Z-0654.2  _______________________________________________

                          HOUSE BILL 1880

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State of Washington      55th Legislature     1997 Regular Session

By Representatives Chandler, Sump and Mastin; by request of Washington State University

Read first time 02/12/97.  Referred to Committee on Natural Resources.

Changing provisions relating to Morrill act trust lands.

    AN ACT Relating to Morrill act trust lands and other public trusts; amending RCW 79.01.088, 79.01.136, 79.01.724, 79.64.010, 79.64.020, 79.64.030, 79.64.040, 79.66.050, 79.66.060, and 79.90.100; adding a new section to chapter 79.64 RCW; and declaring an emergency.

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

    Sec. 1.  RCW 79.01.088 and 1982 1st ex.s. c 21 s 151 are each amended to read as follows:

    Any person desiring to purchase any state lands, or to purchase any timber, fallen timber, stone, gravel, or other valuable materials situated on state lands, or to lease any state lands, shall file in the office of the commissioner of public lands an application, on the proper form which shall be accompanied by reasonable fees to be prescribed by the board of natural resources in an amount sufficient to defray the cost of performing or otherwise providing for the processing, review, or inspection of the applications or activities permitted pursuant to the applications for each category of services performed.  If the proposed activity involves Morrill act lands as defined by RCW 79.64.010(6), these fees shall be used to defray any costs or expenses incurred in the management or administration of such lands.  If the proposed activity involves public lands other than the Morrill act lands, these fees shall be credited to the resource management cost account (((RMCA))) fund as established under RCW 79.64.010 ((in the general fund)).

    Sec. 2.  RCW 79.01.136 and 1979 ex.s. c 109 s 5 are each amended to read as follows:

    Before any state lands are offered for sale, or lease, or are assigned, the department of natural resources may establish the fair market value of those authorized improvements not owned by the state.  In the event that agreement cannot be reached between the state and the lessee on the fair market value, such valuation shall be submitted to a review board of appraisers.  The board shall be as follows:  One member to be selected by the lessee and ((his)) the member's expense shall be borne by the lessee; one member selected by the state and ((his)) the member's expense shall be borne by the state; these members so selected shall mutually select a third member and ((his)) the member's expenses shall be shared equally by the lessee and the state.  The majority decision of this appraisal review board shall be binding on both parties.  For this purpose "fair market value" is defined as:  The highest price in terms of money which a property will bring in a competitive and open market under all conditions of a fair sale, the buyer and seller, each prudently knowledgeable and assuming the price is not affected by undue stimulus.  All damages and wastes committed upon such lands and other obligations due from the lessee shall be deducted from the appraised value of the improvements:  PROVIDED, That the department of natural resources on behalf of the respective trust may purchase at fair market value those improvements if it appears to be in the best interest of the state ((from the RMCA of the general fund)).  If the respective trust does not include Morrill act lands as defined in RCW 79.64.010(6), then payment for such improvements may be made with funds held on behalf of such trust in the resource management cost account established under RCW 79.64.020.

    Sec. 3.  RCW 79.01.724 and 1979 ex.s. c 109 s 19 are each amended to read as follows:

    The commissioner of public lands shall keep a fee book, in which shall be entered all fees received by ((him)) the commissioner, with the date paid and the name of the person paying the same, and the nature of the services rendered for which the fee is charged, which book shall be verified monthly by ((his)) the commissioner's affidavit entered ((therein, and all fees collected by him)) in the book.  If the activity for which the fee is assessed involves Morrill act lands as defined by RCW 79.64.010(6), these fees shall be used to defray any expenses incurred in the management or administration of such lands.  If the activity for which the fee is assessed involves public lands other than the Morrill act lands, these fees shall be credited to the resource management cost account fund as established under RCW 79.64.010 in the general fund.  All fees payable to the resource management cost account shall be paid into the state treasury ((to the RMCA within the general fund and the receipt of)).  The state treasurer ((taken therefor and)) shall provide a receipt, and the receipt shall be retained in the office of the commissioner of public lands as a voucher.

    Sec. 4.  RCW 79.64.010 and 1967 ex.s. c 63 s 1 are each amended to read as follows:

    Unless a different meaning is plainly required by the context, the following words and phrases as hereinafter used in this chapter shall have the following meanings:

    (1) "Account" means the resource management cost account in the state general fund.

    (2) "Department" means the department of natural resources.

    (3) "Board" means the board of natural resources of the department of natural resources.

    (4) "Rule" means rule as the same is defined by RCW 34.05.010.

    (5) The definitions set forth in RCW 79.01.004 shall be applicable.

(6) "Morrill act lands" means all public lands awarded to the state of Washington under section 16 of the Omnibus Enabling Act, 25 U.S. Statutes at Large, c 180 p 676, and all lands acquired as the result of the sale or exchange of such lands.

    Sec. 5.  RCW 79.64.020 and 1993 c 460 s 1 are each amended to read as follows:

    A resource management cost account in the state treasury is hereby created to be used solely for the purpose of defraying the costs and expenses necessarily incurred by the department in managing and administering public lands other than the Morrill act lands, and the making and administering of leases, sales, contracts, licenses, permits, easements, and rights of way on or with respect to such lands as authorized under the provisions of this title.  Appropriations from the account to the department shall be expended for no other purposes.  Funds in the account produced by a trust may be appropriated or transferred by the legislature ((for the benefit of all of the trusts from which the funds were derived)) only for the benefit of such trust.

NEW SECTION. Sec. 6.  A new section is added to chapter 79.64 RCW to read as follows:

    All costs and expenses necessarily incurred by the department in managing and administering the Morrill act lands shall be funded from the general fund.  No part of the gross proceeds from leases, sales, contracts, licenses, permits, easements, and rights of way on or relating to the Morrill act lands may be used to defray any costs or expenses incurred in managing and administering such lands, and all such gross proceeds shall be made available to the beneficiary of the Morrill act lands.

    Sec. 7.  RCW 79.64.030 and 1993 c 460 s 2 are each amended to read as follows:

    Funds in the account derived from the gross proceeds of leases, sales, contracts, licenses, permits, easements, and rights of way issued by the department and affecting school lands, university lands, ((agricultural college lands,)) scientific school lands, normal school lands, capitol building lands, or institutional lands shall be ((pooled and)) expended by the department solely for the purpose of defraying the costs and expenses necessarily incurred in managing and administering ((all of the trust lands enumerated in this section.  Such funds may be used for similar costs and expenses in managing and administering other lands managed by the department provided that such expenditures that have been or may be made on such other lands shall be repaid to the resource management cost account together with interest at a rate determined by the board of natural resources)) state lands of the same trust.

    An accounting shall be made annually of the accrued expenditures from the ((pooled)) trust funds in the account.  In the event the accounting determines that expenditures have been made from moneys derived from certain trust lands for the benefit of another trust or other lands, such expenditure shall be considered a debt and an encumbrance against the property or trust benefited, including property held under chapter 76.12 RCW.  The results of the accounting shall be reported to the legislature at the next regular session.  The state treasurer is authorized, upon request of the department, to transfer funds between the forest development account and the resource management cost account solely for purpose of repaying loans pursuant to this section.

    Sec. 8.  RCW 79.64.040 and 1981 2nd ex.s. c 4 s 3 are each amended to read as follows:

    The board shall determine the amount deemed necessary in order to achieve the purposes of this chapter and shall provide by rule for the deduction of this amount from the gross proceeds of all leases, sales, contracts, licenses, permits, easements, and rights of way issued by the department and affecting public lands other than the Morrill act lands.  Moneys received with respect to such lands as deposits from successful bidders, advance payments, and security under RCW 79.01.132 and 79.01.204 prior to December 1, 1981, which have not been subjected to deduction under this section are not subject to deduction under this section.  The deductions authorized under this section shall in no event exceed twenty-five percent of the total sum received by the department in connection with any one transaction pertaining to public lands other than second class tide and shore lands and the beds of navigable waters, and fifty percent of the total gross proceeds received by the department pertaining to second class tide and shore lands and the beds of navigable waters.

    Sec. 9.  RCW 79.66.050 and 1984 c 222 s 5 are each amended to read as follows:

    The legislature may authorize ((appropriation)) the loan of funds from the forest development account or the resource management cost account for the purposes of this chapter.  Income from the sale or management of property in the land bank shall be returned as a recovered expense to the forest development account or the resource management cost account, and any surplus may be used to acquire property under RCW 79.66.020.

    Sec. 10.  RCW 79.66.060 and 1984 c 222 s 6 are each amended to read as follows:

    The department of natural resources shall be reimbursed for actual costs and expenses incurred in managing and administering the land bank program under this chapter from the forest development account or the resource management cost account in an amount not to exceed the limits provided in RCW 79.64.040.  Reimbursement shall occur at such time as the property held in the land bank is transferred to a public land trust, at which time funds held on behalf of such trust by the forest development account or the resource management cost account may be used.  Reimbursement from proceeds of sales shall be limited to marketing costs provided in RCW 79.01.612.

    Sec. 11.  RCW 79.90.100 and 1982 1st ex.s. c 21 s 16 are each amended to read as follows:

    Any person desiring to purchase any tide or shore lands belonging to the state, otherwise permitted under RCW 79.94.150 to be sold, or to purchase any valuable material situated thereon, or to lease any aquatic lands, shall file with the department of natural resources an application, on the proper form which shall be accompanied by reasonable fees to be prescribed by the board of natural resources in its rules and regulations, in an amount sufficient to defray the cost of performing or otherwise providing for the processing, review, or inspection of the applications or activities permitted pursuant to the applications for each category of services performed.  If the proposed activity involves Morrill act lands as defined by RCW 79.64.010(6), these fees shall be used to defray any costs or expenses incurred in the management or administration of such lands.  If the activity for which the fee is assessed involves public lands other than Morrill act lands, these fees shall be credited to the resource management cost account (((RMCA) fund in the general)) fund as established under RCW 79.64.010.

NEW SECTION. Sec. 12.  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 takes effect immediately.

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