WSR 05-17-184

PROPOSED RULES

DEPARTMENT OF

NATURAL RESOURCES

[ Filed August 24, 2005, 8:54 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 05-14-114.

Title of Rule and Other Identifying Information: WAC 332-100-040 Deduction determination, to cover increasing administrative costs of managing harbor areas, Department of Natural Resources (DNR) proposes to increase the amount of revenue from harbor area leases into the resource management cost account (RMCA) by 5%. Conversely, this would decrease the amount deposited from harbor area leases into the aquatic lands enhancement account (ALEA) by 5%. WAC 332-100-040 states that the board must determine how much revenue is necessary to manage and administer public state aquatic lands in Washington.

Hearing Location(s): Olympia, Public Library, 313 8th Avenue S.E. (corner of Franklin and 8th Avenue), Olympia, WA, on September 29, 2005, at 5:30 p.m. - 8:00 p.m.

Date of Intended Adoption: October 25, 2005.

Submit Written Comments to: Elizabeth Ellis, Aquatic Resources Division, Department of Natural Resources, P.O. Box 47027, Olympia, WA 98504-7027, e-mail Elizabeth.ellis@wadnr.gov, fax (360) 902-1786 by October 25, 2005.

Assistance for Persons with Disabilities: Contact Elizabeth Ellis by three days prior to hearing, telecommunications relay service 711 or (360) 902-1074.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: DNR is proposing to amend the existing rule about rent distribution from harbor area leases that it manages on state-owned aquatic land. State law distributes rent from harbor area leases into two accounts: The ALEA and RMCA.

The proposed changes affect the amount of money deducted from harbor area leases and deposited into RMCA. To cover increasing administrative costs of managing harbor areas, DNR proposes to increase the amount of revenue from harbor area leases into the RMCA account by 5%. Conversely, this would decrease the amount deposited from harbor area leases into the ALEA account by 5%. WAC 332-100-040 states that the board must determine who much revenue is necessary to manage and administer public state aquatic lands in Washington.

Reasons Supporting Proposal: Harbor area leases are more complex and expensive to manage than many other leases on state-owned aquatic land and have higher administrative costs. The amount of revenue deposited into RMCA to cover the costs of managing state-owned aquatic lands was determined in 1971 and does not accurately reflect the current cost of administering and managing harbor areas.

The proposed changes are not substantive, and will not change rents paid by lessees of state-owned aquatic lands. Instead, they are designed to clarify the rules, and are consistent with the current DNR standard practice.

Statutory Authority for Adoption: RCW 79.64.040.

Statute Being Implemented: RCW 79.64.040.

Rule is not necessitated by federal law, federal or state court decision.

Agency Comments or Recommendations, if any, as to Statutory Language, Implementation, Enforcement, and Fiscal Matters: The proposed changes are consistent with current DNR standard practice, and would be implemented through its normal aquatic land management efforts.

Name of Proponent: Department of Natural Resources, Aquatic Resources Division, governmental.

Name of Agency Personnel Responsible for Drafting: Elizabeth Ellis, P.O. Box 47027, Olympia, WA 98504-7027, (360) 902-1074; Implementation and Enforcement: Fran McNair, P.O. Box 47027, Olympia, WA 98504-7027, (360) 902-1003.

No small business economic impact statement has been prepared under chapter 19.85 RCW. Under RCW 19.85.030(1), agencies must write a small business economic impact statement "if the proposed rule will impose more than minor costs on businesses in an industry." The proposed rule changes are consistent with current DNR standard practice, so they will not change rents for lessees nor impose any other costs.

A cost-benefit analysis is not required under RCW 34.05.328. Under RCW 34.05.328 (5)(b)(iv), agencies are not required to write a cost-benefit analysis for "rules that only...clarify language of a rule without changing its effect." The proposed rule changes only clarify the language consistent with current DNR standard practice.

August 22, 2005

Doug Sutherland

Commissioner of Public Lands


AMENDATORY SECTION(Amending Resolution No. 419, filed 5/6/83)

WAC 332-100-040   Deduction determination.   (1) The board of natural resources hereby determines that a deduction from the gross proceeds of all leases, sales, contracts, licenses, permits, easements, and rights of way issued by the department of natural resources and affecting public lands as provided for in subsection (2) hereof is necessary in order to achieve the purposes of chapter 79.64 RCW.

(2) The department of natural resources shall deduct the maximum percentages as provided for in RCW 79.64.040 and related statutes except that deductions from the gross proceeds of harbor area leases shall be at twenty percent. Except for transactions involving aquatic lands, harbor areas and trust land categories that have a deficit revenue/expenditure status, the deductions may be temporarily discontinued by a resolution of the board of natural resources at such times as the balance in the resource management cost account exceeds an amount equal to twelve months operating expenses for the department of natural resources or when the board determines such discontinuation is in the best interest of the trust beneficiaries. The board shall specify the trust lands subject to such discontinuation. The duration of such orders shall be for a specified time period calculated to allow a reduction of the resource management cost account balance to an amount approximately equal to three months operating expenses for the department. Operating expense needs will be determined by the board based on pro rata increments of biennial legislative appropriations. All sums so deducted shall be paid into the resource management cost account in the state general fund created by chapter 79.64 RCW.

[Statutory Authority: RCW 79.64.040. 83-11-008 (Order 398, Resolution No. 419), 332-100-040, filed 5/6/83, effective 6/30/83; 78-10-039 (Order 308, Resolution No. 241), 332-100-040, filed 9/18/78.]

Reviser's note: The typographical error in the above section occurred in the copy filed by the agency and appears in the Register pursuant to the requirements of RCW 34.08.040.

Washington State Code Reviser's Office