1418-S AAS 4/7/97 S2586

1418-S AAS 4/7/97 S2586.2

SHB 1418 - S COMM AMD

By Committee on Natural Resources & Parks

ADOPTED 4/7/97

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 79.64.030 and 1993 c 460 s 2 are each amended to read as follows:

Funds in the account derived from the gross proceeds of leases, sales, contracts, licenses, permits, easements, and rights of way issued by the department and affecting school lands, university lands, ((~~agricultural college lands,~~)) scientific school lands, normal school lands, capitol building lands, or institutional lands shall be ((~~pooled and~~)) expended by the department solely for the purpose of defraying the costs and expenses necessarily incurred in managing and administering ((~~all of the trust lands enumerated in this section~~)) state lands of the same trust. Such funds may be used for similar costs and expenses in managing and administering other lands managed by the department provided that such expenditures that have been or may be made on such other lands shall be repaid to the resource management cost account together with interest at a rate determined by the board of natural resources.

An accounting shall be made annually of the accrued expenditures from the ((~~pooled~~)) trust funds in the account. In the event the accounting determines that expenditures have been made from moneys derived from certain trust lands for the benefit of another trust or other lands, such expenditure shall be considered a debt and an encumbrance against the property or trust funds benefited, including property held under chapter 76.12 RCW. The results of the accounting shall be reported to the legislature at the next regular session. The state treasurer is authorized, upon request of the department, to transfer funds between the forest development account and the resource management cost account solely for purpose of repaying loans pursuant to this section.

Sec. 2. RCW 79.01.136 and 1979 ex.s. c 109 s 5 are each amended to read as follows:

Before any state lands are offered for sale, or lease, or are assigned, the department of natural resources may establish the fair market value of those authorized improvements not owned by the state. In the event that agreement cannot be reached between the state and the lessee on the fair market value, such valuation shall be submitted to a review board of appraisers. The board shall be as follows: One member to be selected by the lessee and his or her expense shall be borne by the lessee; one member selected by the state and his or her expense shall be borne by the state; these members so selected shall mutually select a third member and his or her expenses shall be shared equally by the lessee and the state. The majority decision of this appraisal review board shall be binding on both parties. For this purpose "fair market value" is defined as: The highest price in terms of money which a property will bring in a competitive and open market under all conditions of a fair sale, the buyer and seller, each prudently knowledgeable and assuming the price is not affected by undue stimulus. All damages and wastes committed upon such lands and other obligations due from the lessee shall be deducted from the appraised value of the improvements((~~: PROVIDED, That~~)). However, the department of natural resources on behalf of the respective trust may purchase at fair market value those improvements if it appears to be in the best interest of the state ((~~from the RMCA of the general fund~~)). Payment for the improvements may be made with funds held on behalf of the trust in the resource management cost account established under RCW 79.64.020.

Sec. 3. RCW 79.64.010 and 1967 ex.s. c 63 s 1 are each amended to read as follows:

Unless a different meaning is plainly required by the context, the following words and phrases as hereinafter used in this chapter shall have the following meanings:

(1) "Account" means the resource management cost account in the state general fund.

(2) "Department" means the department of natural resources.

(3) "Board" means the board of natural resources of the department of natural resources.

(4) "Rule" means rule as ((~~the same~~)) that term is defined by RCW 34.05.010.

(5) The definitions set forth in RCW 79.01.004 shall be applicable.

(6) "Agricultural college lands" means all public lands awarded to the state of Washington under section 16 of the Omnibus Enabling Act (25 Stat. 180) and all lands acquired as the result of the sale or exchange of the lands.

Sec. 4. RCW 79.64.020 and 1993 c 460 s 1 are each amended to read as follows:

A resource management cost account in the state treasury is hereby created to be used solely for the purpose of defraying the costs and expenses necessarily incurred by the department in managing and administering public lands, and the making and administering of leases, sales, contracts, licenses, permits, easements, and rights of way on or with respect to such lands as authorized under the provisions of this title. Appropriations from the account to the department shall be expended for no other purposes. The resource management cost account may receive and accept funds that are to be used for such purposes from any source. Funds in the account produced by a trust may be appropriated or transferred by the legislature ((~~for the benefit of all of the trusts from which the funds were derived~~)) only for the benefit of the trust.

NEW SECTION. Sec. 5. A new section is added to chapter 79.64 RCW to read as follows:

No part of the gross proceeds from leases, sales, contracts, licenses, permits, easements, and rights of way on or relating to the agricultural college lands may be used to defray costs or expenses incurred in managing and administering the lands, and all such gross proceeds shall be made available to the beneficiary of the agricultural college lands.

Sec. 6. RCW 79.64.040 and 1981 2nd ex.s. c 4 s 3 are each amended to read as follows:

The board shall determine the amount deemed necessary in order to achieve the purposes of this chapter and shall provide by rule for the deduction of this amount from the gross proceeds of all leases, sales, contracts, licenses, permits, easements, and rights of way issued by the department and affecting public lands other than the agricultural college lands. Moneys received with respect to such lands as deposits from successful bidders, advance payments, and security under RCW 79.01.132 and 79.01.204 prior to December 1, 1981, which have not been subjected to deduction under this section are not subject to deduction under this section. The deductions authorized under this section shall in no event exceed twenty-five percent of the total sum received by the department in connection with any one transaction pertaining to public lands other than second class tide and shore lands and the beds of navigable waters, and fifty percent of the total gross proceeds received by the department pertaining to second class tide and shore lands and the beds of navigable waters.

NEW SECTION. Sec. 7. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 1997."

SHB 1418 - S COMM AMD

By Committee on Natural Resources & Parks

ADOPTED 4/7/97

On page 1, line 3 of the title, after "lands;" strike the remainder of the title and insert "amending RCW 79.64.030, 79.01.136, 79.64.010, 79.64.020, and 79.64.040; adding a new section to chapter 79.64 RCW; providing an effective date; and declaring an emergency."