Washington State
House of Representatives
Office of Program Research		 BILL
ANALYSIS
State Government & Tribal Affairs Committee

ESB 5508

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Providing for economic development project permitting.

Sponsors: Senators Kilmer, Zarelli, Hatfield, Schoesler, Holmquist, Kastama, Tom, Sheldon, Shin and Rasmussen.

Brief Summary of Engrossed Bill
  • Recommends that state and local agencies provide permit applicants with information pertinent to the cost and duration of the permit process.
  • Requires that the local government's record of providing such information shall be used as criteria for awarding funds when those local governments are applying for funding through the Public Works Board, the Community Economic Revitalization Board, the Local Infrastructure Financing Tool, or the Job Development Fund.
  • Requires the Office of Regulatory Assistance to assist local jurisdictions with the statutory requirements for local project review.

Hearing Date: 3/23/07

Staff: Colleen Kerr (786-7168).

Background:

The Office of Regulatory Assistance (ORA) was created by the Legislature in 2003 and resides in the Office of Financial Management. The ORA serves as the nexus for the state agencies that exercise the regulatory function of state government, including:

The ORA was created to provide citizens with information on regulations, permit requirements, and rule-making processes in the state. It is required to operate on the principle that state citizens should receive a date and time for a decision on a permit, the information required to make a decision on a permit, and an estimate of the maximum amount of costs in fees, studies, or public processes that will be incurred by the applicant.

The Public Works Board provides low-interest loans, grants, and technical assistance to local government entities to enable them to meet public health and safety infrastructure needs. Applicants can apply to several different loan problems throughout the year.

The Community Economic Revitalization Board (CERB) provides low-interest loans, grants, and technical assistance to local government entities to finance and support infrastructure for economic development projects. Applicant local government entities work with staff to develop applications and may apply for assistance 45 days prior to any of the six annual CERB meetings.

The Local Infrastructure Finance Tool (LIFT) is a competitive program that allows selected local governments to take advantage of tax revenue generated by private investment in a Revenue Development Area (RDA) to make payments on bonds used to finance public infrastructure improvements. Incremental revenue increases in the RDA and revenue from other local public sources are used to match state money and must also be used to repay the same bonds. The state revenue earned is distributed through a local sales and use tax that is credited against the state's sales and use tax. Local governments entities may apply on an annual basis.

The Job Development Fund (JDF), like CERB, provides financing to support infrastructure needs that meet economic development objectives, but it provides only grants and can award up to $10 million per project to local government entity applicants. The JDF had a two-phase annual application process.

Summary of Bill:

The Legislature recommends that permit applicants receive information from city, county, or state agencies regarding the amount of time an agency will need to make a permit decision and the minimum amount of information required for a decision. Applicants should also receive information on when an application is considered complete, the expected agency fees, and, in writing, the reasons for denial of a permit. Permitting agencies are encouraged to report annually on success in providing this information.

When a local government applies for Public Works Board funding, Community Economic Revitalization Board funding, Local Infrastructure Financing Tool funding, or Job Development Fund Program funding, the criteria to be considered will include whether the local government applicant has a good record of providing information to those applying for development permits.

The ORA is to help local jurisdiction by providing information about best practices in complying with permit timeline requirements and by providing technical assistance in reducing the turnaround time between submittal and issuance of a development permit. The termination date for the ORA is extended to June 30, 2011.

Appropriation: None.

Fiscal Note: Available.

Effective Date: The bill contains an emergency clause and takes effect immediately.