71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
Enrolled
House Bill 2160
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor John A. Kitzhaber,
M.D., for State Forestry Department)
CHAPTER ................
AN ACT
Relating to the Forest Resource Trust; amending ORS 526.715,
526.735 and 526.740.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 526.715 is amended to read:
526.715. (1) The State Forester is authorized, on behalf of the
Forest Resource Trust, to enter into { - agreements - }
{ + contracts + } with eligible landowners to carry out the
provisions of the stand establishment program. The
{ - agreements - } { + contracts + } shall include, but are
not limited to, the following matters:
(a) Providing up to full financing to the landowner for stand
establishment from such moneys as may be available in the Forest
Resource Trust Fund { - ; and - } { + . + }
(b) Setting forth the obligations of the landowner for
repayment of moneys advanced for the establishment of the stand
including, but not limited to, the following provisions:
(A) Terms for sharing the revenue gained from the sales of
timber and forest products, including salvage, from the tree
stands established under the program;
(B) Release from the financial obligation for any portion of
the stand established under the program and irretrievably lost to
insects, disease, fire, storm, flood or other natural destruction
through no fault of the landowner;
(C) Assurance that the rights and obligations of the
{ - owner - } { + landowner + } and the Forest Resource Trust
and all of the terms of the { - landowner agreement - }
{ + contract + } are covenants that run with the land upon sale,
lease or transfer of the land benefiting from the program prior
to the repayment of moneys advanced { - unless otherwise
agreed - } ;
(D) Financial terms allowing the { - owner - }
{ + landowner + } to terminate the { - agreement - }
{ + contract + } prior to harvesting timber from the stand
established under the program;
(E) Agreement that there is no obligation to repay the moneys
advanced prior to sale of timber and forest products from the
land in the program;
(F) Terms to protect the { - contractual agreement - }
{ + contract + } from modification unless agreed to by both
parties;
Enrolled House Bill 2160 (HB 2160-INTRO) Page 1
(G) Allowance for different prescriptions for stand
establishment consistent with the established rate of return; and
(H) Provisions for access to the land by the State Forester.
(2) In addition to the { - agreements - } { + contracts + }
provided for in subsection (1) of this section, the State
Forester, on behalf of the Forest Resource Trust, may require
landowners to execute security agreements in favor of the Forest
Resource Trust to secure any repayment or other obligations of
the landowner under the stand management program. Any such
security interest shall have priority from the date of recording
or filing.
{ + (3)(a) The State Forester shall record a contract
described in subsection (1) of this section or a memorandum of
contract with the recording officer of the county or counties in
which the forestland is located.
(b) Upon recording, the rights and obligations of the landowner
and the Forest Resource Trust under the contract are covenants
that run with the land and are binding upon successors and
assigns.
(c) The interest of the Forest Resource Trust created by
recording the contract or the memorandum of contract constitutes
a purchaser's interest in real property for purposes of ORS
93.640.
(d) If a memorandum of contract is to be recorded, the
memorandum of contract must include the following information:
(A) The date of execution of the contract;
(B) The name of each landowner of the forestland identified in
the contract;
(C) A legal description that conforms with ORS 93.600 of the
forestland subject to the contract; and
(D) An acknowledgment that the contract is secured by a lien as
provided in ORS 526.735 to 526.775. + }
{ - (3) - } { + (4) + } For purposes of this section,
'eligible landowner' means a landowner who:
(a) Owns land that qualifies as underproducing nonindustrial
private forestland as defined by the State Forester.
(b) Has not used ORS 527.760 to avoid reforestation.
(c) Has not begun conversion of acreage prior to entering into
{ - an agreement - } { + a contract + } with the State
Forester.
SECTION 2. ORS 526.735 is amended to read:
526.735. As used in ORS 526.735 to 526.775, unless the context
otherwise requires:
(1) 'Contract' means the { - agreement - } { + contract + }
signed by the forestland owner and the State Forester, acting on
behalf of the Forest Resource Trust pursuant to ORS 526.715.
(2) 'Forestland owner' means the individual, corporation,
limited liability company, partnership, association, joint stock
company, trustee, business trust or unincorporated organization
holding fee simple ownership of land capable of producing forest
products.
(3) 'Forest products' includes, but is not limited to, trees,
logs, poles, lumber, chips or pulp that flow from investment of
the Forest Resource Trust.
SECTION 3. ORS 526.740 is amended to read:
526.740. (1) From and after recording of the notice of lien
pursuant to ORS 526.745, the Forest Resource Trust has a lien for
the moneys { - paid or to be paid to a forestland owner under a
contract with the trust - } { + payable to the trust by the
forestland owner under the terms of the contract + }.
Enrolled House Bill 2160 (HB 2160-INTRO) Page 2
(2) The lien created by subsection (1) of this section
constitutes a general lien upon all forest products grown or
growing on the forestland described in the contract, whether
standing on the forestland, severed and remaining on the
forestland, severed and transported to another area for sale or
processing, or made into forest products on the forestland. If
the forest product is severed and delivered to a purchaser or
mill, the lien continues against the forest product and the lien
also attaches to accounts receivable evidencing indebtedness of
the purchaser or mill. The lien attaches to the accounts
receivable on the date on which the forestland owner sells the
forest products and relates { - back - } to the date on which
notice of lien was filed under ORS 526.745.
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Passed by House February 9, 2001
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate March 6, 2001
...........................................................
President of Senate
Enrolled House Bill 2160 (HB 2160-INTRO) Page 3
Received by Governor:
......M.,............., 2001
Approved:
......M.,............., 2001
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2001
...........................................................
Secretary of State
Enrolled House Bill 2160 (HB 2160-INTRO) Page 4