SENATE BILL REPORT

SB 5623

BYSenators Amondson, Owen and DeJarnatt; by request of Commissioner of Public Lands

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

Senate Committee on Environment & Natural Resources

Senate Hearing Date(s):February 20, 1989

Senate Staff:John Korvell (786-7473)

AS OF FEBRUARY 16, 1989

BACKGROUND:

The Department of Natural Resources (DNR) may enter into leases or harvesting agreements involving sales of valuable materials from their tidelands.  These are given to the highest bidder who has not previously injured the state by fraud or collusion.  If, in the department's judgment the highest bid is 10 percent lower than the DNR expected, new bids will be called for.

There have been natural resource abuses by persons or firms in their performance of the agreements.  Most notable of these is the geoduck off tract harvesting and poaching allegations currently being heard in court.

Before a bid is accepted, there is a need to better assess who is and who is not a responsible, qualified bidder.

SUMMARY:

Harvesting agreements, and not leases, will be awarded by the highest competitive bidder.  Before this bid is accepted, the Department of Natural Resources (DNR) may determine if the bidder will responsibly perform the harvesting agreement.  Responsibility includes the bidder's ability, capacity, skill and timeliness to perform.  Also considered is their character and integrity based upon reputation and past performance of harvesting agreements or other state contracts.  New language is also added concerning partnerships and corporations who may be the highest bidder.  The firm, and those who directly manage it, must also meet this responsibility test.

Harvesting agreements will not be given if there is reason to believe that this is not the highest possible bid and is not from a responsible bidder.

To encourage reporting violations to rules or law relating to these agreements and all lands managed by the DNR, a reward of up to $1,000 will be offered to those persons bringing information forward.  The commissioner shall have the authority to determine the appropriate fund to pay for this without requiring appropriation.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested February 15, 1989