SENATE BILL REPORT
SB 6536
BYSenators McDonald, Bluechel, Talmadge, Anderson, Vognild, Kreidler, McMullen, Bailey, Gaspard, Metcalf and Warnke; by request of Department of Natural Resources
Providing for the purchase of state forest lands.
Senate Committee on Ways & Means
Senate Hearing Date(s):January 29, 1990; February 1, 1990
Majority Report: That Substitute Senate Bill No. 6536 be substituted therefor, and the substitute bill do pass.
Signed by Senators McDonald, Chairman; Bailey, Bauer, Bluechel, Cantu, Gaspard, Hayner, Johnson, Lee, Moore, Niemi, Owen, Saling, Smith, Talmadge, Warnke.
Senate Staff:Michael Groesch (786-7715)
February 2, 1990
AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 1, 1990
BACKGROUND:
Rapid growth and development in forested areas in the Puget Sound has exacerbated the problems of dwindling timber supply. Continuing expansion of residential development threatens to reduce the amount of sustainable commercial forestry in Washington by reducing the acreage available for forestry and by creating pressures to limit the cut levels and to alter management practices. Forest land owners succumb to financial temptation to remove land from forest production as land values related to development rise higher than the prospective profits from timber production.
The Legislature provided a mechanism for the acquisition and management of state forest land during the 1920's and 1930's. That was a period when lack of capital for reforestation, cut and run forest practices and land abandonment threatened to reduce the state's timber supply.
Lands under state supervision are held and managed by the Department of Natural Resources are either Granted Trusts or Forest Board Trust Lands. Of the Forest Board Trusts, the lands fall into one of two categories: the Forest Board Transfer Lands and the Forest Board Purchase Lands
Forest Board Transfer Lands come under state management primarily due to land abandonment and tax foreclosures. Forest land which reverts to the counties may be transferred to the state for management. The state obtained approximately 544,000 acres of land through the transfer. Forest Board Purchase Lands are bought by the state directly from land owners. The state has purchased forest land in 18 counties and holds 80,000 acres.
The Department of Natural Resources authority to acquire forest land through purchase is found under RCW 76.12.080. Currently a lid exists on the purchase price the state may pay for forest land. The maximum price is $2 per acre for unstocked land and $6 per acre for stocked land.
The distribution of proceeds from the lease of land or the sale of timber or minerals from the land differs depending on its designation as Forest Board Transfer Lands or Forest Purchase Lands.
Fifty percent of the proceeds from Purchase Lands is deposited in the Forest Development Account (FDA) to fund DNR management activities. The remaining 50 percent is allocated to the county where the land lies and to the state general fund for the benefit of public schools. That portion distributed to the state general fund is based on the regular school levy rate and any levy rate for maintenance and operation special school levies.
Twenty-five percent of the proceeds from Transfer Lands are deposited in the FDA while the remainder is paid to the county and distributed in the same manner as property taxes. In this case the proceeds which fall to schools are a one-to-one reduction to revenues received by schools from the state general fund for basic education.
SUMMARY:
The department may acquire forest land suitable for commercial forestry. In selecting lands consideration shall be given to consolidating and building blocks of publicly owned forest lands. The land must be in danger of being parceled or converted to nonforest uses. Additional benefits of watershed protection, wildlife habitat, open space and recreation may be considered.
Funding is provided for the acquisition of lands by depositing the general fund or school district portion of the proceeds from Transfer Lands and Purchase Lands into the Forest Development Account.
The department is prohibited from leasing land acquired with these funds.
The lid on the amount the state may pay per acre of forest lands is removed and "fair market value" is substituted.
The acquisition of timberland by the state under this authority shall not result in compensating property tax due.
EFFECT OF PROPOSED SUBSTITUTE:
The community college forest reserve account is created as a source of funding for the capital construction needs of state community colleges. The account is funded from timber sale proceeds from the newly acquired lands authorized for purchase in this bill.
The proceeds from sale of timber on these newly acquired lands are distributed as follows: 25 percent to the forest development account for the management of the lands; the remainder distributed to the community college forest reserve account and the county where the land lies according to the relative proportions of tax levies of all taxing districts in the county. The portion to the community college forest reserve account is based on the school levy rate.
Clarifying language is added to emphasize the multiple use provisions regarding forest lands.
Appropriation: none
Revenue: yes
Fiscal Note: available
Senate Committee - Testified: Jack Hornung, Issaquah Alps Trail Club; Brian Boyle, Commissioner of Public Lands; Judy Turpin, Washington Environmental Council