HOUSE BILL REPORT

HB 1616

BYRepresentatives Sprenkle, Ballard, K. Wilson, Sutherland, Jones, Vekich, Miller, Haugen, Basich, O'Brien, Sayan, Spanel and Unsoeld

Authorizing purchase of certain state trust lands for parks use.

House Committe on Natural Resources

Majority Report:  Do pass.  (18)

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

House Staff:Bill Koss (786-7129)

AS PASSED HOUSE FEBRUARY 9, 1988

BACKGROUND:

Since 1981, the Legislature authorized the Department of Natural Resources (DNR) to sell property to the State Parks and Recreation Commission three times.  Thirty-six parcels of land are currently under contract.  Purchase prices are based on the fair market value of the land and timber, with a market interest rate applied to the unpaid balance.

The Commission pays about $3 million a biennium to DNR in principal and interest.  By the late 1990's, the Commission will have obtained title to all the land and timber on the 36 parcels currently under contract.

In order to maintain the trust land base, the DNR will use the funds from the land sales to obtain replacement property.  While subject to the Budget and Accounting Act, DNR does not require an appropriation to permit expenditures for acquiring replacement property.  Expenditures need the authorization of the Board of Natural Resources.

When the 1985 Legislature authorized DNR to sell five parcels to the Parks and Recreation Commission, it directed the two agencies to review trust lands to identify parcels which may be appropriate for acquisition by the Commission.  The study identified twenty- two parcels, totalling 6,626 acres.  Estimated value of both the land and timber is approximately $15 million.  The Legislature authorized sale of seven of the 22 parcels in 1987.

SUMMARY:

The Board of Natural Resources and the Parks and Recreation Commission will negotiate a sale of the remaining fifteen DNR managed parcels identified in the joint study authorized in 1985.  The parcels cover about 5,600 acres.

Funds for acquisition will come from the Trust Land Purchase Account.  This account obtains money from park entrance fees.

DNR shall use the funds from the Trust Land Purchase Account to acquire property to replace the trust property sold to the Commission.

Adding new property to the existing list of land acquisitions delays income to various trust accounts.  In recognition of the impact on management, the Board of Natural Resources and Parks and Recreation Commission shall prepare a report to the Legislature on various alternative methods to accelerate reimbursement to the trusts.  The report is due no later than December 15, 1988.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Representative Sprenkle, Prime Sponsor; Pat McElroy, Department of Natural Resources; and Cleve Pinnix, State Parks and Recreation Commission.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The Board of Natural Resources and the Parks and Recreation Commission endorse the bill.  It is nearly identical to a bill introduced last year, a portion of which passed.  The change from last year to this is the addition of language directing the two agencies to identify methods to accelerate the payment for the properties.

House Committee - Testimony Against:      None Presented.