Passed by the Senate April 22, 2009 YEAS 32   BRAD OWEN ________________________________________ President of the Senate Passed by the House April 25, 2009 YEAS 94   FRANK CHOPP ________________________________________ Speaker of the House of Representatives | I, Thomas Hoemann, Secretary of the Senate of the State of Washington, do hereby certify that the attached is ENGROSSED SENATE BILL 6166 as passed by the Senate and the House of Representatives on the dates hereon set forth. THOMAS HOEMANN ________________________________________ Secretary | |
Approved May 8, 2009, 10:56 a.m., with
the exception of Section 6 which is
vetoed. CHRISTINE GREGOIRE ________________________________________ Governor of the State of Washington | May 11, 2009 Secretary of State State of Washington |
State of Washington | 61st Legislature | 2009 Regular Session |
AN ACT Relating to the sale of timber from state trust lands; amending RCW 79.15.510, 79.15.520, and 79.15.060; adding a new section to chapter 79.15 RCW; 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 it is in the best
interest of the trust beneficiaries to capture additional revenues
while providing for additional environmental protection and improving
forest health on state trust lands. Further, the legislature finds
that contract harvesting is one method to achieve these desired
outcomes while also providing the department of natural resources with
the ability to offer opportunities to merchandise high value wood. The
legislature intends that the department of natural resources should
have the ability to expand their contract sales in areas where other
sales do not generate as much revenue or provide resource management
benefits. The legislature further intends that the department of
natural resources distribute the increased contract harvest authority
across all trusts and markets.
Sec. 2 RCW 79.15.510 and 2004
c 218 s 6 are each amended to read
as follows:
(1) The department may establish a contract harvesting program for
directly contracting for the removal of timber and other valuable
materials from state lands and for conducting silvicultural treatments
consistent with RCW 79.15.540.
(2) The contract requirements must be compatible with the office of
financial management's guide to public service contracts.
(3) The department may not use contract harvesting for more than
((ten)) twenty percent of the total annual volume of timber offered for
sale. However, volume removed primarily to address an identified
forest health issue under RCW 79.15.540 may not be included in
calculating the ten percent annual limit of contract harvesting sales.
Sec. 3 RCW 79.15.520 and 2004 c 218 s 7 are each amended to read
as follows:
(1) The contract harvesting revolving account is created in the
custody of the state treasurer. All receipts from the gross proceeds
of the sale of logs from a contract harvesting sale must be deposited
into the account. Expenditures from the account may be used only for
the payment of harvesting costs incurred on contract harvesting sales
and for payment of costs incurred from silvicultural treatments
necessary to improve forest health conducted under RCW 79.15.540. Only
the commissioner or the commissioner's designee may authorize
expenditures from the account. The board of natural resources has
oversight of the account, and the commissioner must periodically report
to the board of natural resources as to the status of the account, its
disbursement, and receipts. The account is subject to allotment
procedures under chapter 43.88 RCW, but an appropriation is not
required for expenditures.
(2) When the logs from a contract harvesting sale are sold, the
gross proceeds must be deposited into the contract harvesting revolving
account. Moneys equal to the harvesting costs must be retained in the
account and be deducted from the gross proceeds to determine the net
proceeds. The net proceeds from the sale of the logs must be
distributed in accordance with RCW 43.30.325(1)(b). The final receipt
of gross proceeds on a contract harvesting sale must be retained in the
contract harvesting revolving account until all required costs for that
sale have been paid. The contract harvesting revolving account is an
interest-bearing account and the interest must be credited to the
account. The account balance may not exceed ((one)) five million
dollars at the end of each ((fiscal)) calendar year. Moneys in excess
of ((one)) five million dollars must be disbursed according to RCW
79.22.040, 79.22.050, and 79.64.040. If the department permanently
discontinues the use of contract harvesting sales, any sums remaining
in the contract harvesting revolving account must be returned to the
resource management cost account and the forest development account in
proportion to each account's contribution to the initial balance of the
contract harvesting revolving account.
Sec. 4 RCW 79.15.060 and 2003 c 334 s 329 are each amended to
read as follows:
(1) For the sale of valuable materials under this chapter, if the
board is required by law to appraise the sale, the board must establish
a minimum appraisal value that is valid for a period of one hundred
eighty days, or a longer period as may be established by resolution.
The board may reestablish the minimum appraisal value at any time. For
any valuable materials sales that the board is required by law to
appraise, the board may by resolution transfer this authority to the
department.
(2) Where the board has set a minimum appraisal value for a
valuable materials sale, the department may set the final appraisal
value of valuable materials for auction, which must be ((equal to or
greater than the board's minimum appraisal value)) based on current
market prices. The department may also appraise any valuable materials
sale not required by law to be approved by the board.
NEW SECTION. Sec. 5 A new section is added to chapter 79.15 RCW
to read as follows:
(1) The department is directed, to the extent possible under
current law consistent with its responsibility to the trust
beneficiaries, to consider requests from purchasers for timber sale
extensions and to provide flexibility in timber sale contract
administration to help mitigate against the potential for contract
default.
(2) By December 1, 2009, the department shall report to the
appropriate committees of the legislature on the status of existing
contracts, contract extensions, contract defaults, and shall provide a
timber market forecast for 2010 and 2011.
*NEW SECTION. Sec. 6 The department of natural resources must
report to the appropriate committees of the legislature by December 1,
2013, on the effectiveness of the twenty percent contract harvesting
program. The report must include a comparison of the revenues
generated through contracts compared to other sale processes, including
differences in management costs, efficiencies, and market
opportunities. The report must provide recommendations regarding the
department's contract harvesting program and the contract harvest
volume limit.
*Sec. 6 was vetoed. See message at end of chapter.
NEW SECTION. Sec. 7 This act expires January 1, 2014.