BP BHEAD INT S [atlas:bill]

AN ACT Relating to establishing a program to compensate for state trust lands with high recreational values; reenacting and amending RCW 43.84.092, 43.84.092, and 43.84.092; adding a new chapter to Title 79 RCW; creating a new section; making appropriations; providing effective dates; and providing an expiration date.

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

NEW SECTION. Sec. 1. (1) The legislature finds there are increasing recreational use pressures on state trust lands, and that pressure for these public uses will only intensify as the state's population continues to grow, as private lands are increasingly gated off and restricted from public use, and as fees on private facilities continue to rise. The legislature further finds that increased public recreational use and demand have complicated public lands management and created new challenges for the department. These pressures can conflict with the ability and demand to generate revenue for the trust beneficiaries and recipients of forest board land revenues, and can also increase management costs.

(2) The legislature finds it to be in the public interest to protect, by leasing, certain trust lands that are difficult to manage for revenue production because these lands are extensively and intensively used for recreation purposes. Therefore, the legislature finds that, in addition to the traditional fee simple transfer of certain trust lands out of trust status, a new tool is needed to accommodate increasing recreational use on state lands while still providing revenue to the trusts. The new tool shall allow, contingent on public funding, for the public to enter into a recreational conservation lease covering eligible trust lands managed by the department.

(3) The legislature finds that public use of department managed roads results in multiple impacts and associated costs. These impacts cause approximately five to eight percent of the impact on the over fourteen thousand miles of department managed roads. Therefore, in an attempt to cover the costs related to road impacts associated with public use, recreational lease rates shall include, in addition to the lease rate, a fee adequate to cover public use associated road maintenance and repair work during the term of the lease.

NEW SECTION. Sec. 2. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Department" means the department of natural resources.

(2) "Recreational conservation lease" means a lease authorized and approved by the department on granted trust lands for a period of up to thirty years with the purpose of enabling department land managers to better manage and meet demands for recreational use while ensuring trust lands are not adversely impacted by the recreational use.

(3) "Municipal watershed protection lease" means a lease authorized and approved by the department on state trust lands for a period of up to thirty years with the purpose of enabling the department to (a) alter its land management practices on public lands lying within the limits of any watershed over and through which is derived the water supply of any city or town and (b) provide water with qualities exceeding standards established for intrastate and interstate waters by the department of ecology.

NEW SECTION. Sec. 3. (1) The public land recreational conservation lease program is created within the department. The board of natural resources shall develop a process to implement this program which directs the department to identify, evaluate, and prioritize public lands appropriate to encumber with a recreational conservation lease. Under the public land recreational conservation lease program the department may authorize recreational conservation leases on selected department managed trust lands that are (a) identified as areas experiencing high public use and demand for access; (b) experiencing high levels of concerns about timber harvesting; and (c) in close proximity to urban population centers. The recreational conservation leases shall contain provisions and compensation for reducing timber harvest on the identified trust lands by up to twenty percent, for a period of up to thirty years. The lease shall include a rental value associated directly with the value of the timber harvest deferred and will be deposited as all other lease revenues. The lease shall also include a fee adequate to cover existing maintenance and operation costs for authorized recreational uses on the leased site and a fee to cover anticipated public use-associated road maintenance and repair work during the term of the lease. The recreational conservation lease may apply to an entire state forest or land block, or to individually identified parcels within a state forest or land block. The tools to achieve this reduced harvest level may include: Smaller clear cuts; greater use of noninvasive harvesting techniques; and enhanced protective buffers along trail corridors, road corridors, and recreational areas. If a state forest or state block of land includes a campground or trail head covered by an existing lease but the existing lease does not include compensation for maintenance and operation of the leased site, the existing lease shall remain in effect; however, the existing leased site shall be eligible for inclusion in the new recreational conservation lease as long as the terms of the original lease are not negated or impaired. If a state forest or state block of land includes an existing trail easement, this easement remains in effect, but the trail with the easement is eligible for inclusion in the recreational conservation lease.

(2) The rental value of the recreational conservation lease shall be associated directly with the value of the timber harvest deferred and will be deposited as all other lease revenues. At the end of the ten-year lease, the department may negotiate a new lease, contingent upon funding. For the duration of the lease, the land shall be managed by the department under applicable forest practices rules and other applicable agreements, but overall harvest rates shall be reduced up to twenty percent, as agreed to in each individual lease agreement.

NEW SECTION. Sec. 4. Four pilot recreational conservation leases shall be initiated by the department. The four pilot lease sites shall be the Yacolt State Forest, Elbe Hills State Forest, Tiger Mountain State Forest, and the Blanchard Hill area block. The terms of the lease shall reduce timber harvests on each site by up to twenty percent over a ten-year period. The amount of the reduced harvest shall be determined by the department based on the harvest levels planned for the areas, the level of appropriation, and the location of authorized recreational uses within the state.

NEW SECTION. Sec. 5. (1) The public land recreational conservation lease account is created in the custody of the state treasurer. All receipts from gifts, grants, endowments, and legislative appropriations for the public land recreational lease program must be deposited into the account. Expenditures from the account may be used only for costs associated with the public land recreational conservation lease program. Only the commissioner of public lands or the commissioner's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

(2) The department may receive gifts, grants, or endowments from public or private sources that are made from time to time, in trust or otherwise, for the use and benefit of the purposes of the public land recreational conservation lease account and spend gifts, grants, or endowments or income from the public or private sources according to their terms, unless the receipt of the gifts, grants, or endowments violates RCW 42.17.710.

NEW SECTION. Sec. 6. (1) Effective July 1, 2000, the sum of eleven million two hundred eighty-five thousand dollars, or as much thereof as may be necessary, is transferred from the general fund to the public land recreational conservation lease account for covering the recreational management costs and road use costs associated with public use for each of the four pilot recreational conservation leases developed under section 4 of this act. "Costs" includes maintenance and operation of all facilities and trails, including administration, salaries, materials, various contracts, and Washington conservation corps' crews; and education and enforcement officers on each of the four pilot sites. "Costs" also includes the costs related to public use road impacts under section 3 of this act.

(2) The sum of twenty-four million three hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 2001, from the state building construction account to the department of natural resources to use to compensate trust land beneficiaries and forest board counties for the deferred timber value on the four pilot recreational conservation leases identified in section 4 of this act.

NEW SECTION. Sec. 7. The proceeds of the lease attributed to timber value shall be deposited by the department in the same manner as lease revenues from other trust lands. Deductions for the cost of administering such transactions shall be as set forth in RCW 79.64.040, 76.12.030, or 76.12.120, depending on the lands leased. These deductions shall cover all reasonable costs incurred by the department to implement this chapter.

NEW SECTION. Sec. 8. Sections 1 through 5 and 7 of this act constitute a new chapter in Title 79 RCW.

NEW SECTION. Sec. 9. If specific funding for section 4 of this act, referencing section 4 of this act by section and bill number, is not provided by June 30, 1999, in section 6 of this act or the omnibus appropriations act, section 4 of this act is null and void.

Sec. 10. RCW 43.84.092 and 1999 c 380 s 8, 1999 c 309 s 928, 1999 c 268 s 4, and 1999 c 94 s 2 are each reenacted and amended to read as follows:

(1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.

(2) The treasury income account shall be utilized to pay or receive funds associated with federal programs as required by the federal cash management improvement act of 1990. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for refunds or allocations of interest earnings required by the cash management improvement act. Refunds of interest to the federal treasury required under the cash management improvement act fall under RCW 43.88.180 and shall not require appropriation. The office of financial management shall determine the amounts due to or from the federal government pursuant to the cash management improvement act. The office of financial management may direct transfers of funds between accounts as deemed necessary to implement the provisions of the cash management improvement act, and this subsection. Refunds or allocations shall occur prior to the distributions of earnings set forth in subsection (4) of this section.

(3) Except for the provisions of RCW 43.84.160, the treasury income account may be utilized for the payment of purchased banking services on behalf of treasury funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasury and affected state agencies. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.

(4) Monthly, the state treasurer shall distribute the earnings credited to the treasury income account. The state treasurer shall credit the general fund with all the earnings credited to the treasury income account except:

(a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the common school construction fund, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the drinking water assistance account, the Eastern Washington University capital projects account, the education construction fund, the emergency reserve fund, the federal forest revolving account, the health services account, the public health services account, the health system capacity account, the personal health services account, the state higher education construction account, the higher education construction account, the highway infrastructure account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the medical aid account, the mobile home park relocation fund, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the perpetual surveillance and maintenance account, the public employees' retirement system plan 1 account, the public employees' retirement system plan 2 account, the public land recreational conservation lease account, the Puyallup tribal settlement account, the resource management cost account, the site closure account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the teachers' retirement system plan 1 account, the teachers' retirement system plan 2 account, the tobacco prevention and control account, the tobacco settlement account, the transportation infrastructure account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' and reserve officers' relief and pension principal ((~~account~~)) fund, the volunteer fire fighters' ((~~relief and pension~~)) and reserve officers' administrative ((~~account~~)) fund, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan 1 retirement account, the Washington law enforcement officers' and fire fighters' system plan 2 retirement account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(b) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The aeronautics account, the aircraft search and rescue account, the county arterial preservation account, the department of licensing services account, the essential rail assistance account, the ferry bond retirement fund, the grade crossing protective fund, the high capacity transportation account, the highway bond retirement fund, the highway safety account, the marine operating fund, the motor vehicle fund, the motorcycle safety education account, the pilotage account, the public transportation systems account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the recreational vehicle account, the rural arterial trust account, the safety and education account, the special category C account, the state patrol highway account, the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation improvement board bond retirement account, and the urban arterial trust account.

(5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

Sec. 11. RCW 43.84.092 and 1999 c 380 s 8, 1999 c 309 s 928, 1999 c 268 s 4, 1999 c 94 s 3, and 1999 c 94 s 2 are each reenacted and amended to read as follows:

(1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.

(b) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The aeronautics account, the aircraft search and rescue account, the county arterial preservation account, the department of licensing services account, the essential rail assistance account, the ferry bond retirement fund, the grade crossing protective fund, the high capacity transportation account, the highway bond retirement fund, the highway safety account, the motor vehicle fund, the motorcycle safety education account, the pilotage account, the public transportation systems account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the recreational vehicle account, the rural arterial trust account, the safety and education account, the special category C account, the state patrol highway account, the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation improvement board bond retirement account, and the urban arterial trust account.

(5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

Sec. 12. RCW 43.84.092 and 1999 c 380 s 9, 1999 c 309 s 929, 1999 c 268 s 5, and 1999 c 94 s 4 are each reenacted and amended to read as follows:

(1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.

(a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the common school construction fund, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the drinking water assistance account, the Eastern Washington University capital projects account, the education construction fund, the emergency reserve fund, the federal forest revolving account, the health services account, the public health services account, the health system capacity account, the personal health services account, the higher education construction account, the highway infrastructure account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the medical aid account, the mobile home park relocation fund, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the perpetual surveillance and maintenance account, the public employees' retirement system plan 1 account, the public employees' retirement system plan 2 account, the public land recreational conservation lease account, the Puyallup tribal settlement account, the resource management cost account, the site closure account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state higher education construction account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the teachers' retirement system plan 1 account, the teachers' retirement system combined plan 2 and plan 3 account, the tobacco prevention and control account, the tobacco settlement account, the transportation infrastructure account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' and reserve officers' relief and pension principal ((~~account~~)) fund, the volunteer fire fighters' ((~~relief and pension~~)) and reserve officers' administrative ((~~account~~)) fund, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan 1 retirement account, the Washington law enforcement officers' and fire fighters' system plan 2 retirement account, the Washington school employees' retirement system combined plan 2 and 3 account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(b) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The aeronautics account, the aircraft search and rescue account, the county arterial preservation account, the department of licensing services account, the essential rail assistance account, the ferry bond retirement fund, the grade crossing protective fund, the high capacity transportation account, the highway bond retirement fund, the highway safety account, the motor vehicle fund, the motorcycle safety education account, the pilotage account, the public transportation systems account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the recreational vehicle account, the rural arterial trust account, the safety and education account, the special category C account, the state patrol highway account, the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation improvement board bond retirement account, and the urban arterial trust account.

(5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

NEW SECTION. Sec. 13. Sections 10 and 11 of this act expire September 1, 2000.

NEW SECTION. Sec. 14. (1) Section 11 of this act takes effect July 1, 2000.

(2) Section 12 of this act takes effect September 1, 2000.