviewing real estate appraisals for compliance with this chapter. Qualifications to act as an expert review appraiser shall be established by the director with the advice of the committee. An application to serve as an expert review appraiser shall be submitted to the real estate appraiser program, and the roster of accepted expert review appraisers shall be maintained by the department. An expert review appraiser may be added to or deleted from that roster by the director. The expert review appraiser shall be reimbursed for expenses in the same manner as the department reimburses the committee; and

             (18) To do all other things necessary to carry out the provisions of this chapter and minimally meet the requirements of federal guidelines regarding state certification or licensure of appraisers that the director determines are appropriate for state-certified and state-licensed appraisers in this state.


             Sec. 5. RCW 18.140.090 and 1993 c 30 s 9 are each amended to read as follows:

             (1) As a prerequisite to taking an examination for certification or licensure, an applicant must meet the experience requirements adopted by the director.

             (2) The preexamination experience claimed by an applicant, and accepted by the department for the purpose of taking the examination, shall remain subject to postlicensure auditing by the department.


             Sec. 6. RCW 18.140.130 and 1993 c 30 s 13 are each amended to read as follows:

             (1) Each original and renewal license or certificate issued under this chapter shall expire on the applicant's second birthday following issuance of the license or certificate.

             (2) To be renewed as a state-licensed or state-certified real estate appraiser, the holder of a valid license or certificate shall apply and pay the prescribed fee to the director no earlier than one hundred twenty days prior to the expiration date of the license or certificate and shall demonstrate satisfaction of any continuing education requirements.

             (3) If a person fails to renew a license or certificate prior to its expiration and no more than ((two years have)) one year has passed since the person last held a valid license or certificate, the person may obtain a renewal license or certificate by satisfying all of the requirements for renewal and paying late renewal fees.

             The director shall cancel the license or certificate of any person whose renewal fee is not received within ((two years)) one year from the date of expiration. A person may obtain a new license or certificate by satisfying the procedures and qualifications for initial licensure or certification, including the successful completion of any applicable examinations.


             Sec. 7. RCW 18.140.140 and 1993 c 30 s 14 are each amended to read as follows:

             (1) A license or certificate issued under this chapter shall bear the signature or facsimile signature of the director and a license or certificate number assigned by the director.

             (2) Each state-licensed or state-certified real estate appraiser shall place his or her license or certificate number adjacent to or immediately below the title "state-licensed real estate appraiser," "state-certified residential real estate appraiser," or "state-certified general real estate appraiser" when used in an appraisal report or in a contract or other instrument used by the licensee or certificate holder in conducting real property appraisal activities, except that the license or certificate number shall not be required to appear when the title is not accompanied by a signature as is typical on such promotional and stationary items as brochures, business cards, forms, or letterhead.


             Sec. 8. RCW 18.140.150 and 1993 c 30 s 15 are each amended to read as follows:

             (1) The term "state-licensed" or "state-certified real estate appraiser" may only be used to refer to individuals who hold the license or certificate and may not be used following or immediately in connection with the name or signature of a firm, partnership, corporation, ((or)) group, or limited liability company, or in such manner that it might be interpreted as referring to a firm, partnership, corporation, group, limited liability company, or anyone other than an individual holder of the license or certificate.

             (2) No license or certificate may be issued under this chapter to a corporation, partnership, firm, limited liability company, or group. This shall not be construed to prevent a state-licensed or state-certified appraiser from signing an appraisal report on behalf of a corporation, partnership, firm, ((or)) group practice, or limited liability company.


             Sec. 9. RCW 18.140.160 and 1993 c 30 s 17 are each amended to read as follows:

             The director may deny an application for licensure or certification and may ((be denied. The director may)) impose any one or more of the following sanctions against a state-licensed or state-certified appraiser((s)): Suspend, revoke, or levy a fine not to exceed one thousand dollars for each offense and/or otherwise discipline in accordance with the provisions of this chapter, for any of the following acts or omissions:

             (1) Failing to meet the minimum qualifications for state licensure or certification established by or pursuant to this chapter;

             (2) Procuring or attempting to procure state licensure or certification under this chapter by knowingly making a false statement, knowingly submitting false information, or knowingly making a material misrepresentation on any application filed with the director;

             (3) Paying money other than the fees provided for by this chapter to any employee of the director or the committee to procure state licensure or certification under this chapter;

             (4) Obtaining a license or certification through the mistake or inadvertence of the director;

             (5) Conviction of any gross misdemeanor or felony or the commission of any act involving moral turpitude, dishonesty, or corruption whether or not the act constitutes a crime. If the act constitutes a crime, conviction in a criminal proceeding is not a condition precedent to disciplinary action. Upon such a conviction, however, the judgment and sentence is conclusive evidence at the ensuing disciplinary hearing of the guilt of the license or certificate holder or applicant of the crime described in the indictment or information, and of the person's violation of the statute on which it is based. For the purposes of this section, conviction includes all instances in which a plea of guilty or nolo contendere is the basis for the conviction and all proceedings in which the sentence has been deferred or suspended. Nothing in this section abrogates rights guaranteed under chapter 9.96A RCW;

             (6) Failure or refusal without good cause to exercise reasonable diligence in developing an appraisal, preparing an appraisal report, or communicating an appraisal;

             (7) Negligence or incompetence in developing an appraisal, preparing an appraisal report, or communicating an appraisal;

             (8) Continuing to act as a state-licensed or state-certified real estate appraiser when his or her license or certificate is on an expired status;

             (9) Failing, upon demand, to disclose any information within his or her knowledge to, or to produce any document, book, or record in his or her possession for inspection of the director or the director's authorized representatives acting by authority of law;

             (10) Violating any provision of this chapter or any lawful rule or regulation made by the director pursuant thereto;

             (11) Advertising in a false, fraudulent, or misleading manner;

             (12) Suspension, revocation, or restriction of the individual's license or certification to practice the profession by competent authority in any state, federal, or foreign jurisdiction, with a certified copy of the order, stipulation, or agreement being conclusive evidence of the revocation, suspension, or restriction;

             (13) Failing to comply with an order issued by the director;

             (14) Committing any act of fraudulent or dishonest dealing or a crime involving moral turpitude, with a certified copy of the final holding of any court of competent jurisdiction in such matter being conclusive evidence in any hearing under this chapter; and

             (15) Issuing an appraisal report on any real property in which the appraiser has an interest unless his or her interest is clearly stated in the appraisal report.


             Sec. 10. RCW 18.140.170 and 1993 c 30 s 18 are each amended to read as follows:

             The director may investigate the actions of a state-licensed or state-certified real estate appraiser or an applicant for licensure or certification or relicensure or recertification. Upon receipt of information indicating that a state-licensed or state-certified real estate appraiser under this chapter may have violated this chapter, the director shall cause one or more of the staff investigators to make an investigation of the facts to determine whether or not there is admissible evidence of any such violation. If technical assistance is required, a staff investigator may consult with one or more of the members of the committee.

             In any investigation made by the director's investigative staff, the director shall have the power to compel the attendance of witnesses and the production of books, documents, records, and other papers, to administer oaths, and to take testimony and receive evidence concerning all matters within the director's jurisdiction.

             If the director determines, upon investigation, that a state-licensed or state-certified real estate appraiser under this chapter has violated this chapter, a statement of charges shall be prepared and served upon the state-licensed or state-certified real estate appraiser. The statement of charges shall be served as follows: The statement of charges shall be sent by certified or registered mail, and if no receipt of service is received, two attempts to personally serve the statement of charges shall be made. This statement of charges shall require the accused party to file an answer to the statement of charges within twenty days of the date of service.

             In responding to a statement of charges, the accused party may admit to the allegations, deny the allegations, or otherwise plead. Failure to make a timely response shall be deemed an admission of the allegations contained in the statement of charges and will result in a default whereupon the director may enter an order under RCW 34.05.440. If a hearing is requested, the time of the hearing shall be scheduled but the hearing shall not be held earlier than thirty days after service of the charges upon the accused. A notice of hearing shall be issued at least twenty days prior to the hearing, specifying the time, date, and place of hearing.


             NEW SECTION. Sec. 11. All fees required under this chapter shall be set by the director in accordance with RCW 18.140.050 and shall be paid to the state treasurer. All fees paid under the provisions of this chapter shall be placed in the real estate appraiser account in the state treasury. The account is subject to appropriation under chapter 43.88 RCW. All moneys derived from fines imposed under this chapter also shall be deposited in the real estate appraiser account.


             NEW SECTION. Sec. 12. The director may refer a complaint for violation of any section of this chapter before any court of competent jurisdiction.

             Any violation of the provisions of this chapter shall be prosecuted by the prosecuting attorney of each county in which the violation occurs, and if the prosecuting attorney fails to act, the director may request the attorney general to take action in lieu of the prosecuting attorney.

             Whenever evidence satisfactory to the director suggests that any person has violated any of the provisions of this chapter, or any part or provision thereof, the director may bring an action, in the superior court in the county where the person resides, against the person to enjoin any person from continuing a violation or engaging or doing any act or acts in furtherance thereof. In this action an order or judgment may be entered awarding a preliminary or final injunction as may be proper.

             The director may petition the superior court in any county in this state for the appointment of a receiver to take over, operate, or close any real estate appraisal activity or practice in this state which is found upon inspection of its books and records to be operating in violation of the provisions of this chapter, pending a hearing.


             NEW SECTION. Sec. 13. Any person acting as a state-certified or state-licensed real estate appraiser without a certificate or license that is currently valid or who is currently subject to a revocation or suspension for violating any provision of this chapter is guilty of a misdemeanor.


             NEW SECTION. Sec. 14. RCW 18.140.085 and 1993 c 30 s 23 are each repealed.


             NEW SECTION. Sec. 15. A new section is added to chapter 50.04 RCW to read as follows:

             The term "employment" does not include services performed by an appraisal practitioner certified or licensed under chapter 18.140 RCW in an appraisal business if the use of the business facilities is contingent upon compensation to the owner of the business facilities and the person receives no compensation from the owner for the services performed.


             NEW SECTION. Sec. 16. Sections 11 through 13 of this act are each added to chapter 18.140 RCW.


             NEW SECTION. Sec. 17. This act is 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 July 1, 1995, except section 3 of this act, which shall take effect July 1, 1996."


             On page 1, line 1 of the title, after "appraisers;" strike the remainder of the title and insert "amending RCW 18.140.005, 18.140.010, 18.140.020, 18.140.030, 18.140.090, 18.140.130, 18.140.140, 18.140.150, 18.140.160, and 18.140.170; adding new sections to chapter 18.140 RCW; adding a new section to chapter 50.04 RCW; repealing RCW 18.140.085; prescribing penalties; providing effective dates; and declaring an emergency."


             Representative L. Thomas spoke in favor of the adoption of the amendment.


             The amendment was adopted.


             The bill was ordered engrossed.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives L. Thomas and Wolfe spoke in favor of passage of the bill.


             Representative Beeksma spoke against passage of the bill.


             The Speaker stated the question before the House to be final passage of Engrossed Substitute House Bill No. 1860.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 1860, and the bill passed the House by the following vote: Yeas - 82, Nays - 14, Absent - 1, Excused - 1.

             Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Carlson, Carrell, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Dellwo, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Foreman, Grant, Hankins, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Kremen, Lambert, Lisk, Mason, Mastin, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Patterson, Pennington, Poulsen, Radcliff, Reams, Regala, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Scott, Sheahan, Sheldon, Silver, Skinner, Smith, Sommers, Talcott, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 82.

             Voting nay: Representatives Beeksma, Campbell, Casada, Fuhrman, Goldsmith, Hargrove, Koster, McMahan, Padden, Quall, Schoesler, Sehlin, Sherstad and Stevens - 14.

             Absent: Representative Thibaudeau - 1.

             Excused: Representative Pelesky - 1.


             Engrossed Substitute House Bill No. 1860, having received the constitutional majority, was declared passed.


             There being no objection, the House resumed consideration of Second Substitute House Bill No. 1941.


             With the consent of the House, amendment number 314 to Second Substitute House Bill No. 1941 was withdrawn.


NOTICE OF RECONSIDERATION


             Representative Johnson: Having voted on the prevailing side moved that the House immediately reconsider the vote by which amendment number 354 to Second Substitute House Bill No. 1941 failed to pass the House.


             Representatives Cole, Johnson and Talcott spoke in favor of the adoption of the amendment.


             The amendment was adopted.


             The bill was ordered engrossed.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives Johnson, Quall and Basich spoke in favor of passage of the bill.


             The Speaker stated the question before the House to be final passage of Engrossed Second Substitute House Bill No. 1941.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Second Substitute House Bill No. 1941, and the bill passed the House by the following vote: Yeas - 97, Nays - 0, Absent - 0, Excused - 1.

             Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Dellwo, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Padden, Patterson, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 97.

             Excused: Representative Pelesky - 1.


             Engrossed Second Substitute House Bill No. 1941, having received the constitutional majority, was declared passed.


             The Speaker declared the House to be at ease.


             The Speaker (Representative Horn presiding) called the House to order.


             HOUSE BILL NO. 1601, by Representatives D. Schmidt, Carlson, Mulliken, Jacobsen, Koster, Sheldon, Costa, Radcliff, Lambert, Robertson, Carrell, Backlund, Ballasiotes, Skinner, Huff, Johnson, Thompson, Elliot, Wolfe, Talcott, Conway, Kremen, Campbell, Benton, Mason, Cooke and Kessler

 

Providing tuition and fee waivers for members of the Washington national guard.


             The bill was read the second time.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives D. Schmidt, Carlson, Dyer and Mastin spoke in favor of passage of the bill.


             Representative Jacobsen spoke against passage of the bill.


             Representative D. Schmidt again spoke in favor of passage of the bill.


             The Speaker (Representative Horn presiding) stated the question before the House to be final passage of House Bill No. 1601.


ROLL CALL


             The Clerk called the roll on the final passage of House Bill No. 1601, and the bill passed the House by the following vote: Yeas - 82, Nays - 13, Absent - 2, Excused - 1.

             Voting yea: Representatives Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Clements, Cody, Conway, Cooke, Crouse, Dellwo, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Padden, Patterson, Pennington, Poulsen, Quall, Radcliff, Reams, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven, Veloria, Wolfe and Mr. Speaker - 82.

             Voting nay: Representatives Appelwick, Chopp, Cole, Costa, Fisher, R., Jacobsen, Ogden, Regala, Rust, Sommers, Thibaudeau, Tokuda and Valle - 13.

             Absent: Representatives Mason and Mastin - 2.

             Excused: Representative Pelesky - 1.


             House Bill No. 1601, having received the constitutional majority, was declared passed.


STATEMENT FOR THE JOURNAL


             I intended to vote YEA on House Bill No. 1601.


DAVE MASTIN, 16th District


             HOUSE BILL NO. 1660, by Representatives Lisk and Romero; by request of Governor Lowry

 

Authorizing the director of labor and industries to issue approvals based on national consensus codes and external professional certification.


             The bill was read the second time. There being no objection, Substitute House Bill No. 1660 was substituted for House Bill No. 1660 and the substitute bill was placed on second reading.


             Substitute House Bill No. 1660 was read the second time.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives Lisk and Cairnes spoke in favor of passage of the bill.


             Representatives Romero, Conway and Hatfield spoke against passage of the bill.


             The Speaker (Representative Horn presiding) stated the question before the House to be final passage of Substitute House Bill No. 1660.


ROLL CALL


             The Clerk called the roll on the final passage of Substitute House Bill No. 1660, and the bill passed the House by the following vote: Yeas - 63, Nays - 33, Absent - 1, Excused - 1.

             Voting yea: Representatives Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Clements, Cooke, Crouse, Delvin, Dyer, Elliot, Foreman, Fuhrman, Goldsmith, Hankins, Hargrove, Hickel, Honeyford, Horn, Huff, Hymes, Johnson, Koster, Kremen, Lambert, Lisk, McMahan, McMorris, Mielke, Mitchell, Mulliken, Padden, Quall, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven and Mr. Speaker - 63.

             Voting nay: Representatives Appelwick, Brown, Chappell, Chopp, Cody, Cole, Conway, Costa, Dellwo, Dickerson, Ebersole, Fisher, G., Fisher, R., Grant, Hatfield, Jacobsen, Kessler, Mason, Mastin, Ogden, Patterson, Pennington, Poulsen, Regala, Romero, Rust, Scott, Sommers, Thibaudeau, Tokuda, Valle, Veloria and Wolfe - 33.

             Absent: Representative Morris - 1.

             Excused: Representative Pelesky - 1.


             Substitute House Bill No. 1660, having received the constitutional majority, was declared passed.


STATEMENT FOR THE JOURNAL


             I would have voted YEA on Substitute House Bill No. 1660.


BETTY SUE MORRIS, 18th District


             HOUSE BILL NO. 1671, by Representatives Clements, Chandler, Grant and Mastin

 

Revising commodity commission assessment authority.


             The bill was read the second time. There being no objection, Substitute House Bill No. 1671 was substituted for House Bill No. 1671 and the substitute bill was placed on second reading.


             Substitute House Bill No. 1671 was read the second time.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives Clements and Sommers spoke in favor of passage of the bill.


             The Speaker (Representative Horn presiding) stated the question before the House to be final passage of Substitute House Bill No. 1671.


ROLL CALL


             The Clerk called the roll on the final passage of Substitute House Bill No. 1671, and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 1, Excused - 1.

             Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Dellwo, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Padden, Patterson, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 96.

             Absent: Representative Mason - 1.

             Excused: Representative Pelesky - 1.


             Substitute House Bill No. 1671, having received the constitutional majority, was declared passed.


             There being no objection, the House immediately considered House Bill No. 1592.


             HOUSE BILL NO. 1592, by Representatives L. Thomas, Dellwo, Mielke and G. Fisher

 

Crediting certain insurance premium taxes.


             The bill was read the second time. There being no objection, Substitute House Bill No. 1592 was substituted for House Bill No. 1592 and the substitute bill was placed on second reading.


             Substitute House Bill No. 1592 was read the second time.


             Representative Mielke moved adoption of the following amendment by Representative Mielke:


             On page 1, beginning on line 10, after "48.14.020," strike everything through "percent" on line 11, and insert "one-fifth"


             On page 1, line 16, strike "seventy-five percent of"


             On page 2, line 27, strike "seventy-five percent of"


             Representative Mielke spoke in favor of the adoption of the amendment.


             The amendment was adopted.


             The bill was ordered engrossed.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives L. Thomas, Mielke, Dyer and G. Fisher spoke in favor of passage of the bill.


             Representative Sommers spoke against passage of the bill.


             Representative L. Thomas again spoke in favor of passage of the bill.


             The Speaker (Representative Horn presiding) stated the question before the House to be final passage of Engrossed Substitute House Bill No. 1592.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 1592, and the bill passed the House by the following vote: Yeas - 76, Nays - 21, Absent - 0, Excused - 1.

             Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Carlson, Carrell, Casada, Chandler, Chappell, Clements, Cooke, Crouse, Dellwo, Delvin, Dyer, Ebersole, Elliot, Fisher, G., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Padden, Pennington, Poulsen, Quall, Radcliff, Reams, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven and Mr. Speaker - 76.

             Voting nay: Representatives Beeksma, Campbell, Chopp, Cody, Cole, Conway, Costa, Dickerson, Fisher, R., Jacobsen, Mason, Patterson, Regala, Rust, Sehlin, Sommers, Thibaudeau, Tokuda, Valle, Veloria and Wolfe - 21.

             Excused: Representative Pelesky - 1.


             Engrossed Substitute House Bill No. 1592, having received the constitutional majority, was declared passed.


MOTION


             On motion of Representative Grant, Representative Brown was excused.


             HOUSE BILL NO. 1727, by Representatives Beeksma, Wolfe, L. Thomas, Dyer, Costa and Mielke; by request of Insurance Commissioner

 

Eliminating the mandatory offering of personal injury protection insurance.


             The bill was read the second time.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives Beeksma, Wolfe and Smith spoke in favor of passage of the bill.


             Representative Dellwo spoke against passage of the bill.


MOTION


             On motion of Representative Talcott, Representative Robertson was excused.


             The Speaker (Representative Horn presiding) stated the question before the House to be final passage of House Bill No. 1727.


ROLL CALL


             The Clerk called the roll on the final passage of House Bill No. 1727, and the bill passed the House by the following vote: Yeas - 83, Nays - 12, Absent - 0, Excused - 3.

             Voting yea: Representatives Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cole, Conway, Cooke, Costa, Crouse, Delvin, Dickerson, Dyer, Elliot, Fisher, G., Fisher, R., Foreman, Fuhrman, Goldsmith, Hankins, Hargrove, Hatfield, Honeyford, Horn, Huff, Hymes, Johnson, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Mulliken, Padden, Patterson, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 83.

             Voting nay: Representatives Appelwick, Campbell, Cody, Dellwo, Ebersole, Grant, Hickel, Jacobsen, Kessler, Morris, Ogden and Romero - 12.

             Excused: Representatives Brown, Pelesky and Robertson - 3.


             House Bill No. 1727, having received the constitutional majority, was declared passed.


             HOUSE BILL NO. 1934, by Representatives Mielke, Silver, Sommers, L. Thomas, Hankins, Blanton and Honeyford

 

Establishing benefits for state patrol retirement system members who serve as legislators.


             The bill was read the second time.


             Representative Sommers moved adoption of the following amendment by Representative Sommers:


             On page 1, line 13, strike "continue to"

             On page 1, line 14, strike "employer" and insert "legislature"

             On page 1, beginning on line 15, strike all of subsection 3

Renumber remaining subsections consecutively.


             Representatives Sommers and Carlson spoke in favor of the adoption of the amendment.


             Representative Mielke spoke against the adoption of the amendment.


             Representative Sommers again spoke in favor of passage of the bill.


             The amendment was adopted.


             Representative Sommers moved adoption of the following amendment by Representative Sommers:


             On page 2, beginning on line 7, insert the following:

             "NEW SECTION. Sec. 2. A new section is added to chapter 28B.10 to read as follows:

             (1) Any employee who is on leave of absence from an institution in order to serve as a state legislator may elect to continue to participate in any annuity or retirement plan authorized under RCW 28B.10.400 during the period of such leave.

             (2) The institution shall pay the employee's salary attributable to legislative service and shall pay employer contributions based on the salary for the leave period. The state legislature shall reimburse the institution for the salary and employer contributions covering the leave period.

             (3) "Institution" for purposes of this section shall mean any institution or entity authorized to provide retirement benefits under RCW 28B.10.400.


             Correct title accordingly.


             Representatives Sommers and Mielke spoke in favor of the adoption of the amendment.


             The amendment was adopted.


             The bill was ordered engrossed.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representative Mielke spoke in favor of passage of the bill.


             The Speaker (Representative Horn presiding) stated the question before the House to be final passage of Engrossed House Bill No. 1934.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed House Bill No. 1934, and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 3.

             Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Dellwo, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Padden, Patterson, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 95.

             Excused: Representatives Brown, Pelesky and Robertson - 3.


             Engrossed House Bill No. 1934, having received the constitutional majority, was declared passed.


             HOUSE BILL NO. 1461, by Representatives Benton, R. Fisher, Horn, Romero, Chopp, Chandler, Boldt and Robertson; by request of Department of Licensing

 

Increasing motor vehicle damage threshold amounts.


             The bill was read the second time.


             Representative Benton moved adoption of the following amendment by Representative Benton:


             On page 1, line 19 after "be" strike the following material:

             "((five hundred)) one thousand"

             On page 1, line 19 after "be" insert the following material:

             "five hundred"

             On page 3, beginning on line 20 after "be" strike the following "((five hundred)) one thousand"

             On page 3, beginning on line 20 after "be" insert the following material:

             "seven hundred"

             On page 3, line 27, after "revision." insert the following"

             "The monetary threshold in this section shall apply only to the accident reporting requirement without effect on the deposit of security and suspension for failure to deposit security outlined in RCW 46.29.060." 


             Representative Benton spoke in favor of the adoption of the amendment.


             The amendment was adopted.


             The bill was ordered engrossed.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representative Benton spoke in favor of passage of the bill.


             The Speaker (Representative Horn presiding) stated the question before the House to be final passage of Engrossed House Bill No. 1461.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed House Bill No. 1461, and the bill passed the House by the following vote: Yeas - 95, Nays - 1, Absent - 0, Excused - 2.

             Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brown, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Dellwo, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Padden, Patterson, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Sommers, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Tokuda, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 95.

             Voting nay: Representative Smith - 1.

             Excused: Representatives Pelesky and Robertson - 2.


             Engrossed House Bill No. 1461, having received the constitutional majority, was declared passed.


             There being no objection, the House deferred consideration of House Bill No. 1570 and the bill held it's place on the second reading calendar.


             There being no objection, the House considered House Bill No. 1882.


             HOUSE BILL NO. 1882, by Representatives Stevens and Boldt

 

Creating the position of inspector general in the Washington state patrol.


             The bill was read the second time. There being no objection, Second Substitute House Bill No. 1882 was substituted for House Bill No. 1882 and the second substitute bill was placed on second reading.


             Second Substitute House Bill No. 1882 was read the second time.


             Representative Chopp moved adoption of the following amendment by Representative Chopp:


             On page 3, after line 9, insert the following:

             "(b) Investigate allegations or instances of malicious harassment, assault, battery, abuse, or other crimes against child protective services case workers;

             (c) Investigate and make recommendations to the legislature to improve the safety and effectiveness of child protective services case workers as they perform their responsibilities;"


Reletter the remaining subsections accordingly.


POINT OF ORDER


             Representative Padden: Thank you Mr. Speaker (Representative Horn presiding). I would request a ruling on the scope and object of the amendment to Second Substitute House Bill No. 1882.


SPEAKER'S RULING


             Second Substitute House Bill No. 1882 is an act relating to an inspector general. The purpose of the act is to have an inspector general who will investigate complaints about CPS case worker actions. Amendments 434 and 435 were both ruled within the scope of the title but beyond the object of the bill because they were going to expand the duties of the inspector general to include review of complaints by case workers against persons they must deal with.


             Representative Padden, Your Point of Order is well taken.


             Representative Chopp moved adoption of the following amendment by Representative Chopp:


             On page 3, after line 9, insert the following:

             "(b) Investigate allegations or instances of malicious harassment, assault, battery, abuse, or other crimes against child protective services case workers;

             (c) Investigate and make recommendations to the legislature to improve the safety and effectiveness of child protective services case workers as they perform their responsibilities;"


             On page 3, after line 23 insert the following:

             "Sec. 6. RCW 9A.36.031 and 1990 c 236 s 1 are each amended to read as follows:

               (1) A person is guilty of assault in the third degree if he or she, under circumstances not amounting to assault in the first or second degree:

             (a) With intent to prevent or resist the execution of any lawful process or mandate of any court officer or the lawful apprehension or detention of himself or another person, assaults another; or

             (b) Assaults a person employed as a transit operator or driver by a public or private transit company while that person is operating or is in control of a vehicle that is owned or operated by the transit company and that is occupied by one or more passengers; or

             (c) Assaults a school bus driver employed by a school district or a private company under contract for transportation services with a school district while the driver is operating or is in control of a school bus that is occupied by one or more passengers; or

             (d) With criminal negligence, causes bodily harm to another person by means of a weapon or other instrument or thing likely to produce bodily harm; or

             (e) Assaults a fire fighter or other employee of a fire department or fire protection district who was performing his or her official duties at the time of the assault; or

             (f) With criminal negligence, causes bodily harm accompanied by substantial pain that extends for a period sufficient to cause considerable suffering; or

             (g) Assaults a child protective services case worker who was performing his or her official duties at the time of the assault; or

             (h) Assaults a law enforcement officer or other employee of a law enforcement agency who was performing his or her official duties at the time of the assault.

             (2) Assault in the third degree is a class C felony."


POINT OF ORDER


             Representative Padden: Thank you Mr. Speaker (Representative Horn presiding). I would request a ruling on the scope and object of the amendment to Second Substitute House Bill No. 1882.


SPEAKER'S RULING


             Second Substitute House Bill No. 1882 is an act relating to an inspector general. The purpose of the act is to have an inspector general who will investigate complaints about CPS case worker actions. Amendments 434 and 435 were both ruled within the scope of the title but beyond the object of the bill because they were going to expand the duties of the inspector general to include review of complaints by case workers against persons they must deal with.


             Representative Padden, Your Point of Order is well taken.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives Stevens, Padden, Thompson and Backlund spoke in favor of passage of the bill.


             Representatives Ebersole, Thibaudeau, Quall, Dickerson, Basich and Chopp spoke against passage of the bill.


             Representative Stevens again spoke in favor of passage of the bill.


             The Speaker (Representative Horn presiding) stated the question before the House to be final passage of Second Substitute House Bill No. 1882.


ROLL CALL


             The Clerk called the roll on the final passage of Second Substitute House Bill No. 1882, and the bill passed the House by the following vote: Yeas - 65, Nays - 32, Absent - 0, Excused - 1.

             Voting yea: Representatives Backlund, Ballasiotes, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Clements, Cooke, Crouse, Delvin, Dyer, Elliot, Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hickel, Honeyford, Horn, Huff, Hymes, Johnson, Koster, Kremen, Lambert, Lisk, Mastin, McMahan, McMorris, Mielke, Mitchell, Mulliken, Padden, Pennington, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven and Mr. Speaker - 65.

             Voting nay: Representatives Appelwick, Basich, Brown, Chopp, Cody, Cole, Conway, Costa, Dellwo, Dickerson, Ebersole, Fisher, G., Fisher, R., Hatfield, Jacobsen, Kessler, Mason, Morris, Ogden, Patterson, Poulsen, Quall, Regala, Romero, Rust, Scott, Sommers, Thibaudeau, Tokuda, Valle, Veloria and Wolfe - 32.

             Excused: Representative Pelesky - 1.


             Second Substitute House Bill No. 1882, having received the constitutional majority, was declared passed.


             The Speaker (Representative Horn presiding) declared the House to be at ease.


             The Speaker (Representative Horn presiding) called the House to order.


             There being no objection, the House considered House Bill No. 1305.


             HOUSE BILL NO. 1305, by Representatives Johnson, Sheldon, Reams, Mastin, L. Thomas and Basich

 

Revising restrictions on growth outside of urban growth areas.


             The bill was read the second time.


             Representative Reams moved adoption of the following amendment by Representative Reams:


             Strike everything after the enacting clause and insert the following:


             "NEW SECTION. Sec. 1. A new section is added to chapter 36.70A RCW to read as follows:

             (1) A county required or choosing to plan under RCW 36.70A.040 may establish, in consultation with cities, a process for reviewing proposals to authorize siting of major industrial developments outside urban growth areas.

             (2) A major industrial development may be approved outside an urban growth area in a county planning under this chapter if criteria including, but not limited to the following, are met:

             (a) Infrastructure is provided and/or impact fees are established consistent with the requirements of RCW 82.02.060;

             (b) Transit-oriented site planning and traffic demand management programs are implemented;

             (c) Buffers are provided between the major industrial development and adjacent nonurban areas;

             (d) Environmental protection including air and water quality has been addressed and provided for;

             (e) Development regulations are established that discourage urban growth in adjacent nonurban area;

             (f) Provision is made to mitigate adverse impacts on designated agricultural lands, forest lands, and mineral resource lands;

             (g) The plan for the major industrial development is consistent with the county's development regulations established for protection of critical areas; and

             (h) The county has determined and entered findings that land suitable to site the major industrial development is unavailable within the urban growth area. Priority shall be given to applications for sites that are adjacent to or in close proximity to the urban growth area.

             (3) "Major industrial development" means a master planned location for a specific manufacturing, industrial, or commercial business that: (a) Requires a parcel of land so large that no suitable parcels, without critical areas, are available within an urban growth area; or (b) is a natural-resource-based industry requiring a location near agricultural land, forest land, or mineral resource land upon which it is dependent; and (c) is not for the purpose of retail shopping developments.


             Sec. 2. RCW 36.70A.110 and 1994 c 249 s 27 are each amended to read as follows:

             (1) Each county that is required or chooses to plan under RCW 36.70A.040 shall designate an urban growth area or areas within which urban growth shall be encouraged and outside of which growth can occur only if it is not urban 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. An urban growth area may include territory that is located outside of a city only if such territory already is characterized by urban growth or is adjacent to territory already characterized by urban growth.

             (2) Based upon the population growth management planning population projection made for the county by the office of financial management as modified by the county in light of information regarding growth projection or other local conditions, the urban growth areas in the county shall include areas and densities at least 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 a range of urban densities and shall include greenbelt and open space areas. Within one year of July 1, 1990, each county that as of June 1, 1991, was required or chose to plan under RCW 36.70A.040, shall begin consulting with each city located within its boundaries and each city shall propose the location of an urban growth area. Within sixty days of the date the county legislative authority of a county adopts its resolution of intention or of certification by the office of financial management, all other counties that are required or choose to plan under RCW 36.70A.040 shall begin this consultation with each city located within its boundaries. The county shall attempt to reach agreement with each city on the location of an urban growth area within which the city is located. If such an agreement is not reached with each city located within the urban growth area, the county shall justify in writing why it so designated the area an urban growth area. A city may object formally with the department over the designation of the urban growth area within which it is located. Where appropriate, the department shall attempt to resolve the conflicts, including the use of mediation services.

             (3) Urban growth should be located ((first)) in areas: (a) Already characterized by urban growth that have existing public facility and service capacities to serve such development, ((and second in areas)) (b) already characterized by urban growth that will be served by a combination of both existing public facilities and services and any additional needed public facilities and services that are provided by either public or private sources, and (c) adjacent to territory already characterized by urban growth, or so situated in light of geographic or utility considerations as to be appropriate for urban growth within the succeeding twenty-year period. Further, it is usually appropriate that urban government services be provided by cities, and urban government services ((should)) not be provided in rural areas.

             (4) On or before October 1, 1993, each county that was initially required to plan under RCW 36.70A.040(1) shall adopt development regulations designating interim urban growth areas under this chapter. Within three years and three months of the date the county legislative authority of a county adopts its resolution of intention or of certification by the office of financial management, all other counties that are required or choose to plan under RCW 36.70A.040 shall adopt development regulations designating interim urban growth areas under this chapter. Adoption of the interim urban growth areas may only occur after public notice; public hearing; and compliance with the state environmental policy act, chapter 43.21C RCW, and RCW 36.70A.110. Such action may be appealed to the appropriate growth management hearings board under RCW 36.70A.280. Final urban growth areas shall be adopted at the time of comprehensive plan adoption under this chapter.

             (5) Each county shall include designations of urban growth areas in its comprehensive plan.


             Sec. 3. RCW 36.70A.070 and 1990 1st ex.s. c 17 s 7 are each amended to read as follows:

             The comprehensive plan of a county or city that is required or chooses to plan under RCW 36.70A.040 shall consist of a map or maps, and descriptive text covering objectives, principles, and standards used to develop the comprehensive plan. The plan shall be an internally consistent document and all elements shall be consistent with the future land use map. A comprehensive plan shall be adopted and amended with public participation as provided in RCW 36.70A.140.

             Each comprehensive plan 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, open spaces, 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 waters of the state, including Puget Sound or waters entering Puget Sound.

             (2) A housing element recognizing the vitality and character of established residential neighborhoods 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 sufficient land for housing, including, but not limited to, government-assisted housing, housing for low-income families, manufactured housing, multifamily housing, and group homes and foster care facilities; and (d) makes adequate provisions for existing and projected needs of all economic segments of the community.

             (3) A capital facilities plan element consisting of: (a) An inventory of existing capital facilities owned by public entities, showing the locations and capacities of the capital facilities; (b) a forecast of the future needs for such capital facilities; (c) the proposed locations and capacities of expanded or new capital facilities; (d) at least a six-year plan that will finance such capital facilities within projected funding capacities and clearly identifies sources of public money for such purposes; and (e) a requirement to reassess the land use element if probable funding falls short of meeting existing needs and to ensure that the land use element, capital facilities plan element, and financing plan within the capital facilities plan element are coordinated and consistent.

             (4) A utilities element consisting of the general location, proposed location, and capacity of all existing and proposed utilities, including, but not limited to, electrical lines, telecommunication lines, and natural gas lines.

             (5) Counties shall include a rural element including lands that are not designated for urban growth, agriculture, forest, or mineral resources. The rural element shall permit residential and nonresidential land uses that are compatible with the rural character of such lands and provide for a variety of rural densities.

             (6) A transportation element that implements, and is consistent with, the land use element. The transportation element shall include the following subelements:

             (a) Land use assumptions used in estimating travel;

             (b) Facilities and services needs, including:

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

             (ii) Level of service standards for all arterials and transit routes to serve as a gauge to judge performance of the system. These standards should be regionally coordinated;

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

             (iv) Forecasts of traffic for at least ten 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 needs to meet current and future demands;

             (c) Finance, including:

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

             (ii) A multiyear financing plan based on the needs identified in the comprehensive plan, the appropriate parts of which shall serve as the basis for the six-year street, road, or transit program required by RCW 35.77.010 for cities, RCW 36.81.121 for counties, and RCW 35.58.2795 for public transportation systems;

             (iii) If probable funding falls short of meeting identified needs, a discussion of how additional funding will be raised, or how land use assumptions will be reassessed to ensure that level of service standards will be met;

             (d) Intergovernmental coordination efforts, including an assessment of the impacts of the transportation plan and land use assumptions on the transportation systems of adjacent jurisdictions;

             (e) Demand-management strategies.

             After adoption of the comprehensive plan by jurisdictions required to plan or who choose to plan under RCW 36.70A.040, local jurisdictions must adopt and enforce ordinances which prohibit development approval if the development causes the level of service on a transportation facility to decline below the standards adopted in the transportation element of the comprehensive plan, unless transportation improvements or strategies to accommodate the impacts of development are made concurrent with the development. These strategies may include increased public transportation service, ride sharing programs, demand management, and other transportation systems management strategies. For the purposes of this subsection (6) "concurrent with the development" shall mean that improvements or strategies are in place at the time of development, or that a financial commitment is in place to complete the improvements or strategies within six years.

             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.


             Sec. 4. RCW 36.70A.210 and 1994 c 249 s 28 are each amended to read as follows:

             (1) The legislature recognizes that counties are ((regional governments within their boundaries)) usually the unit of local government most appropriate to provide regional governmental services, and cities are ((primary providers of)) usually the unit of local government most appropriate to provide urban governmental services ((within urban growth areas)). For the purposes of this section, a "county-wide planning policy" is a written policy statement or statements used solely for establishing a county-wide framework from which county and city comprehensive plans are developed and adopted pursuant to this chapter. This framework shall ensure that city and county comprehensive plans are consistent as required in RCW 36.70A.100. Nothing in this section shall be construed to alter the land-use powers of cities or the authority of counties to provide urban governmental services. It is the intent of the legislature that urban governmental service decisions be made through the flexible process established in chapter 36.115 RCW.

             (2) The legislative authority of a county that plans under RCW 36.70A.040 shall adopt a county-wide planning policy in cooperation with the cities located in whole or in part within the county as follows:

             (a) No later than sixty calendar days from July 16, 1991, the legislative authority of each county that as of June 1, 1991, was required or chose to plan under RCW 36.70A.040 shall convene a meeting with representatives of each city located within the county for the purpose of establishing a collaborative process that will provide a framework for the adoption of a county-wide planning policy. In other counties that are required or choose to plan under RCW 36.70A.040, this meeting shall be convened no later than sixty days after the date the county adopts its resolution of intention or was certified by the office of financial management.

             (b) The process and framework for adoption of a county-wide planning policy specified in (a) of this subsection shall determine the manner in which the county and the cities agree to all procedures and provisions including but not limited to desired planning policies, deadlines, ratification of final agreements and demonstration thereof, and financing, if any, of all activities associated therewith.

             (c) If a county fails for any reason to convene a meeting with representatives of cities as required in (a) of this subsection, the governor may immediately impose any appropriate sanction or sanctions on the county from those specified under RCW 36.70A.340.

             (d) If there is no agreement by October 1, 1991, in a county that was required or chose to plan under RCW 36.70A.040 as of June 1, 1991, or if there is no agreement within one hundred twenty days of the date the county adopted its resolution of intention or was certified by the office of financial management in any other county that is required or chooses to plan under RCW 36.70A.040, the governor shall first inquire of the jurisdictions as to the reason or reasons for failure to reach an agreement. If the governor deems it appropriate, the governor may immediately request the assistance of the department of community, trade, and economic development to mediate any disputes that preclude agreement. If mediation is unsuccessful in resolving all disputes that will lead to agreement, the governor may impose appropriate sanctions from those specified under RCW 36.70A.340 on the county, city, or cities for failure to reach an agreement as provided in this section. The governor shall specify the reason or reasons for the imposition of any sanction.

             (e) No later than July 1, 1992, the legislative authority of each county that was required or chose to plan under RCW 36.70A.040 as of June 1, 1991, or no later than fourteen months after the date the county adopted its resolution of intention or was certified by the office of financial management the county legislative authority of any other county that is required or chooses to plan under RCW 36.70A.040, shall adopt a county-wide planning policy according to the process provided under this section and that is consistent with the agreement pursuant to (b) of this subsection, and after holding a public hearing or hearings on the proposed county-wide planning policy.

             (3) A county-wide planning policy shall at a minimum, address the following:

             (a) Policies to implement RCW 36.70A.110;

             (b) Policies for promotion of contiguous and orderly development and provision of urban services to such development;

             (c) Policies for siting public capital facilities of a county-wide or state-wide nature;

             (d) Policies for county-wide transportation facilities and strategies;

             (e) Policies that consider the need for affordable housing, such as housing for all economic segments of the population and parameters for its distribution;

             (f) Policies for joint county and city planning within urban growth areas;

             (g) Policies for county-wide economic development and employment; and

             (h) An analysis of the fiscal impact.

             (4) Federal agencies and Indian tribes may participate in and cooperate with the county-wide planning policy adoption process. Adopted county-wide planning policies shall be adhered to by state agencies.

             (5) Failure to adopt a county-wide planning policy that meets the requirements of this section may result in the imposition of a sanction or sanctions on a county or city within the county, as specified in RCW 36.70A.340. In imposing a sanction or sanctions, the governor shall specify the reasons for failure to adopt a county-wide planning policy in order that any imposed sanction or sanctions are fairly and equitably related to the failure to adopt a county-wide planning policy.

             (6) Cities and the governor may appeal an adopted county-wide planning policy to the growth management hearings board within sixty days of the adoption of the county-wide planning policy.

             (7) Multicounty planning policies shall be adopted by two or more counties, each with a population of four hundred fifty thousand or more, with contiguous urban areas and may be adopted by other counties, according to the process established under this section or other processes agreed to among the counties and cities within the affected counties throughout the multicounty region.


             NEW SECTION. Sec. 5. A new section is added to chapter 36.70A RCW to read as follows:

             A county or city planning under RCW 36.70A.040 must allow cellular antenna facilities to be sited in any zone within its planning jurisdiction, but may establish conditions and requirements on the siting of such facilities and require the issuance of a conditional use permit or special use permit before a cellular antenna facility is authorized.


             NEW SECTION. Sec. 6. A new section is added to chapter 43.21C RCW to read as follows:

             An authorization of cellular antenna facilities under section 5 of this act shall be categorically exempt from a threshold decision under the rules adopted by the department for categorical exemptions."


             On page 1, line 1 of the title, after "management;" strike the remainder of the title and insert "amending RCW 36.70A.110, 36.70A.070, and 36.70A.210; adding new sections to chapter 36.70A RCW; and adding a new section to chapter 43.21C RCW."


             Representatives Reams, Elliot, Ebersole and Johnson spoke in favor of the adoption of the amendment.


             Representative Rust spoke against the adoption of the amendment.


             The amendment was adopted.


             The bill was ordered engrossed.


MOTION


             On motion of Representative Brown, Representative Regala was excused.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives Johnson and Sheldon spoke in favor of passage of the bill.


             Representative Rust spoke against passage of the bill.


             The Speaker (Representative Horn presiding) stated the question before the House to be final passage of Engrossed House Bill No. 1305.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed House Bill No. 1305, and the bill passed the House by the following vote: Yeas - 71, Nays - 24, Absent - 1, Excused - 2.

             Voting yea: Representatives Backlund, Ballasiotes, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chandler, Chappell, Clements, Conway, Cooke, Crouse, Delvin, Dyer, Ebersole, Elliot, Fisher, G., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hickel, Honeyford, Horn, Huff, Hymes, Johnson, Koster, Kremen, Lambert, Lisk, Mastin, McMahan, McMorris, Mielke, Mitchell, Morris, Mulliken, Padden, Patterson, Pennington, Quall, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Stevens, Talcott, Thomas, B., Thomas, L., Thompson and Van Luven - 71.

             Voting nay: Representatives Appelwick, Basich, Brown, Chopp, Cody, Cole, Costa, Dellwo, Dickerson, Fisher, R., Hatfield, Jacobsen, Kessler, Mason, Ogden, Poulsen, Romero, Rust, Sommers, Thibaudeau, Tokuda, Valle, Veloria and Wolfe - 24.

             Absent: Representative Mr. Speaker - 1.

             Excused: Representatives Pelesky and Regala - 2.


             Engrossed House Bill No. 1305, having received the constitutional majority, was declared passed.


             There being no objection, the House resumed consideration of Substitute House Bill No. 1451.


             Representative Dyer moved adoption of the following amendment by Representative Dyer:


             Strike everything after the enacting clause and insert the following:


             "NEW SECTION. Sec. 1. (1) This chapter applies to self-insurance groups under this title, except for self-insurance groups covered under RCW 51.14.150. However, a self-insurance group under RCW 51.14.150(2)(c) may elect to be covered under this chapter.

             (2)(a) Except as otherwise provided in (b) of this subsection, self-insurance groups under this chapter are subject to all the requirements applying to self-insured employers under this title.

             (b) With the exception of RCW 51.14.080, 51.14.095, 51.14.100, 51.14.110, 51.14.120, 51.14.130, and 51.14.140, chapter 51.14 RCW does not apply to self-insurance groups under this chapter.


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

             (1) "Administrator" means an individual, partnership, or corporation engaged by a self-insurance group's board of trustees to carry out the policies established by the group's board of trustees and to provide day-to-day management of the group.

             (2) "Insolvent" or "insolvency" means the inability of a self-insurance group to pay its outstanding lawful obligations as they mature in the regular course of business, as shown either by an excess of its required reserves and other liabilities over its assets or by it not having sufficient assets to reinsure all of its outstanding liabilities after paying all accrued claims owed by it.

             (3) "Net premium" means premium derived from standard premium adjusted by any advance premium discounts.

             (4) "Service company" means any person or entity that provides services to a self-insurance group not provided by the administrator, including but not limited to:

             (a) Claims adjustment;

             (b) Safety engineering;

             (c) Compilation of statistics and the preparation of premium, loss, and tax reports;

             (d) Preparation of other required self-insurance reports;

             (e) Development of members' assessments and fees; and

             (f) Administration of a claims fund.

             (5) "Standard premium" means the premium derived from the manual rates adjusted by experience modification factors but before advance premium discounts.

             (6) "Self-insurance group" or "group" means: (a) A not-for-profit group consisting of five or more employers who are engaged in the same or similar type of business and who enter into agreements to pool assets to cover the employers' liabilities under this title; or (b) two or more local government entities as specified in section 4 of this act.


             NEW SECTION. Sec. 3. No person, group, or other entity shall act as a self-insurance group under this chapter unless it has been issued a certificate of approval by the director.


             NEW SECTION. Sec. 4. Two or more local government entities, as defined in RCW 48.62.021, that are jointly self-insured under chapter 48.62 RCW may also apply for and be issued a certificate of approval under this chapter as a workers' compensation self-insurance group to cover the entities' liabilities under this title. The entities may contract for or hire personnel to provide administrative services and other services as required or permitted by this chapter and shall possess any other powers and perform all other functions reasonably necessary to carry out the purposes of this chapter. The entities applying for a certificate of approval under this chapter shall provide notice of the application to the state risk manager, as defined in RCW 48.62.021.


             NEW SECTION. Sec. 5. (1) A proposed self-insurance group shall file with the director its application for a certificate of approval as a self-insurance group accompanied by a nonrefundable filing fee in an amount of one hundred fifty dollars or such larger sum as the director finds necessary for the administrative costs of evaluating the group's qualifications. The application shall include the group's name, location of its principal office, date of organization, name and address of each member, and such other information as the director may reasonably require together with the following information:

             (a) Proof of compliance with the provisions of subsection (2) of this section;

             (b) A copy of the articles of the group, if any;

             (c) A copy of agreements with the administrator and with any service company;

             (d) A copy of the bylaws of the proposed group;

             (e) A copy of the group's safety and occupational health plan;

             (f) A copy of the agreement between the group and each member securing the payment of each member's liability to its employees covered by this title, and the payment of assessments under section 18 of this act;

             (g) A copy of the indemnity agreement jointly and severally binding each member for the liability of the group and other members of the group under this title;

             (h) Designation of the initial board of trustees and administrator;

             (i) The address in this state where the books and records, including claims files, of the group will be maintained at all times;

             (j) A pro forma financial statement on a form acceptable to the director showing the financial ability of the group to pay the obligations of its members under this title; and

             (k) Proof of payment to the group by each member of not less than twenty-five percent of that member's first year estimated annual net premium on a date prescribed by the director. Each payment shall be considered to be part of the first year premium payment of each member if the proposed group is granted a certificate of approval.

             (2) To obtain and maintain its certificate of approval, a self-insurance group shall comply with the following requirements as well as any other requirements established by rule of the director:

             (a) A combined net worth of all members of the group of at least two million dollars;

             (b) Security in the form and amount prescribed by the director which shall be provided by a surety bond, security deposit, letter of credit, or financial security endorsement, or any combination thereof. If a surety bond is used to meet the security requirement, it shall be issued by a corporate surety company authorized to transact business in this state. If a security deposit is used to meet the security requirement, securities shall be limited to: Bonds or other evidences of indebtedness issued, assumed, or guaranteed by the United States, or by an agency or instrumentality thereof; certificates of deposit in a federally insured bank; shares or savings deposits in a federally insured savings and loan association or credit union; or any bond or security issued by a state of the United States and backed by the full faith and credit of the state. Any such securities shall be deposited in an escrow account in a depository designated by the director. Interest accruing on a negotiable security so deposited shall be collected and transmitted to the depositor provided the depositor is not in default. A financial security endorsement issued as part of an acceptable excess insurance contract may be used to meet all or part of the security requirement. The bond, security deposit, letter of credit, or financial security endorsement shall be for the benefit of the state solely to pay claims and associated expenses and payable on the failure of the group to pay workers' compensation benefits that it is legally obligated to pay under this title. The director may establish and adjust, from time to time, requirements for the amount of security based on differences among groups in their size, types of employment, years in existence, and other relevant factors;

             (c) Specific and aggregate excess insurance in an approved form, in a stated amount, and by an insurance company authorized to transact insurance business in the state of Washington;

             (d) An estimated annual standard premium of at least one million dollars during a group's first year of operation. Thereafter, the annual standard premium per member shall be at least five hundred dollars;

             (e) An indemnity agreement jointly and severally binding the group and each member thereof to meet the obligations of each member under this title. The indemnity agreement shall be in a form prescribed by the director and shall include minimum uniform substantive provisions prescribed by the director. Subject to the director's approval, a group may add other provisions needed because of its particular circumstances;

             (f) A fidelity bond for the administrator in a form and amount prescribed by the director; and

             (g) A fidelity bond for the service company in a form and amount prescribed by the director. The director may also require the service company providing claim services to furnish a performance bond in a form and amount prescribed by the director.

             (3) A group shall notify the director of any change in the information required to be filed under subsection (1) of this section or in the manner of its compliance with subsection (2) of this section no later than thirty days after the change.

             (4) The director shall evaluate the information provided by the application required to be filed under subsection (1) of this section to assure that no gaps in funding exist and that funds necessary to pay benefits under this title will be available on a timely basis.

             (5) The director shall act on a completed application for a certificate of approval as a self-insurance group within sixty days. If, because of the number of applications, the director is unable to act on an application within this period, the director shall have an additional sixty days to so act.

             (6) The director shall issue a certificate of approval on finding that the proposed self-insurance group has met all the requirements of this chapter, or the director shall issue an order denying the certificate on finding that the proposed group does not meet all requirements. An order denying a certificate shall set forth the reasons for the denial.

             (7) Each self-insurance group shall be deemed to have appointed the director as its attorney-in-fact to receive service of legal process issued against it in this state. The appointment shall be irrevocable, shall bind any successor in interest, and shall remain in effect as long as there is in this state any obligation or liability of the group for benefits under this title.


             NEW SECTION. Sec. 6. (1) A certificate of approval issued by the director to a self-insurance group authorizes the group to carry its own liability under this title to its employees covered by this title. The certificate of approval remains in effect until terminated at the request of the group or revoked by the director pursuant to section 21 of this act.

             (2)(a) The director may grant the request of any self-insurance group to terminate its certificate of approval, effective not less than thirty days after the request for termination. However, the termination of a group under this section may not be effective until each member of the group has filed with the director for industrial insurance coverage under this title, has become a member of another self-insurance group, has become an approved self-insurer, or has ceased being an employer.

             (b) A self-insurance group that has had its certificate of approval terminated under this section must maintain surety deemed sufficient in the director's discretion to cover the entire liability of the group to its employees for injuries or occupational diseases that occurred during the period that the group was self-insured.

             (3) Subject to the approval of the director, a group may merge with another group engaged in the same or similar type of business only if the resulting group assumes in full all obligations of the merging groups. The director may hold a hearing on the merger and shall do so if any party, including a member of either group, so requests.


             NEW SECTION. Sec. 7. Each self-insurance group shall be operated by a board of trustees which shall consist of not less than five persons elected by the members of a group for stated terms of office. At least two-thirds of the trustees shall be employees, officers, or directors of members of the group. The group's administrator, service company, or any owner, officer, or employee of, or any other person affiliated with such administrator or service company shall not serve on the board of trustees of the group. All trustees shall be residents of this state or officers of corporations authorized to do business in this state. The board of trustees of each group shall ensure that all claims under this title are paid promptly and shall take all necessary precautions to safeguard the assets of the group, including all of the following:

             (1) The board of trustees shall:

             (a) Maintain responsibility for all moneys collected or disbursed from the group and segregate all moneys into a claims fund account and an administrative fund account. At least seventy percent of the net premium shall be placed into a designated depository for the sole purpose of paying claims, allocated claims expenses, reinsurance or excess insurance, and special fund contributions, including second injury and other loss-related funds. This shall be called the claims fund account. The remaining net premium shall be placed into a designated depository for the payment of taxes, general regulatory fees and assessments, and administrative costs. This shall be called the administrative fund account. The director may approve an administrative fund account of more than thirty percent and a claims fund account of less than seventy percent only if the group shows to the director's satisfaction that more than thirty percent is needed for an effective safety and loss control program or the group's aggregate excess insurance attaches at less than seventy percent;

             (b) Maintain minutes of its meetings and make such minutes available to the director;

             (c) Designate an administrator to carry out the policies established by the board of trustees and to provide day-to-day management of the group, and delineate in the written minutes of its meetings the areas of authority it delegates to the administrator; and

             (d) Retain an independent certified public accountant to prepare the statement of financial condition required by section 11(1) of this act.

             (2) The board of trustees shall not:

             (a) Extend credit to individual members for payment of a premium, except pursuant to payment plans approved by the director; or

             (b) Borrow any moneys from the group or in the name of the group except in the ordinary course of business without first advising the director of the nature and purpose of the loan and obtaining prior approval from the director.


             NEW SECTION. Sec. 8. (1) An employer joining a self-insurance group after the group has been issued a certificate of approval shall submit an application for membership to the board of trustees or its administrator, and enter into the indemnity agreement required by section 5(2)(e) of this act. Membership may take effect no earlier than the date of approval of the application. The application for membership and its approval shall be maintained as permanent records of the board of trustees and a copy filed with the director.

             (2) Individual members of a group shall be subject to cancellation by the group pursuant to the group's bylaws or by the director for a violation of RCW 51.14.080(2). In addition, individual members may elect to terminate their participation in the group. The group shall notify the director of the termination or cancellation of a member within ten days and shall maintain coverage of each canceled or terminated member for thirty days after such notice, at the terminating member's expense, unless the group is notified sooner by the department that the canceled or terminated member has filed with the director for industrial insurance under this title, has become an approved self-insurer, has become a member of another self-insurance group, or has ceased being an employer.

             (3) The group shall pay all benefits under this title for which each member incurs liability during its period of membership. A member who elects to terminate its membership or is canceled by a group remains jointly and severally liable for the obligations under this title of the group and its members that were incurred during the canceled or terminated member's period of membership.

             (4) A group member is not relieved of its liabilities under this title incurred during its period of membership except through payment by the group or the member of the liabilities.

             (5) The insolvency or bankruptcy of a member does not relieve the group or any other member of liability for the payment of any obligations under this title incurred during the insolvent or bankrupt member's period of membership.


             NEW SECTION. Sec. 9. (1) No service company or its employees, officers, or directors may be an employee, officer, or director of or have either a direct or indirect financial interest in an administrator. No administrator or its employees, officers, or directors may be an employee, officer, or director of or have either a direct or indirect financial interest in a service company.

             (2) The service contract shall state that unless the director permits or requires otherwise the service company shall handle, to their conclusion, all claims and other obligations incurred during the contract period.


             NEW SECTION. Sec. 10. Except for an employee of a self-insurance group, its administrator, or its service company, any person soliciting membership in a self-insurance group under this chapter must have a solicitation permit as provided in chapter 48.06 RCW.


             NEW SECTION. Sec. 11. (1) Each self-insurance group shall submit to the director a statement of financial condition audited by an independent certified public accountant on or before the last day of the sixth month following the end of the group's fiscal year. The financial statement shall be on a form prescribed by the director and shall include, but not be limited to, actuarially appropriate reserves for known claims and expenses associated therewith, claims incurred but not reported and expenses associated therewith, unearned premiums, and bad debts, which reserves shall be shown as liabilities. An actuarial opinion regarding reserves for known claims and expenses associated therewith and claims incurred but not reported and expenses associated therewith shall be included in the audited financial statement. The actuarial opinion shall be approved by the director or be given by a member of the American academy of actuaries or other qualified loss reserve specialist as defined in the annual statement adopted by the national association of insurance commissioners.

             (2) The director may prescribe the format and frequency of other reports which may include, but shall not be limited to, payroll audit reports, summary loss reports, and quarterly financial statements.


             NEW SECTION. Sec. 12. No person may make a material misrepresentation or omission of a material fact in connection with the solicitation of membership in a self-insurance group.


             NEW SECTION. Sec. 13. Funds not needed for current obligations may be invested by a self-insurance group's board of trustees in accordance with chapter 48.13 RCW.


             NEW SECTION. Sec. 14. (1) Every self-insurance group shall adhere to the uniform classification system, uniform experience rating plan, and manual rates and rules filed with the director by an advisory organization designated by the director.

             (2) Premium contributions to the group shall be determined by applying the manual rates and rules to the appropriate classification of each member which shall be adjusted by each member's experience credit or debit. Subject to approval by the director, premium contributions may also be reduced by an advance premium discount reflecting the group's expense levels and loss experience. A group may apply to the director for permission to make its own rates, and if permission is granted, the rates must be based on at least five years of the group's experience.

             (3) Each group shall be audited at least annually by an auditor acceptable to the director to verify proper classifications, experience rating, payroll, and rates. A report of the audit shall be filed with the director in a form acceptable to the director. A group or any member thereof may request a hearing on any objection to the classification. If the director determines that as a result of an improper classification a member's premium contribution is insufficient, the director shall order the group to assess that member an amount equal to the deficiency. If the director determines that as a result of an improper classification a member's premium is excessive, the director shall order the group to refund to the member the excess collected. The audit shall be at the expense of the group.


             NEW SECTION. Sec. 15. (1) Any moneys for a fund year in excess of the amount necessary to fund all obligations under this title for that fund year may be declared to be refundable by the self-insurance group's board of trustees not less than twelve months after the end of the fund year.

             (2) Each member shall be given a written description of the refund plan at the time of application for membership. A refund for any fund year shall be paid only to those employers who remain participants in the group for the entire fund year. Payment of a refund based on a previous fund year shall not be contingent on continued membership in the group after that fund year.


             NEW SECTION. Sec. 16. (1) Each self-insurance group shall establish to the satisfaction of the director a premium payment plan which shall include an initial payment by each member of at least twenty-five percent of that member's annual premium before the start of the group's fund year and payment of the balance of each member's annual premium in monthly or quarterly installments.

             (2) Each group shall establish and maintain actuarially appropriate loss reserves which shall include reserves for known claims and expenses associated therewith and claims incurred but not reported and expenses associated therewith.

             (3) Each group shall establish and maintain bad debt reserves based on the historical experience of the group or other groups.


             NEW SECTION. Sec. 17. (1) If the assets of a self-insurance group are at any time insufficient to enable the group to discharge its liabilities under this title and to maintain the reserves required of it under this chapter, it shall forthwith make up the deficiency or levy an assessment on its members for the amount needed to make up the deficiency.

             (2) In the event of a deficiency in any fund year, the deficiency shall be made up immediately from surplus from a fund year other than the current fund year, administrative funds, assessment of the membership if ordered by the group, or such alternative method as the director approves or directs. The director shall be notified prior to any transfer of surplus funds from one fund year to another.

             (3)(a) If the group fails to assess its members or to otherwise make up such deficit within thirty days, the director shall order it to do so.

             (b) If the group fails to make the required assessment of its members within thirty days after the director orders it to do so, or if the deficiency is not fully made up within sixty days after the date on which such assessment is made, or within such longer period of time as specified by the director, the group shall be deemed to be insolvent.

             (c) The director shall proceed against an insolvent group in the same manner as the director would proceed against an insolvent self-insurer under chapter 51.14 RCW.

             (d) If a self-insurance group is liquidated, the director shall levy an assessment on its members for an amount determined by the director to be necessary to discharge all liabilities of the group, including the reasonable costs of liquidation.

             (4) A self-insurance group insolvency trust shall be established following the rules pursuant to RCW 51.14.077.


             NEW SECTION. Sec. 18. If liquidation occurs under section 17 of this act, after exhausting the security required under section 5(2)(b) of this act, the director shall levy an assessment against all self-insurance groups under this chapter to assure prompt payment of such benefits. The assessment on each group shall be based on the proportion that the premium of each group bears to the total premium of all groups under this chapter. The director may exempt a group from assessment on finding that the payment of the assessment would render the group insolvent. Such assessment shall not relieve any member of an insolvent group of its joint and several liability. After any such assessment is made, the director shall take action to enforce the joint and several liability provisions of the insolvent group's indemnity agreement, and shall recoup all costs incurred by the director in enforcing such joint and several liability provisions, amounts that the director assessed any other groups pursuant to this section, and any obligations included within section 17(3)(d) of this act.


             NEW SECTION. Sec. 19. After notice and opportunity for a hearing, the director may impose a monetary penalty on any person or self-insurance group found to be in violation of any provision of this chapter or of any rules adopted under this chapter. Such monetary penalty shall not exceed one thousand dollars for each violation and shall not exceed ten thousand dollars in the aggregate. The amount of any monetary penalty shall be paid to the director for deposit in the state general fund.


             NEW SECTION. Sec. 20. (1) After notice and opportunity for a hearing, the director may issue an order requiring a person or self-insurance group to cease and desist from engaging in an act or practice found to be in violation of this chapter or of any rules adopted under this chapter.

             (2) On a finding, after notice and opportunity for a hearing, that any person or self-insurance group has violated a cease and desist order, the director may do either or both of the following:

             (a) Impose a monetary penalty of not more than ten thousand dollars for each violation of the order not to exceed an aggregate monetary penalty of one hundred thousand dollars; or

             (b) Revoke the group's certificate of approval.


             NEW SECTION. Sec. 21. (1) After notice and opportunity for a hearing, the director may revoke a self-insurance group's certificate of approval if it is found to be insolvent, fails to pay a regulatory fee, assessment, or special fund contribution imposed on it, or fails to comply with any of the provisions of this chapter, with any rules adopted under this chapter, or with any lawful order of the director, within the time prescribed. In addition, the director may revoke a group's certificate of approval if, after notice and opportunity for a hearing, the director finds that the certificate of approval that was issued to the group was obtained by fraud, that there was a material misrepresentation in the application for the certificate of approval, or that the group or its administrator has misappropriated, converted, illegally withheld, or refused to pay over on proper demand any moneys that belong to a member, an employee of a member, or a person otherwise entitled thereto and that have been entrusted to the group or its administrator in its fiduciary capacities.

             (2) The director shall serve on the self-insurance group, personally or by certified mail, a notice of intention to revoke the group's certificate of approval, which notice shall describe the nature and location of the plants or operations involved and the specific nature of the reasons for the decision. The notice shall include: (a) The period of time within which the grounds for revocation existed or arose; (b) a directive to the group specifying the manner in which the grounds may be eliminated; and (c) the date, not less than thirty days after the self-insurer's receipt of the notice, when the certificate of approval will be withdrawn in the absence of a satisfactory elimination of the grounds for withdrawal of the certificate.

             (3) An appeal of any action by the director under this section may be taken by the self-insurance group. Proceedings on the appeal shall be as prescribed in this title. Appeal by a group of a notice of intention to withdraw a certificate of approval or to take corrective action shall not act as a stay of the withdrawal or corrective action unless the board or court, for good cause shown, orders otherwise.


             NEW SECTION. Sec. 22. The director may adopt rules to implement this chapter, including rules providing for administrative assessments of self-insurance groups under this chapter.


             NEW SECTION. Sec. 23. 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.


             Sec. 24. RCW 48.62.011 and 1991 sp.s. c 30 s 1 are each amended to read as follows:

             This chapter is intended to provide the exclusive source of local government entity authority to individually or jointly self-insure risks, jointly purchase insurance or reinsurance, and to contract for risk management, claims, and administrative services. This chapter shall be liberally construed to grant local government entities maximum flexibility in self-insuring to the extent the self-insurance programs are operated in a safe and sound manner. This chapter is intended to require prior approval for the establishment of every individual local government self-insured employee health and welfare benefit program and every joint local government self-insurance program. In addition, this chapter is intended to require every local government entity that establishes a self-insurance program not subject to prior approval to notify the state of the existence of the program and to comply with the regulatory and statutory standards governing the management and operation of the programs as provided in this chapter. This chapter is not intended to authorize or regulate self-insurance of unemployment compensation under chapter 50.44 RCW, or industrial insurance under ((chapter 51.14)) Title 51 RCW.


             Sec. 25. RCW 51.14.080 and 1986 c 57 s 7 are each amended to read as follows:

             (1) Certification of a self-insurer shall be withdrawn by the director upon one or more of the following grounds:

             (((1))) (a) The employer no longer meets the requirements of a self-insurer; or

             (((2))) (b) The self-insurer's deposit is insufficient; or

             (((3))) (c) The self-insurer intentionally or repeatedly induces employees to fail to report injuries, induces claimants to treat injuries in the course of employment as off-the-job injuries, persuades claimants to accept less than the compensation due, or unreasonably makes it necessary for claimants to resort to proceedings against the employer to obtain compensation; or

             (((4))) (d) The self-insurer habitually fails to comply with rules and regulations of the director regarding reports or other requirements necessary to carry out the purposes of this title; or

             (((5))) (e) The self-insurer habitually engages in a practice of arbitrarily or unreasonably refusing employment to applicants for employment or discharging employees because of nondisabling bodily conditions; or

             (((6))) (f) The self-insurer fails to pay an insolvency assessment under the procedures established pursuant to RCW 51.14.077.

             (2) Certification of a self-insurance group subject to chapter 51.-- RCW (sections 1 through 23 of this act) shall be withdrawn by the director or an employer's membership in the group shall be canceled by the director upon any of the grounds listed in subsection (1) of this section or upon any of the following grounds, or both:

             (a) The self-insurance group, employer member of the group, or group's or employer's representative unreasonably attempts to influence an employee's attending physician with regard to releasing the employee for return to work;

             (b) The self-insurance group, employer member of the group, or group's or employer's representative requires claimants to submit to an unreasonable number of medical examinations as a condition of receiving benefits under this title; or

             (c) The self-insurance group, employer member of the group, or group's or employer's representative unreasonably interferes with the claimants' choice of health services providers to treat the injuries covered by this title.


             Sec. 26. RCW 51.48.025 and 1985 c 347 s 8 are each amended to read as follows:

             (1) No employer may discharge or in any manner discriminate against any employee because such employee has filed or communicated to the employer an intent to file a claim for compensation or exercises any rights provided under this title. However, nothing in this section prevents an employer from taking any action against a worker for other reasons including, but not limited to, the worker's failure to observe health or safety standards adopted by the employer, or the frequency or nature of the worker's job-related accidents.

             (2) Any employee who believes that he or she has been discharged or otherwise discriminated against by an employer in violation of this section may file a complaint with the director alleging discrimination within ninety days of the date of the alleged violation. Upon receipt of such complaint, the director shall cause an investigation to be made as the director deems appropriate. Within ninety days of the receipt of a complaint filed under this section, the director shall notify the complainant of his or her determination. If upon such investigation, it is determined that this section has been violated, the director shall bring an action in the superior court of the county in which the violation is alleged to have occurred.

             (3) If the director determines that this section has not been violated, the employee may institute the action on his or her own behalf.

             (4) In any action brought under this section, the superior court shall have jurisdiction, for cause shown, to restrain violations of subsection (1) of this section and to order all appropriate relief including rehiring or reinstatement of the employee with back pay. The party who prevails in an action under this section against a self-insurance group subject to chapter 51.-- RCW (sections 1 through 23 of this act) or against an employer member of such a group shall be entitled to recover reasonable attorneys' fees.


             NEW SECTION. Sec. 27. Sections 1 through 23 of this act shall constitute a new chapter in Title 51 RCW."


             On page 1, line 2 of the title, after "self-insurance;" strike the remainder of the title and insert "amending RCW 48.62.011, 51.14.080, and 51.48.025; adding a new chapter to Title 51 RCW; and prescribing penalties."


             With the consent of the House, amendment number 405 to Substitute House Bill No. 1451 was withdrawn.


             Representative Campbell moved adoption of the following amendment to the striking amendment by Representative Campbell:


             On page 15, line 18 of the striking amendment, after "title" insert ", and no self-insurance group subject to chapter 51.-- RCW (sections 1 through 23 of this act) or the group's representative, or employer member of the group or the employer's representative, may unreasonably attempt to influence an employee not to report an industrial accident, or unreasonably attempt to influence an employee to treat an industrial accident as an off-the-job injury"


             On page 15, line 24 of the striking amendment, after "employer" insert ", or has been subject to unreasonable attempts to influence by a self-insurance group subject to chapter 51.-- RCW (sections 1 through 23 of this act) or the group's representative, or employer member of the group or the employer's representative,"


             Representatives Campbell, Appelwick, Mastin, Conway and Smith spoke in favor of the adoption of the amendment to the striking amendment.


             Representatives Dyer and Mielke spoke against the adoption of the striking amendment.


             Representative Dyer again spoke against the adoption of the striking amendment.


             Representative Campbell again spoke in favor of the adoption of the striking amendment.


             The amendment was not adopted.


             Representative Campbell moved adoption of the following amendment to the striking amendment by Representative Campbell:


             On page 16, beginning on line 2 of the striking amendment, after "pay." strike all material through "fees." on line 6 and insert "In an action brought under this section against a self-insurance group subject to chapter 51.-- RCW (sections 1 through 23 of this act) or against an employer member of such a group, the prevailing complainant shall be entitled to economic and noneconomic damages, costs, and reasonable attorneys' fees."


             Representative Campbell spoke in favor of the adoption of the amendment to the striking amendment.


             A division was called. The Speaker (Representative Horn presiding) called on the House to divide. The results of the division was: YEAS-48; NAYS-48. The amendment was not adopted.


             The Speaker assumed the chair.


NOTICE OF RECONSIDERATION


             Representative Dyer: Having voted on the prevailing side moved that the House immediately reconsidered the vote by which amendment number 411 to Substitute House Bill No. 1451 failed.


             Representatives Campbell and Mastin spoke in favor of the adoption of the amendment to the striking amendment.


             Representatives Dyer, Mielke and Clements spoke against the adoption of the amendment to the striking amendment.


             Representatives Campbell and Mastin again spoke in favor of the adoption of the amendment to the striking amendment.


             Representative Patterson demanded an electronic roll call vote and the demand was sustained.


             Representative Dyer again spoke against the adoption of the amendment to the striking amendment.


RECONSIDERATION


             The Speaker stated the question before the House to the adoption of amendment number 411 to Substitute House Bill No. 1415 on reconsideration.


ROLL CALL


             The Clerk called the roll on the adoption of amendment, on page 16 beginning on line 2, to Substitute House Bill No. 1451 on reconsideration and the amendment was not adopted by the following vote. Yeas - 40, Nays - 55, Absent - 1, Excused - 2.

             Voting yea: Representatives Appelwick, Basich, Brown, Campbell, Casada, Chappell, Chopp, Cody, Cole, Conway, Costa, Dellwo, Dickerson, Ebersole, Fisher, G., Fisher, R., Grant, Hatfield, Jacobsen, Kessler, Kremen, Mason, Mastin, Morris, Ogden, Padden, Patterson, Pennington, Poulsen, Quall, Romero, Rust, Scott, Smith, Sommers, Thibaudeau, Tokuda, Valle, Veloria and Wolfe - 40.

             Voting nay: Representatives Backlund, Ballasiotes, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Carlson, Carrell, Chandler, Clements, Cooke, Crouse, Delvin, Dyer, Elliot, Foreman, Fuhrman, Goldsmith, Hankins, Hickel, Honeyford, Horn, Huff, Hymes, Johnson, Koster, Lambert, Lisk, McMahan, McMorris, Mielke, Mitchell, Mulliken, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven and Mr. Speaker - 55.

             Absent: Representative Hargrove - 1.

             Excused: Representatives Pelesky and Regala - 2.


STATEMENT FOR THE JOURNAL


             I intended to vote NAY on amendment number 411 to Substitute House Bill No. 1451.


STEVE HARGROVE, 23rd District


NOTICE OF RECONSIDERATION


             Representative Crouse: Having voted on the prevailing side of amendment number 412 to Substitute House Bill No. 1451 moved that the House immediately reconsider the vote.


             A division was called. The Speaker called on the House to divide. The results of the division was: YEAS-52; NAYS-44. The motion to reconsider the vote on amendment number 412 was carried.


RECONSIDERATION


             The Speaker stated the question before the House to be reconsideration of amendment number 412 to Substitute House Bill No. 1451.


             Representatives Campbell, Appelwick and Chappell spoke in favor of the adoption of the amendment to the striking amendment.


             Representatives Dyer and Mielke spoke against the adoption of the amendment to the striking amendment.


             Representative Patterson demanded an electronic roll call vote and the demand was sustained.


             Representative Campbell again spoke in favor of the adoption of the amendment to the striking amendment.


             Representative Dyer again spoke against the adoption of the amendment to the striking amendment.


ROLL CALL


             The Clerk called the roll on the adoption of the amendment to the amendment, on page 15, line 18, to Substitute House Bill No. 1451 on reconsideration and the amendment was not adopted by the following vote: Yeas - 42, Nays - 53, Absent - 1, Excused - 2.

             Voting yea: Representatives Appelwick, Basich, Beeksma, Boldt, Brown, Campbell, Casada, Chappell, Chopp, Cody, Cole, Conway, Costa, Dellwo, Dickerson, Ebersole, Fisher, G., Fisher, R., Grant, Hatfield, Jacobsen, Kessler, Kremen, Mason, Mastin, Morris, Ogden, Padden, Patterson, Pennington, Poulsen, Quall, Romero, Rust, Scott, Smith, Sommers, Thibaudeau, Tokuda, Valle, Veloria and Wolfe - 42.

             Voting nay: Representatives Backlund, Ballasiotes, Benton, Blanton, Brumsickle, Buck, Cairnes, Carlson, Carrell, Chandler, Clements, Cooke, Crouse, Delvin, Dyer, Foreman, Fuhrman, Goldsmith, Hankins, Hargrove, Hickel, Honeyford, Horn, Huff, Hymes, Johnson, Koster, Lambert, Lisk, McMahan, McMorris, Mielke, Mitchell, Mulliken, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven and Mr. Speaker - 53.

             Absent: Representative Elliot - 1.

             Excused: Representatives Pelesky and Regala - 2.


             With the consent of the House, amendment number 424 to Substitute House Bill No. 1451 was withdrawn.


             Representative Mastin moved adoption of the following amendment to the striking amendment by Representative Mastin:


             On page 16, after line 6, insert the following:

             "(5) For the purposes of this section, in an action against a self-insurance group subject to chapter 51.-- RCW (sections 1 through 23 of this act) or against an employer member of such a group, "discrimination" includes, but is not limited to, an attempt by the employer to force an employee to not report an industrial accident or to treat an industrial accident as an off-the-job injury. This subsection (5) shall not be construed as limiting the definition of "discrimination" for other actions filed under this section."


             Representative Mastin spoke in favor of the adoption of the amendment to the striking amendment.


             Representative Dyer spoke against the adoption of the amendment to the striking amendment.


             The amendment was not adopted.


             Representatives Dyer and Mastin spoke in favor of the adoption of the striking amendment as amended.


             The striking amendment as amended was adopted.


             The bill was ordered engrossed.


MOTION


             On motion of Representative Talcott, Representative Beeksma was excused.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives Mielke, Smith, Cole, Goldsmith and Dyer spoke in favor of passage of the bill.


             Representatives Romero and Cody spoke against passage of the bill.


             The Speaker stated the question before the House to be final passage of Engrossed Substitute House Bill No. 1451.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 1451, and the bill passed the House by the following vote: Yeas - 63, Nays - 32, Absent - 0, Excused - 3.

             Voting yea: Representatives Backlund, Ballasiotes, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Carlson, Carrell, Casada, Chandler, Chappell, Clements, Cooke, Crouse, Delvin, Dyer, Elliot, Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hickel, Honeyford, Horn, Huff, Hymes, Johnson, Koster, Kremen, Lambert, Lisk, Mastin, McMahan, McMorris, Mielke, Mitchell, Mulliken, Padden, Pennington, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven and Mr. Speaker - 63.

             Voting nay: Representatives Appelwick, Basich, Brown, Campbell, Chopp, Cody, Cole, Conway, Costa, Dellwo, Dickerson, Ebersole, Fisher, G., Fisher, R., Hatfield, Jacobsen, Kessler, Mason, Morris, Ogden, Patterson, Poulsen, Quall, Romero, Rust, Scott, Sommers, Thibaudeau, Tokuda, Valle, Veloria and Wolfe - 32.

             Excused: Representatives Beeksma, Pelesky and Regala - 3.


             Engrossed Substitute House Bill No. 1451, having received the constitutional majority, was declared passed.


MOTIONS


             On motion of Representative Foreman, the remaining bills on the calendar were referred to the Committee on Rules with the exception of House Bill No. 1299, referred to Commerce & Labor Committee, House Bill No. 1378, House Bill No. 1618, House Bill No. 1694, House Bill No. 1907, House Bill No. 1172, House Bill No. 1478, House Bill No. 1486, House Bill No. 1732, House Bill No. 1747, House Bill No. 1558, House Bill No. 1617, House Bill No. 1817, House Bill No. 1932, House Bill No. 1989 and House Bill No. 1485.


             On motion of Representative Foreman, Substitute Senate Bill No. 5992 was re-referred from the Committee on Trade & Economic Development to the Committee on Commerce & Labor.


POINT OF INQUIRY


             Representative Appelwick: Thank you Mr. Speaker. Representative Clements, during the debate on that last bill you made some reference to "We all know what happens when you go here Kitty, Kitty, Kitty." And I'm not sure everyone knows, what is it that happens?


             Representative Clements: I hope that curiosity does not kill the cat. For the fine Representative from the 46th District, we were talking in Caucus about some of the strategy, and I said some of the issues, it's like Daniel going into the lions den and peering in and saying "Here Kitty, Kitty."


             There being no objection, the House advanced to the eleventh order of business.


MOTION


             On motion of Representative Foreman, the House adjourned until 9:55 a.m., Thursday, March 16, 1995.


CLYDE BALLARD, Speaker

TIMOTHY A. MARTIN, Chief Clerk