Subject of Possible Rule Making: Lease rates for the water-dependent use of state-owned aquatic land are calculated according to a formula established in RCW 79.90.480 and WAC 332-30-123. The formula is based upon the assessed value of the upland tax parcel used in conjunction with the leased area, and includes provisions for selecting an alternate upland tax parcel when the upland parcel used in conjunction with the leased area is not assessed or has an assessed value inconsistent with the purposes of the lease. The Department of Natural Resources (DNR) Aquatic Resources Division is exploring options to modify the alternate upland parcel selection criteria contained in WAC 332-30-123, which imposes limitations on the selection of alternate upland tax parcels in these circumstances, and in certain situations, prevents the establishment of equitable and predictable lease rates as required by RCW 79.90.450.

     Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 79.90.480, 79.90.540.

     Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: WAC 332-30-123 narrows the upland parcel selection criteria established in RCW 79.90.480 and imposes limitations on the selection of alternate upland tax parcels for purposes of calculating lease rates, thereby limiting the number of potential alternate upland parcels upon which to base lease rates. The DNR Aquatic Resources Division is exploring options to modify the alternate upland parcel selection criteria contained in WAC 332-30-123 to better accomplish the goal of establishing equitable and predictable lease rates for the water-dependent use of state-owned aquatic land, and invites public comment as to how this may best be accomplished.

     Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: Responsibility for administering the proposed rule will lie with DNR and ports that have entered into port management agreements with DNR. No other federal or state agencies participate in the determination of water-dependent lease rates on state-owned aquatic lands.

     Process for Developing New Rule: DNR will contact stakeholders and affected parties and entities to solicit their participation in the rule development process.

     Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication. The Department of Natural Resources encourages your active participation in the rule-making process. For more information, please contact Matt Niles, Aquatic Resources Division, Washington State Department of Natural Resources, P.O. Box 47027, Olympia, WA 98504-7020, phone (360) 902-1100, fax (360) 902-1786, e-mail matthew.niles@wadnr.gov.

November 3, 2004

Doug Sutherland

Commissioner of Public Lands

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