BILL REQ. #:  S-0414.5 

Read first time 01/20/2005.   Referred to Committee on Natural Resources, Ocean & Recreation.

     AN ACT Relating to the timber land revitalization board; amending RCW 84.33.041, 84.33.051, 84.33.081, 43.84.092, and 79.17.200; reenacting and amending RCW 43.84.092; adding a new chapter to Title 76 RCW; creating a new section; making appropriations; providing an effective date; and providing an expiration date.

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

NEW SECTION.  Sec. 1   The legislature finds that more than half of the state's forty-two and one-half million acres are forest lands and that the majority of these lands are available for harvest. However, many of the state's forest lands are threatened by conversion to nonforest uses, mostly from commercial and residential development. In addition, worldwide fiber commodity prices, increased environmental regulations, and changing patterns in corporate and individual ownership of forest lands are also contributing to the declines in forest lands in the state. Therefore, it is the intent of this act to provide greater state financial assistance to revitalize and maintain forest lands in the state, through creation of a funding board to make grants on a competitive basis that support protection of the forest land base and that assist in developing innovative strategies for supporting economically and environmentally healthy forests and forest-dependent communities.

NEW SECTION.  Sec. 2   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Board" means the timber land revitalization board created in section 3 of this act.
     (2) "Department" means the department of natural resources.
     (3) "Priority needs areas" means the geographic areas identified by the department for priority lands to be addressed under the forest legacy program.

NEW SECTION.  Sec. 3   (1) The timber land revitalization board is created. The board is composed of five members, of whom four members must be appointed by the governor. The commissioner of public lands shall serve ex officio as a voting member of the board. In making appointments, the governor shall provide for representation of the interests of industrial forest landowners, nonindustrial forest landowners, local governments, and nonprofit citizen organizations involved with the revitalization of timber lands and protection of the state's forest land base. The governor shall solicit and give substantial consideration to nominations provided by organizations representing these interests. Appointments to the board by the governor are subject to senate confirmation.
     (2) The governor shall select a chair from among the members of the board.
     (3) Board members serve four-year terms, except that the governor shall designate two of the initial appointments to serve for a term of two years. The terms commence January 1, 2006.
     (4) Staff support to the board shall be provided by the department. For administrative purposes, the board shall be located within the department.
     (5) Members of the board shall be compensated as provided by RCW 43.03.250, and reimbursed for travel expenses as provided by RCW 43.03.050 and 43.03.060.

NEW SECTION.  Sec. 4   (1) The board is responsible for making grants and loans for the revitalization of timber lands consistent with the procedures and criteria of section 5 of this act, from the amounts appropriated to the board for this purpose. To accomplish this purpose, the board may:
     (a) Provide assistance to grant applicants regarding the procedures and criteria for grant and loan awards;
     (b) Make and execute all manner of contracts and agreements with public and private parties as the board deems necessary, consistent with the purposes of this chapter;
     (c) Accept any gifts, grants, or loans of funds, property, or financial or other aid in any form from any other source on any terms that are not in conflict with this chapter;
     (d) Adopt rules under chapter 34.05 RCW as necessary to carry out the purposes of this chapter; and
     (e) Do all acts necessary or convenient to carry out the powers expressly granted or implied under this chapter.
     (2) The department shall provide all necessary grant and loan administration assistance to the board, and shall distribute and account for funds appropriated or provided to the board for the purposes of this chapter.

NEW SECTION.  Sec. 5   (1) During each fiscal biennium, the board's total grants and loans are subject to the following limitations:
     (a) Not less than thirty percent and not more than forty percent of the total must be awarded for projects and activities that sustain the forest land base and strengthen the connection between economic health and conservation of forests in Washington. Such activities may include but are not limited to:
     (i) Programs or projects to support small timber landowners including such strategies as group timber certification, group habitat conservation plans, group cash flow pools, stewardship collaboration, and technical support;
     (ii) Programs or projects that test methods for recreation access and cost-share programs;
     (iii) Programs or projects that test methods to assist forest landowners in providing carbon sequestration, water recharge, and other natural resource services; and
     (iv) Programs or projects that test methods to support forest landowners' efforts at cost control, such as law enforcement, road gates, and cleanup of illegal dumping.
     (b) Not less than thirty percent and not more than forty percent of the total must be awarded for projects and activities that preserve forest lands over the long term for working forestry. Such activities may include but are not limited to:
     (i) The acquisition of interests in forest lands for the purpose of protecting the lands for working forestry;
     (ii) Developing and implementing cooperative agreements with forest landowners for maintaining working forestry; and
     (iii) Other activities using conservation techniques such as clustering development rights, transfer of development rights, and land exchanges.
     (c) Not less than thirty percent and not more than forty percent of the total must be awarded for planning, research, and policy development related to revitalizing working forests in the state.
     (2) The board shall adopt guidelines for the amount of nonstate resources that must be committed for grants or loans from the categories established by the board. The amount may not be less than ten percent of the amount of the grant or loan from the board.
     (3) The board shall also adopt guidelines that limit the amount of a grant or loan that may be allocated to administrative or other expenses of a grant or loan recipient that are not directly applied to the working forestry revitalization activities of the grant or loan.
     (4) The board shall accord additional weight to applications that address forest lands within priority needs areas.
     (5) During each fiscal year commencing July 1, 2006, and ending June 30, 2015, the board shall establish a goal of disbursing a minimum of twenty-five percent of the total funds awarded by the board in the form of low-interest loans. However, if the board determines that there are not sufficient applications for eligible projects to meet this goal, the board may award a lesser amount as loans, or may hold funds until the next funding cycle to encourage a greater number of loan applications.

NEW SECTION.  Sec. 6   The forestry revitalization account is created in the state treasury. The account consists of moneys deposited under RCW 84.33.081 and other funds deposited into the account by the legislature. Moneys received by the state for distribution by the board created in section 3 of this act shall be deposited in the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used for working forestry revitalization through the program authorized in sections 1 through 5, 13, and 14 of this act.

NEW SECTION.  Sec. 7   The forestry revitalization revolving account is created in the state treasury. The account shall consist of all repayments of principle and interest on loans extended by the board under this chapter, of federal funds that may be provided to capitalize the account, and of appropriations to the account. All interest earned on moneys deposited in the account, including repayments, shall remain in the account and may be used for any eligible purpose. Money in the account shall be used by the board to make loans under the procedures and criteria of sections 4 and 5 of this act. Disbursements from the account are subject to legislative appropriation, and shall be upon the authorization of the board.

Sec. 8   RCW 84.33.041 and 1991 sp.s. c 13 s 26 are each amended to read as follows:
     (1) An excise tax is imposed on every person engaging in this state in business as a harvester of timber on privately or publicly owned land. The tax is equal to the stumpage value of timber harvested for sale or for commercial or industrial use multiplied by the rate provided in this chapter.
     (2) A credit is allowed against the tax imposed under this section for any tax paid under RCW 84.33.051.
     (3) Moneys received as payment for the tax imposed under this section and RCW 84.33.051 shall be deposited in the timber tax distribution account ((hereby established in the state treasury)).

Sec. 9   RCW 84.33.051 and 2004 c 177 s 2 are each amended to read as follows:
     (1) The legislative body of any county may impose a tax upon every person engaging in the county in business as a harvester effective October 1, 1984. The tax shall be equal to the stumpage value of timber harvested from privately owned land multiplied by a rate of 4 percent; and equal to the stumpage value of timber harvested from publicly owned land multiplied by the following rates:
     (a) For timber harvested January 1, 2005, through December 31, 2005, 1.2 percent;
     (b) For timber harvested January 1, 2006, through December 31, 2006, 1.5 percent;
     (c) For timber harvested January 1, 2007, through December 31, 2007, 1.8 percent;
     (d) For timber harvested January 1, 2008, through December 31, 2008, 2.1 percent;
     (e) For timber harvested January 1, 2009, through December 31, 2009, 2.4 percent;
     (f) For timber harvested January 1, 2010, through December 31, 2010, 2.7 percent;
     (g) For timber harvested January 1, 2011, through December 31, 2011, 3.1 percent;
     (h) For timber harvested January 1, 2012, through December 31, 2012, 3.4 percent;
     (i) For timber harvested January 1, 2013, through December 31, 2013, 3.7 percent;
     (j) For timber harvested January 1, 2014, and thereafter, 4.0 percent.
     (2) Before the effective date of any ordinance imposing a tax under this section, the county shall contract with the department of revenue for administration and collection of the tax. The tax collected by the department of revenue under this section shall be deposited by the department in the timber tax distribution account. ((Moneys in the account may be spent only for distributions to counties under RCW 84.33.081 and, after appropriation by the legislature, for the activities undertaken by the department of revenue relating to the collection and administration of the taxes imposed under this section and RCW 84.33.041. Appropriations are not required for distributions to counties under RCW 84.33.081.))

Sec. 10   RCW 84.33.081 and 1985 c 184 s 1 are each amended to read as follows:
     (1) The timber tax distribution account is created in the state treasury. All receipts identified in RCW 84.33.041 must be deposited in the account. Moneys in the account may be used only for distributions to counties and to the forestry revitalization account under this section. Appropriations are not required for distributions to counties under this section.
     (2) On the last business day of the second month of each calendar quarter, the state treasurer shall distribute from the timber tax distribution account to each county the amount of tax collected on behalf of each county under RCW 84.33.051, less each county's proportionate share of appropriations for collection and administration activities under RCW 84.33.051, and shall transfer to the ((state general fund)) forestry revitalization account the amount of tax collected on behalf of the state under RCW 84.33.041, less the state's proportionate share of appropriations for collection and administration activities under RCW 84.33.041. The county treasurer shall deposit moneys received under this section in a county timber tax account which shall be established by each county. Following receipt of moneys under this section, the county treasurer shall make distributions from any moneys available in the county timber tax account to taxing districts in the county, except the state, under subsections (((2))) (3) through (((4))) (5) of this section.
     (((2))) (3) From moneys available, there first shall be a distribution to each taxing district having debt service payments due during the calendar year, based upon bonds issued under authority of a vote of the people conducted pursuant to RCW 84.52.056 and based upon excess levies for a capital project fund authorized pursuant to RCW 84.52.053, of an amount equal to the timber assessed value of the district multiplied by the tax rate levied for payment of the debt service and capital projects: PROVIDED, That in respect to levies for a debt service or capital project fund authorized before July 1, 1984, the amount allocated shall not be less than an amount equal to the same percentage of such debt service or capital project fund represented by timber tax allocations to such payments in calendar year 1984. Distribution under this subsection (((2))) (3) shall be used only for debt service and capital projects payments. The distribution under this subsection shall be made as follows: One-half of such amount shall be distributed in the first quarter of the year and one-half shall be distributed in the third quarter of the year.
     (((3))) (4) From the moneys remaining after the distributions under subsection (((2))) (3) of this section, the county treasurer shall distribute to each school district an amount equal to one-half of the timber assessed value of the district or eighty percent of the timber roll of such district in calendar year 1983 as determined under this chapter, whichever is greater, multiplied by the tax rate, if any, levied by the district under RCW 84.52.052 or 84.52.053 for purposes other than debt service payments and capital projects supported under subsection (((2))) (3) of this section. The distribution under this subsection shall be made as follows: One-half of such amount shall be distributed in the first quarter of the year and one-half shall be distributed in the third quarter of the year.
     (((4))) (5) After the distributions directed under subsections (((2))) (3) and (((3))) (4) of this section, if any, each taxing district shall receive an amount equal to the timber assessed value of the district multiplied by the tax rate, if any, levied as a regular levy of the district or as a special levy not included in subsection (((2))) (3) or (((3))) (4) of this section.
     (((5))) (6) If there are insufficient moneys in the county timber tax account to make full distribution under subsection (((4))) (5) of this section, the county treasurer shall multiply the amount to be distributed to each taxing district under that subsection by a fraction. The numerator of the fraction is the county timber tax account balance before making the distribution under that subsection. The denominator of the fraction is the account balance which would be required to make full distribution under that subsection.
     (((6))) (7) After making the distributions under subsections (((2))) (3) through (((4))) (5) of this section in the full amount indicated for the calendar year, the county treasurer shall place any excess revenue up to twenty percent of the total distributions made for the year under subsections (((2))) (3) through (((4))) (5) of this section in a reserve status until the beginning of the next calendar year. Any moneys remaining in the county timber tax account after this amount is placed in reserve shall be distributed to each taxing district in the county in the same proportions as the distributions made under subsection (((4))) (5) of this section.

Sec. 11   RCW 43.84.092 and 2003 c 361 s 602, 2003 c 324 s 1, 2003 c 150 s 2, and 2003 c 48 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 drinking water assistance administrative account, the drinking water assistance repayment account, the Eastern Washington University capital projects account, the education construction fund, the election account, the emergency reserve fund, The Evergreen State College capital projects account, the federal forest revolving account, the forestry revitalization 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 multimodal transportation account, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the oyster reserve land account, the perpetual surveillance and maintenance account, the public employees' retirement system plan 1 account, the public employees' retirement system combined plan 2 and plan 3 account, the public facilities construction loan revolving account beginning July 1, 2004, the public health supplemental account, the public works assistance account, the Puyallup tribal settlement account, the regional transportation investment district 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 Tacoma Narrows toll bridge 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 fund, the volunteer fire fighters' and reserve officers' administrative fund, the Washington fruit express account, 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 health insurance pool 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 2003 account (nickel 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 2004 c 242 s 60 are each 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 drinking water assistance administrative account, the drinking water assistance repayment account, the Eastern Washington University capital projects account, the education construction fund, the election account, the emergency reserve fund, The Evergreen State College capital projects account, the federal forest revolving account, the forestry revitalization 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 multimodal transportation account, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the oyster reserve land account, the perpetual surveillance and maintenance account, the public employees' retirement system plan 1 account, the public employees' retirement system combined plan 2 and plan 3 account, the public facilities construction loan revolving account beginning July 1, 2004, the public health supplemental account, the public works assistance account, the Puyallup tribal settlement account, the regional transportation investment district 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 Tacoma Narrows toll bridge 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 fund, the volunteer fire fighters' and reserve officers' administrative fund, the Washington fruit express account, 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 public safety employees' plan 2 retirement account, the Washington school employees' retirement system combined plan 2 and 3 account, the Washington state health insurance pool 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 2003 account (nickel 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   The legislature finds that the western slopes of the Cascade mountain range in Whatcom, Skagit, Snohomish, King, Pierce, and Thurston counties are experiencing increasing demands for a wide range of uses by the growing population in the Puget Sound basin. These lands provide important economic, forest, fish and wildlife, recreation, scenic, educational, and watershed protection benefits to the entire region. The legislature further finds that it is in the public's interest to assist Cascade foothills landowners and communities in conserving responsible, working forestry in the lower elevations of this area to sustain timber-dependent economies while promoting ecological and environmental benefits from the forests.
     Therefore, the legislature creates the Cascade foothills focus area for the purpose of committing state policies and programs to the assistance of landowners and communities in developing and implementing innovative approaches to conserving traditional forestry and related uses of these lands while at the same time accommodating new uses that strengthen their economic and natural benefits. For the purposes of this section and section 14 of this act, the Cascade foothills focus area generally encompasses the nonurbanized lands within the Cascade mountain range and drainages lying between three hundred and three thousand feet above mean sea level, and located within the counties of Whatcom, Skagit, Snohomish, King, Pierce, and Thurston counties.

NEW SECTION.  Sec. 14   During fiscal years 2005 and 2006, the board is authorized to provide grants to applicants that address working forests in the Cascade foothills focus area, where the activities meet one or more of the following criteria:
     (1) The project encompasses a collaboration of diverse stakeholders, such as forest landowners and other private entities, grassroots constituencies, nonprofit organizations, tribal governments, and government agencies;
     (2) The project establishes measurable benchmarks for accomplishing the following objectives:
     (a) Demonstrably enhancing the economies of communities in the Cascade foothills;
     (b) Sustaining environmental functions with emphasis on significant water quality and hydrological functions; and
     (c) Involving and supporting communities lying within the Cascade foothills;
     (3) A project scope that has landscape scale influence;
     (4) A strategy that both retains the region's connections with its historical uses while protecting the region's options for additional uses in the future; or
     (5) A project that demonstrates innovative strategies for accomplishing the project's objectives.

Sec. 15   RCW 79.17.200 and 1992 c 167 s 2 are each amended to read as follows:
     (1) For the purposes of this section, "public agency" means any agency, political subdivision, or unit of local government of this state including, but not limited to, municipal corporations, quasi-municipal corporations, special purpose districts, and local service districts; any agency of the state government; any agency of the United States; and any Indian tribe recognized as such by the federal government.
     (2) With the approval of the board of natural resources, the department of natural resources may directly transfer or dispose of real property, without public auction, in the following circumstances:
     (a) Transfers in lieu of condemnations;
     (b) Transfers to public agencies; ((and))
     (c) Transfers to resolve trespass and property ownership disputes; and
     (d) Transfers to a nonprofit land conservation organization where the purposes and transaction structure are approved by the board of natural resources.
     (3) Real property to be transferred or disposed of under this section shall be transferred or disposed of only after appraisal and for at least fair market value, and only if such transaction is in the best interest of the state or affected trust.

NEW SECTION.  Sec. 16   (1) The sum of seven million five hundred thousand dollars, or as much thereof as may be necessary, is appropriated from the forestry revitalization account to the timber land revitalization board for the biennium ending June 30, 2007, to carry out the purposes of chapter 76.-- RCW (sections 1 through 7, 13, and 14 of this act).
     (2) The sum of two million five hundred thousand dollars, or as much thereof as may be necessary, is appropriated from the forestry revitalization revolving account to the timber land revitalization board for the fiscal year ending June 30, 2007, to carry out the purposes of chapter 76.-- RCW (sections 1 through 7, 13, and 14 of this act).

NEW SECTION.  Sec. 17   On or before June 30, 2006, the treasurer shall transfer two million five hundred thousand dollars from the forestry revitalization account to the forestry revitalization revolving account.

NEW SECTION.  Sec. 18   Sections 1 through 7, 13, and 14 of this act constitute a new chapter in Title 76 RCW.

NEW SECTION.  Sec. 19   Section 11 of this act expires July 1, 2006.

NEW SECTION.  Sec. 20   Section 12 of this act takes effect July 1, 2006.