HOUSE BILL REPORT

EHB 1172

BYRepresentatives Belcher, Locke, R. Fisher, Sayan, K. Wilson, Rust, Hine, Miller, Ferguson, Dellwo, Spanel, Fraser and Brough

Revising requirements for natural resources conservation areas.

House Committe on Natural Resources & Parks

Majority Report:  Do pass.  (8)

      Signed by Representatives Belcher, Chair; K. Wilson, Vice Chair; Brumsickle, Dellwo, Ferguson, R. Fisher, Raiter and Sayan.

House Staff:Bill Koss (786-7129)

Rereferred House Committee on Appropriations

Majority Report:  Do pass with amendment.  (16)

      Signed by Representatives Locke, Chair; Grant, Vice Chair; Belcher, Braddock, Brekke, Bristow, Ebersole, Ferguson, Peery, Rust, Sayan, Spanel, Sprenkle, Valle, Wang and Wineberry.

Minority Report:  Do not pass.  (8)

      Signed by Representatives Silver, Ranking Republican Member; Youngsman, Assistant Ranking Republican Member; Bowman, Doty, Holland, May, McLean and Nealey.

House Staff:      Randy Acker (786-7136)

AS PASSED HOUSE MARCH 15, 1989

BACKGROUND:

Using authority granted in 1987, the Department of Natural Resources (DNR), subject to legislative appropriation, is authorized to purchase and manage certain properties as natural resource conservation areas.  Lands eligible for consideration as natural resource conservation areas shall be highly valued for conservation, natural systems, dispersed recreation, maintaining unique natural areas, ecological communities, or as environmentally significant sites threatened with conversion to an incompatible use.  When any DNR-managed trust land is sold for a conservation management area, the sale proceeds shall be used to purchase replacement property. Purchases of trust land must be at full, fair market value.

Any revenue from the land management activities, such as timber sales on the site, enters into a stewardship account for use solely for management of conservation areas.

The Department must develop a management plan for sites designated as conservation areas.  The Department will administer such areas directly, or through agreement with other state agencies, local governments, or private conservancy corporations.

Seven million, nine hundred thousand dollars was appropriated to obtain for conservation areas land adjoining Mt. Si (King County), property on Cypress Island (Skagit County), property near Woodard Bay (Thurston County), and property near Dishman Hills natural area (Spokane County).

An additional $4 million was appropriated to DNR to purchase natural area preserves, money to be matched by at least 25 percent from privately raised funds, contributions of real property, or services necessary to achieve the purposes of nature conservancy.  Natural area preserves include properties managed by the Natural Heritage Program of DNR.  These properties are maintained for their natural characteristics and/or to preserve rare or vanishing flora, fauna, geology, natural history, or similar features.

Funding for acquisition of natural resource conservation areas comes from a real estate excise tax surcharge.  An additional six one-hundredths of one percent excise tax ($60 on a $100,000 transaction) is levied, the proceeds to be deposited to the conservation areas' account and used for acquisition of conservation areas.  Authority to collect the additional tax expires June 30, 1989.

SUMMARY:

The additional excise tax (six one-hundredths of one percent) is allowed to expire on June 30, 1989.

The purposes for which a natural resource conservation area may be acquired are expanded to include areas containing important archeological, scenic, plant, animal, or geological features.

In order to maintain the land base for revenue producing activities, when DNR sells land for a natural resource conservation area, it is permitted to use the sale proceeds to acquire new land for trust revenue production purposes.  The Conservation Area Trust Replacement Fund is established for this purpose.

The Commissioner of Public Lands shall appoint a nine member advisory committee to assist in evaluating sites nominated as natural resource conservation areas.  The directors of the Departments of Wildlife and Ecology and of the State Parks and Recreation Commission serve as ex officio members of the advisory committee.  The members prepare a listing of candidate sites for inclusion in the program, based on criteria they develop.  The Commissioner may select sites from the list and recommend them to the legislature for designation.

Several new provisions to the existing law provide for development of rules governing the areas, commissioner-approved management plans, and the addition of simplified language.

A new site is added to the four currently authorized for acquisition.  The property is described as Yakima Canyon, extending south from the southern boundary of Helen McCabe State Park in Kittitas, from canyon rim to canyon rim.  A provision states that the Wymer Canyon area may be developed for water resource use.  The Yakima Canyon parcel contains approximately 10,200 acres of federal and private lands and lands held by the Departments of Wildlife and Natural Resources.  Preliminary estimates place the value of the private and DNR lands at between $1 million and $2 million.

Appropriation:    $2,000,000 appropriated from conservation area account to department of natural resources.  $400,000 is appropriated from natural resources conservation area stewardship account to department of natural resources.

Revenue:    The bill has a revenue impact.

Fiscal Note:      Available.

House Committee ‑ Testified For:    (Natural Resources and Parks) Brian Boyle, Commissioner of Public Lands; Elliot Marks, the Nature Conservancy; Nick Fahey, citizen; Mike Yeager, Washington Forest Protection Association; Tom Lucas, Washington Trails Association; Paul Wiseman, Mountaineers; Argon Steel, Sierra Club.

(Appropriations) Brian Boyle, Commissioner of Public Lands; John Edwards, Department of Natural Resources; Elliott Marks, Nature Conservancy; Gene Tillett, Department of Wildlife; Steve Gano, Washington Forest Protection Association; Bruce Wishert, Sierra Club.

House Committee - Testified Against:      (Natural Resources and Parks) None Presented.

(Appropriations) Burt Talcott, Washington Association of Realtors.

House Committee - Testimony For:    (Natural Resources and Parks) Reviews by DNR show that the $60 per $100,000 excise tax has had no effect on real estate transactions.  Acquisitions by DNR for conservation areas will prompt private parties to donate land adjoining the Cypress Island tract.  In the Dishman Hill area, formation of the conservation area stimulated development of a management plan for 500 acres of land adjoining the property.  Any management on the property will be within the parameters developed by the management plan, which will be made with local participation.  The private sector must raise over one million dollars in matching money to acquire natural area preserves.  This approach is better than enacting regulations.  The stewardship account assures future ability to manage the land.

(Appropriations) It is necessary to act now to set aside lands.  The effect of the tax ($60 on a $100,000 home) has little or no effect on real estate transactions.  The purchase of the Dishman Hills area resulted in a management plan for 500 acres adjoining the conservation area.  The purchase of Cypress Island will prompt a donation of additional private land adjacent to the conservation area.

House Committee - Testimony Against:      (Natural Resources and Parks) None Presented.

(Appropriations) Extending the tax is reneging on a promise made during the 1987 session that the tax would end in June 1989.  The tax is regressive and discriminatory.  The fund source should be the general fund.