HOUSE BILL REPORT

SSB 5911

BYSenate Committee on Ways & Means (originally sponsored by Senator McDermott) 

Providing for the acquisition and management of natural resource conservation areas.

House Committe on Natural Resources

Majority Report:  Do pass.  (10)

      Signed by Representatives Sutherland, Chair; Bumgarner, Cole, Hargrove, Haugen, Meyers, Sayan, C. Smith, Spanel and S. Wilson.

Minority Report:  Do not pass.  (1)

      Signed by Representative Fuhrman.

House Staff:Bill Koss (786-7129)

Rereferred House Committee on Ways & Means

Majority Report:  Do pass.  (21)

      Signed by Representatives Grimm, Chair; Bristow, Vice Chair; Allen, Appelwick, Belcher,  Braddock, Brekke, Ebersole, Hine, Locke, Madsen, McMullen, Nealey, Niemi, Peery, Rust, Sayan, H. Sommers, Sprenkle, Valle and Winsley.

Minority Report:  Do not pass.  (3)

      Signed by Representatives Basich, Fuhrman and Grant.

House Staff:      Bill Freund (786-7093)

AS PASSED HOUSE APRIL 14, 1987

BACKGROUND:

The Department of Natural Resources manages state-owned trust lands to generate income for school construction and other activities.  Some of the trust lands, and adjoining privately-owned lands, possess qualities that are important for ecological and social reasons.  Changes in surrounding land use can create pressure that may endanger these ecological features. Often these lands have limited potential for timber or other income production.

The department has identified four ecologically and socially sensitive properties totalling over 5,100 acres.  The properties are:  Mt. Si, King County; Woodard Bay, Thurston County; Dishman Hills, Spokane County; and parts of Cypress Island, Skagit County.  The parcels include both public and private land.

At present, real estate transactions are subject to two taxes:  the conveyance tax under RCW 82.20 (one dollar of tax for each $500 worth of property sold), and the real estate excise tax under RCW 82.45 (1.07 percent of the selling price).  Costs are incurred by both the Department of Revenue and local jurisdictions for the collection and administration of these two tax systems.  The Department of Revenue has estimated elsewhere that its costs for administration of the conveyance tax amount to approximately $46,000 per fiscal year.

SUMMARY:

The Department of Natural Resources, subject to legislative appropriation, is authorized to purchase and manage certain properties as natural resource conservation areas.  Lands eligible for consideration as natural resource conservation areas shall be highly valued for conservation, natural systems, dispersed recreation, maintaining unique natural areas, ecological communities, or environmentally significant sites threatened with conversion to an incompatible use.  When any trust land is sold for a conservation management area, the proceeds shall be used to purchase replacement property.  Purchases must be at full, fair market value.

Any revenue from the land will be put into a stewardship account and used solely for management of conservation areas.

The department shall develop a management plan for areas designated as conservation areas.  The department will administer such areas directly, or through agreement with other state agencies, local governments, or private conservancy corporations.

Seven million, nine hundred thousand dollars are appropriated to obtain conservation area property:  the Mt. Si conservation area, property on Cypress Island, property near Woodard Bay, and property near Dishman Hills natural area.

The $4 million appropriated to the Department of Natural Resources for purchasing natural area preserves is to be matched by at least 25 percent from privately raised funds, contributions of real property, or services necessary to achieve the purposes of nature conservancy.

The conveyance tax statute, RCW 82.20, is repealed.  Real estate excise tax rates in RCW 82.45 are adjusted to recover the revenue lost thereby, and references in other RCW's are adjusted as required.  An additional six one-hundredths of 1 percent excise tax is levied -- the proceeds to be deposited to the conservation areas' account and used for acquisition of conservation areas.  Authority to collect the additional tax expires June 30, 1989.

CHANGES PROPOSED BY COMMITTEE ON WAYS & MEANS:  None.

Fiscal Note:      Attached.

Effective Date:The bill contains an emergency clause and takes effect immediately.

House Committee ‑ Testified For:    (Natural Resources)  Cleve Pinnix, Department of Natural Resources; Elliot Marks, The Natural Conservancy; Betty Tabbutt, Washington Environmental Council; Margaret Hanson, Mountaineers; Jack Sussman, Friends of Cypress Island; and Pam Crocker-Davis, Audubon Society.

(Ways & Means)  Brian Boyle, Department of Natural Resources; Karen Fraser, Thurston County Commissioner; Holly Gadbaw, Olympia City Council; Dennis Ingham, Deputy Mayor of Lacey; Elizabeth Tabbutt, Washington Environmental Council.

House Committee - Testified Against:      (Natural Resources)  None Presented.

(Ways & Means)  None Presented.

House Committee - Testimony For:    (Natural Resources)  Sensitive areas need to be acquired now in order to provide protection.  The proposed procedure protects private rights, and serves the trusts' needs.  Other states use a similar mechanism of charging a real estate tax in order to acquire sensitive property.  Cypress Island has been on the verge of development for several years and this provides protection.

(Ways & Means)  Same as testimony presented in Committee on Natural Resources.

House Committee - Testimony Against:      (Natural Resources)  None Presented.

(Ways & Means)  None Presented.