SENATE BILL REPORT

SB 5911

BYSenator McDermott

Relating to state government.

Senate Committee on Ways & Means

Senate Hearing Date(s):March 2, 1987; March 3, 1987

Majority Report:  That Substitute Senate Bill No. 5911 be substituted therefor, and the substitute bill do pass.

      Signed by Senators McDermott, Chairman; Gaspard, Vice Chairman; Bluechel, Cantu, Kreidler, Lee, McDonald, Owen, Rasmussen, Rinehart, Talmadge, Vognild, Warnke, Williams.

Senate Staff:Bill Bafus (786-7437); Charles Langen (786-7715)

                  March 5, 1987

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 3, 1987

BACKGROUND:

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

The Department has identified four such 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 property includes both public and private land.

At present, real estate transactions are subject to two taxes:  the conveyance tax under RCW 82.20 and the real estate excise tax under RCW 82.45.  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.  (See the Bill Report for SB 5242.)

SUMMARY:

Senate Bill 5911 was introduced by title only.

EFFECT OF PROPOSED SUBSTITUTE:

The Department of Natural Resources, subject to legislative appropriation, is authorized to purchase and manage certain properties as Natural Resource Conservation Areas.  The Department is authorized to reimburse the common school trust fund for any trust lands converted to conservation areas.

The Department develops management plans for areas designated as conservation areas.  The Department administers such areas directly, or through agreement with other state agencies, local governments, or private conservancy corporations.

$11.9 million is appropriated to obtain conservation area property.

The $4 million appropriated to the Department of Natural Resources for purchasing property under Chapter 79.70 RCW is to be matched by at least 25.0 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 via amendment to recover the revenue lost thereby, and references are adjusted as required.  An additional six one-hundredths of 1 percent excise tax is levied through June 30, 1989, the proceeds to be deposited to the conservation areas account.

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

Senate Committee - Testified: Brian Boyle, Commissioner of Public Lands; Margaret Hensen, Seattle Mountaineers; Elliott Marks, State Director, Nature Con.