BILL REQ. #:  S-3564.4 

Read first time 01/13/2004.   Referred to Committee on Higher Education.

     AN ACT Relating to transferring federally granted higher education trust lands to other public uses; amending RCW 79.64.110 and 28B.14H.110; adding a new section to chapter 79.02 RCW; adding a new section to chapter 79.22 RCW; creating a new section; and making an appropriation.

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

NEW SECTION.  Sec. 1   (1) By June 30, 2005, the department of natural resources shall transfer from trust status: (a) Certain agricultural college trust lands and scientific school trust lands, as determined on June 30, 2004, by Washington State University, with a value of not less than sixty percent of the appropriation in section 5 of this act; (b) certain university trust lands, as determined on June 30, 2004, by the University of Washington, with a value of not less than twenty percent of the appropriation in section 5 of this act; and (c) certain normal school trust lands, as determined on June 30, 2004, by Eastern Washington University, Central Washington University, Western Washington University, and The Evergreen State College, with a value of not less than twenty percent of the appropriation in section 5 of this act. Lands transferred from trust status are to be managed as public land by the department pursuant to section 3 of this act.
     (2) Lands and resources transferred under this section shall be appraised and transferred at fair market value. The value of the land and resources transferred shall be deposited by the department of natural resources to the appropriate permanent fund in the same manner as revenues from other trust lands. No deduction shall be made for the resource management cost account under RCW 79.64.040.
     (3) All reasonable costs incurred by the department of natural resources to implement this section may be paid out of the appropriation in section 5 of this act. Authorized costs include the actual cost of appraisals, staff time, environmental reviews, surveys, and other similar costs.
     (4) Prior to or concurrent with conveyance of these properties, the department of natural resources shall execute and record a real property instrument that dedicates the transferred properties to the purposes identified in section 3 of this act.

NEW SECTION.  Sec. 2   A new section is added to chapter 79.02 RCW to read as follows:
     Any normal school lands, agricultural college lands, scientific school lands or university lands that are transferred from trust status, and for which the trust is fully compensated for the fair market value of the lands, shall be managed as other state lands pursuant to section 3 of this act.

NEW SECTION.  Sec. 3   A new section is added to chapter 79.22 RCW to read as follows:
     (1) Land purchased, transferred, or otherwise acquired by gift or exchange under section 2 of this act shall be managed in perpetuity and in the same manner as state lands for sustainable commercial forestry and multiple use of lands consistent with RCW 79.10.120.
     (2) The land is reserved from sale, except that the timber and other products on the land may be sold, or the land may be leased in the same manner and for the same purposes as authorized for state granted lands if the department finds the sale or lease to be in the best interest of the state and approves the terms and conditions of the sale or lease.
     (3) The land exchange and acquisition powers provided in RCW 79.17.020 may be used by the department to reposition land.

Sec. 4   RCW 79.64.110 and 2003 c 334 s 207 are each amended to read as follows:
     Any moneys derived from the lease of state forest lands or from the sale of valuable materials, oils, gases, coal, minerals, or fossils from those lands, must be distributed as follows:
     (1) State forest lands acquired through RCW 79.22.040 or by exchange for lands acquired through RCW 79.22.040:
     (a) The expense incurred by the state for administration, reforestation, and protection, not to exceed twenty-five percent, which rate of percentage shall be determined by the board, must be returned to the forest development account in the state general fund.
     (b) Any balance remaining must be paid to the county in which the land is located to be paid, distributed, and prorated, except as otherwise provided in this section, to the various funds in the same manner as general taxes are paid and distributed during the year of payment.
     (c) Any balance remaining, paid to a county with a population of less than sixteen thousand, must first be applied to the reduction of any indebtedness existing in the current expense fund of the county during the year of payment.
     (d) With regard to moneys remaining under this subsection (1), within seven working days of receipt of these moneys, the department shall certify to the state treasurer the amounts to be distributed to the counties. The state treasurer shall distribute funds to the counties four times per month, with no more than ten days between each payment date.
     (2) State forest lands acquired through RCW 79.22.010 or by exchange for lands acquired through RCW 79.22.010, except as provided in RCW 79.64.120:
     (a) Fifty percent shall be placed in the forest development account.
     (b) Fifty percent shall be prorated and distributed to the state general fund, to be dedicated for the benefit of the public schools, and the county in which the land is located according to the relative proportions of tax levies of all taxing districts in the county. The portion to be distributed to the state general fund shall be based on the regular school levy rate under RCW 84.52.065 and the levy rate for any maintenance and operation special school levies. With regard to the portion to be distributed to the counties, the department shall certify to the state treasurer the amounts to be distributed within seven working days of receipt of the money. The state treasurer shall distribute funds to the counties four times per month, with no more than ten days between each payment date. The money distributed to the county must be paid, distributed, and prorated to the various other funds in the same manner as general taxes are paid and distributed during the year of payment.
     (3) State forest lands acquired through section 3 of this act:
     (a) Twenty-five percent shall be placed in the forest development account; and
     (b) Seventy-five percent shall be distributed to the state general fund.

NEW SECTION.  Sec. 5   The sum of one hundred million dollars, or as much thereof as may be necessary, is appropriated from the Gardner-Evans higher education construction account to the department of natural resources for the fiscal year ending June 30, 2005, solely for the purposes of section 1 of this act.

Sec. 6   RCW 28B.14H.110 and 2003 1st sp.s. c 18 s 13 are each amended to read as follows:
     The Gardner-Evans higher education construction account is created in the state treasury. Proceeds from the bonds issued under RCW 28B.14H.020 shall be deposited in the account. The account shall be used for purposes of RCW 28B.14H.020 and transferring from trust status certain trust lands granted to the state for the benefit of institutions of higher education. Moneys in the account may be spent only after appropriation.