BP BHEAD INT S [atlas:bill]

AN ACT Relating to grazing leases; and amending RCW 79.01.242, 79.28.040, and 79.28.050.

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

Sec. 1. RCW 79.01.242 and 1984 c 222 s 12 are each amended to read as follows:

(1) Subject to other provisions of this chapter and subject to rules adopted by the board of natural resources, the department may lease state lands for purposes it deems advisable, including, but not limited to, commercial, industrial, residential, agricultural, and recreational purposes in order to obtain a fair market rental return to the state or the appropriate constitutional or statutory trust. Every lease issued by the department, shall contain: (a) The specific use or uses to which the land is to be employed; (b) the improvements required: PROVIDED, That a minimum reasonable time is allowed for the completion of the improvements; (c) the rent is payable in advance in quarterly, semiannual, or annual payments, as determined by the department or as agreed upon by the lessee and the department of natural resources; (d) other terms and conditions as the department deems advisable, subject to review by the board of natural resources, to more nearly effectuate the purposes of the state Constitution and of this chapter.

(2) The department may authorize the use of state land by lease at state auction for initial leases or by negotiation for existing leases. Notice of intent to lease by negotiation shall be published in at least two newspapers of general circulation in the area in which the land which is to be the subject of negotiation is located within the ninety days immediately preceding commencement of negotiations.

(3) Leases which authorize commercial, industrial, or residential uses on state lands may be entered into by negotiation. Negotiations shall be subject to rules of the board of natural resources. At the option of the department, these leases may be placed for bid at public auction.

(4) Any person, firm or corporation desiring to lease any state lands for any purpose not prohibited by law, may make application to the department, describing the lands sought to be leased on forms to be provided by the department.

(5) Notwithstanding any provision in this chapter to the contrary, in leases for residential purposes, the board of natural resources may waive or modify any conditions of the lease if the waiver or modification is necessary to enable any federal agency or lending institution authorized to do business in this state or elsewhere in the United States to participate in any loan secured by a security interest in a leasehold interest.

(6) Upon expiration of the lease term, if the leased land is not otherwise utilized, the department may allow the lessee to continue to hold the land for a period not exceeding one year upon such rent, terms, and conditions as the department may prescribe. Upon the expiration of the one year extension, if the department has not yet determined the disposition of the land for other purposes, the department may issue a temporary permit to the lessee upon terms and conditions it prescribes. The temporary permit may not extend beyond a five year period.

(7) Any lease or permit for grazing shall require that the lessee or permittee actually carry out a bona fide commercial grazing operation. Unexcused failure to actually carry out a bona fide commercial grazing operation during each year of the lease or permit shall result in the cancellation of the lease or permit, without compensation to the lessee or permittee, and placement for bid at public auction to another lessee or permittee who will actually carry out a bona fide commercial grazing operation. Failure to actually carry out a bona fide commercial grazing operation may be excused by the department if the lessee or permittee has attempted to actually carry out a bona fide commercial grazing operation, but has been unable to do so for a valid reason.

Sec. 2. RCW 79.28.040 and 1923 c 85 s 1 are each amended to read as follows:

The commissioner of public lands shall have the power, and it shall be ((~~his~~)) the commissioner's duty, to adopt ((~~and promulgate~~)), from time to time, reasonable rules ((~~and regulations~~)) for the grazing of livestock on such tracts and areas of the indemnity or lieu public lands of the state contiguous to national forests and suitable for grazing purposes, as have been, or shall be, obtained from the United States under the provisions of RCW 79.28.010.

Any lease or permit for grazing shall require that the lessee or permittee actually carry out a bona fide commercial grazing operation. Unexcused failure to actually carry out a bona fide commercial grazing operation during each year of the lease or permit shall result in cancellation of the lease or permit, without compensation to the lessee or permittee, and placement for bid at public auction to another lessee or permittee who will actually carry out a bona fide commercial grazing operation. Failure to actually carry out a bona fide commercial grazing operation may be excused by the department if the lessee or permittee has attempted to actually carry out a bona fide commercial grazing operation, but has been unable to do so for a valid reason.

Sec. 3. RCW 79.28.050 and 1983 c 3 s 202 are each amended to read as follows:

The commissioner of public lands shall have the power to issue permits for the grazing of livestock on the lands described in RCW 79.28.040 in such manner and upon such terms, as near as may be, as permits are, or shall be, issued by the United States for the grazing of livestock on national forest reserve lands and for such fees as he or she shall deem adequate and advisable, and shall have the power to enter into such arrangements as may be deemed advisable and to cooperate with the officers of the United States having charge of the grazing of livestock on forest reserve lands for the protection and preservation of the grazing areas on the state lands contiguous to national forests and for the administration of the provisions of RCW 79.28.040 and 79.28.050.