AN
ACT Relating to the establishment of procedures for direct sale of timber from
state-owned land; and amending RCW 79.01.132 and 79.01.184.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
79.01.132 and 1989 c 148 s 1 are each amended to read as follows:
When
any timber, fallen timber, stone, gravel, or other valuable material on state
lands is sold separate from the land, it may be sold as a lump sum sale or as a
scale sale. Lump sum sales under five thousand dollars appraised value shall
be paid for in cash. The initial deposits required in RCW 79.01.204, not to
exceed twenty-five percent of the actual or projected purchase price, but in
the case of lump sum sales over five thousand dollars not less than five
thousand dollars, shall be made on the day of the sale, and in the case of
those sales appraised below the amount specified in RCW 79.01.200, the
department of natural resources may require full cash payment on the day of
sale. The purchaser shall notify the department of natural resources before
any timber is cut and before removal or processing of any valuable materials on
the sale area, at which time the department of natural resources may require,
in the amount determined by the department, advance payment for the removal,
processing, and/or cutting of timber or other valuable materials, or bank
letters of credit, payment bonds, or assignments of savings accounts acceptable
to the department as adequate security. The amount of such advance payments
and/or security shall at all times equal or exceed the value of timber cut and
other valuable materials processed or removed until paid for. The initial
deposit shall be maintained until all contract obligations of the purchaser are
satisfied: PROVIDED HOWEVER, That all or a portion of said initial deposit may
be applied as the final payment for said materials in the event the department
of natural resources determines that adequate security exists for the
performance or fulfillment of any remaining obligations of the purchaser under
the sale contract.
In
all cases where timber, fallen timber, stone, gravel, or other valuable
material is sold separate from the land, the same shall revert to the state if
not removed from the land within the period specified in the sale contract.
Said specified period shall not exceed five years from the date of the purchase
thereof: PROVIDED, That the specified periods in the sale contract for stone,
sand, fill material, or building stone shall not exceed twenty years: PROVIDED
FURTHER, That in all cases where, in the judgment of the department of natural
resources, the purchaser is acting in good faith and endeavoring to remove such
materials, the department of natural resources may extend the time for the removal
thereof for any period not exceeding twenty years from the date of purchase for
the stone, sand, fill material or building stone or for a total of ten years
beyond the normal termination date specified in the original sale contract for
all other material, upon payment to the state of a sum to be fixed by the
department of natural resources, based on the estimated loss of income per acre
to the state resulting from the granting of the extension but in no event less
than fifty dollars per extension, plus interest on the unpaid portion of the
contract. The interest rate shall be fixed, from time to time, by rule adopted
by the board of natural resources and shall not be less than six percent per
annum. The applicable rate of interest as fixed at the date of sale and the
maximum extension payment shall be set forth in the contract. The method for
calculating the unpaid portion of the contract upon which such interest shall
be paid by the purchaser shall be set forth in the contract. The department of
natural resources shall pay into the state treasury all sums received for such
extension and the same shall be credited to the fund to which was credited the
original purchase price of the material so sold((: AND PROVIDED FURTHER,
That any sale of valuable materials of an appraised value of one thousand
dollars or less may be sold directly to the applicant for cash at full
appraised value without notice or advertising)). However, a direct sale
of valuable materials may be sold to the applicant for cash at full appraised
value without notice or advertising. The board of natural resources shall, by
resolution, establish the value amount of a direct sale not to exceed twenty
thousand dollars in appraised sale value, and establish procedures to assure
that competitive market prices and accountability will be guaranteed.
The
provisions of this section apply unless otherwise provided by statute.
The
board of natural resources shall establish procedures to protect against cedar
theft and to ensure adequate notice is given for persons interested in
purchasing cedar.
Sec.
2. RCW
79.01.184 and 1989 c 148 s 2 are each amended to read as follows:
When
the department of natural resources shall have decided to sell any state lands
or valuable materials thereon, or with the consent of the board of regents of
the University of Washington, or by legislative directive, shall have decided
to sell any lot, block, tract, or tracts of university lands, or the timber,
fallen timber, stone, gravel, or other valuable material thereon it shall be
the duty of the department to forthwith fix the date, place, and time of sale,
and no sale shall be had on any day which is a legal holiday.
The
department shall give notice of the sale by advertisement published not less
than two times during a four week period prior to the time of sale in at least
one newspaper of general circulation in the county in which the whole, or any
part of any lot, block, or tract of land to be sold, or the material upon which
is to be sold is situated, and by causing a copy of said notice to be posted in
a conspicuous place in the department's Olympia office and the region
headquarters administering such sale and in the office of the county auditor of
such county, which notice shall specify the place and time of sale, the
appraised value thereof, and describe with particularity each parcel of land to
be sold, or from which valuable materials are to be sold, and in case of
material sales the estimated volume thereof, and specify that the terms of sale
will be posted in the region headquarters and the department's Olympia office((:
PROVIDED, That any sale of valuable materials of an appraised value of one
thousand dollars or less may be sold directly to the applicant for cash at the
full appraised value without notice or advertising)). However, a direct
sale of valuable materials may be sold to the applicant for cash at full
appraised value without notice or advertising. The board of natural resources
shall, by resolution, establish the value amount of a direct sale not to exceed
twenty thousand dollars in appraised sale value, and establish procedures to
assure that competitive market prices and accountability will be guaranteed.
