SENATE BILL REPORT

SB 5502

BYSenators Amondson, Kreidler, Smith and Owen

Revising advertising and sale requirements for valuable materials.

Senate Committee on Environment & Natural Resources

Senate Hearing Date(s):January 31, 1989

Majority Report:  Do pass.

      Signed by Senators Metcalf, Chairman; Amondson, Vice Chairman; Barr, Benitz, DeJarnatt, Kreidler, Owen, Patterson, Sutherland.

Senate Staff:Vic Moon (786-7469)

                  March 9, 1989

AS PASSED SENATE, MARCH 9, 1989

BACKGROUND:

The Department of Natural Resources has the responsibility to manage state-owned trust and grant lands, and to generate income from these lands to support the trust beneficiaries.  One of the ways the department generates income is by the sale of valuable materials from these lands.  Valuable materials includes plants, soil and small amounts of timber.

Minimum advertising requirements for the sale of valuable materials and maximum dollar amounts the department may collect on the day of the sale has been established by the Legislature.  On occasion, income to the trust has been reduced when newspapers have failed to meet the current advertising schedules required by law.  Administration costs and risks of loss are increased on some occasions due to the limited dollar amount the department may collect on the day of the sale.  By modifying the procedures, the department would be able to be more responsive by lowering preparation cost on many sales.  Additional volume of timber should be made available to smaller purchasers and to local mills.

SUMMARY:

The Department of Natural Resources may require full payment on the day of sale for small short-term sales.  The department is given more advertising flexibility for the sale of valuable materials.  The maximum dollar amount for the sale of valuable materials that the department may sell without direct Board of Natural Resources approval is raised from $20,000 to $100,000.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 23, 1989

Senate Committee - Testified: Pat McElroy, Department of Natural Resources (pro)