FINAL BILL REPORT

                  HB 1809

                         C 460 L 93

                     Synopsis as Enacted

Brief Description:  Permitting the pooling of department of natural resources trust management accounts.

By Representatives Locke and Wang.

House Committee on Appropriations

Senate Committee on Natural Resources

Background:  The Department of Natural Resources manages approximately 2.1 million acres of lands known as enabling act trustlands.  The department is required by both state constitution and statute to manage these lands for designated public beneficiaries.  Revenues are generated from timber sales, leases, sale of materials, and interest income, and redirected back to the specific trust beneficiary in the capital budget.

The department receives a portion of trust revenues to pay the costs of managing the trust.  Up to 25 percent of the revenues from these lands are deposited into the Resource Management Cost Account (RMCA).  The department is required to account for management funds from each specific trust.  For example, the revenues deposited into the RMCA from the common school trustlands must be expended in support of managing the same common school trustlands.

Trustland categories include the common schools, the University of Washington, Washington State University, the regional universities, the capitol buildings and grounds, and charitable, educational, penal and reform institutions.

Summary:  The department is given additional flexibility for managing and expending trust management revenues.  Revenues deposited into the account are pooled, and lose their separate trust identity.  The department is no longer required to account for and expend revenue in the RMCA by each separate trust category. 

Votes on Final Passage:

House  78 18

Senate 45 0 (Senate amended)

House  69 28 (House concurred)

Effective:  July 1, 1994