SENATE BILL REPORT

                            HB 1809

AS REPORTED BY COMMITTEE ON NATURAL RESOURCES, MARCH 29, 1993

Brief Description:  Permitting the pooling of department of natural resources trust management accounts.

SPONSORS: Representatives Locke and Wang

HOUSE COMMITTEE ON APPROPRIATIONS

SENATE COMMITTEE ON NATURAL RESOURCES

Majority Report:  Do pass as amended. 

     Signed by Senators Owen, Chairman; Hargrove, Vice Chairman; Franklin, Haugen, Oke, Snyder, and Spanel.

Staff:  Vic Moon (786‑7469)

Hearing Dates: March 24, 1993; March 29, 1993

BACKGROUND:

The Department of Natural Resources manages approximately 2.1 million acres of state trustlands.  The department is required by both state Constitution and statute to manage these lands for designated public beneficiaries.  Revenues are generated from timber sales, leases, sale of materials, and interest income, and redirected back to the specific trust beneficiary in the capital budget.

The department receives a portion of trust revenues to pay the costs of managing the trust.  Up to 25 percent of the revenues from these lands are deposited into the Resource Management Cost Account (RMCA).  The department is required to account for management funds from each specific trust.  The revenues deposited into the RMCA from the common school trustlands are required to be expended in support of managing the same common school trustlands.

Trustland categories include the common schools, the University of Washington, Washington State University, the regional universities, the capitol buildings and grounds, and charitable, educational, penal and reform institutions.

SUMMARY:

The department is given additional flexibility for managing and expending trust management revenues.  Revenues deposited into the account are pooled, and lose their separate trust identity.  The department is no longer required to account for and expend revenue in the RMCA by each separate trust category. 

SUMMARY OF PROPOSED SENATE AMENDMENT:

A July 1, 1994 effective date is added to the bill.

Appropriation:  none 

Revenue:  none

Fiscal Note:  requested

TESTIMONY FOR:

The bill will make accounting easier for DNR.

TESTIMONY AGAINST:  None

TESTIFIED:  Pat McElroy, Dept. of Natural Resources