SENATE BILL REPORT

                   SB 5459

                    As of February 17, 1999

Title:  An act relating to aquatic lands leases.

Brief Description:  Leasing aquatic lands.

Sponsors:  Senators T. Sheldon, Oke and Morton.

Brief History:

Committee Activity:  Natural Resources, Parks & Recreation:  2/25/99.

SENATE COMMITTEE ON NATURAL RESOURCES, PARKS & RECREATION

Staff:  David Johnson (786-7754)

Background:  Commercial marinas on state-owned aquatic lands pay rent to the state based on the value of adjacent nonaquatic land.  The aquatic land value is calculated at 30 percent of the value of the adjacent upland parcel.  The rent is then determined using the aquatic land value.

As upland parcel values have increased, so have marina rents without regard for the earnings of the marina.

Summary of Bill:  The rental rate for a marina on state aquatic land is 3.5 percent of the marina's revenue.  The annual rent must be at least $500.

An increase in rent more than $500 per year, due to the new calculation method, may be phased in over four years.

Appropriation:  None.

Fiscal Note:  Requested on February 3, 1999.

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