Washington Business 2018 AWB Rural Jobs Outlook | Page 13

Hirst Decision
In October 2016, the Washington Supreme Court handed down a ruling in
a Growth Management Act case, “Whatcom County vs. Hirst, Futurewise,
et al,” or more commonly referred to as the “Hirst decision.” In this decision,
the court ruled that under the GMA, counties now must make their own
determinations about adequate water supplies before issuing a building
permit that relies on a well. Before this decision, counties relied on
regulations adopted by the state Department of Ecology for such
water resource decisions.
Without a legislative fix, the Hirst decision would have had significant
impacts. During the legislative session, lawmakers heard testimony from
citizens who bought a piece of property and designed a home, and even
drilled a well, but were then denied a building permit because of the Hirst
decision. Banks will also deny loans on projects that do not have guaranteed
water. All of this leaves land owners with an uncertain future.
Some counties had imposed a moratorium and had stopped issuing building
permits altogether. Others required building permit applicants to sign a
disclaimer in case the county’s water availability decision was later ruled
unlawful. This created a significant consumer protection risk for rural
landowners. Still others required expensive hydrogeological studies that
may not have shown adequate water availability.
Without access to water, property values would have plummeted, forcing
local government officials to raise property tax rates for everyone else to
cover the revenue losses.
The Hirst decision also impacted local government budgets because it
directed counties to make water resource determinations. The Washington
State Association of Counties estimated the implementation costs
statewide would be about $25 million annually.
During the second week of the 2018 legislative session, lawmakers finally
approved legislation resolving the Hirst issue, giving authority over water
resource decisions back to the Department of Ecology.