| Washington State House of Representatives Office of Program Research |
BILL ANALYSIS |
| Agriculture & Natural Resources Committee | |
HB 1045
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
Brief Description: Maintaining the ability of the board of natural resources to determine the deduction of proceeds from transactions on state lands managed by the department of natural resources.
Sponsors: Representative B. Sullivan
Brief Summary of Bill |
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Hearing Date: 1/10/07
Staff: Jason Callahan (786-7117).
Background:
The Board of Natural Resources (Board) has been delegated the responsibility to direct the
management of state lands that are held in trust for identified trust beneficiaries. Beneficiaries of
these land trusts include the state's public schools and higher education institutions. Revenue
earned through land management activities conducted by the Department of Natural Resources
(DNR) benefits the identified trust beneficiary for the land.
Historically, the Board was entitled to deduct up to 25 percent of the revenue earned from trust
land activities. This deduction was transferred to the Resource Management Cost Account
(RMCA) and used to defray costs incurred by the DNR in managing and administering the trust
lands [RCW 79.64.020]. The remainder of the revenue was made available to the identified
trust beneficiary.
For the 2005-2007 fiscal biennium only, the Board was given the authority to deduct up to 30
percent of revenue generated from state lands [RCW 79.64.040(5)]. This authority did not
extend to aquatic lands managed by the DNR or to uplands that are managed by the DNR in trust
for counties.
The authority to deduct up to 30 percent from state trust land revenues expires with the end of the
2007 fiscal year. The Board's maximum allowed deduction will return to 25 percent with the
start of Fiscal Year 2008.
Summary of Bill:
The temporary authority for the Board to deduct an additional 5 percent of revenues generated
from state trust lands for the RMCA is made permanent. The Board's maximum allowable
RMCA deduction remains at 30 percent and will not be reduced to 25 percent upon the end of
Fiscal Year 2007.
Appropriation: None.
Fiscal Note: Not requested.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.