HOUSE BILL REPORT

HB 551

BYRepresentatives Spanel, Belcher, Sayan, S. Wilson, Locke, Allen and P. King 

Revising the use of proceeds from the sale or lease of aquatic lands.

House Committe on Natural Resources

Majority Report:     Do pass.  (16)

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

House Staff:Bill Koss (786-7129)

Rereferred House Committee on Ways & Means/Appropriations

Majority Report:     Do pass.  (22)

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

Minority Report:     Do not pass.  (1)

     Signed by Representative Braddock

House Staff:    Nancy Stevenson (786-7137)

AS PASSED HOUSE MARCH 13, 1987

BACKGROUND:

The Aquatic Lands Enhancement Account (ALEA) was a product of recodifying and rewriting the aquatic land laws administered by the Department of Natural Resources (DNR).  It was created in 1984.

Income to the account comes from the sale of valuable materials on state-owned aquatic lands and from sales and leases of state-owned aquatic lands.  In fiscal year 1986, revenues from these sources totalled $3,465,227.  Of that amount, $1,194,855 went to DNR for management.  The remaining income was split between ALEA (40 percent) and 60 percent to the Capitol Purchase and Development Account and the State Building Bond Redemption Fund (SBBRF).  The SBBRF receives $328,160 to repay any bonds for which tideland revenues have been pledged.  The balance of the 60 percent ($1,016,675) goes to the Capitol Purchase and Development Account for maintenance of the capitol buildings.

The ALEA -- an appropriated fund -- is used to purchase, improve, or protect aquatic lands for public purposes, improve access to these lands, and volunteer fish and game projects.

SUMMARY:

The distribution of proceeds is changed from the sale of valuable material originating on state-owned aquatic lands and from the sale or lease of state-owned aquatic lands.  The Department of Natural Resources continues to receive revenues in the current manner:  50 percent of the gross revenue from second-class tide and shorelands and beds of navigable waters.  The State Building Bond Redemption Fund receives enough funds to retire bonds issued before January 1, 1987 for which tide and harbor area revenues were pledged, about $328,000 per year.  Remaining funds go to the Aquatic Land Enhancement Account.  The reference crediting the General Fund with all interest earned on investments of the Aquatic Lands Enhancement Account and the Capitol Purchase and Development Account is removed.  The Capital Purchase and Development Account, eliminated in Section 1, is recreated in Section 2.

EFFECT OF SENATE AMENDMENT(S):  The Senate amendment creates an effective date of July 1, 1989.

Fiscal Note:    Attached.

House Committee ‑ Testified For:     (Natural Resources)  Brian Boyle, Commissioner of Public Lands; Harry Laban, Seattle Parks and Recreation Department; Don White, Washington Public Ports Association; Doug Baker, Association of Washington Cities; Lenore Miller, Department of General Administration was neither for nor against the bill.

(Ways & Means/Appropriations)  Clive Pinnix, Department of Natural Resources; Doug Baker, Association of Cities.

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

(Ways & Means/Appropriations)  None Presented.

House Committee - Testimony For:     (Natural Resources)  This fund has supported construction of numerous aquatic projects throughout the state.  The bill allows for acquisition of more shorelands and development of recreational facilities.

(Ways & Means/Appropriations)  Same as in Committee on Natural Resources.

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

(Ways & Means/Appropriations)  None Presented.

VOTE ON FINAL PASSAGE:

     Yeas 88; Nays 6; Excused 4

Voting Nay:     Representatives Braddock, Bristow, Grant, Grimm, Padden and Vekich

Excused:   Representatives Doty, Hankins, Nealey and B. Williams