BILL REQ. #:  S-1147.1 

READ FIRST TIME 01/30/09.   

     AN ACT Relating to creating a pilot vessel amnesty disposal program within the department of natural resources; amending RCW 79.100.100; creating new sections; and providing an expiration date.

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

NEW SECTION.  Sec. 1   The legislature finds that the derelict vessel removal program has proven highly successful. A vessel generally becomes abandoned or derelict after a long chain of legal ownership transactions in which successive owners either lack the inclination or financial resources to properly maintain the vessel and pass it along in progressive stages of decline. The result is a decrepit vessel selling for nominal cost to someone who cannot bring it back to a safe working condition, or properly dispose of it. The vessel often becomes abandoned or derelict, resulting in cost to the state for removal and disposal. It is more expensive to solve the problem at this point. Therefore, the legislature authorizes the department of natural resources to create a pilot vessel amnesty disposal program to prevent vessels from becoming abandoned or derelict and to address this issue when it is less expensive and poses fewer threats.

NEW SECTION.  Sec. 2   (1) The department of natural resources, through its derelict vessel removal program, shall develop and administer a pilot vessel amnesty disposal program.
     (2) The purpose of the pilot vessel amnesty disposal program is to allow the department to dismantle and dispose of vessels that pose a high risk of becoming a derelict vessel or abandoned vessel, but that do not yet meet the definition of "derelict vessel" or "abandoned vessel" as those terms are defined under RCW 79.100.010. The department of natural resources shall seek to dismantle and dispose of as many vessels as possible, particularly those posing the greatest risk of becoming abandoned or derelict in the future.
     (3) In determining the geographic scope of the pilot vessel amnesty disposal program, the department of natural resources shall consider the purpose of the pilot program set forth in subsection (2) of this section. In particular, the department shall give consideration to counties that have experienced the highest number of vessels on the department's inventory of abandoned and derelict vessels, regardless of whether or not the vessels have been removed.
     (4) The department of natural resources shall disseminate information about the pilot vessel amnesty disposal program, including information about the application process, on its internet site and through appropriate agency publications and information sources as determined by the department. The department shall disseminate such information during and for a reasonable time prior to accepting applications, as determined by the department.
     (5) The department of natural resources shall accept and review pilot vessel amnesty disposal program applications from eligible vessel owners during the period or periods identified by the department. To be eligible for the pilot vessel amnesty disposal program, an applicant must demonstrate to the department's satisfaction that the applicant:
     (a) Is a Washington state resident;
     (b) Owns a vessel that is in an advanced state of disrepair, has no material value, and has a high likelihood of becoming an abandoned or derelict vessel as those terms are defined under RCW 79.100.010; and
     (c) Has insufficient resources to properly dispose of the vessel outside of the pilot vessel amnesty disposal program.
     (6) The department of natural resources may take other actions not inconsistent with this section in order to develop and administer the pilot vessel amnesty disposal program.
     (7) The department of natural resources must provide a brief summary of the pilot vessel amnesty disposal program to the appropriate committees of the senate and house of representatives by September 1, 2011, to include information about applications for the pilot vessel amnesty disposal program, the vessels disposed of, and a recommendation whether the pilot vessel amnesty disposal program should be made permanent.

NEW SECTION.  Sec. 3   The department of natural resources may expend two hundred thousand dollars, or as much thereof as may be necessary, from any moneys appropriated to the department from the derelict vessel removal account in the omnibus appropriations act for the biennium ending June 30, 2011, for the purposes of this act.

Sec. 4   RCW 79.100.100 and 2007 c 342 s 4 are each amended to read as follows:
     (1) The derelict vessel removal account is created in the state treasury. All receipts from RCW 79.100.050 and 79.100.060 and those moneys specified in RCW 88.02.030 and 88.02.050 must be deposited into the account. The account is authorized to receive fund transfers and appropriations from the general fund, deposits from the derelict vessel removal surcharge under RCW 88.02.270, as well as gifts, grants, and endowments from public or private sources as may be made from time to time, in trust or otherwise, for the use and benefit of the purposes of this chapter and expend the same or any income according to the terms of the gifts, grants, or endowments provided those terms do not conflict with any provisions of this section or any guidelines developed to prioritize reimbursement of removal projects associated with this chapter. Moneys in the account may only be spent after appropriation. Expenditures from the account shall be used by the department: (a) To reimburse authorized public entities for up to ninety percent of the total reasonable and auditable administrative, removal, disposal, and environmental damage costs of abandoned or derelict vessels when the previous owner is either unknown after a reasonable search effort or insolvent; and (b) until June 30, 2011, for the purposes of the pilot vessel amnesty disposal program authorized under this act. Reimbursement shall not be made unless the department determines that the public entity has made reasonable efforts to identify and locate the party responsible for the vessel, regardless of the title of owner of the vessel. Funds in the account resulting from transfers from the general fund or from the deposit of funds from the watercraft excise tax as provided for under RCW 82.49.030 shall be used to reimburse one hundred percent of these costs and should be prioritized for the removal of large vessels. Costs associated with removal and disposal of an abandoned or derelict vessel under the authority granted in RCW 53.08.320 also qualify for reimbursement from the derelict vessel removal account. In each biennium, up to twenty percent of the expenditures from the account may be used for administrative expenses of the department of licensing and department of natural resources in implementing this chapter.
     (2) If the balance of the account reaches one million dollars as of March 1st of any year, exclusive of any transfer or appropriation of funds into the account or funds deposited into the account collected under RCW 88.02.270, the department must notify the department of licensing and the collection of any fees associated with this account must be suspended for the following fiscal year.
     (3) Priority for use of this account is for the removal of derelict and abandoned vessels that are in danger of sinking, breaking up, or blocking navigation channels, or that present environmental risks such as leaking fuel or other hazardous substances. The department must develop criteria, in the form of informal guidelines, to prioritize removal projects associated with this chapter, but may not consider whether the applicant is a state or local entity when prioritizing. The guidelines must also include guidance to the authorized public entities as to what removal activities and associated costs are reasonable and eligible for reimbursement.
     (4) The department must keep all authorized public entities apprized of the balance of the derelict vessel removal account and the funds available for reimbursement. The guidelines developed by the department must also be made available to the other authorized public entities. This subsection (4) must be satisfied by utilizing the least costly method, including maintaining the information on the department's internet web site, or any other cost-effective method.
     (5) An authorized public entity may contribute its ten percent of costs that are not eligible for reimbursement by using in-kind services, including the use of existing staff, equipment, and volunteers.
     (6) This chapter does not guarantee reimbursement for an authorized public entity. Authorized public entities seeking certainty in reimbursement prior to taking action under this chapter may first notify the department of their proposed action and the estimated total costs. Upon notification by an authorized public entity, the department must make the authorized public entity aware of the status of the fund and the likelihood of reimbursement being available. The department may offer technical assistance and assure reimbursement for up to two years following the removal action if an assurance is appropriate given the balance of the fund and the details of the proposed action.

NEW SECTION.  Sec. 5   Sections 1 through 4 of this act expire June 30, 2011.