AN ACT Relating to purchase of state forest 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; and repealing RCW 76.12.100.

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 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 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 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.