BILL REQ. #:  H-0618.1 

Read first time 01/14/11.   Referred to Committee on Capital Budget.

     AN ACT Relating to fostering economic development by encouraging increased productivity on certain working lands through transfers in ownership; amending RCW 79.11.010 and 79.11.090; adding a new section to chapter 79.11 RCW; adding a new section to chapter 43.33A RCW; and adding a new section to chapter 8.04 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   A new section is added to chapter 79.11 RCW under the subchapter heading "part 1 sales procedures" to read as follows:
     (1) The department shall develop and the board shall implement a plan to divest the state by December 31, 2021, of all state lands and state forest lands that are not being actively used for forestry and all lands under state title condemned under section 3 of this act.
     (2) In implementing the divestiture plan required under this section, the department shall ensure that the lands sold receive fair market value from private sector purchasers under the provisions of this chapter.
     (3) Any trust beneficiary affected by the divestiture of state lands or state forest lands under this section must be made whole by the provisions of the divestiture plan. The final proceeds of land sales conducted pursuant to the divestiture plan must be transmitted to the state investment board created in chapter 43.33A RCW to be managed in an investment trust for the affected beneficiaries.

NEW SECTION.  Sec. 2   A new section is added to chapter 43.33A RCW to read as follows:
     The state investment board must work closely with the board of natural resources to implement the state land divestiture plan required under section 1 of this act and ensure that revenue produced from the ensuing land sales are accounted for and managed according to the fiduciary duty of the state with regard to the trust beneficiaries that are affected by the sales.

NEW SECTION.  Sec. 3   A new section is added to chapter 8.04 RCW to read as follows:
     (1) The attorney general is authorized and empowered to condemn land owned by the federal government on the effective date of this section that is forested or available for active forestry uses.
     (2)(a) Land acquired by the state under this section must be made available for sale to private landowners for active forestry uses under section 1 of this act; and
     (b) The acquisition and sale of land condemned under this section are deemed to be for a state purpose and public use.

Sec. 4   RCW 79.11.010 and 2003 c 334 s 321 are each amended to read as follows:
     (1) Except as provided in section 1 of this act, not more than one hundred and sixty acres of any land granted to the state by the United States shall be offered for sale in one parcel and no university lands shall be offered for sale except by legislative directive or with the consent of the board of regents of the University of Washington.
     (2) Any land granted to the state by the United States may be sold for any lawful purpose in such minimum acreage as may be fixed by the department or the legislature.

Sec. 5   RCW 79.11.090 and 2003 c 334 s 352 are each amended to read as follows:
     (1) Except as provided in RCW 79.11.340, all sales of land under this chapter shall be at public auction, to the highest bidder, on the terms prescribed by law and as specified in the notice provided under RCW 79.11.120, and no land shall be sold for less than its appraised value.
     (2) In implementing the divestiture plan required in section 1 of this act, the board shall ensure that land sales are awarded to the highest private sector bidder.