Bill would bar duplicate third-party review fees to streamline permitting

A committee hearing on substitute Senate Bill 5,729 examined a narrowly focused change to permitting fees that lawmakers and industry groups say would reduce duplicative costs associated with third-party peer reviews for development plans.

Kellen Wright, staff to the committee, said the measure would prevent a local government from charging a permit applicant for a third-party review of plans, drawings, specifications or reports where a licensed professional on the local government's staff with the same license already reviewed the materials. Exceptions would apply if there is a dispute between the applicant and local staff, or if the applicant requests a third-party review in lieu of staff review.

Senator Chris Gildan (25th Legislative District) said the bill is a narrowed version of a prior, more expansive proposal and that the core purpose is to stop applicants from paying for both a staff review and a concurrent third-party review. He told the committee developers sometimes pay thousands of dollars per housing unit for secondary reviews and that eliminating duplicate fees will lower costs for builders.

Representatives of the Building Industry Association of Washington and the Master Builders Association supported the bill, saying appropriate guardrails are in place to allow third-party reviews where local jurisdictions lack technical staff or when a dispute merits outside review.

Committee members asked how the bill interacts with other permitting reforms and whether it applies only to housing; staff and witnesses said the prohibition would apply broadly to permits but that builders anticipate the greatest benefit for residential permitting.

The committee closed the hearing on SB 5,729 and asked staff and sponsors to circulate amendments ahead of executive consideration.