CERTIFICATION OF ENROLLMENT

 

                   SUBSTITUTE HOUSE BILL 1826

 

 

                   Chapter 448, Laws of 1997

 

                         (partial veto)

 

 

 

                        55th Legislature

                      1997 Regular Session

 

 

ADMINISTRATION OF MONEYS DERIVED FROM PUBLIC LANDS

 

 

 

                    EFFECTIVE DATE:  7/27/97

Passed by the House April 21, 1997

  Yeas 73   Nays 25

 

 

 

             CLYDE BALLARD

Speaker of the

      House of Representatives

 

Passed by the Senate April 15, 1997

  Yeas 43   Nays 5

             CERTIFICATE

 

I, Timothy A. Martin, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is SUBSTITUTE HOUSE BILL 1826  as passed by the House of Representatives and the Senate on the dates hereon set forth.

 

 

 

               BRAD OWEN

President of the Senate

          TIMOTHY A. MARTIN

                          Chief Clerk

 

 

Approved May 20, 1997, with the exception of sections 1 and 2, which are vetoed.Place Style On Codes above, and Style Off Codes below.   

                                FILED          

 

 

             May 20, 1997 - 4:31 p.m.

 

 

 

              GARY LOCKE

Governor of the State of Washington

                   Secretary of State

                  State of Washington


          _______________________________________________

 

                    SUBSTITUTE HOUSE BILL 1826

          _______________________________________________

 

             Passed Legislature - 1997 Regular Session

 

                     AS AMENDED BY THE SENATE

 

                                

State of Washington      55th Legislature     1997 Regular Session

 

By House Committee on Natural Resources (originally sponsored by Representatives Thompson, Sheldon, DeBolt and Schoesler)

 

Read first time 03/05/97.

  Administering the moneys derived from certain public lands.   


    AN ACT Relating to the moneys derived from public lands managed by the commissioner of public lands; amending RCW 76.12.030 and 79.01.744; and reenacting and amending RCW 76.12.120.

 

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

 

    *Sec. 1.  RCW 76.12.030 and 1991 c 363 s 151 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)) twenty-two 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.  By June 30th of each year, the board of natural resources must establish the percentage and a budget for the following fiscal year in such a manner that the balance in the account does not exceed the amount necessary for six months of operating expenses for administration, reforestation, and protection.  The board of natural resources must set the level of the balance of the account in cooperation with the counties that have forest board transfer lands.

    (2) Any balance remaining after the distribution under subsection (1) of this section shall be paid to the county in which the land is located to be paid, distributed, and prorated, except as hereinafter provided, to the various funds in the same manner as general taxes are paid and distributed during the year of payment((:  PROVIDED, That)).  Within seven working days of receipt of these moneys, the department shall certify to the state treasurer the amounts to be distributed to the counties.  The state treasurer shall distribute funds to the counties four times per month, with no more than ten days between each payment date.  Any such balance remaining paid to a county with a population of less than nine thousand 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. 1 was vetoed.  See message at end of chapter.

 

    *Sec. 2.  RCW 76.12.120 and 1988 c 128 s 32 and 1988 c 70 s 1 are each reenacted and amended to read as follows:

    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 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 financial interests of the ((state and approves the terms and conditions thereof)) respective county trust beneficiaries.

    Except as provided in RCW 79.12.035, all money derived from the sale of timber or other products, or from lease, or from any other source from the land, except where the Constitution of this state or RCW 76.12.030 requires other disposition, shall be disposed of as follows:

    (1) Fifty percent shall be placed in the forest development account.

    (2) Fifty percent shall be prorated and distributed to the state general fund, to be dedicated for the benefit of the public schools, 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 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.  With regard to the portion to be distributed to the counties, the department shall certify to the state treasurer the amounts to be distributed within seven working days of receipt of the money.  The state treasurer shall distribute funds to the counties four times per month, with no more than ten days between each payment date.  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.

*Sec. 2 was vetoed.  See message at end of chapter.

 

    Sec. 3.  RCW 79.01.744 and 1987 c 505 s 76 are each amended to read as follows:

    (1) It shall be the duty of the commissioner of public lands to report, and recommend, to each session of the legislature, any changes in the law relating to the methods of handling the public lands of the state that he may deem advisable.

    (2) The commissioner of public lands shall provide a comprehensive biennial report to reflect the previous fiscal period.  The report shall include, but not be limited to, descriptions of all department activities including:  Revenues generated, program costs, capital expenditures, personnel, special projects, new and ongoing research, environmental controls, cooperative projects, intergovernmental agreements, the adopted sustainable harvest compared to the sales program, and outlines of ongoing litigation, recent court decisions and orders on major issues with the potential for state liability.  The report shall describe the status of the resources managed and the recreational and commercial utilization.  The report shall be given to the chairs of the house and senate committees on ways and means and the house and senate committees on natural resources, including one copy to the staff of each of the committees, and shall be made available to the public.

    (3) The commissioner of public lands shall provide annual reports to the respective trust beneficiaries, including each county.  The report shall include, but not be limited to, the following:  Acres sold, acres harvested, volume from those acres, acres planted, number of stems per acre, acres precommercially thinned, acres commercially thinned, acres partially cut, acres clear cut, age of final rotation for acres clear cut, and the total number of acres off base for harvest and an explanation of why those acres are off base for harvest.


    Passed the House April 21, 1997.

    Passed the Senate April 15, 1997.

Approved by the Governor May 20, 1997, with the exception of certain items that were vetoed.

    Filed in Office of Secretary of State May 20, 1997.


 

    Note:  Governor's explanation of partial veto is as follows:

 

    "I am returning herewith, without my approval as to sections 1 and 2, Substitute House Bill No. 1826 entitled:

 

"AN ACT Relating to the moneys derived from public lands managed by the commissioner of public lands;"

 

    Substitute House Bill No. 1826 makes changes to the management of state Forest Board Lands.  I have concerns about two sections.

 

    Section 1 reduces the maximum percentage of revenue from state Forest Board Lands that can be retained in the Forest Development Account (FDA) from 25 percent to 22 percent.  In addition, the Board of Natural Resources is to establish a budget that maintains no greater than six months' operating expenses for the FDA.  This would result in a one-time windfall of approximately $19 million to the trust beneficiaries in Fiscal Year 1999.  However, by Fiscal Year 2001 revenues would not be able to keep pace with current agency management activities.  This provision would limit current and future revenue generating abilities.  The Board of Natural Resources has already reduced the percentage of revenue retained by the FDA to 22 percent.  It is preferable to allow the Board of Natural Resources to retain management flexibility.

 

    Section 2 changes the management objectives for state Forest Board Lands from the best interest of the state to the best financial interest of the respective county trust beneficiaries.  This is a fundamental change in state policy.  Although counties do receive significant financial benefit from these lands, local schools and the state General Fund also receive revenue from these lands.  These changes are not in the best interests of the citizens of our state.

 

    For these reasons, I have vetoed sections 1 and 2 of Substitute House Bill No. 1826.

 

    With the exception of sections 1 and 2, Substitute House Bill No. 1826 is approved."