SENATE BILL REPORT

SHB 1624

BYHouse Committee on Natural Resources & Parks (originally sponsored by Representatives Belcher, R. King, K. Wilson, Brumsickle, Haugen, Bowman, Locke, Jacobsen and Sayan)

Regulating the sale of valuable materials from state-owned tidelands and shorelands.

House Committe on Natural Resources & Parks

Senate Committee on Environment & Natural Resources

Senate Hearing Date(s):March 27, 1989; March 30, 1989

Majority Report:  Do pass as amended.

      Signed by Senators Metcalf, Chairman; Bauer, Kreidler, Owen, Sutherland.

Senate Staff:Vic Moon (786-7469)

                  March 30, 1989

AS REPORTED BY COMMITTEE ON ENVIRONMENT & NATURAL RESOURCES, MARCH 30, 1989

BACKGROUND:

The Department of Natural Resources (DNR) has the authority to sell or 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 sell 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.

Currently, DNR can reject the highest bid because it is not high enough only if the commissioner is satisfied 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 which did not confer any property rights.

Recent events, 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 of Natural Resources may reject the bid of any bidder who the department determines has defaulted within the last three years or is currently in default on a contract with the state, or who the department determines has violated, within the last three years, any law or regulation relating to the sale or lease of public land or to the sale, lease, or harvest of natural resources.  If the bidder is a partnership or corporation, the department may also reject the bid if the bidder is controlled or managed by any person who would individually be disqualified from bidding under this bill or who has controlled or managed any other partnership or corporation which would otherwise be disqualified.

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

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

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

SUMMARY OF PROPOSED SENATE AMENDMENTS:

The Director of the Department of Fisheries and the Commissioner of Public Lands shall jointly select a geoduck advisory committee.  Duties of the advisory committee are specified.

The Department of Natural Resources and the Commissioner of Public Lands will create at least two recreational geoduck harvest areas; one shall be on Cooper Point in Budd Inlet.

Senate Committee - Testified: Pat McElroy, Department of Natural Resources