SENATE BILL REPORT

                  SSB 6090

               As Passed Senate, April 15, 1999

Title:  An act relating to funding management of agricultural college lands.

Brief Description:  Modifying provisions that relate to the management and administration of agricultural college lands.

Sponsors:  Senate Committee on Ways & Means (originally sponsored by Senator Loveland).

Brief History:

Committee Activity:  Ways & Means:  4/1/99, 4/2/99 [DPS].

Passed Senate, 4/15/99, 45-0.

SENATE COMMITTEE ON WAYS & MEANS

Majority Report:  That Substitute Senate Bill No. 6090 be substituted therefor, and the substitute bill do pass.

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

Staff:  Steve Jones (786-7440)

Background:  By the act of Congress granting statehood to the state of Washington (the Enabling Act), various federal lands were granted to the state, in trust, to support state institutions, such as colleges and the common schools.  A portion of these lands were dedicated to an agricultural college, which became Washington State University.  These agricultural trust lands, which consist primarily of timber lands, are managed by the Department of Natural Resources.  The lands generate income from timber sales, leases, mineral rights, and other sources.  Under state law, the Department of Natural Resources is allowed to deduct up to 25 percent of this income to reimburse the department for the costs incurred in managing and administering the trust lands.  The department deposits this income, along with income derived from other trust lands under its management, in the Resource Management Cost Account.

Federal law (known as the Morrill Act) prohibits the deduction of management expenses from the income of the agricultural trust lands.

Summary of Bill:  A new account, the Agricultural College Trust Management Account, is created for the purposes of making appropriations for the management costs of the agricultural trust lands.  The account consists of such funds as the Legislature appropriates or deposits to the account.  Income from the agricultural trust lands is no longer deposited in the Resource Management Cost Account, and no portion of the income may be deducted for management costs.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  The bill contains an emergency clause and takes effect on July 1, 1999.

Testimony For:  None.

Testimony Against:  None.

Testified:  No one.