BP BHEAD INT S

AN ACT Relating to the trust land transfer program; adding a new chapter to Title 79 RCW; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. It is the intent of the legislature to establish a public process and clear guidelines for the trust land transfer program. Since 1989, the trust land transfer program has provided an innovative way to infuse money into the public school construction fund, protect properties with significant natural, park, or recreational attributes, eliminate lands that cannot be harvested, and acquire replacement trust properties better suited to produce revenue for the trusts. The program:

(1) Provides revenue for the construction of public schools by depositing the timber value of the transfer properties into the common school construction account, while not actually harvesting the timber;

(2) Deposits into the trust land replacement account the proceeds associated with the land value that are then used to purchase replacement properties that have better income potential for common school trust beneficiaries; and

(3) Transfers to more appropriate ownership common school trust lands with very significant natural, park, or recreational attributes, that are difficult to manage for income production.

NEW SECTION. Sec. 2. The board of natural resources shall develop criteria to remove lands from trust status and to implement this chapter. The criteria shall be submitted to the appropriate standing committees of the legislature for their review by August 15, 1996.

Following legislative review, the board of natural resources shall hold public hearings throughout the state on the criteria. The criteria shall be adopted by the board of natural resources by rule by December 31, 1996.

There are two major categories of lands that may be removed from trust:

(1) Lands that cannot be harvested:

(a) That timber on lands to be transferred shall be impossible to harvest due to economic considerations; and

(b) Lands constrained by environmental mandates under state or federal law.

(2) Lands that may not be harvested because of other values:

(a) Where public use, such as recreation, is more important than management for timber income; and

(b) Where environmental and fish and wildlife use is not mandated but is deemed important.

NEW SECTION. Sec. 3. (1) There must be a clear identification of the reason the property is being considered for transfer.

(2) The department of natural resources must establish a list of properties that would be eligible under the two considerations for removing lands from trust under section 2 (1) and (2) of this act, and the department of natural resources must set up a property selection process. The department of natural resources must develop a prioritized list of properties that the receiving agencies may choose from. The receiving agencies may choose potential transfer properties from this list.

(3) A second list developed by the receiving agencies must identify properties of significance on recreational, environmental, wildlife, or other considerations.

NEW SECTION. Sec. 4. The department of natural resources shall attempt to maintain a minimum aggregate ratio of approximately eighty-five to fifteen timber-to-land value in the transactions authorized by this chapter. If the aggregate value of timber-to-land varies by more than plus or minus five percent of that ratio, individual land acquisitions may be dropped in order to maintain the approximate ratio. Intergrant exchanges between common school and other trust lands of equal value may occur if the exchange is in the interest of each trust, as determined by the board of natural resources.

NEW SECTION. Sec. 5. There must be a determination as to which public entity receives the transfer property. Possible entities include state parks, the department of fish and wildlife, the department of natural resources, and may also include federal and local agencies. A process for including nonstate entities should be developed and encouraged as a means to maximize public recreation and conservation and to include other entities that may have better means of addressing the ongoing maintenance and operation needs of the property once it is removed from trust status.

The receiving entity should demonstrate the ability to manage the property according to state and local weed, fire, and safety criteria.

NEW SECTION. Sec. 6. (1) The land and timber covered by this chapter shall be appraised and purchased at full market value.

(2) The proceeds of the sales of timber shall be deposited by the department of natural resources in the same manner as timber revenues from other common school trust lands except that no deductions shall be made for the resource management cost account under RCW 79.64.040.

(3) The proceeds of the sales of land authorized by this chapter shall be used by the department of natural resources to acquire replacement timberland of equal value to be managed as common school trust land and to maintain a sustainable yield.

(4) The department of natural resources shall develop standards to implement section 5 of this act.

NEW SECTION. Sec. 7. (1) The lands and timber purchased under this section shall be managed under either chapter 79.68, 79.70, or 79.71 RCW, as determined by the board of natural resources.

(2) The board of natural resources shall report to the appropriate standing committees of the legislature on the management direction each biennium.

NEW SECTION. Sec. 8. The department of natural resources shall appoint an advisory committee within thirty days of the effective date of this chapter. The department of natural resources shall work regularly with the advisory committee on the trust land transfer program. The advisory committee shall include representatives of each of the following:

(1) The common school trust land trust beneficiary;

(2) The county governments of timber counties located in eastern Washington;

(3) The county governments of timber counties located in western Washington;

(4) The environmental community;

(5) The private timber industry;

(6) The parks and recreation commission; and

(7) The department of fish and wildlife.

NEW SECTION. Sec. 9. The criteria required under this chapter shall be used for the evaluation of lands and resources. The department of natural resources, after approval by the board of natural resources, shall submit a list of requests by November 1st of each year so that the legislature may consider the requests in the capital budget.

NEW SECTION. Sec. 10. The department of natural resources must hold a public hearing in an area impacted by the land transfer. Prior notice must be given by the department of natural resources to abutting landowners or lessees concerning all transfers covered by this chapter.

NEW SECTION. Sec. 11. (1) Each county commissioner of a county with public land or timber that is affected by a proposed change in status of land or timber must be notified.

(2) Prior notice of a proposed land or timber transfer covered by this chapter must be given to the local fire protection districts and school districts that are affected.

(3) Public land or timber transfers covered by this chapter must be carried out in cooperation with other interested state and federal agencies.

NEW SECTION. Sec. 12. Sections 1 through 11 of this act shall constitute a new chapter in Title 79 RCW.

NEW SECTION. Sec. 13. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.