SENATE BILL REPORT

                  SHB 2461

              As Reported By Senate Committee On:

         Natural Resources & Parks, February 26, 1998

Title:  An act relating to moneys derived from state forest lands.

Brief Description:  Requiring a timely distribution of certain state forest land funds back to the counties.

Sponsors:  House Committee on Natural Resources (originally sponsored by Representatives Buck, Sump, Kessler, Schoesler, Benson, Koster, DeBolt, McMorris, Alexander, Gardner, Linville, Thompson and Mulliken).

Brief History:

Committee Activity:  Natural Resources & Parks:  2/26/98 [DP].

SENATE COMMITTEE ON NATURAL RESOURCES & PARKS

Majority Report:  Do pass.

  Signed by Senators Oke, Chair; Rossi, Vice Chair; Hargrove, Jacobsen, Morton, Prentice, Roach, Snyder, Spanel, Stevens and Swecker.

Staff:  Vic Moon (786-7469)

Background:  The Department of Natural Resources manages "forest board lands" in 21 counties.  The forest board lands come in two categories:  forest board transfer lands and forest board purchase lands.  The forest board transfer lands are forest lands that were largely acquired by counties through tax lien foreclosures, then transferred to state ownership for management by the department as state forest lands.  The department manages approximately 545,000 acres of these lands.  When a revenue-generating activity such as a timber sale occurs on the lands, the department may deduct up to 25 percent of the proceeds for administration, reforestation, and protection of the forest lands. The balance of the revenue goes to the respective counties and is distributed among various funds in the same manner as general tax dollars are distributed.  Forest board purchase lands were acquired by the state by either purchase or gift; the department manages just under 78,000 acres of these forest lands.  After a 50 percent deduction for the department, the revenue from these lands goes to the state general fund for the support of public schools and to the counties with the same distribution as the transfer land revenues. 

When revenues are generated from the forest board lands, the department receives the revenue first.  After deducting a percentage, the department transfers the money to the State Treasurer, who then distributes the funds to the counties.

Summary of Bill:  With regard to the distribution of revenues to counties from forest board lands, the Department of Natural Resources must certify to the State Treasurer the amounts to be distributed to the counties within seven working days of receipt of the money.  The State Treasurer must distribute the funds to the counties four times per month, with no more than 10 days between each payment date.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This bill will create a better flow of funds and will give the counties additional interest money.

Testimony Against:  None.

Testified:  PRO:  Rose Amurao, DNR; Ruth Gerdon, Clallam County Treasurer.