Strike everything after the enacting clause and insert the following:
"
NEW SECTION. Sec. 1. A new section is added to chapter
35A.14 RCW to read as follows:
(1) A code city as provided in RCW
35A.14.296(2) may collaborate with the county or counties where the code city is located to form an interlocal agreement regarding annexation of unincorporated territory within the urban growth area boundary. The interlocal agreement formation process must include procedures for public participation. The procedures must provide for broad dissemination of proposals and alternatives, opportunity for written comments, public meetings after effective notice, and consideration of and response to public comments. The interlocal agreement may only be executed after notice of availability of the agreement is posted on the website of each legislative body for four weeks and a public hearing by each legislative body, separately or jointly. This method of annexation shall be an alternative method and is additional to all other methods provided for in this chapter.
(2) An interlocal agreement under this section may include use of a sales tax credit for annexed areas should such a credit be reinstated by the legislature.
(3) The agreement or plan under this section must address the following:
(a) A balancing of annexations of commercial, industrial, and residential properties so that any potential loss or gain is considered and distributed fairly as determined by tax revenue;
(b) Development, ownership, and maintenance of infrastructure;
(c) The potential for revenue-sharing agreements.
(4) In addressing the items in subsection (3)(a) through (c) of this section, the parties must also address the balancing of factors and objectives for annexation review in RCW
36.93.170 and
36.93.180.
(5) By December 1, 2021, the association of Washington cities and the Washington state association of counties shall report to the legislature, in compliance with RCW
43.01.036, on how a sales tax credit may be utilized to encourage appropriate annexations and what limits should be associated with such a credit if reinstated.
Sec. 2. RCW
36.70A.330 and 1997 c 429 s 21 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(3)(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 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 and with any compliance schedule established by the board in its final order. 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, county, or city. 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. The board shall issue any order necessary to make adjustments to the compliance schedule and set additional hearings as provided in subsection (5) of this section.
(3) If the board after a compliance hearing finds that the state agency, county, or city is not in compliance, the board shall transmit its finding to the governor. ((The))
(a) The board may refer a finding of noncompliance to the department. The purpose of the referral is for the department to provide technical assistance to facilitate speedy resolution of the finding of noncompliance and to provide training pursuant to section 3 of this act as necessary.
(b) Alternatively, the board may recommend to the governor that the sanctions authorized by this chapter be imposed. The board shall take into consideration the county's or city's efforts to meet its compliance schedule in making the decision to recommend sanctions to the governor.
(4) In a compliance hearing upon petition of a party, the board shall also reconsider its final order and decide, if no determination of invalidity has been made, whether one now should be made under RCW
36.70A.302.
(5) The board shall schedule additional hearings as appropriate pursuant to subsections (1) and (2) of this section.
NEW SECTION. Sec. 3. A new section is added to chapter
36.70A RCW to read as follows:
(1) The department shall offer training to assist local governments in understanding findings of noncompliance from the growth management hearings board pursuant to RCW
36.70A.300 and
36.70A.330 and applying prior decisions of the board to ongoing planning efforts to avoid findings of noncompliance.
(2) The department may award grants to a public agency with appropriate expertise and funded by local governments to provide the training required in subsection (1) of this section.
(3) The training provided in subsection (1) of this section is limited to counties that are largely rural."
(2) Requires the Association of Washington Cities and the Washington State Association of Counties to report to the Legislature on how a sales tax credit may be utilized to encourage appropriate annexations and what limits should be associated with such a credit if reinstated.
(3) Removes the provision allowing jurisdictions planning under the Growth Management Act to apply for a determination of compliance from the Department of Commerce for certain actions under the Growth Management Act and the State Environmental Policy Act.
(4) Requires the Department of Commerce to offer training to assist rural counties in understanding findings of noncompliance and applying prior decisions of the Growth Management Hearings Board to ongoing planning efforts and allows the Department of Commerce to award grants to a public agency with expertise and funded by local governments to provide the training.