HOUSE BILL REPORT

HB 928

BYRepresentatives Spanel, K. Wilson, Schmidt, Meyers, Zellinsky, Cole, Fuhrman, S. Wilson, Belcher, Haugen and Bumgarner

Establishing procedures for leasing lands for commercial harvesting of subtidal hardshell clams.

House Committe on Natural Resources

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (19)

     Signed by Representatives Sutherland, Chair; K. Wilson, Vice Chair; Amondson, Basich, Beck, Belcher, Bumgarner, Cole, Fuhrman, Hargrove, Haugen, R. King, Meyers, Sayan, Schmidt, C. Smith, Spanel, B. Williams and S. Wilson.

House Staff:Bill Koss (786-7129)

AS REPORTED BY COMMITTEE ON NATURAL RESOURCES MARCH 3, 1987

BACKGROUND:

The Department of Natural Resources (DNR) manages the land underlying the water of the state.  This includes the beds of navigable waters.  Existing laws direct the department to manage the submerged lands for public benefits.  These include:  (1) encouraging direct public use and access, (2) fostering water-dependent uses, (3) ensuring environmental protection, and (4) utilizing renewable resources.  Producing revenue in a manner consistent with these criteria is a public benefit.

One aspect of revenue production includes leasing beds of navigable waters for the harvest of shellfish such as geoducks and hardshell clams.  Current law provides a process where the director of the Department of Fisheries and DNR work together to determine the value of a proposed lease of aquatic lands for cultivating shellfish.  Fisheries may determine that an area is not suitable for leasing.  If the area is suitable for leasing, the director determines the value of the shellfish and the minimum rental of the proposed lease.  Lease terms range from five to ten years.

For more than a decade, DNR has attempted to lease a tract of submerged land near Agate Pass in Kitsap County for the harvest of hardshell clams.  Harvesting would be by hydraulic escalator.  The method and the location of the lease are controversial.  The land is currently under lease.  The harvesting has not begun due to a series of legal challenges.

SUMMARY:

SUBSTITUTE BILL:  Before offering the beds of navigable waters for lease so the extraction of hardshell clams by means of a hydraulic escalator can occur, the Department of Natural Resources shall provide adjacent upland property owners the right of first refusal on the lease.  DNR will notify owners of uplands fronting on the lease area of their intent to lease the area for removal of hardshell clams.  The notice will contain the proposed lease value.  Landowners have 60 days to accept or reject the lease.  Upon accepting the lease, the landowner or group of landowners will pay the department the value of any edible clams, as determined by the director of the Department of Fisheries.  Additionally, the landowner shall pay for expenses incurred by Fisheries in determining the abundance of clams.  The upland landowner may not sublease the beds of the navigable waters.

If an upland owner leases the property, the provisions of RCW 79.96.060 do not apply.  This means the lease area does not have to be used exclusively for cultivating shellfish during the period of the lease.

If the upland owners choose not to exercise their right of first refusal, the lease area may be offered to any person.  The manner of the lease will follow existing procedures.

SUBSTITUTE COMPARED TO ORIGINAL:  Several technical amendments correct terminology.  The provisions that if an upland owner fails to avail themselves of the right of first refusal is changed to refer to no upland owner availing themselves of the right of first refusal.  This makes clear that only one upland owner needs to exercise this right in order to lease the property.

Fiscal Note:    Not Requested.

House Committee ‑ Testified For:     Michael Doctor and Shippen Willing, Friends of Agate Pass; Renee Beam, Kitsap County; L.V. Denson and William Eakin, Driftwood Key residents.

House Committee - Testified Against: Pat McElroy and John DeMeyer, Department of Natural Resources.

House Committee - Testimony For:     Harvesting clams via a hydraulic escalator severely damages the environment.  Upland owners need this bill to protect the marine environment.  Through this process, the DNR will not lose any money because upland owners will lease the property.

House Committee - Testimony Against: DNR currently leases four parcels for hardshell clam harvesting which produce about $30,000 per year.  This bill is part of a trend to deal in a piece-meal fashion with issues pertaining to aquatic leasing and management.  Subtidal harvesting produces jobs for the state and revenue for aquatic lands enhancement projects.