AN ACT Relating to funding, acquisition, development, transfer, and management of lands; amending RCW 76.12.030 and 76.12.080; reenacting and amending RCW 76.12.120; adding new sections to chapter 76.12 RCW; adding a new section to chapter 79.68 RCW; adding a new chapter to Title 43 RCW; creating new sections; repealing RCW 76.12.100; and making appropriations.

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

NEW SECTION. Sec. 1. A new section is added to chapter 76.12 RCW to read as follows:

The legislature finds that there is increasing pressure in areas of the state subject to population growth for conversion of forest lands to urban uses. Loss of forest land in these areas reduces the land base for sustainable long-term production of forest products and reduces the available supply of open space, watershed protection, habitat, and recreational opportunities increasingly needed in areas of population growth.

The intent of sections 2, 6, and 7 of this act is to increase the publicly owned forest land base to be managed in perpetuity as state forest lands for sustainable commercial forestry.

NEW SECTION. Sec. 2. A new section is added to chapter 76.12 RCW to read as follows:

The department may acquire forest land that: Is suitable for sustainable commercial forestry; may provide benefits of watershed protection, wildlife habitat, open space, and recreation; and is in danger of being parceled or converted to nonforest uses. In selecting lands to be acquired, consideration shall be given to consolidating and blocking up publicly owned forest lands and retaining highly productive forest land in forest uses, in areas in danger of being parceled or converted to nonforest uses, where state acquisition is the most prudent means of retaining such lands in forest uses. Consideration shall also be given to the potential for incidental provision of public benefits such as watershed protection, wildlife habitat, open space, and recreation.

Sec. 3. Section 3, chapter 288, Laws of 1927 as last amended by section 24, chapter 128, Laws of 1988 and RCW 76.12.030 are each amended to read as follows:

If any land acquired by a county through foreclosure of tax liens, or otherwise, comes within the classification of land described in RCW 76.12.020 and can be used as state forest land and if the department deems such land necessary for the purposes of this chapter, the county shall, upon demand by the department, deed such land to the department and the land shall become a part of the state forest lands.

Such land shall be held in trust and administered and protected by the department as other state forest lands. Any moneys derived from the lease of such land or from the sale of forest products, oils, gases, coal, minerals, or fossils therefrom, shall be distributed as follows:

(1) The expense incurred by the state for administration, reforestation, and protection, not to exceed twenty-five percent, which rate of percentage shall be determined by the board of natural resources, shall be returned to the forest development account in the state general fund.

(2) Any balance remaining shall be ((~~paid~~)) prorated and distributed to the forest development account, to be used to purchase new forest lands, and the county in which the land is located ((to)) according to the relative proportions of tax levies of all taxing districts in the county. The portion to be distributed to the forest development account shall be based on the regular school levy rate under RCW 84.52.065 and the levy rate for any maintenance and operation special school levies. The money distributed to the county shall be paid, distributed, and prorated, except as hereinafter provided, to the various other funds in the same manner as general taxes are paid and distributed during the year of payment: PROVIDED, That any such balance remaining paid to a county of the seventh, eighth, or ninth class shall first be applied to the reduction of any indebtedness existing in the current expense fund of such county during the year of payment.

Sec. 4. Section 4, chapter 154, Laws of 1923 as amended by section 28, chapter 128, Laws of 1988 and RCW 76.12.080 are each amended to read as follows:

The department shall take such steps as it deems advisable for locating and acquiring lands suitable for state forests and reforestation. No sum in excess of ((~~two dollars per acre~~)) fair market value shall ever be paid or allowed either in cash, bonds or otherwise, for any lands suitable for forest growth, but devoid of such; nor shall any sum in excess of ((~~six dollars per acre~~)) fair market value be paid or allowed either in cash, bonds or otherwise, for any lands adequately restocked with young growth or left in a satisfactory natural condition for natural reforestation and continuous forest production; nor shall any lands ever be acquired by the department except upon the approval of the title by the attorney general and on a conveyance being made to the state of Washington by good and sufficient deed. No forest lands shall be designated, purchased, or acquired by the department unless the area so designated or the area to be acquired shall, in the judgment of the department, be of sufficient acreage and so located that it can be economically administered for forest development purposes. Whenever the department acquires or designates an area as forest lands it shall designate such area by a distinctive name or number, e.g., "State forest No. ..... ", or, "Cascade State Forest".

Sec. 5. Section 7, chapter 154, Laws of 1923 as last amended by section 1, chapter 70, Laws of 1988 and by section 32, chapter 128, Laws of 1988 and RCW 76.12.120 are each reenacted and amended to read as follows:

(1) All land, acquired or designated by the department as state forest land, shall be forever reserved from sale, but the timber and other products thereon may be sold or, except for land acquired under section 2 of this 1990 act, the land may be leased in the same manner and for the same purposes as is authorized for state granted land if the department finds such sale or lease to be in the best interests of the state and approves the terms and conditions thereof.

((~~Except as provided in RCW 79.12.035,~~)) (2) All money derived from the sale of timber or other products, or from lease, or from any other source from the land, except as provided in subsection (3) of this section, or where the Constitution of this state or RCW 76.12.030 requires other disposition, shall be disposed of as follows:

((~~(1)~~)) (a) Fifty percent shall be placed in the forest development account.

((~~(2)~~)) (b) Fifty percent shall be prorated and distributed to the ((~~state general fund, to be dedicated for the benefit of the public schools,~~)) forest development account, to be used to purchase new forest lands and the county in which the land is located according to the relative proportions of tax levies of all taxing districts in the county. The portion to be distributed to the ((~~state general fund~~)) forest development account shall be based on the regular school levy rate under RCW 84.52.065 ((~~as now or hereafter amended~~)) and the levy rate for any maintenance and operation special school levies. The money distributed to the county shall be paid, distributed, and prorated to the various other funds in the same manner as general taxes are paid and distributed during the year of payment.

(3) All money derived from the sale of timber or other products from lands acquired under authority of section 2 of this 1990 act shall be disposed of according to RCW 76.12.030.

NEW SECTION. Sec. 6. A new section is added to chapter 76.12 RCW to read as follows:

The department of natural resources shall provide annually to the board of natural resources a separate accounting of all moneys placed into the forest development account under section 2 of this act for the express purpose of purchasing forest lands and the amounts expended from these funds.

NEW SECTION. Sec. 7. A new section is added to chapter 76.12 RCW to read as follows:

Transfer to the state of Washington of timberland pursuant to section 2 of this act shall not result in any compensating property tax being due under chapter 84.28, 84.33, or 84.34 RCW as a result of such transfer.

NEW SECTION. Sec. 8. Section 1, chapter 117, Laws of 1933, section 2, chapter 126, Laws of 1935, section 2, chapter 104, Laws of 1937, section 1, chapter 106, Laws of 1939, section 1, chapter 43, Laws of 1941, section 1, chapter 123, Laws of 1943, section 1, chapter 13, Laws of 1945, section 1, chapter 66, Laws of 1947, section 1, chapter 80, Laws of 1949, section 30, chapter 128, Laws of 1988 and RCW 76.12.100 are each repealed.

NEW SECTION. Sec. 9. Certain Washington common school trust lands are no longer suitable for traditional forest practices, such as harvesting, or the value of the land has appreciated greatly. By statute, such lands must be managed by the department of natural resources to maximize the return to the school trust for school construction purposes.

As the department, acting on behalf of the trust, moves to realize the highest and best use of these properties, loss of valuable urban and suburban open space unique to their respective areas is possible. Citizens are concerned about the loss of habitat, recreational opportunities, and watershed recharge areas in their communities. Growth and population pressures in the state make conservation of these locally significant areas all the more important.

To answer these concerns, the legislature authorizes the transfer of certain common school trust lands for the purposes specified in sections 10 and 11 of this act.

NEW SECTION. Sec. 10. The sum of .......... dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1991, from the general fund to the department of natural resources for the purposes specified in this section and section 11 of this act.

The appropriation in this section is subject to the conditions and limitations specified in section 11 of this act.

NEW SECTION. Sec. 11. A new section is added to chapter 79.68 RCW to read as follows:

(1) Common school trust lands identified in section 9 of this act shall be trust properties identified by a process approved by the board of natural resources using, but not limited to, the following criteria:

(a) Parcels shall be evaluated in light of current value to communities as buffers, air and water recharge areas, wetlands, wildlife habitat, recreation usage and educational value.

(b) Properties located in the Puget Sound region shall be given priority.

(2) The land and timber shall be appraised and transferred at full market value.

(3) Transfer of the acquired property to another public agency is contingent upon an interlocal agreement between the department and an authorized local government entity, such as a park district or county government. Such an agreement will relieve the department of any and all future liability or responsibility for management.

(4) The proceeds of the sales of timber shall be deposited by the department in the same manner as timber revenues from other common school trust lands except that no deductions shall be made for the resource management cost account under RCW 79.64.040.

(5) The proceeds of the transfer of land shall be used by the department to acquire income-generating properties of equal value to be managed as common school trust land.

NEW SECTION. Sec. 12. The legislature finds:

(1) That Washington possesses an abundance of natural wealth in the form of forests, mountains, wildlife, waters, and other natural resources, all of which help to provide an unparalleled diversity of outdoor recreation opportunities and a quality of life unmatched in this nation;

(2) That as the state's population grows, the demand on these resources is growing too, placing greater stress on today's already overcrowded public recreational lands and facilities, and resulting in a significant loss of wildlife habitat and lands of unique natural value;

(3) That public acquisition and development programs have not kept pace with the state's expanding population;

(4) That private investment and employment opportunities in general and the tourist industry in particular are dependent upon the continued availability of recreational opportunities and our state's unique natural environment;

(5) That if current trends continue, some wildlife species and rare ecosystems will be lost in the state forever and public recreational lands will not be adequate to meet public demands;

(6) That there is accordingly a need for the people of the state to reserve certain areas of the state, in rural as well as urban settings, for the benefit of present and future generations.

It is therefore the policy of the state to acquire as soon as possible the most significant lands for wildlife conservation and outdoor recreation purposes before they are converted to other uses, and to develop existing public recreational land and facilities to meet the needs of present and future generations.

NEW SECTION. Sec. 13. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Acquisition" means the purchase on a willing seller basis of fee or less than fee interests in real property. These interests include, but are not limited to, options, rights of first refusal, conservation easements, leases, and mineral rights.

(2) "Committee" means the interagency committee for outdoor recreation.

(3) "Critical habitat" means lands important for the protection, management, or public enjoyment of certain wildlife species or groups of species, including, but not limited to, wintering range for deer, elk, and other species, waterfowl and upland bird habitat, fish habitat, and habitat for endangered, threatened, or sensitive species.

(4) "Local agencies" means a city, county, town, tribe, special purpose district, port district, or other political subdivision of the state providing services to less than the entire state.

(5) "Natural areas" means areas that have, to a significant degree, retained their natural character and are important in preserving rare or vanishing flora, fauna, geological, natural historical, or similar features of scientific or educational value.

(6) "Special needs populations" means physically restricted people or people of limited means.

(7) "Trails" means public ways constructed for and open to pedestrians, equestrians, or bicyclists, or any combination thereof, other than a sidewalk constructed as a part of a city street or county road for exclusive use of pedestrians.

(8) "Urban wildlife habitat" means lands that provide habitat important to wildlife in proximity to a metropolitan area.

(9) "Water access" means boat or foot access to marine waters, lakes, rivers, or streams.

NEW SECTION. Sec. 14. The habitat conservation account is established in the state treasury. The committee shall administer the account in accordance with chapter 43.99 RCW and this chapter, and shall hold it separate and apart from all other money, funds, and accounts of the committee.

NEW SECTION. Sec. 15. (1) Moneys appropriated for this chapter shall be divided equally between the habitat conservation and outdoor recreation accounts and shall be used exclusively for the purposes specified in this chapter.

(2) Moneys deposited in these accounts shall be invested as authorized for other state funds, and any earnings on them shall be credited to the respective account.

(3) All moneys deposited in the habitat conservation and outdoor recreation accounts shall be allocated under sections 16 and 17 of this act as grants to state or local agencies for acquisition, development, and renovation within the jurisdiction of those agencies, subject to legislative appropriation. The committee may use or permit the use of any funds appropriated for this chapter as matching funds where federal, local, or other funds are made available for projects within the purposes of this chapter.

NEW SECTION. Sec. 16. (1) Moneys appropriated for this chapter to the habitat conservation account shall be distributed in the following way:

(a) Not less than thirty-five percent for the acquisition and development of critical habitat;

(b) Not less than twenty percent for the acquisition and development of natural areas;

(d) The remaining amount shall be considered unallocated and shall be used by the committee to fund high priority acquisition and development needs for critical habitat, natural areas, and urban wildlife habitat.

(2) In distributing these funds, the committee retains discretion to meet the most pressing needs for critical habitat, natural areas, and urban wildlife habitat, and is not required to meet the percentages described in subsection (1) of this section in any one biennium.

(3) Only state agencies may apply for acquisition and development funds for critical habitat and natural areas projects under subsection (1) (a), (b), and (d) of this section.

(4) State and local agencies may apply for acquisition and development funds for urban wildlife habitat projects under subsection (1) (c) and (d) of this section.

NEW SECTION. Sec. 17. (1) Moneys appropriated for this chapter to the outdoor recreation account shall be distributed in the following way:

(a) Not less than twenty-five percent to the state parks and recreation commission for the acquisition and development of state parks, with at least seventy-five percent of this money for acquisition costs;

(b) Not less than twenty-five percent for the acquisition, development, and renovation of local parks, with at least fifty percent of this money for acquisition costs;

(d) Not less than ten percent for the acquisition and development of water access sites, with at least seventy-five percent of this money for acquisition costs; and

(e) The remaining amount shall be considered unallocated and shall be distributed by the committee to state and local agencies to fund high priority acquisition and development needs for parks, trails, and water access sites.

(2) In distributing these funds, the committee retains discretion to meet the most pressing needs for state and local parks, trails, and water access sites, and is not required to meet the percentages described in subsection (1) of this section in any one biennium.

(3) Only local agencies may apply for acquisition, development, or renovation funds for local parks under subsection (1)(b) of this section.

(4) State and local agencies may apply for funds for trails under subsection (1)(c) of this section.

(5) State and local agencies may apply for funds for water access sites under subsection (1)(d) of this section.

NEW SECTION. Sec. 18. (1) The committee may adopt rules establishing acquisition policies and priorities for distributions from the habitat conservation account.

(2) Moneys appropriated for this chapter may not be used by the committee to fund additional staff positions or other overhead expenses, or by a state, regional, or local agency to fund operation and maintenance of areas acquired under this chapter.

(3) Moneys appropriated for this chapter may be used for costs incidental to acquisition, including, but not limited to, surveying expenses, fencing, and signing.

(4) The committee may not approve a local project where the local agency share is less than the amount to be awarded from the habitat conservation account.

(5) In determining acquisition priorities with respect to the habitat conservation account, the committee shall consider, at a minimum, the following criteria:

(a) For critical habitat and natural areas proposals:

(i) Immediacy of threat to the site;

(ii) Uniqueness of the site;

(iii) Diversity of species using the site;

(iv) Quality of the habitat;

(v) Long-term viability of the site;

(vi) Presence of endangered, threatened, or sensitive species;

(vii) Enhancement of existing public property;

(viii) Consistency with a local land use plan, or a regional or state-wide recreational or resource plan; and

(ix) Educational and scientific value of the site.

(b) For urban wildlife habitat proposals, in addition to the criteria of (a) of this subsection:

(i) Population of, and distance from, the nearest urban area;

(ii) Proximity to other wildlife habitat;

(iii) Potential for public use; and

(iv) Potential for use by special needs populations.

(6) Before October 1st of each even-numbered year, the committee shall recommend to the governor a prioritized list of state agency projects to be funded under section 16(1) (a), (b), and (c) of this act. The governor may remove projects from the list recommended by the committee and shall submit this amended list in the capital budget request to the legislature. The list shall include, but not be limited to, a description of each project.

(7) Before October 1st of each year, the committee shall recommend to the governor a prioritized list of all local projects to be funded under section 16(1)(c) of this act. The governor may remove projects from the list recommended by the committee and shall submit this amended list in the capital budget request to the legislature. The list shall include, but not be limited to, a description of each project and any particular match requirement.

NEW SECTION. Sec. 19. (1) In determining which state parks proposals and local parks proposals to fund, the committee shall use existing policies and priorities.

(2) Moneys appropriated for this chapter may not be used by the committee to fund additional staff or other overhead expenses, or by a state, regional, or local agency to fund operation and maintenance of areas acquired under this chapter.

(3) Moneys appropriated for this chapter may be used for costs incidental to acquisition, including, but not limited to, surveying expenses, fencing, and signing.

(4) The committee may not approve a project of a local agency where the share contributed by the local agency is less than the amount to be awarded from the outdoor recreation account.

(5) The committee may adopt rules establishing acquisition policies and priorities for the acquisition and development of trails and water access sites to be financed from moneys in the outdoor recreation account.

(6) In determining the acquisition and development priorities, the committee shall consider, at a minimum, the following criteria:

(a) For trails proposals:

(i) Immediacy of threat to the site;

(ii) Linkage between communities;

(iii) Linkage between trails;

(iv) Existing or potential usage;

(v) Consistency with an existing local land use plan or a regional or state-wide recreational or resource plan;

(vi) Availability of water access or views;

(vii) Enhancement of wildlife habitat; and

(viii) Scenic values of the site.

(b) For water access proposals:

(i) Distance from similar water access opportunities;

(ii) Immediacy of threat to the site;

(iii) Diversity of possible recreational uses; and

(iv) Public demand in the area.

(7) Before October 1st of each even-numbered year, the committee shall recommend to the governor a prioritized list of state agency projects to be funded under section 17(1) (a), (c), and (d) of this act. The governor may remove projects from the list recommended by the committee and shall submit this amended list in the capital budget request to the legislature. The list shall include, but not be limited to, a description of each project.

(8) Before October 1st of each year, the committee shall recommend to the governor a prioritized list of all local projects to be funded under section 17(1) (b), (c), and (d) of this act. The governor may remove projects from the list recommended by the committee and shall submit this amended list in the capital budget request to the legislature. The list shall include, but not be limited to, a description of each project and any particular match requirement.

NEW SECTION. Sec. 20. The committee shall not sign contracts or otherwise financially obligate funds from the habitat conservation account or the outdoor recreation account as provided in this chapter before the legislature has appropriated funds for a specific list of projects. The legislature may remove projects from the list recommended by the governor.

NEW SECTION. Sec. 21. Moneys made available under this chapter for land acquisition shall not be used to acquire land through condemnation.

NEW SECTION. Sec. 22. On or before November 1st of each odd-numbered year, the committee shall submit to the governor and the standing committees of the legislature dealing with fiscal affairs, fish and wildlife, and natural resources a report detailing the acquisitions and development projects funded under this chapter during the immediately preceding biennium.

NEW SECTION. Sec. 23. 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.

NEW SECTION. Sec. 24. (1) To ensure that the most important wildlife habitat and outdoor recreation sites are not lost to development or converted to other uses during the next twelve months, the sum of twenty-two million five hundred thousand dollars, or as much thereof as may be necessary, is appropriated from the habitat conservation account, and twenty-two million five hundred thousand dollars, or as much thereof as may be necessary, is appropriated from the outdoor recreation account, to the interagency committee for outdoor recreation, for the fiscal biennium ending June 30, 1991.

(2) The appropriations in this section for the habitat conservation account and the outdoor recreation account shall be expended to acquire projects recommended by the committee to the governor by March 31, 1990. The governor may remove projects from the list and shall approve by April 15, 1990, a list of projects to be acquired for the fiscal biennium ending June 30, 1991.

(3) Up to five million dollars of this appropriation may be spent from the habitat conservation account for emergency acquisition of threatened or newly available properties.

(4) Up to five million dollars of this appropriation may be spent from the outdoor recreation account for emergency acquisition of threatened or newly available properties.

(5) Acquisitions made with funds appropriated by this section shall be completed to the extent possible within available funds. If a site has been converted, or the owner is not willing to sell, the committee shall select from the list until all funds have been expended. The committee shall not approve a project of a local agency where the share contributed by the local agency is less than the amount awarded by the state.

NEW SECTION. Sec. 25. Sections 12 through 23 of this act shall constitute a new chapter in Title 43 RCW.