Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. A new section is added to chapter 35.21 RCW to read as follows:

(1) Cities that have an ordinance that limits the number of unrelated persons that may occupy a home must provide a process for a property owner to apply to exceed the limit for the number of unrelated persons occupying a household or dwelling unit. The process for determining whether to grant an exception may include a review of:

(a) The household or dwelling unit's compliance with applicable building codes;

(b) The public health impacts of the application;

(d) The provision of cooking and sanitation relative to occupancy in the proposal; and

(e) The infrastructure capacity of the property seeking the exception.

(2) The city may condition its approval of the application on the household or dwelling unit's compliance with conditions established by the city.

(3) If an application is approved by the city, the city may revoke the exception to exceed the unrelated occupant limit if the household or dwelling is not in compliance with one or more provisions of the local fire code, building code, municipal code, or other code provisions.

(4) This section does not apply to occupant limits on group living arrangements regulated under state law or on short-term rentals as defined in RCW 64.37.010.

NEW SECTION. Sec. 2. A new section is added to chapter 35A.21 RCW to read as follows:

(1) Code cities that have an ordinance that limits the number of unrelated persons that may occupy a home must provide a process for a property owner to apply to exceed the limit for the number of unrelated persons occupying a household or dwelling unit. The process for determining whether to grant an exception may include a review of:

(a) The household or dwelling unit's compliance with applicable building codes;

(b) The public health impacts of the application;

(d) The provision of cooking and sanitation relative to occupancy in the proposal; and

(e) The infrastructure capacity of the property seeking the exception.

(2) The code city may condition its approval of the application on the household or dwelling unit's compliance with conditions established by the code city.

(3) If an application is approved by the code city, the code city may revoke the exception to exceed the unrelated occupant limit if the household or dwelling is not in compliance with one or more provisions of the local fire code, building code, municipal code, or other code provisions.

(4) This section does not apply to occupant limits on group living arrangements regulated under state law or on short-term rentals as defined in RCW 64.37.010.

NEW SECTION. Sec. 3. A new section is added to chapter 36.01 RCW to read as follows:

(1) Counties that have an ordinance that limits the number of unrelated persons that may occupy a home must provide a process for a property owner to apply to exceed the limit for the number of unrelated persons occupying a household or dwelling unit. The process for determining whether to grant an exception may include a review of:

(a) The household or dwelling unit's compliance with applicable building codes;

(b) The public health impacts of the application;

(d) The provision of cooking and sanitation relative to occupancy in the proposal; and

(e) The infrastructure capacity of the property seeking the exception.

(2) The county may condition its approval of the application on the household or dwelling unit's compliance with conditions established by the county.

(3) If an application is approved by the county, the county may revoke the exception to exceed the unrelated occupant limit if the household or dwelling is not in compliance with one or more provisions of the county code or other code provisions.

(4) This section does not apply to occupant limits on group living arrangements regulated under state law or on short-term rentals as defined in RCW 64.37.010."

EFFECT: Replaces the prohibition on local government regulation of unrelated persons' occupancy of a household or dwelling unit with a requirement that, if the local government does have such regulations, it must provide a process for seeking an exception to the regulations. Allows a local government to review various aspects of the proposed household or dwelling units, including its compliance with applicable building codes and the infrastructure capacity of the property, when making a decision on an application for an exception, and to condition approval on the household or dwelling unit's compliance with certain conditions established by the local government. Allows a local government to later revoke approval if the household or dwelling unit is not in compliance with building, fire, or other code requirements.