SENATE BILL REPORT

                   SB 5651

              As Reported By Senate Committee On:

   Natural Resources, Parks & Recreation, February 11, 1999

                  Ways & Means, March 2, 1999

Title:  An act relating to timber sales.

Brief Description:  Requiring a purchaser of timber by contract to provide proof of payment of all taxes before release of a performance bond.

Sponsors:  Senators Winsley and Loveland.

Brief History:

Committee Activity:  Natural Resources, Parks & Recreation:  2/8/99, 2/11/99 [DPS-WM].

Ways & Means:  2/25/99, 3/2/99 [DPS (NRPR)].

SENATE COMMITTEE ON NATURAL RESOURCES, PARKS & RECREATION

Majority Report:  That Substitute Senate Bill No. 5651 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways & Means.

  Signed by Senators Jacobsen, Chair; T. Sheldon, Vice Chair; Hargrove, Oke, Rossi, Snyder and Spanel.

Staff:  Victor Moon (786-7469)

SENATE COMMITTEE ON WAYS & COMMITTEE

Majority Report:  That Substitute Senate Bill No. 5651 as recommended by Committee on Natural Resources, Parks & Recreation be substituted therefor, and the substitute bill do pass.

  Signed by Senators Loveland, Chair; Bauer, Vice Chair; Brown, Vice Chair; Fraser, Honeyford, Kline, Kohl-Welles, Long, McDonald, Rasmussen, Roach, Rossi, B. Sheldon, Snyder, Spanel, Thibaudeau, West, Winsley, Wojahn and Zarelli.

Staff:  David Schumacher (786-7474)

Background:  When timber is purchased at public auction from the Department of Natural Resources, the purchaser must deliver a performance bond or sureties acceptable in regards to the terms and the amount due to the Department of Natural Resources.  Following the time that the timber is cut, the state releases the sureties or the bond.  At the present time, there is no requirement that all taxes must be paid by the purchaser when the bond is released.

Summary of Substitute Bill:  The purchaser of timber must pay all taxes including the excise and personal property taxes that are due or that become due as a result of a timber contract. The county treasurer must provide a receipt to the purchaser within 30 days.

Substitute Bill Compared to Original Bill:  The 30-day time limit is added relating to the receipt from the county treasurer.

Appropriation:  None.

Fiscal Note:  Not requested.

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

Testimony For:  Counties are not always able to collect the property tax due on timber sold under contract.

Testimony Against:  None.

Testified:  Rose Bowman, Lewis County Treasurer; Fred Saeger, Assn. of County Elected Officials.