READ FIRST TIME 02/10/14.   

     AN ACT Relating to current use valuation for farm and agricultural land; and creating new sections.

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

NEW SECTION.  Sec. 1   (1) The legislature recognizes the increasing diversity of Washington state agriculture, the growing number of smaller farms, and the important contributions that all farms make to the state's economy and the state's ability to produce food, fiber, and forest crops locally.
     (2) The legislature intends, through the study and report required in section 2 of this act, to evaluate:
     (a) The ongoing viability of small farms and the impact the open space program has on small farms;
     (b) The potential modification to the existing gross income thresholds for small farms;
     (c) The fiscal impact and other consequences of potentially extending current use valuation to home sites for smaller farms; and
     (d) Allowing noncontiguous parcels to qualify under the current use farm and agricultural program that are part of a single farming operation.
     (3) It is the legislature's further intent to adopt legislation during the 2015 session substantially conforming to the recommendations embodied in the report required under section 2 of this act.

NEW SECTION.  Sec. 2   (1) The department of revenue, in consultation with the stakeholder group described in subsection (3) of this section, must conduct a study and prepare a report to the legislature, by December 31, 2014, as provided in this section. The primary objectives of the study are to evaluate and make recommendations on improving the current use program for farm and agricultural lands, with an emphasis on the viability of small farms. The department's report must specifically include recommendations to update program eligibility requirements, recommendations to modify the program based on current farming practices, and recommendations to allow small farm home sites to qualify for current use valuation. The department must develop its recommendations consistent with the following goals:
     (a) To promote current use assessment practices in accord with the legislature's intent in RCW 84.34.010, which is to maintain, preserve, conserve, and otherwise continue in existence adequate open space lands for the production of food, fiber, and forest crops;
     (b) To ensure the current use farm and agricultural program for small farm operations benefits these bona fide small farm operations without subsidizing unintended parties;
     (c) To ensure the current use farm and agricultural program is consistent with current farming practices;
     (d) To ensure that the current income thresholds for the current use farm and agricultural program are consistent with the current farm sector income and finances.
     (2) The report must include proposed draft legislation to accomplish the department's recommendation. The report may also include an evaluation of the economic impact of farming and agricultural production on the state's overall economy, with particular focus on small scale agricultural production using a food and agriculture hub approach.
     (3) In preparing the report, the department must consult with an agricultural current use stakeholder group, which may include the state conservation commission, the office of farmland preservation, representatives of statewide farm associations, the Washington State University cooperative extension program, small and large farm advocates, county officials including county assessors and county commissioners, other academic institutions, and the agriculture and fiscal committees of the legislature.
     (4) Nonpartisan legislative staff on the appropriate fiscal committees must provide assistance in researching and compiling data used in the preparation of the report.