AN ACT Relating to historic preservation; amending RCW 79.01.004 and 79.01.612; adding a new chapter to Title 27 RCW; adding a new section to chapter 43.82 RCW; and creating a new section.

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

NEW SECTION. Sec. 1. The legislature finds and declares that the spirit and direction of Washington state are founded on the values, traditions, and accomplishments of past generations; and further, that the future of Washington's children will depend in part upon their ability to understand and appreciate the importance of their heritage. Historic sites are a source of pride and inspiration for the citizens of Washington, but these irreplaceable assets are easily lost or destroyed. The legislature finds that the 1989 Centennial Celebration of Washington Statehood is an especially appropriate occasion for committing to the preservation of sites and structures important to Washington's history as well as to fostering and communicating the history of the people and places of Washington state to those who visit or live in Washington.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter:

(1) "Department" means the department of community development.

(2) "Director" means the director of community development.

(3) "Fund" means the Washington heritage revolving fund.

(4) "Historic site" means a structure and the land on which it is located that is on a local, state, or national historic register, or that is eligible to be included on a local, state, or national historic register.

NEW SECTION. Sec. 3. (1) Money appropriated for the purposes of this chapter shall be deposited in the Washington heritage revolving fund hereby established in the custody of the state treasurer. The department shall deposit in the fund any proceeds from the sale of historic sites or interests in historic sites acquired with money from the fund or by gift or grant, and any other money designated by law for deposit therein. Money in the fund shall be used by the department for the purposes set forth in section 4 of this act, and other costs associated with the purposes of this chapter, including costs of officials and employees of the state and other expenses incidental to the administration of capital projects. Disbursements from the fund shall be on authorization of the director, or the director's designee, in accordance with subsection (2) of this section. The fund is subject to the allotment procedure provided under chapter 43.88 RCW, but no appropriation is required for disbursements.

(2) It is the intent of the legislature that the initial appropriation to the fund for the 1987-89 biennium shall act as a challenge to private and public donors. No initial disbursements may be made from the fund until the sum of one hundred thousand dollars has been received from other sources and deposited in the fund. Subsequent disbursements from the unexpended portion of the appropriation to the fund may be made only in increments of up to one hundred thousand dollars and only when at least one hundred thousand dollars in matching funds has been obtained for each one hundred thousand dollar increment of the state's appropriation until the full appropriation has been matched in this manner.

NEW SECTION. Sec. 4. The department may acquire, maintain, stabilize, rehabilitate, resell, and hold title to historic sites, and may acquire and resell, or exercise options to purchase or to acquire and resell, other limited ownership interests in historic sites. It is the intent of the legislature that any sites acquired shall be promptly offered for sale at fair market value following completion of such repairs as are necessary.

NEW SECTION. Sec. 5. Criteria to be considered by the department in selecting among historic sites under section 4 of this act shall include:

(1) The importance of the historic site to the state and to the community within which the site is located;

(2) The representation of diverse historic themes in different areas of the state and in different types of buildings;

(3) The suitability of the historic site for re-use as a commercial, community, or residential property within local ordinances while retaining its historic character;

(4) The accessibility of the property for public visitation or the visual prominence of the property as an historic landmark;

(5) A determination through the use of prudent and knowledgeable judgment, as well as current market and real estate valuation information, that the capital investment can be substantially recovered when the property is resold;

(6) The ability of the state to obtain title to the property; and

(7) The threat of demolition, the extent of deterioration, or other factors that might result in the loss of the historic site.

NEW SECTION. Sec. 6. If the director determines that the sale of an historic site or an interest in an historic site under the control of the department would promote historic preservation, the director may approve the sale.

NEW SECTION. Sec. 7. Criteria to be considered by the department in selling historic sites under section 4 of this act shall include:

(1) An agreement on the part of the buyer to maintain the historical integrity of the historic site;

(2) Where applicable, an agreement to make the historic site available to the public;

(3) The ability of the buyer to secure the necessary financing; and

(4) The proposed use of the building in relation to local ordinances.

NEW SECTION. Sec. 8. Nothing in this chapter gives the department any right of condemnation or eminent domain.

NEW SECTION. Sec. 9. The director may adopt such rules as are necessary to implement this chapter.

NEW SECTION. Sec. 10. A new section is added to chapter 43.82 RCW to read as follows:

This chapter shall not apply to historic sites under sections 1 through 9 of this act.

Sec. 11. Section 1, chapter 255, Laws of 1927 and RCW 79.01.004 are each amended to read as follows:

Public lands of the state of Washington are lands belonging to or held in trust by the state, which are not devoted to or reserved for a particular use by law, and include state lands, tidelands, shorelands and harbor areas as hereinafter defined, and the beds of navigable waters belonging to the state. "Public lands" do not include historic sites or interests in historic sites acquired by the state under sections 1 through 9 of this 1987 act.

Whenever used in this chapter the term "state lands" shall mean and include:

School lands, that is, lands held in trust for the support of the common schools;

University lands, that is, lands held in trust for university purposes;

Agricultural college lands, that is, lands held in trust for the use and support of agricultural colleges;

Scientific school lands, that is, lands held in trust for the establishment and maintenance of a scientific school;

Normal school lands, that is, lands held in trust for state normal schools;

Capitol building lands, that is, lands held in trust for the purpose of erecting public buildings at the state capital for legislative, executive and judicial purposes;

Institutional lands, that is, lands held in trust for state charitable, educational, penal and reformatory institutions; and

All public lands of the state, except tidelands, shorelands, harbor areas and the beds of navigable waters.

Sec. 12. Section 154, chapter 255, Laws of 1927 as amended by section 13, chapter 222, Laws of 1984 and RCW 79.01.612 are each amended to read as follows:

The department of natural resources shall manage and control all lands acquired by the state by escheat or under chapter 79.66 RCW and all lands acquired by the state by deed of sale or gift or by devise, except such lands which are conveyed or devised to the state to be used for a particular purpose, and historic sites acquired by the state under sections 1 through 9 of this 1987 act. The department shall lease the lands in the same manner as school lands. When the department determines to sell the lands, they shall be initially offered for sale at public auction as provided in this chapter. If the lands are not sold at public auction, the department may, with approval of the board of natural resources, market the lands through persons licensed under chapter 18.85 RCW or through other commercially feasible means at a price not lower than the land's appraised value and pay necessary marketing costs from the sale proceeds. Necessary marketing costs includes reasonable costs associated with advertising the property and paying commissions. The proceeds of the lease or sale of all such lands shall be deposited into the appropriate fund in the state treasury in the manner prescribed by law: PROVIDED, That if the grantor in any such deed or the testator in case of a devise specifies that the proceeds of the sale or lease of such lands be devoted to a particular purpose such proceeds shall be so applied. The department may employ agents to rent any escheated, deeded, or devised lands, or lands acquired under chapter 79.66 RCW, for such rental and time and in such manner as the department directs, but the property shall not be rented by such agent for a longer period than one year and no tenant is entitled to compensation for any improvement which he makes on such property. The agent shall cause repairs to be made to the property as the department directs, and shall deduct the cost thereof, together with such compensation and commission as the department authorizes, from the rentals of such property and the remainder which is collected shall be transmitted monthly to the department of natural resources.

NEW SECTION. Sec. 13. This act shall be liberally construed.

NEW SECTION. Sec. 14. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 15. Sections 1 through 9 of this act shall constitute a new chapter in Title 27 RCW.