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HomeMy WebLinkAboutWorkshop re SB 5290 Implementation JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST—Afternoon Session TO: Board of County Commissioners FROM: Josh D.Peters,AICP,Community Development Director Phil Cecere,Building Official/Fire Marshal Greg Ballard,Development Code Administrator Chelsea Pronovost,DCD Administrative Services Manager DATE: July 22,2024 SUBJECT: WORKSHOP re: SB 5290 implementation & DCD permit fee study results STATEMENT OF ISSUE: The Department of Community Development(DCD) is in the process of determining how exactly to implement Senate Bill 5290, passed during the 2023 legislation session, "Concerning consolidating local permit review processes" (attached). DCD seeks to brief the Board on options under consideration, including, "Imposing reasonable fees, consistent with RCW 82.02.020, on applicants for permits or other governmental approvals to cover the cost to the...county...of processing applications." [RCW 36.70B.160(1)(b)] The county hired FCS Group in late 2022 to review DCD's permit review and processing fees. The consultant has recently completed that fee study. DCD seeks to brief the Board on the results of the fee study and the connection between SB 5290 implementation and a prospective update to DCD's fee schedule. ANALYSIS: The Governor of Washington signed Senate Bill (SB) 5290 on May 8, 2023, making the new law effective July 23, 2023. The Washington State Department of Commerce published a fact sheet(attached) in January 2024 that summarizes the new project review requirements from SB 5290 for local governments. There is a sequence of deadlines for instituting different requirements from the law, and there are options for local governments in terms of how exactly to implement the new provisions in Chapter 36.70B RCW, Local Project Review. DCD is in the process of determining what steps are needed (and when)to meet the requirements of SB 5290, as well as which among the optional elements within the law are best for Jefferson County's scale and context. FCS's approach to the DCD fee study was as follows: • Data gathering: Labor and fee time data; historical permit revenue and activity • Technical analysis: Determine labor time by fee • Policy analysis: Public vs private benefit; determine level of cost recovery by fee • Presentation of results: slides; spreadsheet The consultant used a model to generate results based on input outlined above. In this workshop, DCD will describe the model further and summarize the results of the fee study. 1 FISCAL IMPACT: Implementation of SB 5290 may result in a higher percentage of available staff capacity in DCD being dedicated to meeting new permit review deadlines in statute. This will depend, in part, on the relationship between fees charged for permit processing and the level of cost recovery for cost-recoverable services represented in the adopted fee schedule. In order to achieve 100%cost recovery for cost-recoverable work, DCD intends to propose that an updated fee schedule be adopted by the Board in August 2024, effective September 1, 2024. The updated fee schedule will represent 100%cost recovery for cost-recoverable services, based on the conclusions of the DCD fee study completed by consultant FCS Group in 2024. The fee study model used labor costs as of January 1, 2024, per the current collective bargaining agreement between UFCW-represented employees and Jefferson County. RECOMMENDATION: Consider the DCD presentation. Ask any questions and express any concerns about implementation of SB 5290 or the prospect of updating the DCD fee schedule in August. REVIEWED BY: Mark McCaul County Administrator Date 2 GROWTH MANAGEMENT SERVICES , 7 LOCAL GOVERNMENT DIVISION SB 5290(2023) - KEY REQUIREMENTS " t Local Project . ..... Review Update I Agency contacts: Background Jo Anne Wright,AICP SENIOR PLANNER In 2023, Senate Bill 5290 updated portions of the Local Project Review Act, RCW 36.70B. The intent of the new update is to strengthen and improve project review and permitting for Catherine McCoy construction and land use project permits,with an emphasis SENIOR PLANNER on housing development. New Requirements for Local Project Review Included in these updates are a new series of requirements for local governments and the Department of Commerce. Key requirements are summarized,with effective dates, and provided in the following table. For further updates and requirements, local jurisdictions are encouraged to read Senate Bill 5290 and the new sections in RCW 36.708. Commerce will publish a project review guide to serve as a resource to counties and cities planning under the GMA, with an expected publish date of June 30, 2025. A Local Project Review webpage will be available by March 1, 2024,to serve as a landing place for Commerce guidance, grant information and other tools to assist jurisdictions with project permit implementation. ./►. Washington State V40 Commerce V3.1 Local Jurisdiction Requirements NumberBill Section • RCW: Changes Effective Date Clarify determination of completeness procedural Section 6 requirements—the determination must be based July 23,2023 RCW 36.7013.070 solely on the procedural requirements as outlined on the project permit application. Revise the existing 120-day time period for project review from the date an application is determined Section 7(1)(a)-(k) complete. The default time periods listed in the January 1,2025 RCW 36.7013.080 section apply automatically if the local government does not adopt an ordinance setting or changing the time periods. Refund 10-20%of permit fees if the new time periods described in section 7 are not met,unless they have Section 7(1)(1) adopted at least 3 measures per section 8. Also, January 1,2025 RCW 36.706.080 allows a local government to only collect 80%of a permit fee upon application,and the remainder only if time periods are met. Modifies the existing annual performance report requirement for jurisdictions to include data on Section 7(2) compliance with the new permit time periods. Applies March 1,2025 RCW 36.7013.080 to counties and cities subject to RCW 36.70A.215 and cities/towns greater than 20,000 population within those counties. Section 8(1) Adopt some of 10 listed measures to expedite permit At the next comprehensive plan RCW 36.70B.160 review by the next comprehensive plan update under update after January 1,2026. certain circumstances. Adopt additional measures to expedite permit review if the local government had adopted at least 3 project review and code measures more than five years Section 8(2) At the next comprehensive plan RCW 36.70B.160 earlier,and the local government is not meeting the update after January 1,2026. permit deadlines at least 50%of the time since its most recent comprehensive plan update. LOCAL PROJECT REVIEW UPDATE,JANUARY 2024 2 Commerce Requirements NumberBill Section Date Sections 2 and 3 Administer two grant programs - Grant 1: RCW 36.706.240 consolidated permit review for acceleration of April 2024 RCW 36.706.241 residential building permits; Grant 2:for permitting systems updates from paper to digital platforms. Convene a digital permitting work group to report to Report to the legislature due by the legislature and governor on the need for digital August 1,2024. The permitting work permitting systems for local governments;the group will continue to meet and Section 4 barriers to adoption of digital permitting systems;the work with Commerce until June 30, costs/benefits of a statewide permitting software 2025. system; and budgetary,administrative,and legislative recommendations to establish a statewide system of August 1,2023 through June 30, digital permit review. 2025 Section 9 Provide technical assistance and guidance to local RCW 36.706.245 governments regarding the structure of their March 2024 application and permit fees. Section 11 Create a template and guidance for those local RCW 36.706.250 governments required by section 7(2)to submit March 2024 annual performance reports. Develop a plan to provide local governments with Section 12 temporary permit staff for residential housing permit December 1,2023 applications. Report due to the legislature December 1,2023. LOCAL PROJECT REVIEW UPDATE,JANUARY 2024 3 CERTIFICATION OF ENROLLMENT SECOND SUBSTITUTE SENATE BILL 5290 Chapter 338, Laws of 2023 68th Legislature 2023 Regular Session PROJECT PERMITS—LOCAL PROJECT REVIEW—VARIOUS PROVISIONS EFFECTIVE DATE: July 23, 2023—Except for section 7, which takes effect January 1, 2025. Passed by the Senate April 17, 2023 CERTIFICATE Yeas 47 Nays 0 I, Sarah Bannister, Secretary of the Senate of the State of DENNY HECK Washington, do hereby certify that President of the Senate the attached is SECOND SUBSTITUTE SENATE BILL 5290 as passed by the Senate and the House of Representatives on the dates hereon Passed by the House April 10, 2023 set forth. Yeas 98 Nays 0 SARAH BANNISTER LAURIE JINKINS Secretary Speaker of the House of Representatives Approved May 8, 2023 1:17 PM FILED May 10, 2023 Secretary of State JAY INSLEE State of Washington Governor of the State of Washington SECOND SUBSTITUTE SENATE BILL 5290 AS AMENDED BY THE HOUSE Passed Legislature - 2023 Regular Session State of Washington 68th Legislature 2023 Regular Session By Senate Ways & Means (originally sponsored by Senators Mullet, Kuderer, Fortunato, Liias, Nobles, Saldana, and C. Wilson; by request of Office of the Governor) READ FIRST TIME 02/24/23 . 1 AN ACT Relating to consolidating local permit review processes; 2 amending RCW 36 . 70B. 140, 36. 70B. 020, 36. 70B. 070, 36 . 70B. 080, and 3 36 . 70B. 160; reenacting and amending RCW 36 . 70B. 110; adding new 4 sections to chapter 36. 70B RCW; creating new sections; and providing 5 an effective date . 6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON: 7 Sec. 1. RCW 36. 70B. 140 and 1995 c 347 s 418 are each amended to 8 read as follows : 9 (1) A local government by ordinance or resolution may exclude the 10 following project permits from the provisions of RCW 36. 70B. 060 11 through 36. 70B. 090 and 36 . 70B. 110 through 36. 70B. 130 : Landmark 12 designations, street vacations, or other approvals relating to the 13 use of public areas or facilities, or other project permits, whether 14 administrative or quasi-judicial, that the local government by 15 ordinance or resolution has determined present special circumstances 16 that warrant a review process or time periods for approval which are 17 different from that provided in RCW 36 . 70B. 060 through 36. 70B. 090 and 18 36 . 70B. 110 through 36. 70B. 130 . 19 (2) A local government by ordinance or resolution also may 20 exclude the following project permits from the provisions of RCW 21 36. 70B. 060 and 36 . 70B. 110 through 36. 70B. 130 : Lot line or boundary P. 1 2SSB 5290 . SL 1 adjustments and building and other construction permits, or similar 2 administrative approvals, categorically exempt from environmental 3 review under chapter 43 . 21C RCW, or for which environmental review 4 has been completed in connection with other project permits . 5 (3) A local government must exclude project permits for interior 6 alterations from site plan review, provided that the interior 7 alterations do not result in the following: 8 (a) Additional sleeping quarters or bedrooms; 9 (b) Nonconformity with federal emergency management agency 10 substantial improvement thresholds; or 11 (c) Increase the total square footage or valuation of the 12 structure thereby requiring upgraded fire access or fire suppression 13 systems . 14 (4) Nothing in this section exempts interior alterations from 15 otherwise applicable building, plumbing, mechanical, or electrical 16 codes . 17 (5) For purposes of this section, "interior alterations" include 18 construction activities that do not modify the existing site layout 19 or its current use and involve no exterior work adding to the 20 building footprint . 21 NEW SECTION. Sec. 2 . A new section is added to chapter 36 . 70B 22 RCW to read as follows : 23 (1) Subject to the availability of funds appropriated for this 24 specific purpose, the department of commerce must establish a 25 consolidated permit review grant program. The department may award 26 grants to any local government that provides, by ordinance, 27 resolution, or other action, a commitment to the following building 28 permit review consolidation requirements : 29 (a) Issuing final decisions on residential permit applications 30 within 45 business days or 90 calendar days . 31 (i) To achieve permit review within the stated time periods, a 32 local government must provide consolidated review for building permit 33 applications . This may include an initial technical peer review of 34 the application for conformity with the requirements of RCW 35 36 . 70B. 070 by all departments, divisions, and sections of the local 36 government with jurisdiction over the project . 37 (ii) A local government may contract with a third-party business 38 to conduct the consolidated permit review or as additional inspection p. 2 2SSB 5290 . SL 1 staff. Any funds expended for such a contract may be eligible for 2 reimbursement under this act . 3 (iii) Local governments are authorized to use grant funds to 4 contract outside assistance to audit their development regulations to 5 identify and correct barriers to housing development . 6 (b) Establishing an application fee structure that would allow 7 the jurisdiction to continue providing consolidated permit review 8 within 45 business days or 90 calendar days . 9 (i) A local government may consult with local building 10 associations to develop a reasonable fee system. 11 (ii) A local government must determine, no later than July 1, 12 2024, the specific fee structure needed to provide permit review 13 within the time periods specified in this subsection (1 ) (b) . 14 (2) A jurisdiction that is awarded a grant under this section 15 must provide a quarterly report to the department of commerce . The 16 report must include the average and maximum time for permit review 17 during the jurisdiction' s participation in the grant program. 18 (3) If a jurisdiction is unable to successfully meet the terms 19 and conditions of the grant, the jurisdiction must enter a 90-day 20 probationary period. If the jurisdiction is not able to meet the 21 requirements of this section by the end of the probationary period, 22 the jurisdiction is no longer eligible to receive grants under this 23 section. 24 (4) For the purposes of this section, "residential permit" means 25 a permit issued by a city or county that satisfies the conditions of 26 RCW 19 . 27 . 015 (5) and is within the scope of the international 27 residential code, as adopted in accordance with chapter 19 . 27 RCW. 28 NEW SECTION. Sec. 3. A new section is added to chapter 36. 70B 29 RCW to read as follows : 30 (1) Subject to the availability of funds appropriated for this 31 specific purpose, the department of commerce must establish a grant 32 program for local governments to update their permit review process 33 from paper filing systems to software systems capable of processing 34 digital permit applications, virtual inspections, electronic review, 35 and with capacity for video storage . 36 (2) The department of commerce may only provide a grant under 37 this section to a city if the city allows for the development of at 38 least two units per lot on all lots zoned predominantly for 39 residential use within its jurisdiction. p. 3 2SSB 5290 . SL 1 NEW SECTION. Sec. 4 . A new section is added to chapter 36. 70B 2 RCW to read as follows : 3 (1) Subject to the availability of amounts appropriated for this 4 specific purpose, the department of commerce must convene a digital 5 permitting process work group to examine potential license and 6 permitting software for local governments to encourage streamlined 7 and efficient permit review. 8 (2) The department of commerce, in consultation with the 9 association of Washington cities and Washington state association of 10 counties, shall appoint members to the work group representing groups 11 including but not limited to : 12 (a) Cities and counties; 13 (b) Building industries; and 14 (c) Building officials . 15 (3) The department of commerce must convene the first meeting of 16 the work group by August 1, 2023 . The department must submit a final 17 report to the governor and the appropriate committees of the 18 legislature by August 1, 2024 . The final report must : 19 (a) Evaluate the existing need for digital permitting systems, 20 including impacts on existing digital permitting systems that are 21 already in place; 22 (b) Review barriers preventing local jurisdictions from accessing 23 or adopting digital permitting systems; 24 (c) Evaluate the benefits and costs associated with a statewide 25 permitting software system; and 26 (d) Provide budgetary, administrative policy, and legislative 27 recommendations to increase the adoption of or establish a statewide 28 system of digital permit review. 29 Sec. 5. RCW 36. 70B. 020 and 1995 c 347 s 402 are each amended to 30 read as follows : 31 Unless the context clearly requires otherwise, the definitions in 32 this section apply throughout this chapter. 33 (1) "Closed record appeal" means an administrative appeal on the 34 record to a local government body or officer, including the 35 legislative body, following an open record hearing on a project 36 permit application when the appeal is on the record with no or 37 limited new evidence or information allowed to be submitted and only 38 appeal argument allowed. 39 (2) "Local government" means a county, city, or town. p. 4 2SSB 5290 . SL 1 (3) "Open record hearing" means a hearing, conducted by a single 2 hearing body or officer authorized by the local government to conduct 3 such hearings, that creates the local government ' s record through 4 testimony and submission of evidence and information, under 5 procedures prescribed by the local government by ordinance or 6 resolution. An open record hearing may be held prior to a local 7 government ' s decision on a project permit to be known as an "open 8 record predecision hearing. " An open record hearing may be held on an 9 appeal, to be known as an "open record appeal hearing, " if no open 10 record predecision hearing has been held on the project permit . 11 (4 ) "Project permit" or "project permit application" means any 12 land use or environmental permit or license required from a local 13 government for a project action, including but not limited to 14 ( (letAleli�pew-) ) subdivisions, binding site plans, planned unit 15 developments, conditional uses, shoreline substantial development 16 permits, site plan review, permits or approvals required by critical 17 area ordinances, site-specific rezones ( ( 18 ) ) which do not require a 19 comprehensive plan amendment, but excluding the adoption or amendment 20 of a comprehensive plan, subarea plan, or development regulations 21 except as otherwise specifically included in this subsection. 22 (5) "Public meeting" means an informal meeting, hearing, 23 workshop, or other public gathering of people to obtain comments from 24 the public or other agencies on a proposed project permit prior to 25 the local government ' s decision. A public meeting may include, but is 26 not limited to, a design review or architectural control board 27 meeting, a special review district or community council meeting, or a 28 scoping meeting on a draft environmental impact statement . A public 29 meeting does not include an open record hearing. The proceedings at a 30 public meeting may be recorded and a report or recommendation may be 31 included in the local government ' s project permit application file. 32 Sec. 6. RCW 36. 70B. 070 and 1995 c 347 s 408 are each amended to 33 read as follows : 34 (1) (a) Within ( (twenl y g'+}.) ) 28 days after receiving a project 35 permit application, a local government planning pursuant to RCW 36 36 . 70A. 040 shall ( (Ffta im 4:—er) ) provide H ) ) a written 37 determination to the applicant ( ( , st tin') )_ 38 (b) The written determination must state either : 39 ( (+a+) ) (i)_ That the application is complete; or p. 5 2SSB 5290 . SL 1 ( (-b+) ) ii That the application is incomplete and that the 2 procedural submission requirements of the local government have not 3 been met . The determination shall outline what is necessary to make 4 the application procedurally complete . 5 (c) The number of days shall be calculated by counting every 6 calendar day. 7 (d) To the extent known by the local government, the local 8 government shall identify other agencies of local, state, or federal 9 governments that may have jurisdiction over some aspect of the 10 application. 11 (2) A project permit application is complete for purposes of this 12 section when it meets the procedural submission requirements of the 13 local government ( (pis—si:if-f4 ient= €er- eeF ed—pr-eeegg even 14 15 ffiedi-r e—:x}d-ef taken _=_'3scguentl y) ) , as outlined on the 16 project permit application Additional information or studies may be 17 required or protect modifications may be undertaken subsequent to the 18 procedural review of the application by the local government . The 19 determination of completeness shall not preclude the local government 20 from requesting additional information or studies either at the time 21 of the notice of completeness or subsequently if new information is 22 required or substantial changes in the proposed action occur. 23 However, if the procedural submission requirements, as outlined on 24 the protect permit application have been provided, the need for 25 additional information or studies may not preclude a completeness 26 determination. 27 (3) The determination of completeness may include or be combined 28 with the following ( ( ) ) : 29 (a) A preliminary determination of those development regulations 30 that will be used for project mitigation; 31 (b) A preliminary determination of consistency, as provided under 32 RCW 36. 70B. 040; ( (ems) ) 33 (c) Other information the local government chooses to include; or 34 (d) The notice of application pursuant to the requirements in RCW 35 36. 70B. 110 . 36 (4) (a) An application shall be deemed procedurally complete on 37 the 29th day after receiving a protect permit application under this 38 section if the local government does not provide a written 39 determination to the applicant that the application is procedurally 40 incomplete as provided in subsection (1) (b) ii of this section. When p. 6 2SSB 5290 . SL 1 the local government does not provide a written determination, they 2 may still seek additional information or studies as provided for in 3 subsection (2 ) of this section. 4 (b) Within ( (men) ) 14 days after an applicant has submitted 5 to a local government additional information identified by the local 6 government as being necessary for a complete application, the local 7 government shall notify the applicant whether the application is 8 complete or what additional information is necessary. 9 (c) The notice of application shall be provided within 14 days 10 after the determination of completeness pursuant to RCW 36. 70B. 110 . 11 Sec. 7 . RCW 36. 70B. 080 and 2004 c 191 s 2 are each amended to 12 read as follows : 13 (1) (a4 Development regulations adopted pursuant to RCW 36. 70A. 040 14 must establish and implement time periods for local government 15 actions for each type of project permit application and provide 16 timely and predictable procedures to determine whether a completed 17 project permit application meets the requirements of those 18 development regulations . The time periods for local government 19 actions for each type of complete project permit application or 20 project type should not exceed ( (ene h�inerdtwent-y ems, unIness - 21 l eal: Ej ne n t- Fftakes wicitten f-I n ei i n g s 22 23 appliea4ciens eic pfejeet types) ) those specified in this section. 24 ( (fie) ) (b) For project permits submitted after January 1, 2025, 25 the development regulations must, for each type of permit 26 application, specify the contents of a completed project permit 27 application necessary for the complete compliance with the time 28 periods and procedures . 29 ( (+2+) ) (c) A jurisdiction may exclude certain permit types and 30 timelines for processing project permit applications as provided for 31 in RCW 36. 70B. 140 . 32 (d) The time periods for local government action to issue a final 33 decision for each type of complete project permit application or 34 project type subject to this chapter should not exceed the following 35 time periods unless modified by the local government pursuant to this 36 section or RCW 36. 70B. 140 : 37 (i) For project permits which do not require public notice under 38 RCW 36 70B 110 a local government must issue a final decision within 39 65 days of the determination of completeness under RCW 36. 70B. 070; p. 7 2SSB 5290 . SL 1 (ii) For project permits which require public notice under RCW 2 36 . 70B. 110 a local government must issue a final decision within 100 3 days of the determination of completeness under RCW 36 . 70B. 070; and 4 (iii) For protect permits which require public notice under RCW 5 36. 70B. 110 and a public hearing, a local government must issue a 6 final decision within 170 days of the determination of completeness 7 under RCW 36. 70B. 070 . 8 (e) A jurisdiction may modify the provisions in (d) of this 9 subsection to add permit types not identified, change the permit 10 names or types in each category, address how consolidated review time 11 periods may be different than permits submitted individually, and 12 provide for how protects of a certain size or type may be 13 differentiated, including by differentiating between residential and 14 nonresidential permits . Unless otherwise provided for the 15 consolidated review of more than one permit, the time period for a 16 final decision shall be the longest of the permit time periods 17 identified in (d) of this subsection or as amended by a local 18 government . 19 (f) If a local government does not adopt an ordinance or 20 resolution modifying the provisions in (d) of this subsection, the 21 time periods in (d) of this subsection apply. 22 (q) The number of days an application is in review with the 23 county or city shall be calculated from the day completeness is 24 determined under RCW 36. 70B. 070 to the date a final decision is 25 issued on the protect permit application. The number of days shall be 26 calculated by counting every calendar day and excluding the following 27 time periods : 28 (i) Any period between the day that the county or city has 29 notified the applicant in writing, that additional information is 30 required to further process the application and the day when 31 responsive information is resubmitted by the applicant; 32 (ii) Any period after an applicant informs the local government, 33 in writing, that they would like to temporarily suspend review of the 34 protect permit application until the time that the applicant notifies 35 the local government in writing, that they would like to resume the 36 application A local government may set conditions for the temporary 37 suspension of a permit application; and 38 (iii) Any period after an administrative appeal is filed until 39 the administrative appeal is resolved and any additional time period 40 provided by the administrative appeal has expired. P. 8 2SSB 5290 . SL 1 (h) The time periods for a local government to process a permit 2 shall start over if an applicant proposes a change in use that adds 3 or removes commercial or residential elements from the original 4 application that would make the application fail to meet the 5 determination of procedural completeness for the new use, as required 6 by the local government under RCW 36 . 70B. 070 . 7 (i) If, at any time, an applicant informs the local government, 8 in writing, that the applicant would like to temporarily suspend the 9 review of the project for more than 60 days, or if an applicant is 10 not responsive for more than 60 consecutive days after the county or 11 city has notified the applicant, in writing, that additional 12 information is required to further process the application, an 13 additional 30 days may be added to the time periods for local 14 government action to issue a final decision for each type of project 15 permit that is subject to this chapter. Any written notice from the 16 local government to the applicant that additional information is 17 required to further process the application must include a notice 18 that nonresponsiveness for 60 consecutive days may result in 30 days 19 being added to the time for review. For the purposes of this 20 subsection, "nonresponsiveness" means that an applicant is not making 21 demonstrable progress on providing additional requested information 22 to the local government, or that there is no ongoing communication 23 from the applicant to the local government on the applicant ' s ability 24 or willingness to provide the additional information. 25 (1 ) Annual amendments to the comprehensive plan are not subject 26 to the requirements of this section. 27 (k) A county' s or city' s adoption of a resolution or ordinance to 28 implement this subsection shall not be subject to appeal under 29 chapter 36 . 70A RCW unless the resolution or ordinance modifies the 30 time periods provided in (d) of this subsection by providing for a 31 review period of more than 170 days for any project permit . 32 (1) (i) When permit time periods provided for in (d) of this 33 subsection, as may be amended by a local government, and as may be 34 extended as provided for in (i) of this subsection, are not met, a 35 portion of the permit fee must be refunded to the applicant as 36 provided in this subsection. A local government may provide for the 37 collection of only 80 percent of a permit fee initially, and for the 38 collection of the remaining balance if the permitting time periods 39 are met . The portion of the fee refunded for missing time periods 40 shall be : P. 9 2SSB 5290 . SL 1 (A) 10 percent if the final decision of the project permit 2 application was made after the applicable deadline but the period 3 from the passage of the deadline to the time of issuance of the final 4 decision did not exceed 20 percent of the original time period; or 5 (B) 20 percent if the period from the passage of the deadline to 6 the time of the issuance of the final decision exceeded 20 percent of 7 the original time period. 8 (ii) Except as provided in RCW 36 . 70B. 160, the provisions in 9 subsection (1) (i) of this section are not applicable to cities and 10 counties which have implemented at least three of the options in RCW 11 36 . 70B. 160 (1) (a) through (j ) at the time an application is deemed 12 procedurally complete . 13 (2) (a) Counties subject to the requirements of RCW 36. 70A. 215 and 14 the cities within those counties that have populations of at least 15 ( ( ) ) 20, 000 must, for each type of permit application, 16 identify the total number of project permit applications for which 17 decisions are issued according to the provisions of this chapter. For 18 each type of project permit application identified, these counties 19 and cities must establish and implement a deadline for issuing a 20 notice of final decision as required by subsection (1) of this 21 section and minimum requirements for applications to be deemed 22 complete under RCW 36. 70B. 070 as required by subsection (1) of this 23 section. 24 (b) Counties and cities subject to the requirements of this 25 subsection also must prepare an annual performance report ( (*) ) that 26 ( (inelude, a`—a minimum, the—felle3and infermatien —fer ecueh type of 27 prejeet permit applieaKen identified in aeeendanee with the 29 (i) T-e' ,, number of eemplete—appMeayiens reeeiveddur ^� 30 31 32 Wish a neVee ef final deelsien was issued befere the deadline 33 established under this ubseeKear; 34 (iri) Number ef applieatimens ,Ge eei Sze d--during t h e year fer 35 36 winder this i e K; n 37 (iv) Number ef applieaKens reeeived: during the year few 38 extensien ef time was mutually agreed open by the appMeant and the 39 eeunvy er eity; P. 10 2SSB 5290 . SL 1 ( ) Vaicianee e f a etida-1 p e r-€erfaanee, emlirding—a pplAmea ti ears P e r- 2 3 e s ta'pl4o sire e under thTs subs e etie n d u r--i n g :F h e y ea-i=; afla 4 r-e eessifigt-i me an ei the- number t a n dafda-e v l a t-en 5 iLeffl t-r, f this 6 �-� r,-..,...� —��i-es��Td—e-iti-es—su�}ee�te-�e�equrrre�ten�s—ez �s 7 sul9seetien--mist : 8 (i-)—P-r-evide fietie-e of and aeeess t-e the 9 10 (i i) Pest e ieetr--emi e-€aesifftiles ef tiiper€ei-fftane 11 ' ei- ty' ] }, ��i� t� �12 e4ms iT�i n d3 c� tie—pep esa ic e--a e awe--by 13 ee n t-aeting :F h e app3Fep~r--3a#=eeeunt=ye ieityd e p a rtmefit- e Lc e€f-i ei a l--da 14 net eefftply wit-h the r-e etrrr-omen t s-ez tiiis sic, s e e ; 15 16 subseetiefi eiees fiet fflaintain a websi4c-e, n e t iee-e f t:r 17 Ej±vefi by feasenable fRe4cheeis, 18 fnetheeis-speeif ied-ice--R G W 36 . 70B.11G (4). 19 +-3+) ) includes information outlining time periods for certain 20 permit types associated with housing. The report must provide: 21 (i) Permit time periods for certain permit processes in the 22 county or city in relation to those established under this section, 23 including whether the county or city has established shorter time 24 periods than those Provided in this section; 25 (ii) The total number of decisions issued during the year for the 26 following permit types : Preliminary subdivisions, final subdivisions, 27 binding site plans, permit processes associated with the approval of 28 multifamily housing, and construction plan review for each of these 29 permit types when submitted separately; 30 (iii) The total number of decisions for each permit type which 31 included consolidated protect permit review, such as concurrent 32 review of a rezone or construction plans; 33 (iv) The average number of days from a submittal to a decision 34 being issued for the protect permit types listed in subsection 35 (2 ) (a) (ii) of this section. This shall be calculated from the day 36 completeness is determined under RCW 36. 70B. 070 to the date a 37 decision is issued on the application. The number of days shall be 38 calculated by counting every calendar day; 39 (v) The total number of days each project permit application of a 40 type listed in subsection (2) (a) (ii) of this section was in review P. 11 2SSB 5290 . SL 1 with the county or city. This shall be calculated from the day 2 completeness is determined under RCW 36 . 70B. 070 to the date a final 3 decision is issued on the application. The number of days shall be 4 calculated by counting every calendar day. The days the application 5 is in review with the county or city does not include the time 6 periods in subsection (1) (a) (i) - (iii) of this section; 7 (vi) The total number of days that were excluded from the time 8 period calculation under subsection (1) (g) (i) - (iii) of this section 9 for each protect permit application of a type listed in subsection 10 (2) (a) (ii) of this section. 11 (c) Counties and cities subject to the requirements of this 12 subsection must : 13 (i) Post the annual performance report through the county' s or 14 city' s website; and 15 (ii) Submit the annual performance report to the department of 16 commerce by March 1st each year. 17 (d) No later than July 1st each year, the department of commerce 18 shall publish a report which includes the annual performance report 19 data for each county and city subject to the requirements of this 20 subsection and a list of those counties and cities whose time periods 21 are shorter than those provided for in this section. 22 The annual report must also include key metrics and findings from 23 the information collected. 24 (e) The initial annual report required under this subsection must 25 be submitted to the department of commerce by March 1, 2025, and must 26 include information from permitting in 2024 . 27 (3) Nothing in this section prohibits a county or city from 28 extending a deadline for issuing a decision for a specific project 29 permit application for any reasonable period of time mutually agreed 30 upon by the applicant and the local government. 31 ( ( , 32 33 34 of this .s—tie. The eiepartment, in e e epei-atle n w' t ti.. }h e l e e a= 35 gevernfftents, 36 37 38 appfepL-iate eefFffftittees efte—senate anei ieuse of representatives by 39 january 1, 2099—. ) ) p. 12 2SSB 5290 . SL 1 Sec. 8. RCW 36. 70B. 160 and 1995 c 347 s 420 are each amended to 2 read as follows : 3 (1) Each local government is encouraged to adopt further project 4 review and code provisions to provide prompt, coordinated review and 5 ensure accountability to applicants and the public ( ( , _nel,__4i- -"J 6 7 ar-e—e e n s i s t ent wi p}de-e v e l epffient—Lceejerl as A e n s-ndwithin t 8 ) ) by: 9 (a) Expediting review for project permit applications for 10 projects that are consistent with adopted development regulations; 11 (b) Imposing reasonable fees, consistent with RCW 82 . 02 . 020, on 12 applicants for permits or other governmental approvals to cover the 13 cost to the city, town, county, or other municipal corporation of 14 processing applications, inspecting and reviewing plans, or preparing 15 detailed statements required by chapter 43 . 21C RCW. The fees imposed 16 may not include a fee for the cost of processing administrative 17 appeals Nothing in this subsection limits the ability of a county or 18 city to impose a fee for the processing of administrative appeals as 19 otherwise authorized by law; 20 (c) Entering into an interlocal agreement with another 21 jurisdiction to share permitting staff and resources; 22 (d) Maintaining and budgeting for on-call permitting assistance 23 for when permit volumes or staffing levels change rapidly; 24 (e) Having new positions budgeted that are contingent on 25 increased permit revenue; 26 (f) Adopting development regulations which only require public 27 hearings for permit applications that are required to have a public 28 hearing by statute; 29 (g) Adopting development regulations which make preapplication 30 meetings optional rather than a requirement of permit application 31 submittal; 32 (h) Adopting development regulations which make housing types an 33 outright permitted use in all zones where the housing type is 34 permitted; 35 (i) Adopting a program to allow for outside professionals with 36 appropriate professional licenses to certify components of 37 applications consistent with their license; or 38 (1 ) Meeting with the applicant to attempt to resolve outstanding 39 issues during the review process . The meeting must be scheduled 40 within 14 days of a second request for corrections during permit p. 13 2SSB 5290 . SL 1 review. If the meeting cannot resolve the issues and a local 2 government proceeds with a third request for additional information 3 or corrections, the local government must approve or deny the 4 application upon receiving the additional information or corrections . 5 (2) (a) After January 1, 2026, a county or city must adopt 6 additional measures under subsection (1) of this section at the time 7 of its next comprehensive plan update under RCW 36 . 70A. 130 if it 8 meets the following conditions : 9 (i) The county or city has adopted at least three project review 10 and code provisions under subsection (1) of this section more than 11 five years prior; and 12 (ii) The county or city is not meeting the permitting deadlines 13 established in RCW 36 . 70B. 080 at least half of the time over the 14 period since its most recent comprehensive plan update under RCW 15 36 . 70A. 130 . 16 (b) A city or county that is required to adopt new measures under 17 (a) of this subsection but fails to do so becomes sublect to the 18 provisions of RCW 36. 70B. 080 (1) (1) , notwithstanding RCW 19 36 . 70B. 080 (1) (1) (ii) . 20 ( (+2+) ) l3 Nothing in this chapter is intended or shall be 21 construed to prevent a local government from requiring a 22 preapplication conference or a public meeting by rule, ordinance, or 23 resolution. 24 ( (+-3+) ) (4)_ Each local government shall adopt procedures to 25 monitor and enforce permit decisions and conditions . 26 ( (+4+) ) (5) Nothing in this chapter modifies any independent 27 statutory authority for a government agency to appeal a project 28 permit issued by a local government . 29 NEW SECTION. Sec. 9. A new section is added to chapter 36. 70B 30 RCW to read as follows : 31 (1) The department of commerce shall develop and provide 32 technical assistance and guidance to counties and cities in setting 33 fee structures under RCW 36 . 70B. 160 (1) to ensure that the fees are 34 reasonable and sufficient to recover true costs . The guidance must 35 include information on how to utilize growth factors or other 36 measures to reflect cost increases over time . 37 (2) When providing technical assistance under subsection (1) of 38 this section, the department of commerce must prioritize local p. 14 2SSB 5290 . SL 1 governments that have implemented at least three of the options in 2 RCW 36. 70B. 160 (1) . 3 Sec. 10. RCW 36. 70B. 110 and 1997 c 429 s 48 and 1997 c 396 s 1 4 are each reenacted and amended to read as follows : 5 (1) Not later than April 1, 1996, a local government planning 6 under RCW 36. 70A. 040 shall provide a notice of application to the 7 public and the departments and agencies with jurisdiction as provided 8 in this section. If a local government has made a threshold 9 determination under chapter 43 . 21C RCW concurrently with the notice 10 of application, the notice of application may be combined with the 11 threshold determination and the scoping notice for a determination of 12 significance. Nothing in this section prevents a determination of 13 significance and scoping notice from being issued prior to the notice 14 of application. Nothing in this section or this chapter prevents a 15 lead agency, when it is a project proponent or is funding a project, 16 from conducting its review under chapter 43 . 21C RCW or from allowing 17 appeals of procedural determinations prior to submitting a project 18 permit ( ( ) ) . 19 (2) The notice of application shall be provided within 20 ( (men) ) 14 days after the determination of completeness as 21 provided in RCW 36. 70B. 070 and, except as limited by the provisions 22 of subsection (4) (b) of this section, ( (shall) ) must include the 23 following in whatever sequence or format the local government deems 24 appropriate : 25 (a) The date of application, the date of the notice of completion 26 for the application, and the date of the notice of application; 27 (b) A description of the proposed project action and a list of 28 the project permits included in the application and, if applicable, a 29 list of any studies requested under RCW 36. 70B. 070 ( (er-wo g) ) ; 30 (c) The identification of other permits not included in the 31 application to the extent known by the local government; 32 (d) The identification of existing environmental documents that 33 evaluate the proposed project, and, if not otherwise stated on the 34 document providing the notice of application, such as a city land use 35 bulletin, the location where the application and any studies can be 36 reviewed; 37 (e) A statement of the public comment period, which shall be not 38 less than fourteen nor more than thirty days following the date of 39 notice of application, and statements of the right of any person to p. 15 2SSB 5290 . SL 1 comment on the application, receive notice of and participate in any 2 hearings, request a copy of the decision once made, and any appeal 3 rights . A local government may accept public comments at any time 4 prior to the closing of the record of an open record predecision 5 hearing, if any, or, if no open record predecision hearing is 6 provided, prior to the decision on the project permit; 7 (f) The date, time, place, and type of hearing, if applicable and 8 scheduled at the date of notice of the application; 9 (g) A statement of the preliminary determination, if one has been 10 made at the time of notice, of those development regulations that 11 will be used for project mitigation and of consistency as provided in 12 RCW 36. 70B. 030 (2) and 36 . 70B. 040; and 13 (h) Any other information determined appropriate by the local 14 government . 15 (3) If an open record predecision hearing is required for the 16 requested project permits, the notice of application shall be 17 provided at least fifteen days prior to the open record hearing. 18 (4) A local government shall use reasonable methods to give the 19 notice of application to the public and agencies with jurisdiction 20 and may use its existing notice procedures . A local government may 21 use different types of notice for different categories of project 22 permits or types of project actions . If a local government by 23 resolution or ordinance does not specify its method of public notice, 24 the local government shall use the methods provided for in (a) and 25 (b) of this subsection. Examples of reasonable methods to inform the 26 public are : 27 (a) Posting the property for site-specific proposals; 28 (b) Publishing notice, including at least the project location, 29 description, type of permit (s) required, comment period dates, and 30 location where the notice of application required by subsection (2) 31 of this section and the complete application may be reviewed, in the 32 newspaper of general circulation in the general area where the 33 proposal is located or in a local land use newsletter published by 34 the local government; 35 (c) Notifying public or private groups with known interest in a 36 certain proposal or in the type of proposal being considered; 37 (d) Notifying the news media; 38 (e) Placing notices in appropriate regional or neighborhood 39 newspapers or trade journals; p. 16 2SSB 5290 . SL I (f) Publishing notice in agency newsletters or sending notice to 2 agency mailing lists, either general lists or lists for specific 3 proposals or subject areas; and 4 (g) Mailing to neighboring property owners . 5 (5) A notice of application shall not be required for project 6 permits that are categorically exempt under chapter 43 . 21C RCW, 7 unless an open record predecision hearing is required or an open 8 record appeal hearing is allowed on the project permit decision. 9 (6) A local government shall integrate the permit procedures in 10 this section with environmental review under chapter 43 . 21C 11 RCW as follows : 12 (a) Except for a threshold determination and except as otherwise 13 expressly allowed in this section, the local government may not issue 14 a decision or a recommendation on a project permit until the 15 expiration of the public comment period on the notice of application. 16 (b) If an open record predecision hearing is required, the local 17 government shall issue its threshold determination at least fifteen 18 days prior to the open record predecision hearing. 19 (c) Comments shall be as specific as possible. 20 (d) A local government is not required to provide for 21 administrative appeals of its threshold determination. If provided, 22 an administrative appeal ( (shall) ) must be filed within fourteen days 23 after notice that the determination has been made and is appealable. 24 Except as otherwise expressly provided in this section, the appeal 25 hearing on a threshold determination ( (ef nensignifiesnee shall) ) 26 must be consolidated with any open record hearing on the project 27 permit. 28 (7) At the request of the applicant, a local government may 29 combine any hearing on a project permit with any hearing that may be 30 held by another local, state, regional, federal, or other agency, if: 31 (a) The hearing is held within the geographic boundary of the 32 local government; and 33 (b) ( ( 34 ) ) The applicant agrees to the 35 schedule in the event that additional time is needed in order to 36 combine the hearings . All agencies of the state of Washington, 37 including municipal corporations and counties participating in a 38 combined hearing, are hereby authorized to issue joint hearing 39 notices and develop a joint format, select a mutually acceptable 40 hearing body or officer, and take such other actions as may be p. 17 2SSB 5290 . SL 1 necessary to hold joint hearings consistent with each of their 2 respective statutory obligations . 3 (8) All state and local agencies shall cooperate to the fullest 4 extent possible with the local government in holding a joint hearing 5 if requested to do so, as long as : 6 (a) The agency is not expressly prohibited by statute from doing 7 so; 8 (b) Sufficient notice of the hearing is given to meet each of the 9 agencies ' adopted notice requirements as set forth in statute, 10 ordinance, or rule; and 11 (c) The agency has received the necessary information about the 12 proposed project from the applicant to hold its hearing at the same 13 time as the local government hearing. 14 (9) A local government is not required to provide for 15 administrative appeals . If provided, an administrative appeal of the 16 project decision and of any environmental determination issued at the 17 same time as the project decision, shall be filed within fourteen 18 days after the notice of the decision or after other notice that the 19 decision has been made and is appealable. The local government shall 20 extend the appeal period for an additional seven days, if state or 21 local rules adopted pursuant to chapter 43 . 21C RCW allow public 22 comment on a determination of nonsignificance issued as part of the 23 appealable project permit decision. 24 (10) The applicant for a project permit is deemed to be a 25 participant in any comment period, open record hearing, or closed 26 record appeal . 27 (11) Each local government planning under RCW 36 . 70A. 040 shall 28 adopt procedures for administrative interpretation of its development 29 regulations . 30 NEW SECTION. Sec. 11. The department of commerce shall develop 31 a template for counties and cities subject to the requirements in RCW 32 36. 70B. 080, which will be utilized for reporting data. 33 NEW SECTION. Sec. 12 . The department of commerce shall develop 34 a plan to provide local governments with appropriately trained staff 35 to provide temporary support or hard to find expertise for timely 36 processing of residential housing permit applications . The plan shall 37 include consideration of how local governments can be provided with 38 staff that have experience with providing substitute staff support or P. 18 2SSB 5290 . SL 1 that possess expertise in permitting policies and regulations in the 2 local government ' s geographic area or with jurisdictions of the local 3 government ' s size or population. The plan and a proposal for 4 implementation shall be presented to the legislature by December 1, 5 2023 . 6 NEW SECTION. Sec. 13 . Section 7 of this act takes effect 7 January 1, 2025 . Passed by the Senate April 17, 2023 . Passed by the House April 10, 2023 . Approved by the Governor May 8, 2023 . Filed in Office of Secretary of State May 10, 2023 . --- END --- P. 19 2SSB 5290 . SL