HOUSE BILL REPORT

HB 550

BYRepresentatives McMullen, Sutherland, Spanel, Cole, S. Wilson, Allen, Bristow, Fuhrman, Locke, Amondson, May, Sprenkle, Haugen and K. Wilson 

Transferring lands from department of natural resources to the parks and recreation commission.

House Committe on Natural Resources

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (14)

     Signed by Representatives Sutherland, Chair; K. Wilson, Vice Chair; Amondson, Basich, Beck, Belcher, Bumgarner, Cole, Hargrove, R. King, Schmidt, C. Smith, Spanel and S. Wilson.

Minority Report:     Do not pass.  (1)

     Signed by Representative Fuhrman.

House Staff:Bill Koss (786-7129)

Rereferred House Committee on Ways & Means/Appropriations

Majority Report:     The substitute bill by Committee on Natural Resources be substituted therefor and the substitute bill do pass.  (21)

     Signed by Representatives Locke, Chair; Allen, Belcher, Braddock, Brekke, Bristow, Ebersole, Grant, Grimm, Hine, Holland, McLean, McMullen, Nealey, Niemi, Peery, Sayan, L. Smith, H. Sommers, Sprenkle and B. Williams.

Minority Report:     Do not pass.  (1)

     Signed by Representative Fuhrman.

House Staff:    Nancy Stevenson (786-7137)

AS REPORTED BY COMMITTEE ON WAYS & MEANS/APPROPRIATIONS

MARCH 5, 1987

BACKGROUND:

In 1971, 1981, and 1985, the legislature authorized the Department of Natural Resources (DNR) to sell property to the State Parks and Recreation Commission.  Twenty-nine parcels of land are currently being purchased.  Purchase prices were based on the fair market value of the land and timber, with a market interest rate applied to the unpaid balance.

The commission pays about $3 million a biennium to DNR in principal and interest.  By the mid-1990's, the commission will have obtained title to all the land and timber on the 29 parcels currently under contract.

In order to maintain the trust land base, DNR will use the funds from the land sales to obtain replacement property.  While subject to the Budget and Accounting Act, DNR does not require an appropriation to permit expenditures for acquiring replacement property.  Expenditures need the authorization of the Board of Natural Resources.

When the 1985 legislature authorized DNR to sell five parcels to the Parks and Recreation Commission, it directed the two agencies to review trust lands to identify parcels which may be appropriate for acquisition by the commission.  The study identified 22 parcels, totalling 6,626 acres.  Estimated value of both the land and timber range from $12 to $18 million.

SUMMARY:

SUBSTITUTE BILL:  The Board of Natural Resources and the Parks and Recreation Commission will negotiate a sale of the 22 Department of Natural Resources (DNR) managed parcels identified in the joint study authorized in 1985.  The parcels cover about 6,626 acres with a value between $12 and $18 million.

Funds for acquisition will come from (1) a portion of the money raised by selling bonds for construction of schools, and (2) the Trust Land Purchase Account.  This account obtains money from park user fees.  The bond money used will buy the timber on sites owned by the common school trust.  Proceeds from the timber sale will go to the Common School Construction Fund.  The Trust Land Purchase Account will buy the land and the remaining timber.

DNR shall use the funds from the Trust Land Purchase Account to acquire property to replace the trust property sold to the commission.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  Several technical changes clarify that the existing funding mechanism will continue to apply to the additional parcels.  The method of buying the timber on land held in trust for the common schools is changed from a general fund appropriation to revenue from bond sales.  The Department of Natural Resources will continue to manage the sites until the commission buys the land.

CHANGES PROPOSED BY COMMITTEE ON WAYS & MEANS/APPROPRIATIONS:  None.

Fiscal Note:    Requested February 19, 1987.

House Committee ‑ Testified For:     (Natural Resources)  Cleve Pinnix, Department of Natural Resources (DNR); Yvonne Ferrell, State Parks and Recreation Commission; Betty Tabbutt, Washington Environmental Council.

(Ways & Means/Appropriations)  Yvonne Ferrell, State Parks and Recreation Commission; Cleve Pinnix, Department of Natural Resources.

House Committee - Testified Against: (Natural Resources)  None Presented.

(Ways & Means/Appropriations)  None Presented.

House Committee - Testimony For:     (Natural Resources)  After two years of reviewing numerous potential sites, DNR and Parks recommended that these 22 sites be offered for sale to Parks.  These sites will make unique contributions to the Parks' system.  The funding method used for the 29 parcels being purchased now is working well, but both agencies would like to accelerate the payments to the common school trust for benefit of the common school trust.

(Ways & Means/Appropriations)  The general obligation bond funding mechanism was used in 1980 on a similar sale.

House Committee - Testimony Against: (Natural Resources)  None Presented.

(Ways & Means/Appropriations)  None Presented.