Provides that a city with a population of five hundred thousand or greater has sixty days from the effective date of this section to negotiate a lease of aquatic lands with the department. If the city fails to negotiate the lease of aquatic lands, the department may: (1) Impose the lease conditions of a county with a population of one million or greater; or

(2) Enforce the provisions of this act.

Provides that a city with a population of five hundred thousand or greater must agree to all department lease conditions for leased aquatic lands or the department must cancel the lease and put the lease up for bid.

Provides that, if a city with a population of five hundred thousand or greater fails to vacate the leased aquatic lands within thirty days of the lease cancellation, then the department must assess a one thousand dollar per day penalty on the city, with the funds going into the aquatic lands enhancement account, created in RCW 79.105.150.

Requires the department to submit a report to the legislature by January 1, 2007, reporting on the status of this act in order to ensure that the intent of the legislature is carried out.