FINAL BILL REPORT

SB 6862

                              C 142 L 90

BYSenators McMullen, Metcalf, Amondson and Sutherland

Creating the Washington hardwoods commission.

Senate Committee on Environment & Natural Resources

House Committe on Trade & Economic Development

SYNOPSIS AS ENACTED

BACKGROUND:

Washington's forest products industries play a key role in the state's economy.  Traditionally these industries rely upon soft woods such as fir, hemlock and spruce.  As the timber industry matures and diversifies, new uses are being found for woods such as western red alder and maple which grow in western Washington.  Some of these uses include furniture manufacturing, woodcrafting, and pulp for paper products.  There is a need to manage and enhance the hardwood resource and to develop new products and markets.

SUMMARY:

The Legislature recognizes that the state's economy is directly tied to the development and management of forest industries and that it is the Legislature's responsibility to enhance and promote the expansion of the hardwood industry.  The development of hardwood forests and forest products will require multispecie sustained-yield management plans for industrial and nonindustrial timber tracts.  The state will need to develop a product and markets for all grades of hardwoods and provide a stable and predictable tax program for new and existing businesses.  The Legislature recognizes that there should be a continuing effort toward full utilization of hardwood forests and development of the hardwood products industry.

A seven-member Washington Hardwoods Commission is created.  The members shall be from the hardwood industry and shall be initially appointed to staggered terms by the Governor.  Three members shall be appointed for a two-year term, two members for a three-year term and two members for a four-year term.  The Hardwoods Commission will, by January 1, 1991, develop a method of electing board members to replace the appointed members.  Each board member will serve until the election of his or her successor.  Five voting members constitute a quorum for transaction of business.  Each member of the commission shall be a resident of the state of Washington and over the age of 21.

The commission may assist in the retention, expansion and attraction of hardwood related industries.  The commission will coordinate efforts to promote the expansion of the hardwood forest industry on both state and federal lands.  The commission will assist in developing products and markets for varied species and grades of hardwoods.  The commission will study and make recommendations to the Legislature on a tax program that will attract new firms and promote stability of the existing firms using hardwood.  The commission will develop an enhancement and protection program that will reduce waste and respect environmental sensitivity.  The commission will develop financial assistance programs from public and private moneys for the attraction and expansion of primary, secondary and tertiary processing facilities, and will work with the Department of Natural Resources to develop the best management practices for hardwood resources.

The commission will elect its own chair and establish its own rules of operation.  The commission will elect a treasurer who will be responsible for receipts and disbursements by the commission.  The treasurer's discharge of his duties will be guaranteed by a performance bond at the expense of the commission.  The commission will adopt its own rules of operation and may employ and discharge managers, secretaries, agents, attorneys and other employees and staff, and may engage the services of independent contractors, prescribe their duties and fix their compensation.  The commission will maintain an account and may deposit moneys in the account and expend moneys for purposes authorized by law.  The commission will keep accurate records of all receipts, disbursements and other financial transactions in accordance with principles of accounting established by the State Auditor.  The files of the commission will be available for audit by the State Auditor.

The obligations and liabilities, or claims against the commission will be enforced against the assets of the commission as if it were a corporation and there is no liability for debts or actions of the commission against its individual members or employees.  Employees or commission members will not be held individually responsible for any act or omission of another member.

Permanent funding of the Washington Hardwoods Commission will be based on agricultural commodity assessments and shall be levied by the commission on processors of hardwoods.  The commission will determine by December 31, 1990 a method and rate of assessment and will report to the natural resources and revenue committees of each house of the Legislature.

VOTES ON FINAL PASSAGE:

     Senate   45    0

     House 97  0

EFFECTIVE:March 22, 1990