AN ACT Relating to agricultural preserves; and adding a new chapter to Title 84 RCW.

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

NEW SECTION. Sec. 1. The legislature finds:

(1) That the preservation of a maximum amount of the limited supply of agricultural land is necessary to the conservation of the state's economic resources, and that preservation is necessary not only to the maintenance of the agricultural economy of the state, but also for the assurance of adequate, healthful, and nutritious food for future residents of this state and nation.

(2) That the discouragement of premature and unnecessary conversion of agricultural land to urban uses is a matter of public interest and will be of benefit to urban dwellers themselves in that it will discourage discontiguous urban development patterns which unnecessarily increase the costs of community services to community residents.

(3) That in a rapidly urbanizing society, agricultural lands have a definite public value as open space, and the preservation in agricultural production of such lands, the use of which may be limited under the provisions of this chapter, constitutes an important physical, social, aesthetic and economic asset to existing or pending urban or metropolitan developments.

(4) For these reasons, this chapter is necessary for the promotion of the general welfare and the protection of the public interest in agricultural land.

NEW SECTION. Sec. 2. As used in this chapter, unless the context clearly requires otherwise:

(1) "Agricultural commodity" means any and all plant and animal products produced in this state for commercial purposes.

(2) "Agricultural use" means use of land for the purpose of producing an agricultural commodity for commercial purposes.

(3) "Prime agricultural land" means any of the following:

(a) All land which qualifies for rating as class I or class II in the soil conservation service land use capability classifications;

(b) Land which qualifies for rating 80 through 100 in the storie index rating;

(c) Land which supports livestock used for the production of food and fiber and which has an annual carrying capacity equivalent to at least one animal unit per acre as defined by the United States department of agriculture;

(d) Land planted with fruit or nut-bearing trees, vines, bushes, or crops which have a nonbearing period of less than five years and which will normally return during the commercial bearing period on an annual basis from the production of unprocessed agricultural plant production not less than two hundred dollars per acre;

(e) Land which has returned from the production of unprocessed agricultural plant products an annual gross value of not less than two hundred dollars per acre for three of the previous five years.

(4) "Agricultural preserve" means an area devoted to either agricultural use, recreational use, or open space land, or any combination of such uses and which is established in accordance with the provisions of this chapter.

(5) "Compatible use" is any use determined by the county or city administering the preserve to be compatible with the agricultural, recreational, or open-space use of land within the preserve and subject to contract. "Compatible use" includes agricultural use, recreational use or open-space use unless the county or city legislative authority finds after notice and hearing that such use is not compatible with the agricultural, recreational, or open-space use to which the land is restricted by contract under this chapter.

(6) Except where it is otherwise apparent from the context, "county" or "city" means the county or city having jurisdiction over the land.

(7) A "wildlife habitat area" is a land or water area designated by a city or county legislative authority, after consulting with and considering the recommendation of the department of fisheries and wildlife, as an area of great importance for the protection or enhancement of the wildlife resources of the state.

(8) A "managed wetland area" is an area, which may be an area diked off from the ocean or any bay, river, or stream to which water is occasionally admitted, and which, for at least three consecutive years immediately prior to being placed within an agricultural preserve under this chapter, was used and maintained as a waterfowl hunting preserve or game refuge or for agricultural purposes.

(9) A "submerged area" is any land determined by the city or county legislative authority to be submerged or subject to tidal action and found by the board or council to be of great value to the state as open space.

(10) "Recreational use" is the use of land by the public, with or without charge, for any of the following: Walking, hiking, picnicking, camping, swimming, boating, fishing, hunting, or other outdoor games or sports for which facilities are provided for public participation. Any fee charged for the recreational use of land as defined in this subdivision shall be in a reasonable amount and shall not have the effect of unduly limiting its use by the public.

(11) "Open-space land" is land that meets the specifications of RCW 84.34.020(1).

NEW SECTION. Sec. 3. Any county or city, by resolution, and after a public hearing may establish an agricultural preserve. Notice of the hearing shall be published in the official newspaper, or a newspaper of general circulation, and shall be posted in a public place, and shall include a legal description, or the assessor's parcel number, of the land which is proposed to be included within the preserve. The preserves shall be established for the purpose of defining the boundaries of those areas within which the city or county will be willing to enter into contracts under this act. An agricultural preserve shall consist of no less than one hundred acres. To meet this requirement two or more parcels may be combined if they are contiguous or if they are in common ownership and land classified as timber land under chapter 84.34 RCW may be taken into account. "Contiguous" shall be given the definition under RCW 84.34.020.

A county or city may establish agricultural preserves of less than one hundred acres if it finds that smaller preserves are necessary due to the unique characteristics of the agricultural enterprises in the area and that the establishment of preserves of less than one hundred acres is consistent with the comprehensive plan of the county or city.

An agricultural preserve may contain land other than agricultural land, but the use of any land within the preserve and not under contract shall within two years of the effective date of any contract on land within the preserve be restricted by zoning or other suitable means in such a way as not to be incompatible with the agricultural use of the land, the use of which is limited by contract in accordance with this chapter.

Failure on the part of the city or county legislative authority to restrict the use of land within a preserve but not subject to contract shall not be sufficient reason to cancel or otherwise invalidate a contract.

NEW SECTION. Sec. 4. For the purposes of this chapter, the city or county legislative authority, by resolution, shall adopt rules governing the administration of agricultural preserves, including procedures for initiating, filing, and processing requests to establish agricultural preserves. The rules shall be applied uniformly throughout the preserve. The city or county may require the payment of a reasonable application fee. The same procedure that is required to establish an agricultural preserve shall be used to disestablish or to enlarge or diminish the size of an agricultural preserve. In adopting rules related to compatible uses, the city or county may enumerate those uses, including agricultural laborer housing which are to be considered to be compatible uses on contracted lands separately from those uses which are to be considered to be compatible uses on lands not under contract within the agricultural preserve.

NEW SECTION. Sec. 5. In the event any proposal to disestablish or to alter the boundary of an agricultural preserve will remove land under contract from such a preserve, notice of the proposed alteration or disestablishment and the date of the hearing shall be furnished by the city or county legislative authority to the owner of the land by certified mail directed to the owner at his or her latest address known to the city or county. Such notice shall also be published in the official newspaper, or newspaper of general circulation, and shall be posted in a public place, and be furnished by first-class mail to each owner of land under contract, any portion of which is situated within one mile of the exterior boundary of the land to be removed from the preserve.

NEW SECTION. Sec. 6. When a county proposes to establish, disestablish, or alter the boundary of an agricultural preserve it shall give written notice at least two weeks before the hearing to every city within the county within one mile of the exterior boundaries of the preserve.

NEW SECTION. Sec. 7. Any proposal to establish an agricultural preserve shall be submitted to the planning department of the county or city having jurisdiction over the land. If the county or city has no planning department, a proposal to establish an agricultural preserve shall be submitted to the planning commission. Within thirty days after receiving the proposal, the planning department or planning commission shall submit a report to the city or county legislative authority. The legislative authority may extend the time allowed for an additional period not to exceed thirty days.

The report shall include a statement that the preserve is consistent, or inconsistent, with the comprehensive plan, and the legislative authority shall make a finding to such effect. Final action upon the establishment of an agricultural preserve may not be taken by the legislative authority until the report required by this section is received from the planning department or planning commission, or until the required thirty days have elapsed and any extension granted by the board or council has elapsed.

NEW SECTION. Sec. 8. An agricultural preserve shall continue in full effect following annexation, incorporation or disincorporation of land within the preserve.

Any city or county acquiring jurisdiction over land in a preserve by annexation, incorporation or disincorporation shall have all the rights and responsibilities specified in this chapter for cities or counties including the right to enlarge, diminish, or disestablish an agricultural preserve within its jurisdiction.

NEW SECTION. Sec. 9. The effect of removal of land under contract from an agricultural preserve shall be the equivalent of notice of nonrenewal by the city or county removing the land from the agricultural preserve and such city or county shall, at least sixty days prior to the next renewal date following the removal, serve a notice of nonrenewal as provided in section 20 of this act. The notice of nonrenewal shall be recorded under section 23 of this act, in the office of the county auditor of the county in which the property, or some part of the property is located.

NEW SECTION. Sec. 10. Whenever an agricultural preserve is established, and so long as it shall be in effect, a map of the agricultural preserve and the resolution under which the preserve was established shall be filed and kept current by the city or county with the county auditor.

NEW SECTION. Sec. 11. On or before the first day of September of each year, each city or county in which any agricultural preserve is located shall file with the department of agriculture a map of the city or county and designate on the map all agricultural preserves in existence at the end of the preceding fiscal year.

NEW SECTION. Sec. 12. Notwithstanding any determination of compatible uses by the county or city under this chapter, unless the legislative authority after notice and hearing makes a finding to the contrary, the erection, construction, alteration, or maintenance of gas, electric, water, communication, or agricultural laborer housing facilities are hereby determined to be compatible uses within any agricultural preserve. No land occupied by gas, electric, water, communication, or agricultural laborer housing facilities shall be excluded from an agricultural preserve by reason of such use.

The legislative authority may impose conditions on lands to be placed within preserves to permit and encourage compatible use of the land, particularly public outdoor recreational uses.

NEW SECTION. Sec. 13. If an owner of land agrees to permit the use of his or her land for free public recreation, the board or council may agree to indemnify the owner against all claims arising from public use. The owner's agreement that his or her land be used for free, public recreation shall not be construed as an implied dedication to such use.

NEW SECTION. Sec. 14. The city or county legislative authority may appoint an advisory board, the members of which shall serve at the pleasure of the legislative authority and may be paid their expenses. The advisory board shall advise the city or county legislative authority on the administration of the agricultural preserves in the county or city and on any matters relating to contracts entered into under this chapter.

NEW SECTION. Sec. 15. Any city or county may by contract limit the use of agricultural land for the purpose of preserving the land subject to the conditions set forth in the contract and in this chapter. A contract may provide for restrictions, terms, and conditions, including payments and fees, more restrictive than or in addition to those required by this chapter.

If a contract is made with any landowner, the city or county shall offer such a contract under similar terms to all other owners of agricultural land within the agricultural preserve in question.

The provisions of this section shall not be construed as requiring that all contracts affecting land within a preserve be identical, so long as such differences as exist are related to differences in location and characteristics of the land and are pursuant to uniform rules adopted by the county or city.

NEW SECTION. Sec. 16. No city or county may contract with respect to any land pursuant to this chapter unless the land:

(1) Is devoted to agricultural use;

(2) Is located within an area designated by a city or county as an agricultural preserve.

NEW SECTION. Sec. 17. Every contract shall:

(1) Provide for the exclusion of uses other than agricultural, and other than those compatible with agricultural uses, for the duration of the contract.

(2) Be binding upon, and inure to the benefit of, all successors in interest of the owner. Whenever land under a contract is divided, the owner of any parcel may exercise, independent of any other owner of a portion of the divided land, any of the rights of the owner in the original contract, including the right to give notice of nonrenewal and to petition for cancellation. The effect of any such action by the owner of a parcel created by the division of land under contract shall not be imputed to the owners of the remaining parcels and shall have no effect on the contract as it applies to the remaining parcels of the divided land. On the annexation by a city of any land under contract with a county, the city shall succeed to all rights, duties and powers of the county under such contract, unless the land being annexed was within one mile of such city at the time that the contract was initially executed, the city has filed and the local boundary review board has approved a protest to the contract under section 18 of this act, and the city states its intent not to succeed in its resolution of intention to annex. If the city does not exercise its option to succeed, the contract becomes null and void as to the land actually being annexed on the date of annexation. In the event that only part of the land under contract was within one mile of the city the option of the city shall extend only to such part.

NEW SECTION. Sec. 18. The county clerk shall give written notice to any city within the county of its intention to consider a contract which includes land within one mile of the exterior boundaries of that city. Such notice shall be given at least thirty days prior to the time the board of supervisors intends to consider the execution of such a contract. If such city files with the local boundary review board a resolution protesting the execution of a contract which includes land within one mile of the exterior boundaries of the city, and the board, following a hearing, upholds the protest upon a finding that the contract is inconsistent with the publicly desirable future use and control of the land in question, then, should the board of supervisors execute such a contract, the city shall have the option provided for in section 17(2) of this act of not succeeding to the contract upon annexation of the land to the city.

NEW SECTION. Sec. 19. Each contract shall be for an initial term of no less than ten years. Each contract shall provide that on the anniversary date of the contract or such other annual date as specified by the contract a year shall be added automatically to the initial term unless notice of nonrenewal is given as provided in section 20 of this act. However, if the initial term of the contract is for more than ten years, the contract may provide that on the anniversary date of the contract or such other annual date as specified by the contract beginning with the anniversary date on which the contract will have an unexpired term of nine years, a year shall be added automatically to the initial term unless notice of nonrenewal is given as provided in section 20 of this act.

NEW SECTION. Sec. 20. If either the landowner or the city or county desires in any year not to renew the contract, that party shall serve written notice of nonrenewal of the contract upon the other party in advance of the annual renewal date of the contract. Unless such written notice is served by the landowner at least ninety days prior to the renewal date or by the city or county at least sixty days prior to the renewal date, the contract shall be considered renewed as provided in section 19 of this act.

Upon receipt by the owner of a notice from the county or city of nonrenewal, the owner may make a written protest of the notice of nonrenewal. The county or city may, at any time prior to the renewal date, withdraw the notice of nonrenewal. Upon request by the owner, the legislative authority may authorize the owner to serve a notice of nonrenewal on a portion of the land under a contract.

NEW SECTION. Sec. 21. The landowner shall furnish the city or county with such information as the city or county shall require in order to enable it to determine the eligibility of the land involved.

NEW SECTION. Sec. 22. No later than twenty days after a city or county enters into a contract with a landowner pursuant to this chapter, the clerk of the city or county, as the case may be, shall record with the county recorder a copy of the contract, which shall describe the land subject thereto, together with a reference to the map showing the location of the agricultural preserve in which the property lies. From and after the time of this recordation the contract shall impart notice to all persons as is afforded by the recording laws of this state.

NEW SECTION. Sec. 23. Within thirty days after a form of contract is first used, the clerk of the city or county legislative authority shall file with the department of agriculture a sample copy of each form of contract and any land use restrictions applicable to the contract.

NEW SECTION. Sec. 24. The county, city, or landowner may bring any action in court necessary to enforce any contract, including, but not limited to, an action to enforce the contract by specific performance or injunction. An owner of land may bring any action in court to enforce a contract on land whose exterior boundary is within one mile of his land. An owner of land under contract may bring any action in court to enforce a contract on land located within the same county or city.

NEW SECTION. Sec. 25. Notwithstanding any other provision of this chapter, the parties may upon their mutual agreement rescind a contract in order simultaneously to enter into a new contract under this chapter, which new contract would enforceably restrict the same property for an initial term at least as long as the unexpired term of the contract being so rescinded but not less than ten years. This action may be taken notwithstanding the prior serving of a notice of nonrenewal relative to the former contract.

NEW SECTION. Sec. 26. Notwithstanding any other provision of this chapter, the parties may upon their mutual agreement rescind a contract in order simultaneously to enter into an agreement under RCW 84.34.200 through 84.34.250 which would restrict the same property for an initial term of not less than ten years. This action may be taken notwithstanding the prior serving of a notice of nonrenewal.

NEW SECTION. Sec. 27. A contract may not be canceled except under a request by the landowner, and as provided in this chapter.

NEW SECTION. Sec. 28. The city or county legislative authority may require the payment of a reasonable application fee to be made at the time a petition for cancellation is filed.

NEW SECTION. Sec. 29. (1) The landowner may petition the city or county legislative authority for cancellation of any contract as to all or any part of the subject land. The legislative authority may grant tentative approval for cancellation of a contract only if it makes one of the following findings:

(a) That the cancellation is consistent with the purposes of this chapter; or

(b) That cancellation is in the public interest.

(2) For purposes of subsection (1) (a) of this section cancellation of a contract shall be consistent with the purposes of this chapter only if the legislative authority makes all of the following findings:

(a) That the cancellation is for land on which a notice of nonrenewal has been served under section 20 of this act;

(b) That cancellation is not likely to result in the removal of adjacent lands from agricultural use;

(c) That cancellation is for an alternative use which is consistent with the applicable provisions of the city or county comprehensive plan;

(d) That cancellation will not result in discontiguous patterns of urban development; or

(e) That there is no proximate noncontracted land which is both available and suitable for the use to which it is proposed the contracted land be put, or, that development of the contracted land would provide more contiguous patterns of urban development than development of proximate noncontracted land.

As used in this section "proximate, noncontracted land" means land not restricted by contract pursuant to this chapter, which is sufficiently close to land which is so restricted that it can serve as a practical alternative for the use which is proposed for the restricted land.

As used in this section "suitable" for the proposed use means that the salient features of the proposed use can be served by land not restricted by contract under this chapter. The nonrestricted land may be a single parcel or may be a combination of contiguous or discontiguous parcels.

(3) For purposes of subsection (1)(b) of this section, cancellation of a contract shall be in the public interest only if the legislative authority makes the following findings: (a) That other public concerns substantially outweigh the objectives of this chapter; and (b) that there is no proximate noncontracted land which is both available and suitable for the use to which it is proposed the contracted land be put, or, that development of the contracted land would provide more contiguous patterns of urban development than development of proximate noncontracted land.

(4) For purposes of subsection (1) of this section, the uneconomic character of an existing agricultural use shall not by itself be sufficient reason for cancellation of the contract. The uneconomic character of the existing use may be considered only if there is no other reasonable or comparable agricultural use to which the land may be put.

(5) The landowner's petition shall be accompanied by a proposal for a specified alternative use of the land. The proposal for the alternative use shall list those governmental agencies known by the landowner to have permit authority related to the proposed alternative use, and the provisions and requirements of section 35 of this act shall be fully applicable. The level of specificity required in a proposal for a specified alternate use shall be determined by the legislative authority as that necessary to permit them to make the findings required.

(6) In approving a cancellation pursuant to this section, the legislative authority shall not be required to make any findings other than those expressly set forth in this section.

NEW SECTION. Sec. 30. The landowner may petition the legislative authority for cancellation of any contract if the legislative authority has determined that agricultural laborer housing is not a compatible use on the contracted lands. The petition shall stipulate that the purpose of the cancellation is to allow the land to be used exclusively for agricultural laborer housing facilities and shall be deemed to be a petition for cancellation for a specified alternative use of the land. The petition shall be acted upon by the board or council in the manner prescribed in section 35 of this act.

NEW SECTION. Sec. 31. (1) The landowner may petition the board or council, under section 28 of this act, for cancellation of any contract or of any portion of a contract if the board or council has determined that agricultural laborer housing is not a compatible use on the contracted lands. The petition, and any subsequent cancellation based on the petition, shall:

(a) Particularly describe the acreage to be subject to cancellation;

(b) Stipulate that the purpose of the cancellation is to allow the land to be used exclusively for agricultural laborer housing facilities;

(c) Demonstrate that the contracted lands, or a portion of the lands, for which cancellation is being sought are reasonably necessary for the development and siting of agricultural laborer housing; and

(d) Certify that the contracted lands, or a portion of the lands, for which cancellation is being sought, shall not be converted to any other alternative use within the first ten years immediately following the cancellation.

The petition shall be deemed to be a petition for cancellation for a specified alternative use of the land. The petition shall be acted upon by the legislative authority in the manner prescribed in section 35 of this act: PROVIDED, HOWEVER, That the provisions of sections 32 and 33 of this act pertaining to the payment of deferred taxes and cancellation fees shall not be imposed except as provided in subsection (2) of this section.

(2) If the owner of real property is issued a certificate of cancellation of contract based on subsection (1) of this section, there shall be executed and recorded concurrently with the recordation of the certificate of cancellation of contract, a lien in favor of the county, city, or city and county in the amount of the fees and taxes which would otherwise have been imposed pursuant to sections 32 and 33 of this act. The amounts shall bear interest at the rate of ten percent per annum. The lien shall particularly describe the real property subject to the lien, shall be recorded in the county where the real property subject to the lien is located, and shall be indexed by both the name of the owner of the real property and the name of the county or city or city and county. From the date of recordation the lien shall have the force, effect, and priority of a judgment lien. The legislative authority shall execute and record a release of lien if, after a period of ten years from the date of the recordation of the certificate of cancellation of contract, the real property subject to the lien has not been converted to a use other than agricultural laborer housing. In the event the real property subject to the lien has been converted to a use other than agricultural laborer housing, or the construction of agricultural laborer housing has not commenced within a period of one year from the date of recordation of the certificate of cancellation of contract, then the lien shall only be released upon payment of the fees, taxes and interest for which the lien has been imposed. Where construction commences after the one year period the amount of the interest shall only be for that period from one year following the date of the recordation of the certificate of cancellation of contract until the actual commencement of construction.

NEW SECTION. Sec. 32. (1) Prior to any action by the legislative authority giving tentative approval to the cancellation of any contract, the county assessor of the county in which the land is located shall determine the full cash value of the land as though it were free of the contractual restriction. The assessor shall certify to the legislative authority the cancellation valuation of the land for the purpose of determining the cancellation fee.

(2) Prior to giving tentative approval to the cancellation of any contract the board or council shall determine and certify to the county auditor the amount of the cancellation fee which the landowner must pay the county treasurer as deferred taxes upon cancellation. That fee shall be an amount equal to twelve and one-half percent of the cancellation valuation of the property.

(3) If they find that it is in the public interest to do so the legislative authority may waive any cancellation fee or any portion of the payment, or may make the payment or a portion of it contingent upon the future use made of the land and its economic return to the landowner for a period of time not to exceed the unexpired period of the contract, had it not been canceled, provided:

(a) The cancellation is caused by an involuntary transfer or change in the use which may be made of the land and the land is not immediately suitable, nor will be immediately used, for a purpose which produces a greater economic return to the owner; and

(b) The legislative authority has determined it is in the best interests of the program to conserve agricultural land use that such payment be either deferred or not required.

(4) When deferred taxes required by this section are collected, they shall be transmitted by the county treasurer to the state treasurer and be deposited in the general fund.

NEW SECTION. Sec. 33. In addition to the fee provided for in section 31 of this act, the legislative authority shall require the payment of additional deferred taxes, determined in the following manner:

(1) The county assessor shall determine and certify the following values to the legislative authority, provided that the values shall not consider the existence of any mines, minerals, and quarries in or upon the land being valued, including, but not limited to, oil, gas, and other hydrocarbons:

(a) The unrestricted assessed value, which is the assessed value of the land as though it were free of the contractual restriction. This value shall be arrived at by considering other uses that may be made of the land after the contract is no longer in effect.

(b) The current restricted assessed value, which is the assessed value of the land as enforceably restricted by the contract.

(i) For contracts in existence for ten years or less, the assessed value for the last year in which the land was not enforceably restricted.

(ii) For contracts in existence for more than ten years, that value which results from a straight-line interpolation of the assessed value of the land for the last year in which the land was not enforceably restricted and the unrestricted assessed value, as determined in (a) of this subsection, at a point on such line ten years prior to the date of the application.

(d) The base-year restricted assessed value, determined in the following manner:

(i) For contracts in existence for ten years or less, the assessed value for the first year in which the land was enforceably restricted.

(ii) For contracts in existence for more than ten years, that value which results from a straight-line interpolation of the assessed value of the land for the first year in which the land was enforceably restricted and the current restricted assessed value, as determined in (b) of this subsection, at a point on such line ten years prior to the date of the application.

(2) The assessed values determined in subsection (1) of this section averaged by:

(a) Subtracting the current restricted assessed value from the unrestricted assess value;

(b) Subtracting the base-year restricted assessed value from the base-year unrestricted assessed value; and

(3) The average assessed value determined in subsection (2) of this section shall be multiplied by the current tax rate as determined by the department of revenue.

(4) The amount determined in (3) of this section shall be multiplied by a factor from the following table:

Year!w Factor

1!w× 1.06000

2!w× 2.18360

3!w× 3.37462

4!w× 4.63709

5!w× 5.97332

6!w× 7.39384

7!w× 8.89747

8!w× 10.49132

9!w× 12.18080

10!w× 13.97164

The multiple shall correspond to the number of years or fraction thereof, but in no event greater than ten for which the land was under contract.

(5) From the amount computed in (4) of this section there shall be subtracted the amount of the fee provided for in section 31 of this act, but in no event shall the result be less than zero.

If the legislative authority finds that it is in the public interest it may waive the payment of the additional deferred tax or any portion thereof.

The additional deferred taxes shall be collected in the same manner and at the same time as the cancellation fee provided for in section 31 of this act. The additional deferred taxes shall be distributed to the taxing agencies and revenue districts levying property taxes on the land during the current year in the same proportion as the current year tax rate bears to the total tax rate described in (3) of this section.

NEW SECTION. Sec. 34. (1) Upon tentative approval of a cancellation petition not accompanied with a proposal for a specified alternative use of the land, the clerk of the legislative authority shall record in the office of the county recorder of the county in which the land as to which the contract is canceled is located a certificate, which shall set forth the name of the owner of such land at the time the contract was canceled with the amount of the cancellation fee certified by the legislative authority as being due under this chapter, the contingency of any waiver or deferment of payments, and a legal description of the property. From the date of recording of such certificate, the contract shall be finally canceled and, to the extent the cancellation fee has not yet been paid, a lien shall be created and attach against the real property described therein and any other real property owned by the person named therein as the owner and located within the county. Such lien shall have the force, effect, and priority of a judgment lien. Nothing in this section or section 32 of this act shall preclude the board or council from requiring payment in full of the cancellation fee prior to the cancellation becoming effective.

(2) In no case shall the cancellation of a contract be final until the notice of cancellation is actually recorded as provided in this section. Any payments required by sections 32 and 33 of this act shall not create nor impose a lien or charge on the land as to which a contract is canceled except as herein provided.

(3) Upon the payment of the cancellation fee or any portion of the fee the clerk of the legislative authority shall record with the county recorder a written certificate of the release in whole or in part of the lien.

NEW SECTION. Sec. 35. (1) Upon tentative approval of a petition accompanied by a proposal for a specified alternative use of the land, the clerk of the legislative authority shall record in the office of the county recorder of the county in which is located the land as to which the contract is applicable a certificate of tentative cancellation, which shall set forth the name of the landowner requesting the cancellation, the fact that a certificate of cancellation of contract will be issued and recorded at such time as specified conditions and contingencies are satisfied, a description of the conditions and contingencies which must be satisfied, and a legal description of the property. Conditions to be satisfied shall include payment in full of the amount of the fee computed under the provisions of sections 32 and 33 of this act, together with a statement that unless the fee is paid, or a certificate of cancellation of contract is issued within one year from the date of the recording of the certificate of tentative cancellation, such fee shall be recomputed as of the date of notice described in subsection (2) of this section. Any provisions related to the waiver of such fee or portion of the fee shall be treated in the manner provided for in the certificate of tentative cancellation. Contingencies to be satisfied shall include a requirement that the landowner obtain all permits necessary to commence the project. The legislative authority may, at the request of the landowner, amend a tentatively approved specified alternative use if it finds that such amendment is consistent with the findings made under section 29(1) of this act.

(2) The landowner shall notify the legislative authority when he or she has satisfied the conditions and contingencies enumerated in the certificate of tentative cancellation. Within thirty days of receipt of such notice, and upon a determination that the conditions and contingencies have been satisfied, the legislative authority shall execute a certificate of cancellation of contract and cause the same to be recorded.

(3) If the landowner has been unable to satisfy the conditions and contingencies enumerated in the certificate of tentative cancellation, the landowner shall notify the board or council of the particular conditions or contingencies he is unable to satisfy. Within thirty days of receipt of such notice, and upon a determination that the landowner is unable to satisfy the conditions and contingencies listed, the board or council shall execute a certificate of withdrawal of tentative approval of a cancellation of contract and cause the same to be recorded. However, the landowner shall not be entitled to the refund of any cancellation fee paid.

NEW SECTION. Sec. 36. No contract may be canceled until after the city or county has given notice of, and has held, a public hearing on the matter. Notice of the hearing shall be published in the official newspaper, or a newspaper of general circulation, and shall be posted in a public place, and be mailed to each and every owner of land under contract, and any portion of which is situated within the same agricultural preserve and within one mile of the exterior boundary of the land upon which the contract is proposed to be canceled.

NEW SECTION. Sec. 37. The owner of any property located in the county or city in which the agricultural preserve is situated may protest the cancellation to the city or county conducting the hearing.

NEW SECTION. Sec. 38. Any action or proceeding which, on the grounds of alleged noncompliance with the requirements of this chapter, seeks to attack, review, set aside, void or annul a decision of a city or county legislative authority to cancel a contract shall be commenced within one hundred eighty days from the legislative authority order acting and petition for cancellation filed under this chapter.

NEW SECTION. Sec. 39. (1) It is the policy of the state to avoid, whenever practicable, the location of any state or local public improvements and any improvements of public utilities, and the acquisition of land therefor, in agricultural preserves.

(2) It is further the policy of the state that whenever it is necessary to locate such improvement within an agricultural preserve, such improvement shall, whenever practicable, be located upon land other than land under a contract pursuant to this chapter.

(3) It is further the policy of the state that any agency or entity proposing to locate such an improvement shall, in considering the relative costs of parcels of land and development of improvements, give consideration to the value to the public of land, particularly prime agricultural land, within an agricultural preserve.

NEW SECTION. Sec. 40. (1) As used in this section, and sections 41 and 47 of this act, "public agency" means the state, or any state department or agency, and any county, city, school district, or other local public district, agency, or entity; and "person" means any person authorized to acquire property by eminent domain.

(2) Whenever it appears that land within an agricultural preserve may be required by a public agency or person for a public use, the public agency or person shall advise the department of agriculture and the local governing body responsible for the administration of the preserve of the intention to consider the location of a public improvement within the preserve.

(3) Within thirty days following this notice of intent, the department of agriculture and the local governing body shall forward to the public agency or person concerned their comments with respect to the effect of the location of the public improvement on the land within the agricultural preserve and such comments shall be considered by the public agency or person. Failure of any public agency or person to comply with the requirements of this section shall not invalidate any action by such agency or person to locate a public improvement within an agricultural preserve. However, such failure by any person or any public agency other than a state agency shall be admissible in evidence in any litigation for the acquisition of such land or involving the allocation of funds or the construction of the public improvement. This section does not apply to the erection, construction, alteration, or maintenance of gas, electric, water, or communication utility facilities within an agricultural preserve if that preserve was established after submission of the location of the facilities to the city or county for review or approval.

NEW SECTION. Sec. 41. (1) No public agency or person shall locate a public improvement within an agricultural preserve based primarily on a consideration of the lower cost of acquiring land in an agricultural preserve.

(2) No public agency or person shall acquire prime agricultural land covered under a contract under this chapter for any public improvement if there is other land within or outside the preserve on which it is reasonably feasible to locate the public improvement.

NEW SECTION. Sec. 42. Section 41 of this act shall not apply to:

(1) The location or construction of improvements where the legislative authority administering the agricultural preserve approves or agrees to the location thereof;

(2) The acquisition of easements within a preserve by the legislative authority administering the preserve;

(3) The location or construction of any public utility improvement which has been approved by the utilities and transportation commission;

(4) The location or construction of the following types of improvements, which are hereby determined to be compatible with or to enhance land within an agricultural preserve:

(a) Flood control works, including channel rectification and alteration;

(b) Public works required for fish and wildlife enhancement and preservation;

(5) Improvements for which the site or route has been specified by the legislature in such a manner as to make it impossible to avoid the acquisition of land under contract;

(6) All state highways on routes as described prior to the effective date of this act;

(7) Land upon which condemnation proceedings have been commenced prior to the effective date of this act.

NEW SECTION. Sec. 43. Any public agency or person requiring land in an agricultural preserve for a use which has been determined by a city or county to be a "compatible use" in that agricultural preserve shall not be excused from the provisions of section 40(2) of this act if the agricultural preserve was established before the location of the improvement of a public utility was submitted to the city, county, or utilities and transportation commission for agreement or approval and such compatible use shall not come within the provisions of section 42 of this act unless the location of such improvement is approved or agreed to pursuant to section 42(1) of this act or the compatible use is listed in section 42 of this act.

NEW SECTION. Sec. 44. Section 41 of this act shall be enforceable only by mandamus proceedings by the local governing body administering the agricultural preserve or the department of agriculture.

NEW SECTION. Sec. 45. After thirty days have elapsed following its action, pursuant to section 40(2) of this act, advising the department of agriculture and the local governing body of a county or city administering an agricultural preserve of its intention to consider the location of a public improvement within such agricultural preserve, a public agency proposing to acquire land within an agricultural preserve for water transmission facilities which will extend into more than one county, may file the proposed route of the facilities with each county or city administering an agricultural preserve into which the facilities will extend and request such county or city to approve or agree to the location of the facilities or the acquisition of the land therefor. Upon such approval or agreement, the provisions of section 41 of this act shall not apply to the location of the proposed water transmission facility or the acquisition of land therefor in any county or city which has approved or agreed to such location or acquisition.

NEW SECTION. Sec. 46. If any local governing body administering an agricultural preserve within ninety days after receiving a request pursuant to section 45 of this act has not approved or agreed to the location of water transmission facilities as provided in section 45 of this act or in section 42(1) of this act, the public agency making such request may file an action against such local governing body in the superior court of one of the counties within which any such body has failed to approve the location of facilities or the acquisition of land therefor, to determine whether the public agency proposing the location or acquisition has complied with the requirements of section 41 of this act. If the court should so determine, the provisions of section 41 of this act shall not apply to the location of water transmission facilities, nor the acquisition of land therefor, in any of the counties into which they shall extend, and no writ of mandamus shall be issued in relation thereto pursuant to section 44 of this act. For the purposes of this section, the county selected for commencing such action is the proper county for the trial of such proceedings. In determining whether the public agency has complied with the requirements of section 41 of this act, the court shall consider the alignment, functioning and operation of the entire transmission facility.

Courts shall give any action brought under the provisions of this section preference over all other civil actions therein, to the end that such actions shall be quickly heard and determined.

NEW SECTION. Sec. 47. When any action in eminent domain for the condemnation of the fee title of an entire parcel of land subject to a contract is filed or when such land is acquired in lieu of eminent domain for a public improvement by a public agency or person or whenever there is any such action or acquisition by the federal government or any person, instrumentality or agency acting under authority or power of the federal government, such contract shall be deemed null and void as to the land actually being condemned or so acquired as of the date the action is filed and for the purposes of establishing the value of such land, the contract shall be deemed never to have existed.

Upon the termination of such a proceeding, the contract shall be null and void for all land actually taken or acquired.

When such an action to condemn or acquire less than all of a parcel of land subject to a contract is commenced, the contract shall be deemed null and void as to the land actually condemned or acquired and shall be disregarded in the valuation process only as to the land actually being taken, unless the remaining land subject to contract will be adversely affected by the condemnation, in which case the value of that damage shall be computed without regard to the contract.

When such an action to condemn or acquire an interest which is less than the fee title of an entire parcel or any portion thereof, of land subject to a contract is commenced, the contract shall be deemed null and void as to such interest and for the purpose of establishing the value of such interest only shall be deemed never to have existed, unless the remaining interests in any of the land subject to the contract will be adversely affected, in which case the value of that damage shall be computed without regard to the contract.

The land actually taken shall be removed from the contract. Under no circumstances shall land be removed that is not actually taken, except that when only a portion of the land or less than a fee interest in the land is taken or acquired, the contract may be canceled with respect to the remaining portion or interest upon petition of either party and pursuant to the provisions of sections 27 through 38 of this act.

For the purposes of this section, a finding by the legislative authority that no authorized use may be made of the land if the contract is continued on the remaining portion or interest in the land may satisfy the requirements of section 29(1) and (2) of this act.

NEW SECTION. Sec. 48. Notwithstanding any provisions of this chapter to the contrary, land devoted to recreational use or land within a wildlife habitat area, a managed wetland area, or a submerged area may be included within an agricultural preserve under this chapter. When such land is included within an agricultural preserve, the city or county within which it is situated may contract with the owner for the purpose of restricting the land to recreational or open space use and uses compatible therewith in the same manner as provided in this chapter for land devoted to agricultural use. For purposes of this section, where the term "agricultural land" is used in this chapter, it shall be deemed to include land devoted to recreational use and land within a wildlife habitat area, a managed wetland area, or a submerged area, and where the term "agricultural use" is used in this chapter, it shall be deemed to include recreational use and open-space land.

NEW SECTION. Sec. 49. For all purposes of this chapter, county-assessed values shall be used.

NEW SECTION. Sec. 50. Sections 1 through 49 of this act shall constitute a new chapter in Title 84 RCW.