WA State: SB 5290 Streamline Local Permit Review Processes
Second Substitute Senate Bill 5290 focuses on consolidating and streamlining local permit review processes in Washington state. The bill amends several sections of existing law and adds new sections to Chapter 36.70B RCW, addressing various aspects of permit review, from timelines and completeness determinations to digital systems and financial assistance for local governments.
The bill aims to improve the efficiency and predictability of the permit review process. It allows local governments to exclude certain project permits, like landmark designations or street vacations, from standard review timelines if special circumstances warrant different procedures. Specifically, interior alterations that don't increase sleeping quarters, violate FEMA thresholds, or require significant fire system upgrades are exempt from site plan review. The definition of "interior alterations" is clarified to include construction activities that don't change the site layout, current use, or building footprint.
A key component of the bill establishes a consolidated permit review grant program within the Department of Commerce. Subject to funding, this program will offer grants to local governments that commit to issuing final decisions on residential permit applications within 45 business days or 90 calendar days. To achieve this, local governments must provide consolidated permit reviews, which may involve initial technical peer reviews and potentially contracting with third-party reviewers. Grant funds can also be used to audit development regulations for barriers to housing development. Participating jurisdictions must report quarterly to the Department of Commerce on their permit review performance, and failure to meet grant terms can lead to a probationary period and potential ineligibility for future grants. The bill defines "residential permit" by referencing specific criteria related to the International Residential Code.
Recognizing the importance of technology, the bill also mandates a grant program for local governments to upgrade their permit review systems from paper-based to digital platforms. These systems should be capable of handling digital applications, virtual inspections, electronic review, and video storage. A condition for receiving this grant is that the city must allow for the development of at least two units per lot in predominantly residential zones.
Furthermore, the legislation directs the Department of Commerce to convene a digital permitting process work group. This group, comprised of representatives from cities, counties, building industries, and building officials, will examine existing and potential permitting software, identify barriers to digital system adoption, evaluate the costs and benefits of a statewide system, and make recommendations to the governor and legislature by August 1, 2024. The report will cover budgetary, administrative, and legislative aspects of increasing digital permit review adoption.
The bill also revises definitions related to permit review, including "closed record appeal," "open record hearing," and "project permit." It clarifies that building permits are included in the definition of "project permit," along with subdivisions, binding site plans, and other land use or environmental permits, but excludes comprehensive plan amendments unless specifically included. The definition of "public meeting" is also clarified to distinguish it from an open record hearing.
Amendments to RCW 36.70B.070 refine the process for determining application completeness. Local governments have 28 days to notify applicants of completeness or incompleteness, outlining necessary steps for completion. The bill clarifies what constitutes a complete application and allows for subsequent requests for additional information without negating the initial completeness determination. A project permit application is deemed complete if no written determination of incompleteness is provided within 28 days. A 14-day timeframe is established for reviewing resubmitted information.
Changes to RCW 36.70B.080 focus on establishing and implementing time periods for local government actions on permit applications. The bill sets specific timelines for final decisions based on whether public notice and hearings are required. It allows local governments to modify these timelines, add permit types, and differentiate between project sizes and types. The bill provides detailed rules for calculating review times, excluding periods when applicants are non-responsive or have requested suspensions, and establishes a process for refunding permit fees when deadlines are missed. A key provision requires counties and larger cities to track and report performance data related to permit review timelines, including specific metrics for various housing-related permit types, with annual reports due to the Department of Commerce and subsequent publication of statewide data.
Amendments to RCW 36.70B.160 encourage local governments to adopt further measures to improve permit review, such as expediting reviews for compliant projects, imposing reasonable fees, sharing permitting staff through interlocal agreements, and budgeting for on-call permitting assistance. After January 1, 2026, counties and cities may be required to adopt additional measures if they are not meeting permit deadlines.
The bill adds a new section requiring the Department of Commerce to provide technical assistance to local governments in setting reasonable and sufficient fee structures. Priority is given to governments that have already implemented multiple process improvements.
RCW 36.70B.110, concerning notice of application, is also amended. The timeframe for providing notice of application is tied to the determination of completeness. The notice requirements are detailed, including information about the project, permits, comment periods, and hearings. Reasonable methods for providing notice are outlined. The bill also addresses the integration of permit procedures with environmental review.
Finally, the bill directs the Department of Commerce to develop a template for reporting data and to create a plan for providing local governments with temporary staffing support and expertise for timely processing of residential housing permit applications, with a plan due to the legislature by December 1, 2023. Section 7, related to certain permit timelines, takes effect January 1, 2025.