71st OREGON LEGISLATIVE ASSEMBLY--2001 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 2894
Senate Bill 842
Sponsored by Senator MESSERLE (at the request of Oregon Ports
Group)
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.
Mandates that dredged material sold by port as agent of
Division of State Lands does not become article of commerce until
material is sold to third party. Exempts ports from requirement
to post bond or other security. Prohibits division from charging
royalty for material removed as part of federally authorized
navigation improvement project and placed on property resulting
in increase in property value.
A BILL FOR AN ACT
Relating to removal of material; creating new provisions; and
amending ORS 274.550 and 274.560.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 274.550 is amended to read:
274.550. (1) The removal of material from submersible and
submerged lands of any navigable stream, owned by the State of
Oregon, is authorized when the material (a) is removed for
channel or harbor improvement or flood control, or (b) is used
for filling, diking or reclaiming land located not more than
one-half mile from the bank of the stream, or (c) is used for
filling, diking or reclaiming land owned by the state or any
political subdivision as defined in ORS 271.005 (3) and located
not more than two miles from the bank of the stream. However,
before removal, the person, organization or agency contemplating
removal shall first notify the Division of State Lands.
(2) No payment of royalty shall be required for the material
unless it is removed from the place deposited and sold or used as
an article of commerce. Before any material may be removed from
the place deposited and sold or used as an article of commerce,
the division shall be duly notified in writing of the intended
removal and sale or use as an article of commerce and payment
shall be made to the division of a royalty determined by the
Division of State Lands.
{ + (3) For the purposes of this section, when a port
organized under ORS 777.005 to 777.725 or 777.915 to 777.953
serves as an agent for the division in the sale of removed
material, the removed material is not an article of commerce
until the material is sold to a third party. + }
{ - (3) - } { + (4) + } In addition to the purposes
enumerated in subsection (1) of this section, any person may take
material for the exclusive use of the person to the extent of not
more than 50 cubic yards or the equivalent weight in tons in any
one year. However, before taking the material, the person shall
first notify the division.
SECTION 2. ORS 274.560 is amended to read:
274.560. (1) The Division of State Lands may enter into { +
a + } contract of lease for purposes of ORS 274.525 to 274.590
with such stipulations protecting the interest of the state as
the division may require, and may require a bond with a surety
company authorized to transact a surety business in this state,
as surety, or other form of security, to be given by the lessee
for performance of such stipulations, and providing for
forfeiture for nonpayment or failure to operate under the
contract. { + If the division enters into a contract of lease
under this section with a port organized under ORS 777.005 to
777.725 or 777.915 to 777.953, the division may not require a
bond or other security to be given by the port. + }No contract
shall be entered into giving any person an option of leasing or
purchasing the property of the State of Oregon. The lessee in all
such contracts shall report monthly to the division the amount of
material taken under the contract and pay to the division the
amount of royalty thereon provided in the contract.
(2) The division shall adopt rules to establish criteria to
determine when security is required.
SECTION 3. { + Section 4 of this 2001 Act is added to and made
a part of ORS 274.525 to 274.590. + }
SECTION 4. { + The Division of State Lands may not require
payment of royalty when material is removed from the waters of
the state as part of a federally authorized navigation
improvement project and the material is deposited on property,
resulting in an increase in property value. + }
SECTION 5. { + (1) The amendments to ORS 274.550 by section 1
of this 2001 Act apply to contracts for sale between a port and a
third party entered into on or after the effective date of this
2001 Act.
(2) The amendments to ORS 274.560 by section 2 of this 2001 Act
apply to leases entered into on or after the effective date of
this 2001 Act.
(3) Section 4 of this 2001 Act applies to material deposited on
property on or after the effective date of this 2001 Act. + }
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