AN ACT Relating to island trust land transfers; amending RCW 43.51.270 and 43.51.280; and creating a new section.

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

Sec. 1. Section 1, chapter 210, Laws of 1971 ex. sess. as last amended by section 1, chapter 271, Laws of 1981 and RCW 43.51.270 are each amended to read as follows:

(1) The board of natural resources and the state parks and recreation commission shall negotiate a sale to the state parks and recreation commission, for park and outdoor recreation purposes, of the trust lands withdrawn as of August 9, 1971 pursuant to law for park purposes and included within the state parks listed in subsection (2) of this section: PROVIDED, That the sale shall be by contract with a pay-off period of not less than ten years, a price of eleven million twenty-four thousand seven hundred forty dollars or the fair market value, whichever is higher, for the land value, and interest not to exceed six percent. All fees collected by the commission beginning in the 1973-1975 biennium shall be applied to the purchase price of the trust lands listed in subsection (2) of this section; the acquisition of the ((~~Heart Lake~~)) property described in subsection (3) of this section, and all reasonable costs of acquisition, described in subsection ((~~(3)~~))(4) of this section; the renovation and redevelopment of state park structures and facilities to extend the original life expectancy or correct damage to the environment of state parks; the maintenance and operation of state parks; and any cost of collection pursuant to appropriations from the trust land purchase account created in RCW 43.51.280. The department of natural resources shall not receive any management fee pursuant to the sale of the trust lands listed in subsection (2) of this section. Timber on the trust lands which are the subject of this section shall continue to be under the management of the department of natural resources until such time as the legislature appropriates funds to the parks and recreation commission for purchase of said timber. The state parks which include trust lands which shall be the subject of this sale pursuant to this section are:

(2) (a) Penrose Point

(b) Kopachuck

(d) Leadbetter Point

(e) Nason Creek

(f) South Whidbey

(g) Blake Island

(h) Rockport

(i) Mt. Pilchuck

(j) Ginkgo

(k) Lewis & Clark

(l) Rainbow Falls

(m) Bogachiel

(n) Sequim Bay

(o) Federation Forest

(p) Moran

(q) Camano Island

(r) Beacon Rock

(s) Bridle Trails

(t) Chief Kamiakin (formerly Kamiak Butte)

(u) Lake Wenatchee

(v) Fields Springs

(w) Sun Lakes

(x) Scenic Beach.

(3) The board of natural resources and the state parks and recreation commission shall negotiate a mutually acceptable transfer for adequate consideration to the state parks and recreation commission to be used for park and recreation purposes:

(a) All the state-owned Heart Lake property, including the timber therein, located in section 36, township 35 north, range 1E, W.M. in Skagit county;

(b) The Moran Park Additions, including the timber thereon, located in sections 16, 17, 19, 26, and 30, township 37 north, range 1W, W.M.;

(c) The Fort Ebey Addition (Partridge Point), including the timber thereon, located in section 36, township 32 north, range 1W, W.M. and section 6, township 31 north, range 1E, W.M.;

(d) The South Whidbey Addition (Classic U), including the timber thereon, located in section 29, township 30 north, range 2E, W.M.; and

(e) The Larrabee Addition, including the timber thereon, located in section 29, township 37 north, range 3E, W.M.

(4) The funds from the trust land purchase account designated for the acquisition of the ((~~Heart Lake~~)) property described in subsection (3) of this section, and the reasonable costs of acquisition, shall be deposited in the ((~~Heart Lake~~)) park land trust revolving fund, hereby created, to be utilized by the department of natural resources for the exclusive purpose of acquiring real property as a replacement for the ((~~Heart Lake~~)) property described in subsection (3) of this section to maintain the land base of the common school trust lands and for the reimbursement of the department of natural resources for all reasonable costs, to include, but not exclusively, the appraisal and cruising of the timber on the property for the acquisition of the ((~~Heart Lake~~)) property described in subsection (3) of this section. Disbursements from the ((~~Heart Lake~~)) park land trust revolving fund to acquire replacement property, and pay for all reasonable costs of acquisition, for the ((~~Heart Lake~~)) property described in subsection (3) of this section shall be on the authorization of the board of natural resources. In order to maintain an effective expenditure and revenue control, the ((~~Heart Lake~~)) park land trust revolving fund shall be subject in all respects to chapter 43.88 RCW, but no appropriation shall be required to permit expenditures and payment of obligations from the fund. The state treasurer shall be custodian of the revolving fund.

The department of natural resources shall pay all reasonable costs, to include, but not exclusively, the appraisal and cruising of the timber on the property for the acquisition of the ((~~Heart Lake~~)) property described in subsection (3) of this section from funds provided in the trust land purchase account. Any agreement for the transfer of the ((~~Heart Lake~~)) property described in subsection (3) of this section shall not have an interest rate exceeding ten percent.

The parks and recreation commission is authorized to accept, receive, disburse, and administer grants or funds or gifts from any source including private individuals, public entities, and the federal government to supplement the funds from the trust land purchase account for the purchase of the ((~~Heart Lake~~)) property described in subsection (3) of this section.

Sec. 2. Section 2, chapter 210, Laws of 1971 ex. sess. as last amended by section 2, chapter 271, Laws of 1981 and RCW 43.51.280 are each amended to read as follows:

There is hereby created the trust land purchase account in the state general fund. Any revenues accruing to this account shall be used for the purchase of the ((~~entire Heart Lake~~)) property described in RCW 43.51.270(3)(a), to include all reasonable costs of acquisition, and a fee interest or such other interest in state trust lands presently used for park purposes as the state parks and recreation commission shall determine and to reimburse the state parks and recreation commission for the cost of collecting such fees beginning with the 1973-75 fiscal biennium. Any funds remaining in the account shall be used for the renovation and redevelopment of state park structures and facilities to extend the original life expectancy or correct damage to the environment of state parks and for the maintenance and operation of state parks in the 1981-83 biennium. Thereafter, the funds shall not be used for such purposes for property described in RCW 43.51.270(3) (b), (c), and (d) until the money in the account satisfies the payment required to be made in the contract for sale of lands in ((~~section 1 of this chapter~~)) RCW 43.51.270(2), the acquisition of the ((~~Heart Lake~~)) property described in RCW 43.51.270(3)(a), and those amounts necessary to pay for the remaining trust assets of timber situated on the lands described in ((~~section 1~~)) RCW 43.51.270 (2) on a schedule satisfactory to the board of natural resources.

NEW SECTION. Sec. 3. Moneys in the Heart Lake revolving fund are hereby transferred to the park land trust revolving fund.