Chapter 423 Oregon Laws 2003

AN ACT

HB 2915

Relating to Oregon Forest Resources Institute; creating new provisions; amending ORS 321.684, 526.600, 526.605, 526.610, 526.615, 526.620, 526.625 and 526.675; repealing ORS 526.680 and 526.685; and declaring an emergency.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 526.605 is amended to read:

526.605. The State of Oregon recognizes that the forest products industry is one of the largest [industry] industries in the state. It provides monetary returns to labor, forestland owners, mill owners and operators, public timber purchasers, timber harvesters, investors and others. It is a source of local and state taxes. It is a major supporter of many secondary businesses that supply goods and services in our communities. The welfare of the state is therefore largely dependent on the health and vigor of the forest products industry. The Oregon Forest Resources Institute’s objectives support this important industry and the wise stewardship of natural resources for the benefit of Oregonians.

SECTION 2. ORS 526.610 is amended to read:

526.610. [(1)] There [hereby] is created the Oregon Forest Resources Institute. The institute shall be governed by a board of directors [formed as provided in this section. The board shall consist of seven elected members plus nonelected members as provided in subsections (5) and (6) of this section. Six elected members shall represent three producer classes with two representatives each elected statewide from small, medium and large producer classes. Elected members representing producer classes shall be elected by producers as provided in subsections (2) to (4) of this section. The term of office of an elected member is three years.]

[(2)(a) The State Forester shall solicit nominations and conduct an election for elected members of the board. The six elected producer class members shall meet producer class qualifications at the time of the election. The board by rule shall determine producer class qualifications that retain eligibility for the broadest array of producers and shall require a three-fourths majority vote of the board in establishing producer class qualifications.]

[(b) One member also shall be elected statewide who owns] appointed by the State Forester. In making the appointments, the State Forester shall take into consideration any nominations or recommendations made to the State Forester by producers or organizations that represent producers. The board shall consist of 11 voting members plus two nonvoting members appointed as follows:

(1) Three voting members to represent small producers of 20 million board feet or less per year.

(2) Three voting members to represent medium producers of more than 20 million board feet but less than 100 million board feet per year.

(3) Three voting members to represent large producers of 100 million board feet or more per year.

(4) One voting member who is an owner of between 100 and 2,000 acres of forestland and who has no direct financial interest in any forest products processing activity.

[(3) Eligible voters for the elected members described in subsection (2) of this section shall be only those persons who are of that described class.]

[(4) The cost of the nomination and election process shall be paid by the institute.]

[(5) In addition to the membership described in subsection (2) of this section, the voting members shall appoint the following members who shall serve for terms of three years:]

[(a)] (5) After consideration of the recommendations of the other appointed members in subsections (1) to (4) of this section, one voting member who is an hourly wage employee of a producer or a person who represents such employees. The member appointed under this [paragraph] subsection need not comply with the requirements of ORS 526.615 (3) to (6).

[(b) Three members representing Oregon’s diverse producer and forest landowner classes and geographic regions.]

(6)(a) [In addition to the voting members elected and appointed under subsections (1) to (5) of this section, the following persons shall serve as] Two nonvoting members:

(A) The Dean of the College of Forestry at Oregon State University [shall serve ex officio].

(B) An individual jointly appointed by the President of the Senate and the Speaker of the House of Representatives to represent the public. The public representative [shall] may not be a member of or significantly affiliated with any organization of or business in the timber industry or any organization or business known to support or promote environmental or conservation issues. A person appointed under this subparagraph serves at the pleasure of the President of the Senate and the Speaker of the House of Representatives.

(b) Members referred to in this subsection are not subject to ORS 526.615 to 526.625.

SECTION 3. ORS 526.615 is amended to read:

526.615. Except as provided in ORS 526.610 [(5)(a)] (5), each voting member of the board of directors of the Oregon Forest Resources Institute shall have the following qualifications:

(1) Be a citizen of the United States.

(2) Be a bona fide resident of this state.

(3) Be a producer in this state, an employee of such a producer or own between 100 and 2,000 acres of forestland in this state on which harvest taxes are paid, but have no direct financial interest in any forest products processing activity.

(4) Have been actively engaged in producing forest products for a period of at least five years.

(5) Derive a substantial proportion of income from the production of forest products.

(6) Have demonstrated, through membership in producers’ organizations or organizations representing landowners who meet the [requirement] requirements of ORS 526.610 [(2)(b)] (4), a profound interest in the development of Oregon’s forest products industry.

SECTION 4. ORS 526.620 is amended to read:

526.620. Each [elected] voting member of the board of directors of the Oregon Forest Resources Institute shall be [elected] appointed for a term ending three years from the date of the expiration of the term for which the member’s predecessor was [elected] appointed. If there is a vacancy on the board [of the elected member] of a voting member, other than a vacancy caused by expiration of a term, the [board] State Forester shall fill the vacancy [by appointment] for the remainder of the unexpired term with a person who represents the same [size] class as the member whose term was vacated.

SECTION 5. ORS 526.625 is amended to read:

526.625. (1) The [board of directors] State Forester shall immediately declare the office of any member of the board of directors of the Oregon Forest Resources Institute vacant whenever the member [ceases to be an active producer in this state,] becomes a resident of another state or is unable to perform the duties of office. In addition, the State Forester shall immediately declare the office of any member of the board who represents producers vacant if the member ceases to be an active producer in the state.

(2) The [board of directors] State Forester may remove any member of the board of directors for inefficiency, neglect of duty or misconduct in office, but not until after a public hearing thereon and service upon such member of a copy of the charges together with a notice of the time and place of such hearing. Service shall be made not less than 10 days prior to the hearing. At the hearing the member shall be given an opportunity to be heard in person or by counsel and shall be permitted to present evidence to answer the charges and explain the facts alleged.

SECTION 6. ORS 526.675 is amended to read:

526.675. (1) The Oregon Forest Resources Institute Fund is created in the State Treasury, separate and distinct from the General Fund. Except as otherwise provided by law, all moneys received by the Oregon Forest Resources Institute shall be paid into the State Treasury and credited to the fund. All moneys in the fund are appropriated continuously to the institute to carry out its duties, functions and powers. Interest earnings on all moneys in the fund shall be retained in the fund.

(2) The board of directors of the institute may repay moneys from the fund to persons who paid a privilege tax levied under ORS 321.017. The board may repay the amount of tax paid upon application by the person who paid the tax. The board shall adopt rules necessary for the implementation of this subsection. Rules adopted by the board shall include standards for the repayment of moneys and limits on the amount that may be requested.

SECTION 7. (1) Notwithstanding the term of office of any person elected or appointed to the board of directors of the Oregon Forest Resources Institute, all terms of office for voting members of the board of directors of the Oregon Forest Resources Institute shall end on the effective date of this 2003 Act. New voting members shall be appointed to the board of directors of the institute in accordance with ORS 526.610.

(2) Notwithstanding the term of office specified in ORS 526.620 for members of the board of directors of the institute:

(a) Four members shall be appointed for terms ending January 1, 2005.

(b) Four members shall be appointed for terms ending January 1, 2006.

(c) Three members shall be appointed for terms ending January 1, 2007.

SECTION 8. ORS 321.684 is amended to read:

321.684. (1) The Department of Revenue may:

(a) Furnish to any taxpayer or authorized representative, upon request of the taxpayer or authorized representative, a copy of the taxpayer’s timber tax return filed with the department for any year, or a copy of any report filed by the taxpayer in connection with the return.

(b) Publish a list of taxpayers who are entitled to unclaimed tax refunds.

(c) Publish statistics classified so as to prevent the identification of taxable value or any particulars contained in any report or return.

(d) Disclose a taxpayer’s name, address and social security number or employer identification number to the extent necessary in connection with the processing and mailing of forms for any report or return required in the administration of ORS 321.045, 321.322, 321.435 and 321.950.

(e) Disclose names and addresses of taxpayers filing under ORS 321.282 (4) and 321.432 to Oregon State University pursuant to surveys and programs related to forest management.

(f) Disclose to the State Forester, upon request of the forester, for the purpose of soliciting nominations and [conducting elections] recommendations referred to in ORS 526.610, the names of producers meeting producer class qualifications established under ORS 526.610 who filed forest products harvest tax returns.

(g) Disclose appraisal data collected to make determinations of specially assessed value of forestland under ORS 321.201 to 321.222 to any member of a forestland value advisory committee the department has convened under ORS 321.213.

(2) The department also may disclose and give access to information described in ORS 321.682 to:

(a) The Commissioner of Internal Revenue or authorized representative, for tax purposes only.

(b) The United States Forest Service, Bureau of Land Management and the State Forestry Department pursuant to their regulatory programs and for investigative purposes related to timber theft.

(c) The Attorney General, assistants and employees in the Department of Justice or other legal representative of the State of Oregon, to the extent the department considers disclosure or access necessary for the performance of the duties of advising or representing the department pursuant to ORS 321.045, 321.322, 321.435 and 321.950.

(d) Employees of the State of Oregon, other than the Department of Revenue or Department of Justice, to the extent the department considers disclosure or access necessary for such employees to perform their duties under contracts or agreements between the department and any other department, agency or subdivision of the State of Oregon in the department’s administration of the tax laws.

(e) The Legislative Revenue Officer or the authorized representative upon compliance with ORS 173.850. Such officer or representative shall not remove from the premises of the department any materials that would reveal the identity of any taxpayer or any other person or the volume of harvest and value reported on individual returns and reports.

(f) Any agency of the State of Oregon, or any person, or any officer or employee of such agency or person to whom disclosure or access is given by state law and not otherwise referred to in this section, including but not limited to the Secretary of State as Auditor of Public Accounts under section 2, Article VI of the Constitution of the State of Oregon.

(3) Each officer or employee of the department and each person described or referred to in subsection (2)(b) to (f) of this section to whom disclosure or access to the tax information is given under subsection (2) of this section or any other provision of state law, prior to beginning employment or the performance of duties involving such disclosure or access, shall be advised in writing of the provisions of ORS 321.682 and 321.686 relating to penalties for the violation of ORS 321.682, and shall, as a condition of employment or performance of duties, execute a certificate for the department, in a form prescribed by the department, stating in substance that the person has read these provisions of law, that the person has had them explained and that the person is aware of the penalties for the violation of ORS 321.682.

SECTION 9. ORS 526.600 is amended to read:

526.600. As used in ORS 526.600 to 526.685, unless the context requires otherwise:

(1) “Institute” means the Oregon Forest Resources Institute.

(2) “Producer” means a producer of forest products and includes any person, partnership, association, corporation, cooperative or other business entity involved in the growing, harvesting or producing of timber or timber products. “Producer” does not include landowners who meet the requirement of ORS 526.610 [(2)(b)] (4).

SECTION 10. ORS 526.680 and 526.685 are repealed.

SECTION 11. This 2003 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2003 Act takes effect on its passage.

Approved by the Governor June 18, 2003

Filed in the office of Secretary of State June 18, 2003

Effective date June 18, 2003

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