Bill Text: OR SB803 | 2013 | Regular Session | Introduced

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Bill Title: Relating to forest products; declaring an emergency.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2013-07-08 - In committee upon adjournment. [SB803 Detail]

Download: Oregon-2013-SB803-Introduced.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 3709

                         Senate Bill 803

Sponsored by Senator GIROD

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Requires State Forester to conduct forest product sales by
public auction with bidding on weight or lump sum basis. Caps
amount of performance bond or other security provided by
successful bidder.
  Allows State Forester to change or modify sale contract terms
based on unforeseen circumstances affecting timing of purchaser
actions to carry out contract. Requires State Board of Forestry
to create standard contract clauses for State Forester's use in
granting purchaser additional time to perform.
  Requires State Forester to take action to ensure sale of
consistent amount of forest products quarterly on sustained
basis.
  Makes bonding or other security requirements for forest product
sales by Department of State Lands and provisions for
department's return of bonds and other securities equivalent to
revised bonding or other security requirements and provisions for
return of bonds or securities applicable for forest product sales
by State Forester.
  Applies to forest product sales on or after January 1, 2014.
  Declares emergency, effective on passage.

                        A BILL FOR AN ACT
Relating to forest products; creating new provisions; amending
  ORS 273.535, 530.059, 530.065 and 530.500; and declaring an
  emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Sections 2 and 3 of this 2013 Act are added to
and made a part of ORS chapter 530 + }
  SECTION 2.  { + The State Forester may require the successful
purchaser at a forest products sale to provide a surety bond,
cash deposit, assignment of surety, irrevocable letters of credit
or other securities as determined acceptable by the State
Forester for the purpose of securing performance by the
purchaser. The required amount of a bond, deposit, assignment,
letter of credit or other security may not be more than $500,000.
Claims by any person against the bond, deposit, assignment,
letter of credit or other security shall be made to the State
Forester for determination. If the claim is disputed, the State
Forester may request settlement of the claim through compromise
or mediation or require that the claim be litigated. Unless there
is a claim awaiting determination, the State Forester shall
return any unexpended amount from the bond, deposit, assignment,
letter of credit or other security no later than 90 days after
the earlier of the completion of operations under the sales
contract or the termination date in the sales contract. + }
  SECTION 3.  { + The duty of the State Forester to secure the
greatest permanent value of forests and forestlands under ORS
530.050 and 530.490 shall include taking all necessary,
reasonable or expedient actions to provide for sale of a
consistent amount of forest products from those forests and
forestlands quarterly on a sustained basis. + }
  SECTION 4. ORS 530.059 is amended to read:
  530.059. (1) Before offering any forest products for sale under
authority of ORS 530.050 or 530.500, the State Forester shall
cause the forest products to be appraised.   { - Should the
appraised value of the forest products be in excess of $25,000,
the State Forester shall not sell the same to a private person,
firm or corporation, except after giving notice of the sale as
required by this section, and affording an opportunity for
competitive bidding either by public auction or through sealed
bids, or a combination of both; provided, however, that such
notice and opportunity for competitive bidding will not be - }
 { +  If bidding for the forest products will be on a weight
basis, the appraisal must include, but need not be limited to, an
estimation of the weight of the forest products to be sold. The
State Board of Forestry shall adopt rules establishing a set of
standard conditions for use in expressing the estimated weight of
forest products. Except as provided in this subsection, if the
appraised value of the forest products exceeds $25,000, the State
Forester may sell the forest products to a private person, firm
or corporation only after giving notice of the sale as required
by this section and affording an opportunity for competitive
bidding by public auction. Notice and an opportunity for
competitive bidding by public auction is not + } required for
sales in connection with:
  (a) Experimental or research projects in the field of
forestland management or forest product utilization.
  (b) The removal, injury or destruction of forest products
necessitated by any grant of easement or right of way, or
necessitated by a permit or license to use a right of way,
including trees which may endanger the use of such easement or
way.
  (c) The removal of forest products with an appraised value of
less than $100,000 that, as a result of an act of nature or other
unforeseen circumstance:
  (A) Pose a threat to the health of the forests, waterways or
forest road infrastructures; or
  (B) Will lose value as a result of potential theft.
  (d) The removal of forest products with an appraised value of
less than $100,000 to facilitate the development, placement or
maintenance of forest road infrastructures.
  (2) The State Forester shall give the notice required by
subsection (1) of this section by mail to all persons requesting
such notice and in such other media of communication as the State
Forester may deem advisable. The State Forester shall maintain a
mailing list with the names and addresses of persons who have
requested to receive State Forestry Department notices of timber
sales. The notice shall describe the forest products to be sold
and the land on which such products are situated, state the
minimum price at which the same may be sold, { +  state whether
the bidding will be on a weight or lump sum basis + } and contain
a brief statement of the terms of the sale.  { + The description
of the forest products to be sold may include an estimate of the
volume being sold and, if the bidding is on a weight basis, must
state the estimated weight. + } As a provision of each sale, the
State Forester shall reserve the right to accept or reject any or
all bids.
  (3) Prior to or at the time   { - the State Forester receives
bids - }  { +  of a public auction + }, each bidder shall furnish
the State Forester with a certified check, cashier's check, money
order, surety bond, cash deposit, assignment of surety,
irrevocable letters of credit or other securities as determined
acceptable by the State Forester in an amount designated by the
State Forester { + . + }
  { - but said amount shall - }  { +  The amount designated by
the State Forester may + } not exceed 10 percent of the minimum
price of the forest products to be sold  { - , which check, order
or deposit, in the case of the successful bidder, shall be
retained by the State Forester as a credit toward payment of the
purchase price of the forest products sold, and which, in the
case of the unsuccessful bidders, shall be returned to them - }
 { +  or $500,000, whichever is less. The State Forester shall
retain the check, order or deposit of the successful bidder as a
credit toward payment of the purchase price of the forest
products sold. The State Forester shall return the check, order
or deposit of an unsuccessful bidder + } after determination of
the successful bid. Any checks, bonds or orders furnished under
this subsection shall be made payable to the State of Oregon.
    { - (4) The State Forester is authorized to require and
accept a surety bond, cash deposit, assignment of surety,
irrevocable letters of credit or other securities as determined
acceptable by the State Forester. Claims against such bond shall
be made to the State Forester for determination. If the claim is
disputed, the forester may request settlement of the claim
through compromise or mediation or require the claim to be
litigated. - }
   { +  (4) The bidding at a public auction must be expressed as:
  (a) Amounts offered for each unit of weight of the forest
products, measured at standard conditions; or
  (b) Lump sums offered for the forest products, regardless of
the weight, volume or other measure of the forest products. + }
  (5) If the provisions of this section have been complied with,
and no satisfactory bid has been received, or the bidder fails to
complete the purchase, the State Forester may, at any time,
during a period of six months after the advertised date of sale,
sell the forest products in such manner as the forester deems
appropriate { + . + }  { - , but - }  The sale price
 { - shall - }  { +  may + } not be less than the minimum terms
offered in the notice of sale or the highest bid received,
whichever is the larger amount.
  SECTION 5. ORS 530.065 is amended to read:
  530.065. (1) During the period of a   { - timber - }  { +
forest product + } sale contract made under ORS 530.059, either
party may propose to change or modify the terms of the contract
if unforeseen circumstances develop. As used in this subsection,
'unforeseen circumstances' means acts of nature or other
unforeseen circumstances or conditions that:
  (a) Affect the nature { + , timing + } or scope of the work to
be performed or   { - volume - }  { +  amount + } to be harvested
under the terms of the sale contract made by the State Forester;
or
  (b) Require additional work or harvest in an area adjacent to a
 { - timber - }  { +  forest product + } sale made by the State
Forester.
  (2) The State Forester   { - is hereby authorized to - }  { +
may + } change or modify the terms or conditions of the contract
in the event of unforeseen circumstances requiring such change or
modification under subsection (1) of this section only
 { - when - }  { +  if + }:
  (a) Such change or modification is in the best interest of the
State of Oregon; and

  (b) The purchaser of the timber sale agrees that the proposed
change or modification will maintain an equitable contractual
relationship between the parties.
   { +  (3) The State Board of Forestry shall adopt rules
creating model contract clauses for use by the State Forester
when changing or modifying contract terms to allow the purchaser
additional time to complete the work or complete a specified
amount of harvesting. + }
  SECTION 6. ORS 530.500 is amended to read:
  530.500. In order to accomplish the purposes of ORS 530.490,
the State Forester may:
  (1) Protect the lands from fire, disease and insect pests,
cooperate with the counties and with persons owning lands within
the state in the protection of the lands and enter into all
agreements necessary or convenient for the protection of the
lands.
  (2) Enter into and administer contracts for the sale of timber
from lands owned or managed by the State Board of Forestry and
the State Forestry Department.
  (3) Permit the use of the lands for other purposes, including
but not limited to fish and wildlife environment, landscape
effect, protection against flood and erosion, recreation and
production and protection of water supplies when the use is not
detrimental to the purpose for which the lands are dedicated.
  (4) Contract with other governmental bodies for the protection
of water supplies to facilitate the multiple use of publicly
owned water supplies for recreational purposes as well as a
source of water for domestic and industrial use.
  (5) Grant permits and licenses on, over and across the lands.
  (6) Reforest the lands and cooperate with persons owning
timberlands within the state in the reforestation, and make all
agreements necessary or convenient for the reforestation.
  (7) Establish a forestry carbon offset program to market,
register, transfer or sell forestry carbon offsets. In
establishing the program, the forester may:
  (a) Execute any contracts or agreements necessary to create
opportunities for the creation of forestry carbon offsets; and
  (b) Negotiate prices that are at, or greater than, fair market
value for the transfer or sale of forestry carbon offsets.
  (8) Do all things and make all rules and regulations, not
inconsistent with law, necessary or convenient for the
management, protection, utilization and conservation of the
lands.
  (9)  { + Subject to section 2 of this 2013 Act, + } require
such undertakings as in the opinion of the State Forester are
necessary or convenient to secure performance of any agreement
authorized in ORS 530.450 to 530.520.
  SECTION 7. ORS 273.535 is amended to read:
  273.535. Bond  { + or other security + } requirements for the
sale of forest products  { + by the Department of State Lands and
provisions for the return of those bonds or securities to a
purchaser  + }shall correspond to the   { - requirements for
bonds - }  { +  bond or other security requirements and
provisions for the return of bonds or securities to a purchaser
that are established for a forest product sale by the State
Forester + } in ORS 530.059 { +  and section 2 of this 2013
Act + }.
  SECTION 8.  { + (1) Section 2 of this 2013 Act and the
amendments to ORS 530.059, 530.500 and 273.535 by sections 4, 6
and 7 of this 2013 Act apply to bonds, deposits, assignments,
letters of credit or other securities provided for forest product
sales occurring on or after January 1, 2014.
  (2) Section 3 of this 2013 Act applies to sales of forest
products in calendar quarters that begin on or after January 1,
2014.

  (3) The amendments to ORS 530.065 by section 5 of this 2013 Act
applies to the removal of forest products sold by the State
Forester under ORS 530.059 on or after January 1, 2014. + }
  SECTION 9.  { + This 2013 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2013 Act takes effect on its
passage. + }
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