SENATE BILL REPORT

HB 1247

As of March 17, 2003

Title: An act relating to the highest responsible bidder for sales of valuable materials from state-owned aquatic lands.

Brief Description: Determining a "highest responsible bidder" for valuable materials from state-owned aquatic lands.

Sponsors: Representatives Eickmeyer, Schoesler, Rockefeller, Sump, Linville, Orcutt, Mielke and Woods; by request of Commissioner of Public Lands.

Brief History:

Committee Activity: Natural Resources, Energy & Water: 3/21/03.

SENATE COMMITTEE ON NATURAL RESOURCES, ENERGY & WATER

Staff: Sam Thompson (786-7413)

Background: The Department of Natural Resources (DNR) manages all state-owned aquatic lands and oversees the sale of geoducks and other valuable materials from these lands. Geoduck harvest areas are determined in cooperation with the Department of Fish and Wildlife and tribal co-managers, and harvest contracts are auctioned by DNR to the highest responsible bidder.

DNR may consider a number of factors in addition to price when awarding geoduck harvest contracts, including the financial ability of the bidder to perform the contract and any past criminal convictions of the bidder. DNR does not, however, have explicit authority to include a prior failure to complete a sale as grounds for rejecting a bid. Sales that are not completed can cause delays in harvest and increased expense to DNR before the sale can be offered again.

Summary of Bill: When determining the highest responsible bidder for a sale of valuable materials from state-owned aquatic lands, DNR may consider whether the bidder was the highest bidder on a sale within the past five years, but failed to complete the sale. DNR may not consider sale bids prior to January 1, 2003.

Appropriation: None.

Fiscal Note: Not requested.

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