AN ACT Relating to the sale of valuable materials from state-owned tidelands and shorelands; amending RCW 79.90.210, 79.90.240, and 79.96.080; and adding a new section to chapter 79.01 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. Section 27, chapter 21, Laws of 1982 1st ex. sess. and RCW 79.90.210 are each amended to read as follows:

(1) All sales of tidelands and shorelands belonging to the state, otherwise permitted by RCW 79.94.150 to be sold, shall be at public auction and all sales of valuable materials shall be at public auction or by sealed bid to the highest responsible bidder, on the terms prescribed by law and as specified in the notice provided, and no land or materials shall be sold for less than their appraised value: PROVIDED, That when valuable material has been appraised at an amount not exceeding twenty thousand dollars, the department of natural resources, when authorized by the board of natural resources, may arrange for the sale at public auction of said valuable material and for its removal under such terms and conditions as the department may prescribe, after the department shall have caused to be published ten days prior to sale a notice of such sale in a newspaper of general circulation located nearest to the property to be sold: PROVIDED FURTHER, That any sale of valuable material on aquatic lands of an appraised value of one thousand dollars or less may be sold directly to the applicant for cash without notice or advertising.

(2) To determine the highest responsible bidder under subsection (1) of this section, the department shall consider, in addition to price, the following elements:

(a) The ability, capacity, and skill of the bidder to perform the contract;

(b) The character, integrity, reputation, judgment, experience, and efficiency of the bidder;

(d) The previous and existing compliance by the bidder with the terms and conditions of any state contract;

(e) The previous and existing compliance by the bidder with any laws relating to the sale or lease of the state's public land or the sale, lease, or harvest of the state's natural resources; and

(f) Such other information the department may secure which, in its opinion, bears on the decision to award the contract: PROVIDED, That whenever there is reason to believe that the highest acceptable bid is not the highest price obtainable, all bids may be rejected and the department may call for new bids.

(3)(a) The department may reject the bid of any bidder who has previously defaulted, or is currently in default, in the performance of a contract with the state, or has been convicted of a crime arising from a misuse of the public's natural resources.

(b) If the bidder is a partnership or corporation, the department may reject the bid if it is controlled or managed by any person who would individually be disqualified from bidding under subsection (1) of this section, or who has controlled or managed any other partnership or corporation which would otherwise be disqualified.

Sec. 2. Section 30, chapter 21, Laws of 1982 1st ex. sess. and RCW 79.90.240 are each amended to read as follows:

If no affidavit showing that the interest of the state in such sale was injuriously affected by fraud or collusion, ((~~shall be~~)) is filed with the commissioner of public lands within ten days from the receipt of the report of the auctioneer conducting the sale of any tidelands or shorelands belonging to the state, otherwise permitted by RCW 79.94.150 to be sold, or valuable materials located within or upon any aquatic lands, and it ((~~shall~~)) appears from such report that the sale was fairly conducted, that the purchaser was the highest responsible bidder at such sale, ((~~and~~)) that ((~~his~~)) the bid was not less than the appraised value of the property sold((. If the commissioner shall be satisfied that the lands, or material, sold would not, upon being readvertised and offered for sale, sell for at least ten percent more than the price at which it shall have been sold, and)), that there is no reason to believe that the highest acceptable bid is not the highest price obtainable, that the payment required by law to be made at the time of making the sale, has been made, and that the best interests of the state may be subserved thereby, the commissioner shall enter upon ((~~his~~)) the records a confirmation of sale and thereupon issue to the purchaser a contract of sale or bill of sale as the case may be, as is provided for in this chapter.

Sec. 3. Section 141, chapter 21, Laws of 1982 1st ex. sess. and RCW 79.96.080 are each amended to read as follows:

(1) Geoducks shall be sold through competitive bidding to the highest responsible bidder. After determining the highest responsible bidder under RCW 79.90.210, the department of natural resources may enter into ((~~leases or~~)) a harvesting agreement((s)) with that bidder for the harvesting of geoducks. The harvesting agreement may take whatever form the department deems appropriate, including a contract for harvest or a real property conveyance. The department of natural resources may place terms and conditions in the ((~~leases or~~)) harvesting agreements as the department deems necessary. The department of natural resources may enforce the provisions of any ((~~lease or~~)) harvesting agreement by suspending or canceling the ((~~lease or~~)) harvesting agreement or through any other means contained in the ((~~lease or~~)) harvesting agreement. The department of natural resources may cancel any ((~~lease or~~)) harvesting agreement upon receiving a report from the department of fisheries of the person's second violation of the geoduck licensing or harvesting provisions under Title 75 RCW. Any ((~~lessee~~)) geoduck harvester may terminate ((~~a lease~~)) an agreement entered into pursuant to this subsection if actions of a governmental agency, beyond the control of the ((~~lessee~~)) harvester, its agents, or its employees, prohibit harvesting, for a period exceeding thirty days, during the term of the harvesting agreement. Upon termination of the ((~~lease~~)) agreement, the ((~~lessee~~)) harvester shall be reimbursed by the ((~~lessor~~)) department for the cost paid on the ((~~lease~~)) agreement less the value of the harvest already accomplished by the ((~~lessee on the leasehold~~)) harvester under the agreement.

(2) After May 8, 1979, all leases or harvesting agreements under this title for the purpose of harvesting geoduck clams shall require the lessee and the lessee's agent or representatives to comply with all applicable commercial diving safety standards and regulations promulgated and implemented by the federal occupational safety and health administration established under the federal occupational safety and health act of 1970 as such law exists on July 1, 1983 (84 Stat. 1590 et seq.; 29 U.S.C. Sec. 651 et seq.): PROVIDED, That for the purposes of this section and RCW 75.24.100 as now or hereafter amended, all persons who dive for geoducks are deemed to be employees as defined by the federal occupational safety and health act. All leases shall provide that failure to comply with these standards is cause for suspension or cancellation of the lease: PROVIDED FURTHER, That for the purposes of this subsection if the lessee is the holder of a tract license and contracts with another entity for the harvesting of geoducks, the lease shall not be suspended or canceled if the lessee terminates its business relationship with such entity until compliance with the subsection is secured.

NEW SECTION. Sec. 4. A new section is added to chapter 79.01 RCW to read as follows:

The department of natural resources is authorized to offer and pay a reward not to exceed one thousand dollars in each case for information regarding violations of RCW 79.90.210, 79.90.240, 79.96.080, or any statute or rule adopted pursuant to any statute relating to the state's public lands, natural resources, or any proprietary or regulatory function of the commissioner of public lands or the department of natural resources, including but not limited to Titles 75, 76, 78, and 79 RCW, and any rule adopted pursuant thereto. The commissioner shall have the authority to determine the appropriate account or fund from which to pay the reward and no appropriation shall be required for disbursement.