AN ACT Relating to the Puyallup tribe of Indians claims settlement; adding a new section to chapter 35.43 RCW; adding a new section to chapter 36.32 RCW; creating new sections; and making appropriations.

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

NEW SECTION. Sec. 1. The legislature finds that the Puyallup tribe of Indians asserts certain land and other claims which claims create a hardship for the community and cloud land titles thereby limiting or prohibiting development in parts of Pierce county. Some of these tribal land and other claims are being asserted in litigation; however other claims which have created a cloud on land titles cannot be litigated under current federal law without the consent of the tribe. These claims are considered to have national and state-wide significance and have attracted the attention of Indian leaders as well as congressional and administration leaders. It is in the state's interest to resolve these claims in a fair and equitable manner.

The economic benefits to the state resulting from the resolution of these claims is considerable. If the Puyallup tribe of Indians prevails in the assertion of its claims, the state could be the object of litigation regarding certain lands owned or leased by the state for transportation purposes and certain lands conveyed by the state many years ago.

The legislature further finds that the area of Pierce county represents a significant economic asset to the state and that development of the area is in the economic interest of the state, citizens of the area, and the Puyallup tribe of Indians. It is also in the mutual interest of the Puyallup tribe of Indians and the state of Washington to protect and enhance the fishery resource in the Puyallup river basin. The state recognizes that the Puyallup tribe of Indians has an interest in the future of Pierce county and certain properties therein.

The legislature further finds that it is in the interest of all the people of the state of Washington to resolve these claims and thereby strengthen the economic and social fabric of the state.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this act.

(1) "Tribe" means the Puyallup tribe of Indians.

(2) "State" means the state of Washington.

(3) "County" means Pierce county.

(4) "Local governments" include Pierce county, the port of Tacoma, the city of Fife, the city of Puyallup, and the city of Tacoma.

(5) "Settlement agreement" means the agreement dated August 27, 1988, approved by the tribal membership vote on the same date, and approved by the port of Tacoma, Pierce county, and the cities of Tacoma, Puyallup, and Fife.

(6) "1873 survey area" means the land within the high water line as meandered, and the upland boundaries as shown on the plat map of the 1873 survey conducted by the United States general land office and filed in 1874.

NEW SECTION. Sec. 3. The settlement agreement is hereby approved and adopted. The state of Washington is authorized to carry out all acts necessary to implement the agreement.

NEW SECTION. Sec. 4. (1) The sum of eleven million seven hundred fifteen thousand dollars is appropriated from the general fund to the office of the governor for the biennium ending June 30, 1989, to fund the following elements of the settlement agreement:

!tp1 @i2(a) Operation and maintenance for tribal fisheries programs and facilities!w×!tr$!sc ,16

!ae0!tr700,000

@i2(b) Job training and placement program!w×!tr$!sc ,16

!ae0!tr527,000

@i2(c) Permanent trust fund!w×!tr$!sc ,16

!ae0!tr3,198,000

@i2(d) Social and health services!w×!tr$!sc ,16

!ae0!tr132,000

@i2(e) Blair navigation project!w×!tr$!sc ,16

!ae0!tr7,158,000

The money may be expended only after approval by the office of financial management as set forth in section 9 of this act.

(2) The sum of nine million two hundred eighty-five thousand dollars is appropriated to the office of the governor from the state building construction account for the biennium ending June 30, 1989, to fund the following elements of the settlement agreement:

!tp1 @i2(a) Tribal fisheries projects!w×!tr$!sc ,16

!ae0!tr7,235,000

@i2(b) Clark's creek hatchery improvements!w×!tr$!sc ,16

!ae0!tr800,000

@i2(c) Social and health facilities!w×!tr$!sc ,16

!ae0!tr1,250,000

The money may be expended only after approval by the office of financial management as set forth in section 9 of this act.

NEW SECTION. Sec. 5. (1) The sum of eleven million seven hundred fifteen thousand dollars is appropriated from the general fund to the office of the governor for the biennium ending June 30, 1991, to fund the following elements of the settlement agreement:

@i2(a) Operation and maintenance for tribal fisheries programs and facilities!w×!tr$!sc ,16

!ae0!tr700,000

@i2(b) Job training and placement program!w×!tr$!sc ,16

!ae0!tr527,000

@i2(c) Permanent trust fund!w×!tr$!sc ,16

!ae0!tr3,198,000

@i2(d) Social and health services!w×!tr$!sc ,16

!ae0!tr132,000

@i2(e) Blair navigation project!w×!tr$!sc ,16

!ae0!tr7,158,000

The money may be expended only after approval by the office of financial management as set forth in section 9 of this act.

(2) The sum of nine million two hundred eighty-five thousand dollars is appropriated to the office of the governor from the state building construction account for the biennium ending June 30, 1991, to fund the following elements of the settlement agreement:

!tp1 @i2(a) Tribal fisheries projects!w×!tr$!sc ,16

!ae0!tr7,235,000

@i2(b) Clark's creek hatchery improvements!w×!tr$!sc ,16

!ae0!tr800,000

@i2(c) Social and health facilities!w×!tr$!sc ,16

!ae0!tr1,250,000

The money may be expended only after approval by the office of financial management as set forth in section 9 of this act.

(3) The appropriations in this section shall be reduced by any amounts expended under the appropriations in section 4 of this act.

NEW SECTION. Sec. 6. (1) None of the funds, assets, or income from the permanent trust fund received by the tribe as part of the settlement agreement shall be subject to levy, execution, forfeiture, lien, encumbrance, or seizure.

(2) None of the funds, assets, or income from the permanent trust fund contained in or resulting from the settlement agreement shall at any time be used as a basis for denying or reducing funds to the tribe or its members under any federal, state, or local program except to the extent federal legislation so provides.

(3) None of the funds or assets transferred to the tribe or its members by the settlement agreement shall be deemed to be taxable, nor shall such transfer be a taxable event.

NEW SECTION. Sec. 7. The purpose of this act is to implement the settlement agreement and nothing in this act is meant to alter in any way the terms of the settlement agreement.

NEW SECTION. Sec. 8. The state consents to the jurisdiction of the federal court as specified in the settlement agreement over any dispute arising from the settlement agreement.

NEW SECTION. Sec. 9. The office of financial management shall establish a budget and accounting system to control money appropriated to meet the state's share of the settlement agreement. The office of financial management shall authorize the release of funds appropriated to implement the state's commitments after enactment of the federal legislation necessary to effectuate the settlement agreement, entry of an order of dismissal with prejudice in Puyallup Indian Tribe v. Union Pacific Railroad Company, et al., and a determination by the director of financial management that all other conditions of the settlement agreement have been satisfied. If the conditions for release of the funds are not satisfied, funds appropriated by this act shall lapse.

NEW SECTION. Sec. 10. The governor is empowered to execute the appropriate documents to relinquish the state's claims to title of the current riverbed of the Puyallup river within the 1873 survey area to the United States in trust for the tribe subject to the provisions on existing rights of way, discharges, easements, flood control, and fishing rights as set forth in the settlement agreement.

NEW SECTION. Sec. 11. A new section is added to chapter 35.43 RCW to read as follows:

(1) The settlement of Indian land and other claims against public and private property owners is declared to be in the interest of public health and safety, orderly government, environmental protection, economic development, and the social well-being of the citizens of this state, and to specifically benefit the properties released from those claims.

It is the purpose of this act to encourage the settlement of such Indian land and other claims by permitting the establishment and use of local improvement districts to finance all or a portion of the settlement costs of resolving such claims.

(2) A local improvement district may be established by a local government legislative authority to finance all or part of the settlement costs in an Indian land and other claims settlement related to public and private property located within the local government. The settlement of Indian land and other claims shall be deemed to be an improvement that may be financed in whole or in part through use of a local improvement district.

Except as expressly provided in this section, all matters relating to the establishment and operation of such a local improvement district, the levying and collection of special assessments, the issuance of local improvement district bonds and other obligations, and all related matters, shall be subject to the provisions of chapters 35.43 through 35.54 RCW. The resolution or petition initiating the creation of a local improvement district used to finance all or a portion of an Indian land and other claims settlement shall describe the general nature of the Indian land and other claims and the proposed settlement.

NEW SECTION. Sec. 12. A new section is added to chapter 36.32 RCW to read as follows:

(2) A local improvement district may be established by a county legislative authority to finance all or part of the settlement costs in an Indian land and other claims settlement related to public and private property located within the incorporated or unincorporated areas of the county. The settlement of Indian land and other claims shall be deemed to be an improvement that may be financed in whole or in part through use of a local improvement district.

(3) Except as expressly provided in this section, all matters relating to the establishment and operation of such a local improvement district, the levying and collection of special assessments, the issuance of local improvement district bonds and other obligations, and all related matters, shall be subject to the provisions of chapter 36.94 RCW concerning the use of local improvement districts to finance sewer or water facilities. The requirements of chapter 36.94 RCW concerning the preparation of a general plan and formation of a review committee shall not apply to a local improvement district used to finance all or a portion of Indian land and other claims settlements. The resolution or petition that initiates the creation of a local improvement district used to finance all or a portion of an Indian land and other claims settlement shall describe the general nature of the Indian land and other claims and the proposed settlement.

NEW SECTION. Sec. 13. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.