SENATE BILL REPORT

SHB 550

BYHouse Committee on Natural Resources (originally sponsored by Representatives McMullen, Sutherland, Spanel, Cole, S. Wilson, Allen, Bristow, Fuhrman, Locke, Amondson, May, Sprenkle, Haugen and K. Wilson) 

Transferring lands from department of natural resources to the parks and recreation commission.

House Committe on Natural Resources

Rereferred House Committee on Ways & Means/Appropriations

Senate Committee on Natural Resources

Senate Hearing Date(s):March 26, 1987

Majority Report:     Referred to Committee on Ways & Means without recommendation.

     Signed by Senators Owen, Chairman; DeJarnatt, Vice Chairman; Barr, Conner, Craswell, McDonald, Metcalf, Patterson, Stratton.

Senate Staff:Vic Moon (786-7469)

                March 26, 1987

Senate Committee on Ways & Means

Senate Hearing Date(s):April 6, 1987

Majority Report:     Do pass as amended.

     Signed by Senators McDermott, Chairman:  Bauer, Bluechel, Cantu, Craswell, Deccio, Fleming, Hayner, Kreidler, Lee, McDonald, Moore, Owen, Saling, Talmadge, Williams, Wojahn, Zimmerman.

Senate Staff:Charles Langen(786-7715)

                April 7, 1987

AS REPORTED BY COMMITTEE ON WAYS & MEANS, APRIL 6, 1987

BACKGROUND:

In 1971, 1981, and 1985, the Legislature authorized the Department of Natural Resources (DNR) to sell property to the State Parks and Recreation Commission.  Twenty-nine parcels of land are currently being purchased.  Purchase prices were based on the fair market value of the land and timber, with a market interest rate applied to the unpaid balance.

The Commission pays about $3 million a biennium to DNR in principal and interest.  By the mid-1990's, the Commission will have obtained title to all the land and timber on the 29 parcels currently under contract.

In order to maintain the trust land base, DNR will use the funds from the land sales to obtain replacement property.  While subject to the Budget and Accounting Act, DNR does not require an appropriation to permit expenditures for acquiring replacement property.  Expenditures need the authorization of the Board of Natural Resources.

When the 1985 Legislature authorized DNR to sell five parcels to the Parks and Recreation Commission, it directed the two agencies to review trust lands to identify parcels which may be appropriate for acquisition by the Commission.  The study identified 22 parcels, totalling 6,626 acres.  Estimated value of both the land and timber range from $12 to $18 million.

SUMMARY:

The Board of Natural Resources and the Parks and Recreation Commission will negotiate a sale of the 22 Department of Natural Resources (DNR) managed parcels identified in the joint study authorized in 1985.  The parcels cover about 6,626 acres with a value between $12 and $18 million.

Funds for acquisition will come from (1) a portion of the money raised by selling bonds for construction of schools, and (2) the Trust Land Purchase Account.  This account obtains money from park user fees.  The bond money used will buy the timber on sites owned by the common school trust.  Proceeds from the timber sale will go to the Common School Construction Fund.  The Trust Land Purchase Account will buy the land and the remaining timber.

DNR shall use the funds from the Trust Land Purchase Account to acquire property to replace the trust property sold to the commission.

SUMMARY OF PROPOSED SENATE AMENDMENT:

The reference to HB 621, which did not pass the House, is deleted.

Fiscal Note:    requested

Senate Committee - Testified:   NATURAL RESOURCES:  Pat Harper, Department of Natural Resources

Senate Committee - Testified:   WAYS & MEANS:  Yvonne Farrell, State Parks and Recreation Commission; Clive Pennod, Department of Natural Resources