72nd OREGON LEGISLATIVE ASSEMBLY--2003 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 1554
 
                         House Bill 2545
 
Sponsored by Representative MORGAN; Representatives CLOSE, MONNES
  ANDERSON, Senators ATKINSON, METSGER, WINTERS (at the request
  of Oregon Association of Realtors)
 
 
                             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.
 
  Limits authority of Department of Veterans' Affairs to retain
mineral or geothermal resource rights when selling real property
obtained through foreclosure. Directs Division of State Lands,
upon application by owner of certain residential property, to
release and transfer mineral and geothermal rights reserved by
the State of Oregon.
 
                        A BILL FOR AN ACT
Relating to reservation by state of resource rights on real
  property; creating new provisions; and amending ORS 273.785.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 273.785 is amended to read:
  273.785.  { + (1) + } Excluded from the operation of ORS
273.551 and 273.775 to 273.790 are:
    { - (1) - }  { +  (a) + } Soil, clay, stone, sand and gravel
acquired or used by state agencies for the purpose of
constructing or repairing roads or other state facilities, or the
proceeds from such materials;
    { - (2) - }  { +  (b) + } Any mineral or geothermal resource
rights or proceeds therefrom acquired and held by the State Fish
and Wildlife Commission pursuant to Public Law 415, 75th Congress
(50 Stat. 917, 16 U.S.C. 777); or if other disposition is
required by federal rules or regulations or any agreement entered
into at the time of acquisition of the mineral or geothermal
resource rights by the state;
    { - (3) - }  { +  (c) + } Proceeds of mineral and geothermal
resource rights acquired by the state pursuant to ORS 530.010 and
530.030, other than those distributed under ORS 530.110 (1)(c);
    { - (4) - }  { +  (d) + } Any mineral or geothermal resource
rights or proceeds therefrom acquired  { + after January 1,
1974, + } for the state by the Director of Veterans' Affairs
pursuant to ORS 88.720, 406.050 (2), 407.135 or 407.145. After
consultation, the Division of State Lands and the Director of
Veterans' Affairs shall enter into an interagency agreement
governing consultation between them concerning mineral and
geothermal resource values on properties acquired for the state
by the director. The Director of Veterans' Affairs shall also
adopt rules relating to the release of mineral and geothermal
rights on such properties  { - . The exclusion under this
subsection shall be effective for such rights or proceeds
acquired by the director after January 1, 1974 - } ; and
    { - (5) - }   { + (e) + } Any mineral or geothermal resource
rights or proceeds therefrom given by a donor to any institution,
department or activity under the control of the State Board of
Higher Education that are acquired or held for the state by the
State Board of Higher Education pursuant to ORS chapters 351 and
567. In managing mineral or geothermal resource leases, the State
Board of Higher Education shall consult with the Division of
State Lands in accordance with an interagency agreement
established by the division and the State Board of Higher
Education governing consultation between the division and the
State Board of Higher Education and governing management of such
mineral or geothermal resources.
   { +  (2) Notwithstanding ORS 273.780 (3), when the Director of
Veterans' Affairs offers for sale a home or farm obtained for and
in behalf of the state under ORS 88.720, 407.135 or 407.145 (1),
the director may not retain the right to mineral or geothermal
resources if the home or farm is located:
  (a) Inside an urban growth boundary; or
  (b) Within an area zoned for residential use on a lot or parcel
that is 10 acres or smaller. + }
  SECTION 2.  { + Section 3 of this 2003 Act is added to and made
a part of ORS 273.775 to 273.790. + }
  SECTION 3.  { + (1) As used in this section:
  (a) 'Owner' means:
  (A) The record holder of fee title interest in real property;
or
  (B) The contract purchaser of real property.
  (b) 'Residential real property' means real property that is
located:
  (A) Inside an urban growth boundary; or
  (B) Within an area zoned for residential use on a lot or parcel
that is 10 acres or smaller.
  (2) If a state agency sells residential real property subject
to a reservation of rights to mineral or geothermal resources, an
owner may apply to the Division of State Lands for release and
transfer of the rights reserved by the State of Oregon.
  (3) Upon application by the owner of residential real property,
the division shall release and transfer to the owner the reserved
rights to mineral and geothermal resources within 90 days of
receipt of the completed application.
  (4) The division may charge a reasonable fee, not to exceed
$100, to process an application under this section.
  (5) The division shall adopt rules to implement this
section. + }
  SECTION 4.  { + The amendments to section 1 of this 2003 Act
apply to a sale of property that closes on or after the effective
date of this 2003 Act. + }
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