The bill amends RCW 82.02.050 to enhance the framework for impact fees imposed by counties, cities, and towns in Washington State. It establishes that these local governments can require new developments to pay a proportionate share of the costs for public facilities needed to support growth. A significant change is the introduction of a deferred collection system for impact fees on single-family residential construction, which mandates that applicants execute a promissory note for the full value of the fees. This note must be recorded and specifies the payment timeline, which can occur at the issuance of a certificate of occupancy, at the closing of the first sale, or at final inspection. Additionally, the bill outlines penalties and interest for late payments, ensuring that local governments can enforce compliance.

Furthermore, the bill repeals RCW 43.31.980, which previously required an annual report on impact fees, thereby streamlining the regulatory process. It clarifies that impact fees can only be imposed for system improvements directly related to new development and must be used for public facilities as defined in RCW 82.02.090. The new provisions aim to create a more structured and equitable approach to funding public infrastructure in relation to new growth, while also providing flexibility for developers through the deferral of fees.

Statutes affected:
Original Bill: 82.02.050
Substitute Bill: 82.02.050, 43.31.980