READ FIRST TIME 02/05/08.   

     AN ACT Relating to the Willapa harbor oyster reserve; amending RCW 70.118.140 and 77.60.160; adding a new section to chapter 77.60 RCW; and recodifying RCW 70.118.140.

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

Sec. 1   RCW 70.118.140 and 2007 c 341 s 43 are each amended to read as follows:
     (1)(a) The department ((of health)) shall transfer the funds required by RCW 77.60.160 to the appropriate local governments. Pacific and Grays Harbor counties and Puget Sound shall manage ((the)) their established shellfish -- on-site sewage grant program ((in Puget Sound and for Pacific and Grays Harbor counties)). The ((department of health)) local governments, in consultation with the department of health, shall ((provide)) use the provided funds ((to local health jurisdictions to be used)) as grants or loans to individuals for repairing or improving their on-site sewage systems. The grants or loans may be provided only in areas that have the potential to adversely affect water quality in commercial and recreational shellfish growing areas.
     (b) A recipient of a grant or loan shall enter into an agreement with the appropriate local ((health jurisdiction)) government to maintain the improved on-site sewage system according to specifications required by the local ((health jurisdiction)) government.
     (c) The department ((of health)) shall work closely with local ((health jurisdictions)) governments and it shall be the goal of the department ((of health)) to attain geographic equity between Grays Harbor, Willapa Bay, and Puget Sound when making funds available under this program.
     (d) For the purposes of this subsection, "geographic equity" means issuing on-site sewage grants or loans at a level that matches the funds generated from the oyster reserve lands in that area.
     (2) In Puget Sound, the ((department of health)) local governments shall give first priority to areas that are:
     (a) Identified as "areas of special concern" under WAC 246-272-01001;
     (b) Included within a shellfish protection district under chapter 90.72 RCW; or
     (c) Identified as a marine recovery area under chapter 70.118A RCW.
     (3) In Grays Harbor and Pacific counties, the ((department of health)) local governments shall give first priority to preventing the deterioration of water quality in areas where commercial or recreational shellfish are grown.
     (4) The department ((of health)) and each participating local ((health jurisdiction)) government shall enter into a memorandum of understanding that will establish an applicant income eligibility requirement for individual grant applicants from within the jurisdiction and other mutually agreeable terms and conditions of the grant program.
     (5) ((The department of health may recover the costs to administer this program not to exceed ten percent of the shellfish -- on-site sewage grant program.
     (6))) For the 2007-2009 biennium, from the funds received under this section, Pacific county ((may)) shall transfer up to two hundred thousand dollars to the department ((of fish and wildlife for research identified by the department of fish and wildlife)). Upon receiving the funds from Pacific county, the department and the appropriate oyster reserve advisory committee under RCW 77.60.160 shall identify and execute specific research projects with those funds.

Sec. 2   RCW 77.60.160 and 2007 c 341 s 44 are each amended to read as follows:
     (1) The oyster reserve land account is created in the state treasury. All receipts from revenues from the lease of land or sale of shellfish from oyster reserve lands must be deposited into the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only as provided in this section.
     (2) Funds in the account shall be used for the purposes provided for in this subsection:
     (a) Up to forty percent for:
     (i) The management expenses incurred by the department that are directly attributable to the management of the oyster reserve lands; and ((for))
     (ii) The expenses associated with new bivalve shellfish research and development activities at the Pt. Whitney and Nahcotta shellfish laboratories managed by the department. As used in this subsection, "new research and development activities" includes an emphasis on the control of aquatic nuisance species and burrowing shrimp. New research and development activities must be identified by the department and the appropriate oyster reserve advisory committee;
     (b) Up to ten percent may be deposited into the state general fund; and
     (c) Except as provided in subsection (3) of this section, all remaining funds in the account shall be used for the shellfish - on-site sewage grant program established in RCW 70.118.140 (as recodified by this act).
     (3)(a) No later than January 1st of each year, ((from revenues received from the Willapa bay oyster reserve, the department shall transfer one hundred thousand dollars to the on-site sewage grant program established in RCW 70.118.140)) the department shall transfer up to fifty percent of the annual revenues generated in the preceding year from the Willapa harbor oyster reserve to the on-site sewage grant program established under RCW 70.118.140 (as recodified by this act) as necessary to achieve a fund balance of one hundred thousand dollars.
     (b) All remaining revenues received from the Willapa ((bay)) harbor oyster reserve shall be used to fund research activities as specified in subsection (2)(a) of this section.

NEW SECTION.  Sec. 3   RCW 70.118.140 is recodified as a section in chapter 77.60 RCW.