SENATE BILL REPORT

HB 1447

BYRepresentatives Hargrove, Jones, Belcher, Beck and Brumsickle

Revising advertising and sale requirements for valuable materials.

House Committe on Natural Resources & Parks

Senate Committee on Environment & Natural Resources

Senate Hearing Date(s):March 16, 1989

Senate Staff:Vic Moon (786-7469)

AS OF MARCH 13, 1989

BACKGROUND:

The Department of Natural Resources (DNR) manages state-owned trust and grant lands and generates income from the lands to support trust beneficiaries.  The department generates income by the sale of valuable materials from those lands.  These sales vary in size from small sales on areas that can be cleared in one or two days to sales on areas that take much longer to clear.

DNR must publish notice once a week for the four weeks immediately preceding the sale in a paper of general circulation in the county in which the sale is to be held.  On occasion, sales have been postponed because the newspaper has failed to meet its advertising schedule.  This has resulted in a loss of income to the trust account due to readvertising a sale for the same tract of land and increased administration costs.

DNR may require lump sum cash payment for sales of materials valued at less than $5,000.  For all other sales, the purchaser can request an installment payment plan.  Due to changing values of materials and improved removal methods, areas with materials valued at well over $5,000 can be cleared in one or two days.  For these reasons, DNR considers sales of up to $100,000 small sales.  DNR is required to receive full value for materials sold off trust lands.  The $5,000 limit can make it difficult for DNR to ensure that it receives full value for these materials.

DNR is authorized to sell valuable materials appraised at $20,000 or less at a public auction. The auction must be advertised 10 days prior to the sale.  This procedure is well suited to small sales.

SUMMARY:

The Department of Natural Resources may require full cash payment of materials appraised at $100,000 or less on the day of sale.

The limit on the appraised value of materials which may be sold at public auction is raised from $20,000 or less to $100,000 or less.  Advertising must be published not less than 10 days before the auction.

Sales of materials (other than sales at public auction) must be advertised not less than two times during the four weeks immediately preceding the sale.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested