BILL REQ. #:  S-3774.2 

Read first time 01/26/2004.   Referred to Committee on Land Use & Planning.

     AN ACT Relating to imposing fees to mitigate adverse environmental impacts; and adding a new chapter to Title 43 RCW.

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

NEW SECTION.  Sec. 1   (1) The legislature intends:
     (a) To ensure that mitigation fees are imposed through established standards by which counties, cities, and towns may require by ordinance that new growth and development pay a reasonable cost only to mitigate specific adverse environmental impacts that are identified in the environmental documents prepared under this chapter;
     (b) To ensure that mitigation fees are imposed through established procedures and criteria so that specific developments do not pay arbitrary fees or duplicative fees for the same adverse environmental impact; and
     (c) To add process to current statutory authority for mitigation and not allow for additional authority than currently provided in RCW 43.21C.060.
     (2) The legislature further intends that mitigation fees:
     (a) Only be imposed to mitigate specific adverse environmental impacts that are directly related to the new development; and
     (b) Not exceed the proportionate share of the costs reasonably related to the specific adverse environmental impacts caused by the new development.
     (3) As used in this chapter, "development activity" means any construction or expansion of a building, structure, or use; any change in use of a building or structure; or any change in the use of land, that cause specific adverse environmental impacts that are identified in the environmental documents prepared under this chapter.

NEW SECTION.  Sec. 2   (1) A local ordinance imposing a mitigation fee shall include a schedule of mitigation fees that is adopted for each type of development activity subject to a mitigation fee, specifying the amount of the mitigation fee to be imposed for each proposed action.
     (2) In determining the reasonable mitigation fee for built environment as defined under WAC 197-11-444(2) as it existed on the effective date of this act, the formula or other method of calculating the mitigation fee shall incorporate the availability of other means of funding the mitigation of the identified specific adverse environmental impact.
     (3) A local ordinance imposing a mitigation fee shall include a provision for calculating the amount of the fee to be imposed on a particular development that permits consideration of studies and data submitted by the developer to adjust the amount of the fee.

NEW SECTION.  Sec. 3   (1) Mitigation fee receipts shall be earmarked specifically and retained in special interest-bearing accounts. Separate accounts shall be established for each type of public facility for which a mitigation fee is collected. All interest shall be retained in the account and expended for the purpose or purposes for which the mitigation fee was imposed. Annually, each county, city, or town imposing mitigation fees shall provide a report on each mitigation fee account showing the source and amount of all moneys collected, earned, or received and development activities that were financed in whole or in part by the mitigation fee.
     (2) The county, city, or town shall provide an annual accounting of the mitigation fee expenditures, published on its internet site.
     (3) A mitigation fee may be paid under protest in order to obtain a permit or other approval of development activity.

NEW SECTION.  Sec. 4   (1)(a) The person paying the mitigation fee shall receive a refund if the county, city, or town fails to expend or encumber the mitigation fee within six years of when the fee is paid on mitigation of specific adverse environmental impacts that are identified in the environmental documents prepared under this chapter. The county, city, or town shall notify potential claimants by first class mail deposited with the United States postal service at the last known address of claimants.
     The request for a refund must be submitted to the county, city, or town governing body in writing within one year of the date the right to claim the refund arises or the date that notice is given, whichever is later. Any mitigation fee that is not expended within these time limitations, and for which no timely application for a refund has been made, shall be retained and expended on the indicated development activity or any other development activity.
     (b) The refund of a mitigation fee under (a) of this subsection shall include interest earned on the mitigation fee.
     (2) When a county, city, or town seeks to terminate any or all mitigation fee requirements, all unexpended or unencumbered funds, including interest earned, shall be refunded under this section. Upon the finding that any or all fee requirements are to be terminated, the county, city, or town shall place notice of the termination and the availability of refunds in a newspaper of general circulation at least two times and shall notify all potential claimants by first class mail to the last known address of claimants. All funds available for refund shall be retained for a period of one year. At the end of one year, any remaining funds shall be retained by the local government, but must be expended for the indicated public facilities. This notice requirement does not apply if there are no unexpended or unencumbered balances within an account or accounts being terminated.
     (3) A developer may request and shall receive a refund, including interest earned on the mitigation fee, when the developer does not proceed with the development activity and no adverse environmental impact has resulted.

NEW SECTION.  Sec. 5   Sections 1 through 4 of this act constitute a new chapter in Title 43 RCW.