H-2331.1  _______________________________________________

                    SUBSTITUTE HOUSE BILL 2036

          _______________________________________________

State of Washington      56th Legislature     1999 Regular Session

By House Committee on Appropriations (originally sponsored by Representatives H. Sommers, Buck, Lantz, Regala, Anderson, Ogden and Rockefeller; by request of Commissioner of Public Lands and Superintendent of Public Instruction)

Read first time 03/08/1999.

Funding management of the common school trust lands.

    AN ACT Relating to funding management of the common school trust lands; amending RCW 79.64.020 and 79.64.030; and declaring an emergency.

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

    Sec. 1.  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 as authorized under the provisions of this title.  Appropriations from the account to the department shall be expended for no other purposes.  Funds in the account may be appropriated or transferred by the legislature for the benefit of ((all of)) the trust((s)) from which the funds were derived.

    Sec. 2.  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)) may 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.  If it is determined that it is in the best interests of the trusts involved, such funds may be ((used for)) loaned for use in paying similar costs and expenses incurred in managing and administering another trust's or other lands managed by the department provided that such ((expenditures that have been or may be made on such other lands)) loan shall be repaid to the resource management cost account together with interest at a rate and time determined by the board of natural resources.

    An accounting shall be made annually of the accrued expenditures from ((the pooled)) any trust funds in the account.  In the event the accounting determines that expenditures have been made from moneys derived from ((trust)) one trust's lands for the benefit of another trust or other lands, such expenditure shall be considered a debt and an encumbrance against the property 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.

NEW SECTION. Sec. 3.  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 immediately.

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