BILL REQ. #:  S-0482.1 

Read first time 01/12/2007.   Referred to Committee on Natural Resources, Ocean & Recreation.

     AN ACT Relating to maintaining Washington's working forest land base; amending RCW 79.17.200; reenacting and amending RCW 43.79A.040; adding a new chapter to Title 76 RCW; and making an appropriation.

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

NEW SECTION.  Sec. 1   The legislature finds that more than half of the state's forty-two and one-half million acres are forest lands and that the majority of these lands are available for harvest. However, many of the state's forest lands are threatened by conversion to nonforest uses, mostly from commercial and residential development. In addition, worldwide fiber commodity prices, increased environmental regulations, forest health issues, and changing patterns in corporate and individual ownership of forest lands are also contributing to the declines in forest lands in the state. Therefore, it is the intent of this chapter and this act to provide greater state financial assistance to maintain Washington's working forest land base through the creation of a funding board to make grants and loans on a competitive basis that support protection of working forest land and that assist in developing innovative strategies for supporting economically and environmentally healthy forests and forest-dependent communities.

NEW SECTION.  Sec. 2   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Board" means the working forest land board created in section 3 of this act.
     (2) "Department" means the department of natural resources.
     (3) "Local government" means any county, city, town, port district, or special purpose district.
     (4) "Priority needs areas" means the geographic areas identified by the department for priority lands to be addressed under the forest legacy program.

NEW SECTION.  Sec. 3   (1) The working forest land board is created. The board is composed of five members, of whom two members must be appointed by the governor. The commissioner of public lands, or the commissioner's designee, shall serve ex officio as a voting member of the board. The deans of the University of Washington college of forest resources and the Washington State University college of agriculture, human and natural resource sciences, or their designees, shall serve as members of the board. In making appointments to the board, the governor shall ensure that one member each representing the interests of forest landowners and conservation interests are board members at all times. The governor shall solicit and give substantial consideration to nominations provided by organizations representing these interests. Appointments to the board by the governor are subject to senate confirmation.
     (2) The board shall select a chair from among the members of the board.
     (3) Board members serve four-year terms, except that the governor shall designate one of the initial appointments to serve for a term of two years. The terms commence January 1, 2008.
     (4) Staff support to the board must be provided by the department. For administrative purposes, the board shall be located within the department.
     (5) Members of the board shall be compensated as provided by RCW 43.03.250, and reimbursed for travel expenses as provided by RCW 43.03.050 and 43.03.060.

NEW SECTION.  Sec. 4   (1) The board is responsible for making grants and loans for the protection of working forest lands consistent with the procedures and criteria of section 5 of this act. Only local governments are eligible for low-interest loans awarded by the board. To accomplish this purpose, the board may:
     (a) Provide assistance to grant applicants regarding the procedures and criteria for grant and loan awards;
     (b) Make and execute all manner of contracts and agreements with grant recipients, and with other public and private parties as the board deems necessary, consistent with the purposes of this chapter;
     (c) Accept any gifts, grants, or loans of funds, property, or financial or other aid in any form from any other source on any terms that are not in conflict with this chapter;
     (d) Adopt rules under chapter 34.05 RCW as necessary to carry out the purposes of this chapter; and
     (e) Do all acts necessary or convenient to carry out the powers expressly granted or implied under this chapter.
     (2) The department shall provide all necessary grant and loan administration assistance to the board, and shall distribute and account for funds appropriated or provided to the board for the purposes of this chapter.

NEW SECTION.  Sec. 5   (1) During each fiscal biennium, the board's total grants and loans are subject to the following limitations:
     (a) Not less than thirty percent and not more than forty percent of the total must be awarded for projects and activities that sustain the working forest land base and strengthen the connection between economic health and conservation of forests in Washington. These activities may include but are not limited to:
     (i) Programs or projects to support small timber landowners including such strategies as group timber certification, group habitat conservation plans, group cash flow pools, stewardship collaboration, and technical support;
     (ii) Programs or projects that test methods for recreation access and cost-share programs;
     (iii) Programs or projects that test methods to assist forest landowners in providing carbon sequestration, water recharge, and other natural resource services; and
     (iv) Programs or projects that test methods to support forest landowners' efforts at cost control, such as law enforcement, road gates, and cleanup of illegal dumping.
     (b) Not less than thirty percent and not more than forty percent of the total must be awarded for projects and activities that preserve forest lands over the long term for working forestry. These activities may include but are not limited to:
     (i) The acquisition of interests in forest lands for the purpose of protecting the lands for working forestry;
     (ii) Developing and implementing cooperative agreements with forest landowners for maintaining working forestry; and
     (iii) Other activities using conservation techniques such as clustering development rights, transfer of development rights, and land exchanges.
     (c) Not less than thirty percent and not more than forty percent of the total must be awarded for planning, research, and policy development related to maintaining working forests in the state.
     (2) The board shall adopt guidelines for the amount of nonstate resources that must be committed for grants from the categories established by the board. The amount may not be less than ten percent of the amount of the grant or loan from the board.
     (3) The board shall also adopt guidelines that limit the amount of a grant or loan that may be allocated to those administrative or other expenses of a grant or loan recipient not directly applied to maintaining Washington's working forest land base.
     (4) The board shall accord additional weight to applications that address forest lands within priority needs areas.
     (5) During each fiscal year beginning July 1, 2007, and ending June 30, 2015, the board shall establish a goal of disbursing a minimum of twenty-five percent of the total funds awarded by the board in the form of low-interest loans. However, if the board determines that there are not sufficient applications for eligible projects to meet this goal, the board may award a lesser amount as loans, or may hold funds until the next funding cycle to encourage a greater number of loan applications.

NEW SECTION.  Sec. 6   The working forest land account is created in the custody of the state treasurer. Any funds appropriated by the legislature for distribution by the working forest land board, repayments of principal and interest on loans extended by the board, or other public or private funds provided for distribution by the board must be placed in the account. Only the board may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures. Moneys in the account may only be used by the board to make grants and loans under sections 4 and 5 of this act, and may not be used for administrative expenses.

Sec. 7   RCW 43.79A.040 and 2006 c 311 s 21 and 2006 c 120 s 2 are each reenacted and amended to read as follows:
     (1) Money in the treasurer's trust fund may be deposited, invested, and reinvested by the state treasurer in accordance with RCW 43.84.080 in the same manner and to the same extent as if the money were in the state treasury.
     (2) All income received from investment of the treasurer's trust fund shall be set aside in an account in the treasury trust fund to be known as the investment income account.
     (3) The investment income account may be utilized for the payment of purchased banking services on behalf of treasurer's trust funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasurer or affected state agencies. The investment income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.
     (4)(a) Monthly, the state treasurer shall distribute the earnings credited to the investment income account to the state general fund except under (b) and (c) of this subsection.
     (b) The following accounts and funds shall receive their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The Washington promise scholarship account, the college savings program account, the Washington advanced college tuition payment program account, the agricultural local fund, the American Indian scholarship endowment fund, the foster care scholarship endowment fund, the foster care endowed scholarship trust fund, the students with dependents grant account, the basic health plan self-insurance reserve account, the contract harvesting revolving account, the Washington state combined fund drive account, the commemorative works account, the Washington international exchange scholarship endowment fund, the developmental disabilities endowment trust fund, the energy account, the fair fund, the fruit and vegetable inspection account, the future teachers conditional scholarship account, the game farm alternative account, the grain inspection revolving fund, the juvenile accountability incentive account, the law enforcement officers' and fire fighters' plan 2 expense fund, the local tourism promotion account, the produce railcar pool account, the regional transportation investment district account, the rural rehabilitation account, the stadium and exhibition center account, the youth athletic facility account, the self-insurance revolving fund, the sulfur dioxide abatement account, the children's trust fund, the Washington horse racing commission Washington bred owners' bonus fund account, the Washington horse racing commission class C purse fund account, the individual development account program account, the Washington horse racing commission operating account (earnings from the Washington horse racing commission operating account must be credited to the Washington horse racing commission class C purse fund account), the life sciences discovery fund, ((and)) the reading achievement account, and the working forest land account. However, the earnings to be distributed shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.
     (c) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The advanced right of way revolving fund, the advanced environmental mitigation revolving account, the city and county advance right-of-way revolving fund, the federal narcotics asset forfeitures account, the high occupancy vehicle account, the local rail service assistance account, and the miscellaneous transportation programs account.
     (5) In conformance with Article II, section 37 of the state Constitution, no trust accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

Sec. 8   RCW 79.17.200 and 1992 c 167 s 2 are each amended to read as follows:
     (1) For the purposes of this section, "public agency" means any agency, political subdivision, or unit of local government of this state including, but not limited to, municipal corporations, quasi-municipal corporations, special purpose districts, and local service districts; any agency of the state government; any agency of the United States; and any Indian tribe recognized as such by the federal government.
     (2) With the approval of the board of natural resources, the department of natural resources may directly transfer or dispose of real property, without public auction, in the following circumstances:
     (a) Transfers in lieu of condemnations;
     (b) Transfers to public agencies; ((and))
     (c) Transfers to resolve trespass and property ownership disputes; and
     (d) Transfers to a nonprofit land conservation organization where the purposes and transaction structure are approved by the board of natural resources.
     (3) Real property to be transferred or disposed of under this section shall be transferred or disposed of only after appraisal and for at least fair market value, and only if such transaction is in the best interest of the state or affected trust.

NEW SECTION.  Sec. 9   The sum of ten million dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2008, from the general fund to the working forest land account for the purposes of this act.

NEW SECTION.  Sec. 10   Sections 1 through 6 of this act constitute a new chapter in Title 76 RCW.