75th OREGON LEGISLATIVE ASSEMBLY--2009 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 1008
House Bill 2216
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore R.
Kulongoski for State Forestry Department)
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.
Modifies certain provisions related to ability of State Board
of Forestry to acquire lands.
Establishes Forest Development Revenue Bond Fund. Continuously
appropriates moneys in fund to State Board of Forestry for
purposes of paying certain bond-related costs.
Establishes State Forestry General Obligation Bond Fund.
Continuously appropriates moneys in fund to State Forestry
Department for purposes of paying certain bond-related costs.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to the State Board of Forestry authorization to acquire
lands; creating new provisions; amending ORS 293.701, 526.060,
530.020, 530.110, 530.115, 530.130, 530.150, 530.160, 530.210,
530.230, 530.240 and 530.280; appropriating money; and
declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 530.020 is amended to read:
530.020. { + (1) + } Title to all lands acquired by the State
Board of Forestry under ORS 530.010 shall be free and clear of
all encumbrances except easements of rights of way and
reservations or exceptions of gas, oil, coal, mineral and timber
rights { + , unless the board determines other encumbrances will
not unduly limit the management of the lands consistent with ORS
530.010 to 530.170 + }. All titles shall be approved by the
Attorney General before conveyance is accepted. However, the
Attorney General may approve title to lands proposed to be
acquired from counties under the provisions of ORS 530.030 or
proposed to be acquired by donation or devise when, in the
opinion of the Attorney General, existing defects of title are of
formal nature and may be cured by suit to quiet title. In case of
acquisition of lands with defective title, the Attorney General
may institute suit to quiet title to such lands, and all costs in
connection therewith shall be a proper charge against the funds
of the board. All deeds, abstracts, title insurance policies, and
other evidences of title to lands acquired under ORS 530.010 to
530.040 shall be deposited with the Secretary of State. All deeds
shall promptly be recorded in the county in which the lands are
situated.
{ + (2) The board may hold and manage lands alone or in
cooperation with other entities, including but not limited to
community forest authorities established under ORS 530.600 to
530.628.
(3) The board may acquire lands or partial interest in lands,
including but not limited to conservation easements.
(4) The board may sell lands or partial interest in lands,
including but not limited to conservation easements, to other
parties if the board determines that the other parties are better
situated to manage the lands for the long-term or if the sale is
otherwise in the best interest of Oregonians. All funds or moneys
derived from the sale of lands that were originally acquired by
the state with the proceeds of Oregon forest development revenue
bonds or bonds sold under the Oregon Forest Rehabilitation Act,
as described in ORS 530.220, shall be deposited by the board, as
applicable, into the Forest Development Revenue Bond Fund or the
State Forestry General Obligation Bond Fund. + }
SECTION 2. ORS 530.110 is amended to read:
530.110. (1) All revenues derived from lands acquired without
cost to the state, or acquired from counties pursuant to ORS
530.030, shall be paid into the State Treasury and credited to
the State Forestry Department Account and shall be used
exclusively for the purposes stated in subsection (3) of this
section, and in accordance with the following distribution:
(a) Fifteen percent shall be credited to the State Forests
Protection Subaccount of the State Forestry Department Account
until the amount in such subaccount shall reach $475,000.
Thereafter, the revenues shall be disposed of as stated in
paragraphs (b) and (c) of this subsection, unless needed to
maintain the $475,000 level. All moneys in the State Forests
Protection Subaccount are appropriated continuously to the State
Forester who may use such money under the following priorities:
(A) First, in addition to or in lieu of other moneys available,
to pay the cost of protection, as determined under ORS 477.270,
for lands acquired under ORS 530.010 to 530.040.
(B) Second, to provide moneys needed for activities authorized
by subsection (3) of this section.
(C) From remaining moneys, to pay costs incurred in the
suppression of fire originating on or spreading from an operation
area, as defined in ORS 477.001, on state-owned forestland
acquired under ORS 530.010 to 530.040. The State Forester shall
make payments with approval of the State Board of Forestry for
such fire suppression costs; except that no payments shall be
made for such costs or portion thereof when other parties are
responsible under law or contracts for the payment of such costs.
(b) Seventy-five percent of all such revenues remaining after
the percentage disposed of as stated in paragraph (a) of this
subsection, shall be disposed of as provided in ORS 530.115.
(c) Twenty-five percent of all such revenues remaining after
the percentage disposed of as stated in paragraph (a) of this
subsection, shall be used for the purposes set out in subsection
(3) of this section.
(2) All revenues from lands other than lands designated in
subsection (1) of this section, acquired under ORS 530.010 to
530.040, shall be paid into the State Treasury and credited to
the State Forestry Department Account and shall be used
exclusively for the purposes stated in subsection (3) of this
section, and in accordance with the following distribution:
(a) Until each legal subdivision of the lands has been credited
with an amount equal to the purchase price thereof, the revenues
shall reimburse the State Forestry Department Account. If
sufficient revenue to reimburse the State Forestry Department
Account is not generated from the purchased parcels within five
years from the date of acquisition, the State Forester, with the
consent of the affected county, shall deduct all or portions of
the unreimbursed purchase costs from the revenue distributed to
that county in accordance with ORS 530.115 (1). { + After the
State Forestry Department Account has been reimbursed for the
purchase price of the lands, the revenue from the lands shall be
distributed according to the formula specified in + }
{ - Thereafter - } paragraphs (b), (c) and (d) of this
subsection { - apply - } .
(b) The percentage required under subsection (1)(a) of this
section shall be credited to the State Forests Protection
Subaccount, thereafter, the revenues shall be disposed of as
stated in paragraphs (c) and (d) of this subsection.
(c) Seventy-five percent of all such revenues remaining after
paragraphs (a) and (b) of this subsection have been complied
with, shall be disposed of as provided in ORS 530.115.
(d) Twenty-five percent of all such revenues remaining after
the percentage disposed of as stated in paragraphs (a) and (b) of
this subsection, shall be used for the purposes set out in
subsection (3) of this section.
(3) Unless otherwise consented to in advance and in writing by
the counties from which the state has acquired lands without cost
to the state or pursuant to ORS 530.130, the moneys in the State
Forestry Department Account derived from those percentages of
revenues set out in subsections (1)(c) and (2)(d) of this section
shall be { - used exclusively for the redemption of Oregon
forest development revenue bonds and payment of interest thereon,
for the acquisition, development and management of forestlands
and - } { + deposited first in the Forest Development Revenue
Bond Fund. If there are moneys in excess of those needed for
purposes of the Forest Development Revenue Bond Fund, the moneys
may be used + } for such other purposes as are necessary in
carrying out ORS 530.010 to 530.110.
SECTION 3. ORS 530.115 is amended to read:
530.115. (1) Except as set forth in subsection (2) of this
section, moneys described in ORS 530.110 (1)(b) and (2)(c) shall
be credited to the county in which the lands are situated and
shall be paid quarterly to the county by a warrant drawn as
provided by law, pursuant to claim therefor, duly approved by the
State Board of Forestry. Payment shall be made on or before the
last day of each month following the end of the calendar quarters
ending on March 31, June 30, September 30 and December 31. Money
received under this subsection by the county shall be applied in
the following order:
(a) The county general fund shall be reimbursed for all costs
and expenses incurred by the county in the maintenance and
supervision of such lands and in any suits by it to quiet its
title to lands conveyed to the state; provided that the proceeds
so applied shall not be less than 10 percent of the total
proceeds received.
(b) Twenty-five percent of the remainder of the money shall be
credited and paid into the county school fund created under ORS
328.005.
(c) The remainder of the money shall be by the county prorated
and apportioned to the various taxing districts in which the
lands are situated in the proportion that the rate of tax levy in
each district as shown by the tax levy filed with the assessor
for the last year in process of collection, bears to the total
rate of tax levy of all such taxing bodies for such year.
{ - (2) After payment of the principal and interest of each
bond issue issued pursuant to ORS 530.210 to 530.280, 20 percent
of the moneys derived from forest products created through
expenditures of moneys available from such bond issue shall be
credited to the General Fund until the state is reimbursed for
its costs under the bond issue in that county. However, the
governing body of the county in its discretion may authorize a
higher percentage of that county's allocation for any year to be
so credited to the General Fund. - }
{ + (2) After payment of the principal, interest and premium,
if any, and bond-related costs, as defined in ORS 530.210, for
any bonds issued pursuant to ORS 530.210 to 530.280, and after
payment of any additional expenditures incurred by the state to
produce forest products, as defined in ORS 532.010, minerals or
other forest-related values, if any, created through expenditures
of moneys available under the Forest Rehabilitation Act, 20
percent of the net proceeds derived from the sale of the forest
products, minerals or other forest-related values shall be paid
to the governing body of the county where the lands that contain
the forest products, minerals or other forest-related values are
located. If the lands encompass more than one county, the moneys
paid shall be prorated based on the percentage of net proceeds
from forest products, minerals or other forest-related values
derived from each county. The State Forester shall designate and
keep records of the area of land on which the funds from
particular issues of bonds have been expended for reforestation
and the counties where the lands are located. + }
SECTION 4. ORS 530.130 is amended to read:
530.130. (1) In compliance with the applicable provisions of
ORS chapter 286A, the State Board of Forestry may request the
State Treasurer to issue the revenue bonds described in ORS
530.140 { - in exchange for lands selected by it in accordance
with ORS 530.010 and to sell such bonds in such manner as the
State Treasurer deems advisable. Should the bonds be sold, the
proceeds shall be paid into the State Treasury and credited to
the State Forestry Department Account and shall be expended only
by warrant of the Oregon Department of Administrative Services in
the payment of vouchers bearing the approval of the board in the
purchase of lands, as provided in ORS 530.010. - }
{ - (2) Lands proposed to be taken in exchange for bonds
shall first be appraised by the board and the appraisal approved
by the Department of State Lands. - } { + to acquire any lands
as provided in ORS 530.010 and to sell the Oregon forest
development revenue bonds in the manner the State Treasurer deems
advisable. The net proceeds derived from the sale of the revenue
bonds, after the payment of bond-related costs, as defined in ORS
530.210, shall be paid into the State Treasury and credited to
the State Forestry Department Account. The State Forestry
Department may establish one or more subaccounts, as it
determines are desirable for administration of the net proceeds,
in the State Forestry Department Account. The net proceeds
derived from the sale of the revenue bonds are continuously
appropriated to the State Board of Forestry for the purpose of
acquiring lands as provided by ORS 530.010.
(2) Any lands proposed to be acquired under subsection (1) of
this section shall be appraised by the State Board of Forestry
and the appraisal approved by the Department of State Lands prior
to the acquisition of the lands. + }
SECTION 5. ORS 530.150 is amended to read:
530.150. { - (1) When funds are available therefor, as
provided in ORS 530.110, the State Board of Forestry shall cause
to be published in a newspaper of general and wide circulation in
the state a notice of call for redemption at par and accrued
interest of sufficient revenue bonds to utilize such funds. The
notice shall be published not less than twice, the second
publication to be not less than 14 days after the first and not
less than 30 days prior to the date of such call. - }
{ - (2) The bonds shall be called in numerical order,
beginning with the lowest number, and shall cease to draw
interest after the date fixed for redemption. Interest and
principal of the bonds shall be payable solely from the moneys
available for such purposes in the State Forestry Department
Account. - }
{ - (3) Not less than 10 days before the date set by the
board for redemption of any of the revenue bonds, or the
refunding bonds issued under ORS 530.160, the board shall certify
to the State Treasurer the amount necessary to pay such
redemption. Upon receipt of the certificate, the treasurer shall
prepare and verify a claim for the amount set out therein,
attaching thereto the certificate, and present the same to the
Oregon Department of Administrative Services which shall issue a
warrant therefor payable out of the moneys available for such
purposes in the State Forestry Department Account. - }
{ - (4) All bonds and interest coupons upon payment shall be
deposited by the State Treasurer with the Oregon Department of
Administrative Services, to be attached to the original claim of
the State Treasurer for payment. - }
{ + (1) The Forest Development Revenue Bond Fund is
established separate and distinct from the General Fund. Interest
earned by the fund shall be credited to the fund. Moneys in the
fund may be invested as provided in ORS 286A.025 and 293.701 to
293.820. All moneys in the fund are continuously appropriated to
the State Board of Forestry for the purposes of paying
bond-related costs, as defined in ORS 530.210, and the principal,
interest and premium, if any, when due on the Oregon forest
development revenue bonds sold under ORS 530.140, and any amounts
due under a credit enhancement device, or agreement for exchange
of interest rate, entered into in connection with the revenue
bonds.
(2) The Forest Development Revenue Bond Fund may be credited
with any proceeds from the sale of Oregon forest development
revenue bonds, proceeds from the disposal of lands acquired with
the revenue bonds, proceeds from the disposal of forest products,
as defined in ORS 532.010, minerals or other forest-related
values derived from the lands acquired with the revenue bonds,
gifts, grants or any other unrestricted moneys paid to the State
Forestry Department or the State Board of Forestry or
appropriated by the Legislative Assembly that may be used for the
purposes set forth in this section. + }
SECTION 6. ORS 530.160 is amended to read:
530.160. { - If the revenue bonds have not been redeemed
within 50 years of the date of issue as provided in ORS 530.140,
the State Board of Forestry shall cause to be sold refunding
bonds in an amount sufficient to provide funds for the redemption
of such unredeemed bonds as have been outstanding for 50 years,
the proceeds of the sale of which refunding bonds shall be used
solely for the purpose of calling and paying such bonds and
coupons so refunded. The refunding bonds shall be of like tenor
as those refunded, and shall be payable only from the moneys
available for such purposes in the State Forestry Department
Account. The bonds shall show by indorsement thereon that their
legality has been approved by the Attorney General of Oregon. - }
{ + Oregon forest development revenue bonds may be redeemed
through the sale of refunding bonds in an amount sufficient to
provide funds for the redemption of the unredeemed bonds. The
refunding bonds shall be payable from the moneys available for
payment of the redeemed bonds. + }
SECTION 7. ORS 530.210 is amended to read:
530.210. When used in ORS 530.210 to 530.280, unless the
context clearly would be otherwise:
{ + (1) 'Bond-related costs' means:
(a) The costs and expenses of issuing, administering and
maintaining bonds, including but not limited to paying or
redeeming general obligation or revenue bonds, paying amounts due
in connection with credit enhancements or any instruments
authorized by ORS 286A.580 (6) and paying the administrative
costs and expenses of the State Treasurer and the State Forestry
Department, including costs of consultants or advisors retained
by the treasurer or the department for the bonds;
(b) The costs of funding any bond reserves;
(c) Capitalized interest for bonds;
(d) Rebates or penalties due to the United States in connection
with the bonds; and
(e) Any other costs or expenses that the State Treasurer or the
State Forestry Department determines are necessary or desirable
in connection with issuing, administering or maintaining the
bonds. + }
{ - (1) - } { + (2) + } 'Bonds' are the general obligation
bonds of the State of Oregon issued pursuant to Article XI-E,
Oregon Constitution.
{ - (2) - } { + (3) + } 'Forestland' is any land suitable
for the production of forest crops.
{ + (4) 'Reforestation' means to increase tree stocking to a
level that meets or exceeds the stocking standards relating to
productivity specified by the State Board of Forestry by
rule. + }
SECTION 8. ORS 530.230 is amended to read:
530.230. In order to provide funds for the purposes specified
in Article XI-E of the Oregon Constitution, the State Board of
Forestry may request the State Treasurer to issue bonds in
accordance with the provisions of ORS chapter 286A { - , but the
annual issue shall not exceed $750,000 - } .
SECTION 9. ORS 530.240 is amended to read:
530.240. The { - moneys - } { + net proceeds, after payment
of bond-related costs, + } arising from the sale of each issue of
bonds shall be paid into the State Treasury and credited to the
State Forestry Department Account and shall be used exclusively
for the rehabilitation, reforestation, management and development
of state-owned forestlands and the acquisition of lands for said
purposes. Moneys acquired under ORS 530.230 shall be in addition
to and not in lieu of moneys regularly appropriated or otherwise
made available to the State Board of Forestry for the
administration, management and protection of state
forestlands. { + The State Forestry Department may establish one
or more subaccounts, as the department determines are desirable
for administration of the net proceeds arising from the sale of
each issue of bonds, in the State Forestry Department
Account. + }
SECTION 10. ORS 530.280 is amended to read:
530.280. (1) { - There hereby is created a sinking fund
account to provide for the payment of the principal and interest
of all bonds issued pursuant to the provisions of ORS 530.210 to
530.280 - } { + The State Forestry General Obligation Bond Fund
is established separate and distinct from the General Fund.
Interest earned by the fund shall be credited to the fund. Moneys
in the fund may be invested as provided in ORS 286A.025 and
293.701 to 293.820. All moneys in the fund are continuously
appropriated to the State Forestry Department for the purposes of
paying bond-related costs and the principal, interest and
premium, if any, when due on the general obligation bonds issued
under Article XI-E of the Oregon Constitution, and any amounts
due under a credit enhancement device, or agreement for exchange
of interest rate entered into in connection with the bonds.
However, an agreement for exchange of interest rate may not be
paid from moneys derived under paragraph (a) of this subsection
or from General Fund moneys appropriated under paragraph (d) of
this subsection to fulfill a pledge of the full faith and credit
of the state set forth in Article XI-E of the Oregon
Constitution + }. The fund shall consist of the following:
(a) All moneys derived from taxes levied under ORS 291.445;
(b) All moneys derived from the sale, exchange or use of land
acquired pursuant to ORS 530.240; and
(c) Except as provided in ORS 530.115, all moneys received from
the disposal of forest products { + , minerals or other
forest-related values, if any, + } created through expenditures
of moneys available under the Oregon Forest Rehabilitation Act
for reforestation { - . - } { + ; and
(d) Any other moneys that may be appropriated for such purposes
by the Legislative Assembly. + }
(2) The moneys referred to in subsection (1) { + (b) and
(c) + } of this section shall be set aside for { - sinking
fund - } { + State Forestry General Obligation Bond Fund + }
purposes until { - the issues of - } { + there are no longer
any + } bonds { + issued under the Oregon Forest Rehabilitation
Act outstanding. + } { - which provided funds for such
reforestation have been retired. The State Forester shall
designate and keep records of the area of land on which the funds
from particular issues of bonds have been expended for such
reforestation. - }
{ - (3) Disbursement from the sinking fund shall be made, for
the purposes stated, upon the submission of duly verified claims,
approved by the State Board of Forestry, to the Secretary of
State, who shall audit the same in the manner that other claims
against the state are audited. The Oregon Department of
Administrative Services thereupon shall draw a warrant on the
State Treasurer against the fund. The money in the sinking fund
may be invested as provided in ORS 293.701 to 293.820. - }
SECTION 11. ORS 293.701 is amended to read:
293.701. As used in ORS 293.701 to 293.820, unless the context
requires otherwise:
(1) 'Council' means the Oregon Investment Council.
(2) 'Investment funds' means:
(a) Public Employees Retirement Fund referred to in ORS
238.660;
(b) Industrial Accident Fund referred to in ORS 656.632;
(c) Consumer and Business Services Fund referred to in ORS
705.145;
(d) Employment Department Special Administrative Fund referred
to in ORS 657.822;
(e) Insurance Fund referred to in ORS 278.425;
(f) Funds under the control and administration of the
Department of State Lands;
(g) Oregon Student Assistance Fund referred to in ORS 348.570;
(h) Moneys made available to the Commission for the Blind under
ORS 346.270 and 346.540 or rules adopted thereunder;
(i) { - Forest rehabilitation bonds sinking fund - }
{ + State Forestry General Obligation Bond Fund + } referred to
in ORS 530.280;
(j) Oregon War Veterans' Fund referred to in ORS 407.495;
(k) Oregon War Veterans' Bond Sinking Account referred to in
ORS 407.515;
(L) World War II Veterans' Compensation Fund;
(m) World War II Veterans' Bond Sinking Fund;
(n) Savings and loan association funds in the hands of the
Director of the Department of Consumer and Business Services;
(o) Funds in the hands of the State Treasurer that are not
required to meet current demands;
(p) State funds that are not subject to the control and
administration of officers or bodies specifically designated by
law;
(q) Funds derived from the sale of state bonds;
(r) Social Security Revolving Account referred to in ORS
237.490;
(s) Investment funds of the State Board of Higher Education
lawfully available for investment or reinvestment;
(t) Local Government Employer Benefit Trust Fund referred to in
ORS 657.513;
(u) Elderly and Disabled Special Transportation Fund
established by ORS 391.800;
(v) Education Stability Fund established by ORS 348.696;
(w) Deferred Compensation Fund established under ORS 243.411;
and
(x) Trust for Cultural Development Account established under
ORS 359.405.
(3) 'Investment officer' means the State Treasurer in the
capacity as investment officer for the council.
SECTION 12. ORS 526.060 is amended to read:
526.060. (1) Excepting the { - sinking fund - } moneys
designated in ORS 530.280 and reimbursements for the revolving
account under ORS 526.121, all assessments, federal
apportionments or contributions, and other moneys received by the
forester or State Board of Forestry, shall be paid into the State
Treasury and credited to the State Forestry Department Account,
which is established separate and distinct from the General Fund.
All moneys in the State Forestry Department Account are
appropriated continuously, and shall be used by the forester,
under the supervision and direction of the board, for the
purposes authorized by law.
(2) The forester shall keep a record of all moneys deposited in
the State Forestry Department Account. The record shall indicate
by separate cumulative accounts the source from which the moneys
are derived and the individual activity or program against which
each withdrawal is charged. All moneys in the account received
pursuant to ORS 527.610 to 527.770 and 527.992 shall be used only
for carrying out the duties, functions and powers of the State
Forestry Department in administering ORS 527.610 to 527.770 and
527.992.
(3) The Urban and Community Forestry Subaccount is established
as a subaccount of the State Forestry Department Account. Moneys
in the Urban and Community Forestry Subaccount are appropriated
continuously to the State Forestry Department to be used for
urban and community forest activities described in ORS 469.634
and 469.652.
(4) The State Forest Enhancement Donation Subaccount is
established as a subaccount to the State Forestry Department
Account. Moneys in the State Forest Enhancement Donation
Subaccount are continuously appropriated to the State Forestry
Department to be used for the purposes described in ORS 526.065.
(5) The State Forest Nursery Subaccount is established as a
subaccount to the State Forestry Department Account. Moneys in
the State Forest Nursery Subaccount are continuously appropriated
to the State Forestry Department to be used for the purposes
described in ORS 526.235.
(6) The State Forest Tree Seed Bank Subaccount is established
as a subaccount to the State Forestry Department Account. Moneys
in the State Forest Tree Seed Bank Subaccount are continuously
appropriated to the State Forestry Department to be used for the
purposes described in ORS 526.470.
(7) The State Forest Tree Seed Orchard Subaccount is
established as a subaccount to the State Forestry Department
Account. Moneys in the State Forest Tree Seed Orchard Subaccount
are continuously appropriated to the State Forestry Department to
be used for the purposes described in ORS 526.472.
(8) Notwithstanding ORS 291.238, the moneys credited to the
subaccounts established under subsections (5), (6) and (7) of
this section shall be continuously available on a revolving
basis.
SECTION 13. { + The 'sinking fund account' described in ORS
530.280 is renamed the 'State Forestry General Obligation Bond
Fund' and the amendments to ORS 530.280 by section 10 of this
2009 Act are intended to be a continuation of the account. + }
SECTION 14. { + This 2009 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2009 Act takes effect on
its passage. + }
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