S-2101

AN ACT Relating to the creation of the trust land transfer program; and adding a new chapter to Title 79 RCW.

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

NEW SECTION. Sec. 1. It is the intent of the legislature to ensure a public process and clear guidelines for the trust land transfer program. Since 1989, the trust land transfer program has provided an innovative way to infuse money into the public school construction account, protect properties with significant natural, park, or recreational attributes, transfer ownership of trust lands that cannot be managed effectively for revenue production, and acquire replacement trust properties better suited to produce revenue for the trusts. The program shall:

(1) Provide revenue for the construction of public schools and other public institutions by depositing the timber value of the transfer properties into the common school construction account or other relevant accounts for the distribution of trust revenue from state trust lands to beneficiaries, while not actually harvesting the timber;

(2) Deposit into the natural resources real property replacement account the proceeds associated with the land value that are then used to purchase replacement properties that have better revenue production potential for trust beneficiaries; and

(3) Transfer to more appropriate ownership federally granted trust lands with very significant natural, park, or recreational attributes, that are difficult to manage for revenue production.

NEW SECTION. Sec. 2. The board of natural resources shall develop criteria to remove lands from trust status, develop the process to implement this chapter, and shall periodically review, and if appropriate, revise these criteria and procedures. The primary consideration in determining suitability of lands to be transferred under the criteria is increasing the ability of the particular trust to produce revenue for its beneficiaries.

The board of natural resources shall adopt the criteria and process by resolution after public review and comment. The criteria shall be adopted by the board of natural resources by December 31, 1997.

There are three major categories of lands that may be removed from trust under this act:

(1) Lands where the revenue generating capacity does not justify the cost of management;

(2) Lands on which revenue generating capacity is constrained by state or federal law; and

(3) Lands that are difficult to manage for revenue production because of significant values such as recreation, scenic considerations, conservation, or fish or wildlife habitat.

NEW SECTION. Sec. 3. Each biennium the department of natural resources must establish one list of properties that are eligible for transfer using the criteria and procedures under section 2 of this act. There must be a clear identification of the reasons and category each property is being considered for transfer. The department of natural resources shall prioritize the list of properties. The receiving agencies may only choose potential transfer properties from the list.

NEW SECTION. Sec. 4. The department of natural resources shall attempt to maintain a minimum aggregate ratio of approximately eighty-five to fifteen timber-to-land value in the transactions authorized by this chapter. If the aggregate value of timber-to-land varies by more than plus or minus five percent of that ratio, individual land transfers may be dropped in order to maintain the approximate ratio. Intergrant exchanges among the various state trust lands of equal value may occur if the exchange is in the interest of each trust, as determined by the board of natural resources. Lands acquired under this chapter as replacement property must be solely for the benefit of the trust. Replacement funds shall not be used to acquire lands for nontrust purposes.

NEW SECTION. Sec. 5. There must be a determination that the public entity receiving the transfer property is willing to accept and manage the property. Eligible entities are those identified in RCW 79.01.009. A process for including local and federal agencies should be developed and encouraged as a means to maximize public recreation and conservation and to include agencies that may have better means of addressing the ongoing maintenance and operation needs of the property once it is removed from trust status.

The receiving entity should demonstrate the ability to manage the property.

NEW SECTION. Sec. 6. (1) The land and timber covered by this chapter shall be appraised and purchased at full market value.

(2) The timber value shall be deposited by the department of natural resources in the same manner as timber revenues from trust lands except that no deductions shall be made for the resource management cost account under RCW 79.64.040.

(3) The land value shall be deposited into the natural resources real property replacement account authorized by RCW 43.30.265. These funds shall be used by the department of natural resources to acquire replacement land.

(4) All reasonable costs incurred by the department of natural resources to implement this chapter, including all costs of acquiring real property to replace the trust lands transferred, are authorized to be paid from appropriations implementing this chapter. Those reasonable costs to be incurred in acquiring replacement real property are authorized to be reserved in the natural resources real property replacement account.

NEW SECTION. Sec. 7. The department of natural resources shall appoint an advisory committee to assist with the development and implementation of this chapter. The advisory committee shall include a representative for each of the following:

(1) The trust beneficiaries;

(2) The county governments of timber counties located in eastern Washington;

(3) The county governments of timber counties located in western Washington;

(4) The parks and recreation commission;

(5) The department of fish and wildlife; and

(6) The department of natural resources natural area preserve and natural resources conservation area programs.

NEW SECTION. Sec. 8. The criteria required under this chapter shall be used for the evaluation of lands and resources. By November 1st of each year, the department of natural resources, after approval by the board of natural resources, shall submit a list of any trust land transfer property requests to the legislature for its consideration in the capital budget.

NEW SECTION. Sec. 9. The department of natural resources must hold a public hearing in an area impacted by the land transfer prior to the approval of the transfer by the board of natural resources. Prior notice must be given by the department of natural resources to the public and any abutting landowners or lessees concerning all transfers covered by this chapter.

NEW SECTION. Sec. 10. Each county commissioner of a county or member of a county legislative authority with public land or timber that is affected by a proposed change in status of land or timber must be notified prior to the hearing required under section 9 of this act.

NEW SECTION. Sec. 11. This chapter shall not apply to trust lands approved prior to July 1, 1997, by the legislature for transfer. All prior transfers completed by the department of natural resources as authorized by the legislature under section 316, chapter 19, Laws of 1989 1st ex. sess., section 311(1), chapter 16, Laws of 1990 1st ex. sess., section 26, chapter 14, Laws of 1991 sp. sess., as amended by section 21, chapter 233, Laws of 1992; and section 459, chapter 22, Laws of 1993 1st sp. sess., are ratified. All acquisitions of replacement property after July 1, 1997, must follow procedures under this chapter.

NEW SECTION. Sec. 12. Sections 1 through 11 of this act constitute a new chapter in Title 79 RCW.