74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
HA to HB 2293
LC 879/HB 2293-1
HOUSE AMENDMENTS TO
HOUSE BILL 2293
By COMMITTEE ON AGRICULTURE AND NATURAL RESOURCES
April 11
On page 1 of the printed bill, line 2, delete 'and'.
In line 3, after '526.710,' delete the rest of the line and
insert '526.725, 526.730, 526.735, 526.775 and 526.783; and
repealing 526.715.'.
In line 8, delete 'nonfederal' and insert 'private and local
government'.
On page 2, line 7, after '(b)' delete the rest of the line and
insert 'Assist landowners in securing payments for ecosystem
services.'.
Delete lines 8 through 45 and delete page 3 and insert:
{ + + } ' { + SECTION 3. + } ORS 526.705 is amended to
read:
' 526.705. (1) To carry out the duties, functions and powers of
the Forest Resource Trust, there is created a voluntary
{ - stand establishment - } { + loan + } program to finance
{ - the establishment and maintenance of healthy stands of trees
in an environmentally responsible manner on unstocked and
underproducing nonindustrial private forestlands. The goal of the
stand establishment program is to reforest 250,000 acres by the
year 2010 - } { + establishment of stands of trees and the
improved management of qualified private and local government
forestlands + }.
' (2) In advancing moneys and providing other assistance for
stand establishment, the State Board of Forestry shall:
' (a) Give priority to lands zoned for forest uses under county
comprehensive plans and to other lands with moderate to high
probability of success { - in reforestation or environmental
restoration - } { + for long-term stand establishment and
improved forest management activities + }; and
' { - (b) Consider development of financial and other
incentives for good land management, compliance with plans for
established stands, and for growth to maturity and harvest. - }
' { + (b) Assist landowners in securing payments for
ecosystem services. + }
' (3) The { - board shall - } { + State Board of Forestry
may, by rule, + } establish { - options - } { + financial
agreements + } for the repayment of
{ - advanced - } moneys { + advanced + } consistent with
subsection (2) of this section and including but not limited to
the following, singly or in combination:
' (a) A revenue-sharing proposal that guarantees the landowner
a percentage of the receipts upon harvest after payment of
harvest and severance taxes;
' (b) Financial agreements; and
' (c) Repayment in full with interest if a landowner fails to
get the stand free to grow as that term is defined in the Oregon
Forest Practices Act, unless said failure is through no fault of
the landowner.
' (4) The terms of repayment shall be based on considerations
that represent the best use and investment of funds including:
' { - (a) Reasonable assumptions regarding future timber
prices and yield; - }
' { - (b) - } { + (a) + } Rates of return { + , as
established by the State Board of Forestry, that + }
{ - sufficient to - } provide a reasonable { - and
prudent - } payback to the Forest Resource Trust of
{ + project + } costs
{ - including, but not limited to, site preparation, planting,
animal protection, release, planning and layout of treatment
units, supervising the activities, and accounting and legal
work - } ;
' { - (c) - } { + (b) + } { - Offsets attributable to - }
Measurable anticipated public benefits such as job creation, tax
revenue, increased timber supply and environmental improvement;
and
' { - (d) - } { + (c) + } The extent to which landowner
contributions of money, labor or other resources reduce the risk
to the Forest Resource Trust.
' (5) Participating landowners shall not be required to comply
with forest practices beyond those required by state and federal
law with the exception { - of - } { + that + } planting
standards { + for stand establishment + } { - which - } may
be more than the required minimum.
{ - Participating landowners who voluntarily agree to manage
the established stand beyond minimum standards may be eligible
for financial and other incentives if consistent with subsections
(2) and (3) of this section. Payments to any landowner for stand
establishment shall not exceed $100,000 in any two-year
period. - }
{ + ' (6) The State Forester is authorized, on behalf of the
Forest Resource Trust, to enter into contracts with eligible
landowners to carry out the provisions of the voluntary loan
program. The + } { + contracts may include, but are not limited
to:
' (a) Partial to full financing to the landowner, as specified
in rules of the State Board of Forestry, from such moneys as may
be available in the Forest Resource Trust Fund.
' (b) Any obligations of the landowner for repayment of moneys
advanced including, but not limited to:
' (A) Terms for sharing the revenue gained from the sales of
timber and forest products, including salvage, from the lands
enrolled under the voluntary loan program;
' (B) Acknowledgement that the rights and obligations of the
landowner and the Forest Resource Trust and all of the terms of
the contract are covenants that run with the land upon sale,
lease or transfer of the land benefiting from the voluntary loan
program until all future obligations of the contract are met;
' (C) Financial terms allowing the landowner to terminate the
contract;
' (D) Agreement that there is no obligation to repay the moneys
advanced prior to sale of timber and forest products from the
land;
' (E) Terms to protect the contract from modification unless
both parties consent to modification;
' (F) Allowance for different prescriptions for stand
management; and
' (G) Repayment in full with interest if the landowner fails to
meet any terms of the contract. + }
' { + (c) Acknowledgement by the landowner that the State
Forester may require a statutory lien on the forest products.
' (7) In addition to the contracts provided for in subsection
(6) of this section, the State Forester, on behalf of the Forest
Resource Trust, may require landowners to execute security
agreements in favor of the trust to secure any repayment or other
obligations of the landowner. Any security interest required
shall have priority from the date of recording or filing.
' (8)(a) The State Forester shall record a contract described
in subsection (6) of this section 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 shall
become covenants that run with the land and shall be binding
upon + } { + successors and assigns.
' (c) The interest of the Forest Resource Trust created by
recording the contract constitutes a purchaser's interest in real
property for purposes of ORS 93.640.
' (d) A memorandum of contract must include, but is not limited
to:
' (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 of the forestland subject to the
contract that conforms with ORS 93.600; and
' (D) If the contract is secured by a lien as provided in ORS
526.735 to 526.775, a statement from each landowner acknowledging
the lien.
' (9) As used in this section, 'eligible landowner' means a
qualified private or local government forestland owner who:
' (a) Owns land that qualifies as forestland, as defined by the
State Board of Forestry.
' (b) Has not received an exemption from reforestation
requirements pursuant to rules adopted by the board under ORS
527.760. + } ' .
On page 4, delete lines 1 and 2.
In line 3, delete '8' and insert '4'.
In line 12, delete 'and' and insert a comma and after '
programs' insert ', nongovernmental organizations and landowner
cooperatives'.
After line 14, insert:
' (7) Release from financial obligation for any portion of the
qualified private and local government forestlands included under
Forest Resource Trust programs and irretrievably lost to insects,
disease, fire, storm, flood or other natural destruction through
no fault of the landowner.
' (8) Secure provisions for access to the land by the State
Forester.
' (9) Give consideration to conservation plans or strategies
adopted by the State Department of Fish and Wildlife when setting
priorities for Forest Resource Trust programs.'.
Delete lines 15 through 45.
On page 5, delete lines 1 through 41 and insert:
' { + SECTION 5. + } ORS 526.730 is amended to read:
' 526.730. The State Board of Forestry, after consultation with
the advisory committee appointed pursuant to ORS 526.700, shall
prepare and submit a { - biennial - } report to the
{ + Seventy-sixth + } Legislative Assembly { - with regard to
program accomplishments, the future structure of the Forest
Resource Trust, alternatives to delivery of trust services by the
State Forestry Department and changes to qualifications for
landowner participation in the program. The board shall also
enter into an agreement with an independent party to evaluate
program goals, administration, problems and outcomes. The
evaluation shall be made a part of any biennial report to the
Legislative Assembly and shall be used by the board in
consultation with the advisory committee in modifying terms and
policies of the Forest Resource Trust - } { + that contains the
following information regarding the Forest Resource Trust Fund:
' (1) Program accomplishments;
' (2) Financial assistance payments to participating
landowners;
' (3) Revenues received by the fund; and
' (4) Expenditures made from the fund + }.'.
In line 42, delete '11' and insert '6'.
In line 45, delete '526.715' and insert '526.705'.
After line 45, insert:
' (2) 'Ecosystem services' means environmental benefits arising
from the conservation and management of forestland, including,
but not limited to, fish and wildlife habitat, clean water and
air, pollination, mitigation of environmental hazards, control of
pests and diseases, carbon sequestration, avoidance of carbon
dioxide emissions and maintenance of soil productivity.'.
On page 6, line 1, delete '(2)' and insert '(3)'.
In line 4, delete '(3)' and insert '(4)'.
In line 6, delete '(4)' and insert '(5)'.
In line 7, after 'voluntary' delete the rest of the line and
line 8 and insert 'loan program established by ORS 526.705'.
In line 9, delete 'this 2007 Act'.
In line 11, delete '(5)' and insert '(6)' and delete '
nonfederal' and insert 'private or local government' and after
'a' insert 'private or local government'.
In line 13, delete '12' and insert '7'.
After line 21, insert:
' { + SECTION 8. + } { + ORS 526.715 is repealed. + }
' { + SECTION 9. + } ORS 526.725 is amended to read:
' 526.725. (1) The State Board of Forestry or the State
Forester may enter into agreements with private, governmental or
other organizations and may accept contributions, gifts or grants
from any source to carry out the duties, functions and powers of
the Forest Resource Trust. All moneys received by the board or
the State Forester pursuant to this section shall be deposited in
the Forest Resource Trust Fund.
' (2) The board may acquire, on behalf of the Forest Resource
Trust, through exchange, lease or purchase, land only to the
extent necessary to carry out the duties, functions and powers of
the trust.
' (3) Agreements with private, governmental or other
organizations under subsection (1) of this section may specify
the terms under which funds are invested and benefits accrue to
the contributing party to the extent the agreement is consistent
with the provisions of ORS 526.700 to 526.775.
' (4) The State Forester may, on behalf of the Forest Resource
Trust, market, register, transfer or sell forestry carbon offsets
attributable to the lands enrolled in the stand establishment
program under ORS { - 526.715 - } { + 526.705 + }. Prices for
the transfer or sale of forestry carbon offsets may be negotiated
but must be at or greater than fair market value.
' (5) Nothing in ORS 526.700 to 526.775 is intended to create
an enforceable trust on any agency or officer of the State of
Oregon.
' { + SECTION 10. + } ORS 526.775 is amended to read:
' 526.775. Notwithstanding ORS 526.735 to 526.775, if the
forest landowner and the State Forester entered into a contract
as provided in ORS { - 526.715 - } { + 526.705 + } and the
contract is terminated or breached, and there are no forest
products or accounts receivable subject to the lien created under
ORS 526.740, any judgment entered against the landowner for
breach or termination of the contract may be executed on any
property of the landowner.'.
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