SENATE BILL REPORT

SB 6862

BYSenators McMullen, Metcalf, Amondson and Sutherland

Creating the Washington hardwoods commission.

Senate Committee on Environment & Natural Resources

Senate Hearing Date(s):January 31, 1990; February 1, 1990

Majority Report:     Do pass.

     Signed by Senators Metcalf, Chairman; Amondson, Vice Chairman; Barr, Benitz, DeJarnatt, Kreidler, Owen, Patterson, Sutherland.

Senate Staff:Vic Moon (786-7469)

                February 10, 1990

AS PASSED SENATE, FEBRUARY 9, 1990

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 heretofore nontraditional woods such as western red alder and various maple species which grow in western Washington.  Some of these uses include furniture, woodcrafting, lumber, pulp and paper.  Recognizing the hardwood's growing importance, there is a need to manage and enhance the resources, as well as to develop 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 recognition and expansion of the hardwood industry.  The Legislature recognizes that the development of hardwood forests and hardwood forest products will require multispecie sustained-yield management plans for industrial and nonindustrial timber tracts.  The Legislature recognizes that 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 firms.  The Legislature recognizes that there should be a continuing effort toward full utilization of hardwood forests and the hardwood products industry.

The Washington Hardwoods Commission is created comprised of seven members.  The members shall be from the hardwood industry and shall be initially appointed by the Governor.  The members shall be appointed to staggered terms.  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 Hardwood Commission by January 1, 1991 will 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 is given authority to assist in the retention, expansion and attraction of hardwood related industries.  The commission is to coordinate efforts to enhance and promote the expansion of the hardwood forest industry on both state and federal lands.  The commission will have the power and duty to develop products and markets for varied species and grades of hardwoods and to study and recommend 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.  The commission 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 the chapter.  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 individual members or employees of the commission.  Employees or commission members will not be held responsible individually for any act or omission of other members of the commission.

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 on the assessment rate and procedures.  The bill contains a severability clause and an emergency clause.

Appropriation:  none

Revenue:   none

Fiscal Note:    none requested

Effective Date:The bill contains an emergency clause and takes effect immediately.

Senate Committee - Testified:   No one