HOUSE BILL REPORT

SB 6727

BYSenators Kreidler, Metcalf and DeJarnatt

Regulating sale of valuable material, including shellfish, from state-owned aquatic lands.

House Committe on Natural Resources & Parks

Majority Report:  Do pass as amended.  (10)

      Signed by Representatives Belcher, Chair; K. Wilson, Vice Chair; Beck, Ranking Republican Member; Brumsickle, Dellwo, Ferguson, Fuhrman, Hargrove, H. Myers and Raiter.

House Staff:Bill Koss (786-7129)

AS PASSED HOUSE FEBRUARY 27, 1990

BACKGROUND:

The Department of Natural Resources (DNR) has the authority to lease state-owned tidelands or beds of navigable waters for the purpose of harvesting oysters, clams, geoducks, and other valuable materials like rock, sand, gravel, and silt.  Currently, DNR must lease to the highest bidder, regardless of past performance or other considerations.  There have been situations in which the department was unable to disqualify bidders with a record of past contract compliance problems.

DNR may reject the highest bid only when the commissioner of public lands determines that the lands or materials could be sold for at least 10 percent more than the amount of the highest bid.

DNR may enter into leases for the harvesting of geoducks.  This arrangement confers some property rights on the lessee.  This could result in a weaker position for the department in contract disputes with harvesters than if the department had simply entered into a harvesting agreement that did not confer any property rights.

Events during 1989, which resulted in the filing of criminal charges against some geoduck harvesters, indicate that the department needs increased access to reliable information relating to violations of laws concerning natural resources.

SUMMARY:

Sale requirements for sales of tidelands and shorelands belonging to the state are changed to provide for sale to the highest responsible bidder. If there is reason to believe that the highest responsible bid is not the highest price obtainable, all bids may be rejected and the department may call for new bids.

The department may reject an apparent high bid and award the bid to the highest responsible bidder based on established criterion.  The criterion evaluate the bidder according to:  the ability to perform the contract, any previous violations of state contracts, conviction of a crime relating to the public lands or the state's natural resources, the business relationship of the bidder to a person who would not qualify as a responsible bidder under the criterion, and the qualifications of any subcontractors used by the bidder.

The department is authorized to enter into harvesting agreements, as opposed to leases, with geoduck harvesters.

In addition to criminal penalties that may be imposed on a person wrongfully taking shellfish from public lands, the department may seek civil penalties.  If the person intentionally and knowingly takes shellfish from public lands the person shall be liable for damages equal to triple the retail market value of the shellfish.  If the shellfish were not taken knowingly and intentionally the damages are double the retail market value.  Wrongful taking is taking more than the legal harvest limit, taking shellfish without reporting the taking where the reporting is a legal requirement, harvesting outside the area specified in a contract, or harvesting without a lease where a lease is required.

The commissioner of Public Lands is authorized to offer and pay rewards of up to $1,000 for information concerning violations of statutes relating to public lands and natural resources.

Fiscal Note:      Available.

House Committee ‑ Testified For:    Senator Mike Kreidler; and Stan Biles, Department of Natural Resources.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    The recent case involving the theft of large quantities of geoducks caused DNR to assess its penalties and bid procedures.  The bill represents the results of internal review and working with the industry to develop procedures to protect the state's interests and promote competition within the industry.  In addition to seeking changes in the statutes, DNR is increasing its administrative review and increasing the role of the Fisheries Patrol.  Adding an advisory committee will keep DNR and Fisheries in touch with the needs of the geoduck harvesters and processors.

House Committee - Testimony Against:      None.