BP BHEAD INT S [atlas:bill]

AN ACT Relating to the management expenses for the agricultural college trust lands managed by the department of natural resources; amending RCW 79.64.020, 79.64.030, and 79.64.040; adding a new section to chapter 79.64 RCW; and providing an effective date.

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

Sec. 1. 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 and the making and administering of leases, sales, contracts, licenses, permits, easements, and rights of way as authorized under the provisions of this title. The resource management cost account may receive and accept funds for trust management purposes from any source. Appropriations from the account to the department shall be expended for no other purposes. Funds in the account may be appropriated or transferred by the legislature for the benefit of ((~~all of~~)) the trust((s)) from which the funds were derived.

Sec. 2. 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~~)) state lands of the same trust. 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. Costs and expenses necessarily incurred in managing and administering agricultural college lands shall not be deducted from proceeds derived from the sale of agricultural college lands including the sale of resources that are part of those lands. Costs and expenses incurred in managing and administering agricultural college lands shall be funded by appropriation from the state general fund, which shall be deposited into the resource management cost account.

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

For the trust lands identified in RCW 79.64.030 other than the agricultural college lands, 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. Moneys received 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.

NEW SECTION. Sec. 4. A new section is added to chapter 79.64 RCW to read as follows:

(1) The legislature shall create a ten-year endowment sufficient in amount to cover costs and expenses reasonably incurred by the department in managing and administering the agricultural college lands. The need for a funding horizon longer than a biennium relates to the business practices associated with managing trust lands including but not limited to long-term leases, multiyear timber sale contracts, and the cyclical nature of the timber market. The legislature shall appropriate from the state general fund nine million four hundred fifty thousand dollars to fund the ten-year endowment, over the period July 1, 1998, to June 30, 2008.

(2) This endowment shall be deposited in the resource management cost account and shall be expended solely for the purpose of defraying the costs and expenses necessarily incurred in managing and administering the agricultural college trust lands.

(3) The department shall submit a request during the 2008 legislative session to replenish the endowment.

NEW SECTION. Sec. 5. This act takes effect July 1, 1998.

NEW SECTION. Sec. 6. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.