HOUSE BILL REPORT

SHB 1562

BYHouse Committee on Natural Resources (originally sponsored by Representatives Basich, Beck and Sanders)

Exempting materials valued below a certain amount sold from public lands from auction sale requirements.

House Committe on Natural Resources

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (17)

      Signed by Representatives Sutherland, Chair; K. Wilson, Vice Chair, Basich, Beck, Belcher, Bumgarner, Butterfield, Cole, Dorn, Fuhrman, Hargrove, Haugen, Meyers, Sayan, Schmidt, Spanel and S. Wilson.

House Staff:Robert Butts (786-7841)

AS PASSED HOUSE FEBRUARY 9, 1988

BACKGROUND:

When the Department of Natural Resources (DNR) sells timber and other natural resources from state lands, current law prescribes different procedural requirements depending on the appraised value of the natural resource being sold.

Valuable materials with an appraised value of $20,000 or more must be sold either at public auction or by sealed bid with a four-week public notice period, and be sold in accordance with other terms prescribed by law.  Valuable materials with an appraised value between $1,000 and $20,000 must be sold at public auction with a ten-day public notice period, but other terms can be established by the DNR.  Materials appraised for $1,000 or less may be sold directly to the applicant without public notice.  While the first two categories of sales refer to "valuable materials," sales for $1,000 or less are limited by statute to specified materials (timber, fallen timber, stone, gravel, sand, fill material, or building stone).

Occasionally, citizens have requested to purchase small quantities of materials with an appraised value of $1,000 or less that are not listed in the statute, such as shrubs and mushrooms.  Under current law, DNR is not able to sell the material to them without public notice and a public auction.

The definition of a "valuable material" is any product or material on state lands, including forest products, forage or agricultural crops, stone, gravel, peat, and all other materials of value except mineral, coal, petroleum, and gas.

SUMMARY:

Rather than specifying only timber, fallen timber, stone, gravel, sand, fill material, and building stone, the DNR may sell any valuable material from state-owned lands without public notice or a public auction if the appraised value of the material is $1,000 or less.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Pat McElroy, Department of Natural Resources.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    This bill will reduce the costs and time required for these small sales, and allow the Department of Natural Resources to be more responsive to the public.  If there is an active market for a product, the Department will conduct a public auction.

House Committee - Testimony Against:      None Presented.