HOUSE BILL REPORT

                  SB 5309

                       As Passed House

                       April 14, 1993

Title:  An act relating to the land bank.

Brief Description:  Modifying provisions relating to exchange of urban land for land bank land.

Sponsors:  Senator Owen.

Brief History:

  Reported by House Committee on:

Natural Resources & Parks, March 23, 1993, DP;

  Passed House, April 14, 1993, 66-32.

HOUSE COMMITTEE ON NATURAL RESOURCES & PARKS

Majority Report:  Do pass.  Signed by 7 members:  Representatives Pruitt, Chair; R. Johnson, Vice Chair; Dunshee; Linville; Sheldon; Valle; and Wolfe.

Minority Report:  Do not pass.  Signed by 4 members:  Representatives Morton, Ranking Minority Member; Stevens, Assistant Ranking Minority Member; Schoesler; and Thomas.

Staff:  Linda Byers (786-7129).

Background:  The Department of Natural Resources (DNR) manages a state land bank.  The land bank is used for purchases, sales, and transfers of land which allow the department to replace less productive land with more productive land, while maintaining the trust land base.

The department also periodically reviews its inventory of trust lands and identifies trust lands which are expected to be converted to commercial, residential, or industrial uses within 10 years.  These lands are called urban lands.  Prior to designation as urban lands, the department must hold hearings and post notice in counties where the state land is located.  If the department determines to exchange some of this urban land for land bank land, the department notifies the county and city or town in which the land is situated, and state agencies, of its determination.  These entities are given the opportunity to purchase the land at fair market value.  If competing applications are received from these government entities, the application which results in the highest monetary value is selected.

In 1992, the Legislature gave DNR the authority to directly transfer or dispose of real property without public auction in three circumstances.  One of the three circumstances is transfers to public agencies.  "Public agencies" is defined to mean "any agency, political subdivision, or unit of local government of this state including, but not limited to, municipal corporations, quasi-municipal corporations, special purpose districts, and local service districts; any agency of the state government; any agency of the United States; and any Indian tribe recognized as such by the federal government" (RCW 79.01.009).  It is not clear whether this provision applies to exchanges of urban land for land bank land.

Summary of Bill:  The above provision expressly applies to exchanges of urban land for land bank land.  The Department of Natural Resources may sell this urban land without public auction to any "public agency" as defined in RCW 79.01.009.

Fiscal Note:  Available.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  None.

Testimony Against:  None.

Witnesses:  None.