Aquatic lease inflation rate

AN ACT Relating to modifying the definition of inflation rate for 1
aquatic leases; and amending RCW 79.105.060. 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:3
Sec. 1. RCW 79.105.060 and 2021 c 148 s 2 are each amended to 4
read as follows: 5
The definitions in this section apply throughout chapters 79.105 6
through 79.145 RCW unless the context clearly requires otherwise.7
(1) "Aquatic lands" means all tidelands, shorelands, harbor 8
areas, and the beds of navigable waters. 9
(2) "Beds of navigable waters" means those lands lying waterward 10
of and below the line of navigability on rivers and lakes not subject 11
to tidal flow, or extreme low tide mark in navigable tidal waters, or 12
the outer harbor line where harbor area has been created.13
(3) "First-class shorelands" means the shores of a navigable lake 14
or river belonging to the state, not subject to tidal flow, lying 15
between the line of ordinary high water and the line of navigability, 16
or inner harbor line where established and within or in front of the 17
corporate limits of any city or within two miles of either side.18
(4) "First-class tidelands" means the shores of navigable tidal 19
waters belonging to the state, lying within or in front of the 20
corporate limits of any city, or within one mile of either side and 21
S-0894.3
SENATE BILL 5656
State of Washington 69th Legislature 2025 Regular Session
By Senators Krishnadasan, Riccelli, and Nobles
Read first time 02/04/25. Referred to Committee on Agriculture &
Natural Resources.
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between the line of ordinary high tide and the inner harbor line; and 1
within two miles of the corporate limits on either side and between 2
the line of ordinary high tide and the line of extreme low tide.3
(5) "Harbor area" means the area of navigable waters determined 4
as provided in Article XV, section 1 of the state Constitution, which 5
shall be forever reserved for landings, wharves, streets, and other 6
conveniences of navigation and commerce. 7
(6) "Improvements" when referring to state-owned aquatic lands 8
means anything considered a fixture in law placed within, upon, or 9
attached to aquatic lands that has changed the value of those lands, 10
or any changes in the previous condition of the fixtures that changes 11
the value of the land. 12
(7) "Inflation rate" means for a given year the percentage rate 13
of change in the previous calendar year's ((all commodity producer 14
price index of the bureau of labor statistics of the United States 15
department of commerce. If the index ceases to be published, the 16
department shall designate by rule a comparable substitute index )) 17
consumer price index for all urban consumers, all items, for the 18
Seattle metropolitan area as calculated by the United States bureau 19
of labor statistics or its successor agency. For purposes of this 20
subsection, "Seattle metropolitan area" means the geographic area 21
sample that includes Seattle and surrounding areas.22
(8) "Inner harbor line" means a line located and established in 23
navigable waters between the line of ordinary high tide or ordinary 24
high water and the outer harbor line, constituting the inner boundary 25
of the harbor area. 26
(9) "Log booming" means placing logs into and taking them out of 27
the water, assembling and disassembling log rafts before or after 28
their movement in waterborne commerce, related handling and sorting 29
activities taking place in the water, and the temporary holding of 30
logs to be taken directly into a processing facility. "Log booming" 31
does not include the temporary holding of logs to be taken directly 32
into a vessel. 33
(10) "Log storage" means the water storage of logs in rafts or 34
otherwise prepared for shipment in waterborne commerce, but does not 35
include the temporary holding of logs to be taken directly into a 36
vessel or processing facility. 37
(11) "Nonwater-dependent use" means a use that can operate in a 38
location other than on the waterfront. Examples include, but are not 39
limited to, hotels, condominiums, apartments, restaurants, retail 40
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stores, and warehouses not part of a marine terminal or transfer 1
facility. 2
(12) "Outer harbor line" means a line located and established in 3
navigable waters as provided in Article XV, section 1 of the state 4
Constitution, beyond which the state shall never sell or lease any 5
rights whatever to private persons. 6
(13) "Person" means any private individual, partnership, 7
association, organization, cooperative, firm, corporation, the state 8
or any agency or political subdivision thereof, any public or 9
municipal corporation, or any unit of government, however designated.10
(14) "Port district" means a port district created under Title 53 11
RCW. 12
(15) "Public utility lines" means pipes, conduits, and similar 13
facilities for distribution of water, electricity, natural gas, 14
telephone, other electronic communication, and sewers, including 15
sewer outfall lines. 16
(16) "Real rate of return" means the average for the most recent 17
ten calendar years of the average rate of return on conventional real 18
property mortgages as reported by the federal home loan bank board or 19
any successor agency, minus the average inflation rate for the most 20
recent ten calendar years. 21
(17) "Second-class shorelands" means the shores of a navigable 22
lake or river belonging to the state, not subject to tidal flow, 23
lying between the line of ordinary high water and the line of 24
navigability, and more than two miles from the corporate limits of 25
any city. 26
(18) "Second-class tidelands" means the shores of navigable tidal 27
waters belonging to the state, lying outside of and more than two 28
miles from the corporate limits of any city, and between the line of 29
ordinary high tide and the line of extreme low tide.30
(19) "Shorelands," where not preceded by "first-class" or 31
"second-class," means both first-class shorelands and second-class 32
shorelands. 33
(20) "State-owned aquatic lands" means all tidelands, shorelands, 34
harbor areas, the beds of navigable waters, and waterways owned by 35
the state and administered by the department or managed under RCW 36
79.105.420 by a port district. "State-owned aquatic lands" does not 37
include aquatic lands owned in fee by, or withdrawn for the use of, 38
state agencies other than the department. 39
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(21) "Terminal" means a point of interchange between land and 1
water carriers, such as a pier, wharf, or group of such, equipped 2
with facilities for care and handling of either cargo or passengers, 3
or both. 4
(22) "Tidelands," where not preceded by "first-class" or "second-5
class," means both first-class tidelands and second-class tidelands.6
(23) "Valuable materials" when referring to state-owned aquatic 7
lands means any product or material within or upon lands, such as 8
forest products, forage, stone, gravel, sand, peat, agricultural 9
crops, and all other materials of value except mineral, coal, 10
petroleum, and gas as provided for under chapter 79.14 RCW. However, 11
RCW 79.140.190 and 79.140.200 also apply to materials provided for 12
under chapter 79.14 RCW. 13
(24)(a) "Water-dependent use" means a use that cannot logically 14
exist in any location but on the water. Examples include, but are not 15
limited to: Waterborne commerce; terminal and transfer facilities; 16
ferry terminals; watercraft sales in conjunction with other water-17
dependent uses; watercraft construction, repair, and maintenance; 18
moorage and launching facilities; aquaculture; log booming; and 19
public fishing piers and parks. 20
(b) "Water-dependent use" includes a vessel or any other floating 21
structure, other than a floating home as defined in RCW 90.58.270(5): 22
(((a) [(i)])) (i) That is designed or used primarily as a residence 23
on the water and has detachable utilities; and (((b) [(ii)])) (ii) 24
whose owner or primary occupant has held an ownership interest in a 25
marina, or has held a lease or sublease to use space in a marina, 26
since a date prior to July 1, 2014. Any rule making necessary under 27
this subsection (24)(b) is not subject to the requirements of RCW 28
43.21C.030(2)(c). 29
(25) "Water-oriented use" means a use that historically has been 30
dependent on a waterfront location, but with existing technology 31
could be located away from the waterfront. Examples include, but are 32
not limited to, wood products manufacturing, watercraft sales, fish 33
processing, petroleum refining, sand and gravel processing, log 34
storage, and a floating home as defined in RCW 90.58.270(5)(b)(ii). 35
For the purposes of determining rent under this chapter, water-36
oriented uses shall be classified as water-dependent uses if the 37
activity either is conducted on state-owned aquatic lands leased on 38
October 1, 1984, or was actually conducted on the state-owned aquatic 39
lands for at least three years before October 1, 1984. If, after 40
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October 1, 1984, the activity is changed to a use other than a water-1
dependent use, the activity shall be classified as a nonwater-2
dependent use. If continuation of the existing use requires leasing 3
additional state-owned aquatic lands and is permitted under the 4
shoreline management act of 1971, chapter 90.58 RCW, the department 5
may allow reasonable expansion of the water-oriented use.6
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