HOUSE BILL REPORT

SSB 6298

As Amended by the House

BYSenate Committee on Governmental Operations (originally sponsored by Senators Zimmerman, Williams and Bluechel; by request of Community Development)

Revising provisions on abandoned property with historical value.

House Committe on Natural Resources

Majority Report:  Do pass with amendments.  (16)

      Signed by Representatives Sutherland, Chair; K. Wilson, Vice Chair; Basich, Beck, Belcher, Bumgarner, Butterfield, Cole, Dorn, Fuhrman, Hargrove, Meyers, Sayan, Schmidt, Spanel and S. Wilson.

House Staff:Pamela Madson (786-7310)

AS PASSED HOUSE MARCH 6, 1988

BACKGROUND:

Advances in technology are improving the discovery and the economic feasibility of salvaging shipwrecks and other under-water historic artifacts.  As states become more interested in their history, the state needs to protect its interest in this historic property, both as to ownership and regulation.

The Washington State Constitution (Article 17) asserts ownership to all beds and shores of navigable waters of the state, and the Federal Submerged Lands Act grants ownership to the state of bedlands of navigable waters and the natural resources located within three geographic miles of the state's coastline.

Ownership of items abandoned on these bedlands is not specifically declared in statute in this state, nor has the issue been litigated in Washington courts.  Federal Admiralty Court has jurisdiction over salvage actions for treasure and ancient shipwrecks, and the general rule is that the property is awarded to the finder.

During the last twenty years, some coastal states have passed statutes that declare the state to be the owner of historic abandoned property and have regulated the search and salvage of such property including a split of the value of the property between the finder and the state.

Currently, there are two bills before Congress (H.R. 74 and S. 858) that assert title by the Federal Government to all abandoned shipwrecks located on submerged lands of any state and transfer that title to the state with the responsibility to protect these resources, guarantee recreational exploration of shipwrecks, and allow for public and private sector recovery that protects their historic value.  Shipwrecks included under this bill are only those eligible for inclusion on the National Register whose location has been disclosed to the public.

The state disposes of its surplus property through a public or private sale with the proceeds going to the fund from which the property was purchased or to the General Fund.

The Department of Community Development (DCD) currently requires a permit for the removal and alteration of archaeological resources from public lands except for artifacts found exposed on the surface of the ground or those found on shorelands below the line of ordinary high-water or within the intertidal zone.

SUMMARY:

The State of Washington declares its ownership to all historic archeological resources located on or under public lands or waters that have been abandoned for thirty years.  This property is excluded from the procedure for disposing of surplus property owned by the state.  Historic archeological resources are those properties listed or eligible for listing on the Washington State or federal register of historic places.

The Department of Community Development (DCD) may issue permits for the removal of historic archeological resources on or under public lands and waters or, if requested by a private landowner, may issue permits for these resources on private property.  Any other public property landowner or manager may require the applicant to execute a separate agreement or lease as a condition for the public agency's consent.  Artifacts located on the surface of the ground which are not historic archeological resources continue to be excluded from the permit process.

A permit may be refused if the resource would be destroyed beyond mitigation by a proposed salvage operation.  The applicant shall retain the right of first refusal if a method becomes available at some future time that would allow salvage without destruction.

The Director of DCD has authority to contract with appropriate parties for discovery and salvage of state-owned historic archaeological resources.  No salvage operation shall be conducted without such a contract.  The salvor shall agree to mitigate any archaeological damage that occurs during salvage operations.

If the resource is a historic shipwreck, the contract shall provide that the salvor shall receive not less than 90 percent of the appraised value of the recovered objects which may be taken in the form of objects or cash or both.  The state shall have the first right to choose its share of the recovered objects. Upon issuance of a permit, title to the objects passes to the salvor and may revert to the state if the salvor fails to fully perform the contract.

If the resource is a historic aircraft, recovery may be had only if the aircraft is being recovered for a museum, historical society, nonprofit corporation, or governmental entity, and title may be transferred only to one of these entities.  The salvor shall be compensated by the state only through the sale or exchange of the aircraft to one of the entities for which it is being recovered.

Any other historic resource may be discovered and salvaged upon terms negotiated with the DCD.

The DCD shall have access to all property recovered for purposes of scholarly research for a period to be agreed to by the parties after salvage operations are completed.

After consultation with DCD, the Department of Natural Resources may enter into agreements or leases for archaeological activity on state-owned aquatic lands.

DCD shall publish an annual listing of those historic archaeological sites on aquatic lands where permits are required.

Any proceeds from the state's share of property shall be deposited in the general fund to be used only for historic preservation and underwater archaeology.  The act will not affect current negotiated salvage efforts.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Jake Thomas, Department of Community Development; Jeri Thomas, Assistant Attorney General (for questions only); Pat McElroy, Department of Natural Resources; Michael Doctor, Bob Mester, and Mike Lockwood, all of Maritime Ventures.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Some of the state's most important historic sites are shipwrecks.  There are statutes that protect buildings and archaeological sites but no statutes to protect shipwrecks. Protection would be extended to shipwrecks and historic aircraft. The State has an interest in the scientific value and the ability to display for the public, these historic artifacts.  The aircraft on the bottom of Lake Washington represent a unique collection from World War II and are a priceless public resource.

House Committee - Testimony Against:      None Presented.