FINAL BILL REPORT

SB 5076

C 28 L 03

Synopsis as Enacted

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

Sponsors: Senators Morton, Fraser, T. Sheldon and Doumit; by request of Commissioner of Public Lands.

Senate Committee on Natural Resources, Energy & Water

House Committee on Agriculture & Natural Resources

Background: The Department of Natural Resources (DNR) sells geoducks and other valuable materials from state-owned aquatic lands. Generally, DNR awards sales of valuable materials to the highest responsible bidders at public auctions. In determining a highest responsible bidder, DNR may consider (in addition to bid price) a bidder's ability to perform the contract, whether the bidder has previously complied with the terms of past contracts, whether the bidder has been convicted of a crime related to public lands or natural resources, and whether the bidder is controlled by, or will subcontract with, bidders that are not responsible. If DNR finds that a high bidder meets any of these criteria, it may award the sale to the next highest responsible bidder or reject all bids.

DNR lacks explicit authority to include a bidder's prior failure to complete a sale as grounds for rejecting a bid. Uncompleted sales can cause delays in harvest and increased expense to DNR before the agency can offer the sale again.

Summary: In addition to bid price, DNR may consider whether a bidder for a sale of valuable materials from state-owned aquatic lands has, in the past five years, failed to complete a sale that he or she was awarded. Failure to complete a sale includes not entering into a resulting contract or not paying the difference between the deposit and the total amount due. If DNR determines that an apparent high bidder failed to complete a sale, it may award the sale to the next highest responsible bidder or reject all bids. DNR may not consider failures to complete sales bid prior to January 1, 2003.

Votes on Final Passage:

Senate       49  0

House       90  2

Effective: July 27, 2003