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HOUSE BILL NO. 758

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Daily Data Tracking History

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H0758.....................................................by WAYS AND MEANS
STATE TIMBER SALES - Amends existing law to provide that the State Board of
Land Commissioners may accept the bid of the nonqualified bidders in state
timber sales under certain conditions.

02/23    House intro - 1st rdg - to printing
02/24    Rpt prt - to Res/Con

Bill Text

H0758


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fourth Legislature                 Second Regular Session - 1998
                                                                        

                             IN THE HOUSE OF REPRESENTATIVES

                                    HOUSE BILL NO. 758

                               BY WAYS AND MEANS COMMITTEE

 1                                        AN ACT
 2    RELATING TO TIMBER SALES ON STATE LANDS; AMENDING SECTION 58-1004, IDAHO CODE,
 3        TO ALLOW THE IDAHO STATE BOARD OF LAND COMMISSIONERS TO ACCEPT THE BID  OF
 4        OTHER THAN QUALIFIED BIDDERS IN THE SALE OF STATE TIMBER, WHEN IN THE BEST
 5        INTEREST OF THE STATE AND TO MAKE TECHNICAL CORRECTIONS.

 6    Be It Enacted by the Legislature of the State of Idaho:

 7        SECTION  1.  That  Section 58-1004, Idaho Code, be, and the same is hereby
 8    amended to read as follows:

 9        58-1004.  SALE OF STATE TIMBER. (1) Each  fiscal  year,  the  board  shall
10    offer  ninety-five    per  cent    percent  (95%) of the
11    total volume of the year's timber sales from state forests, exclusive of esti-
12    mated pulp log volumes from state forests, for sale to qualified bidders.  The
13    remaining  five    per cent   percent  (5%) of the total
14    volume of the year's timber sales shall be offered for sale  to  all  persons,
15    regardless of whether they are qualified bidders under this chapter.
16        (2)  Notwithstanding the provisions of subsection (1) of this section, the
17    board  shall, if it finds after consideration of unanticipated dislocations in
18    local timber supplies that timber from state forests in certain regions of the
19    state will not be needed by qualified bidders, offer such timber for  sale  to
20    all persons without regard to whether they are qualified bidders. In addition,
21    if  the  board  determines  that a purchaser who has previously acquired state
22    timber is adversely affected by a market dislocation, such purchaser may  dis-
23    pose of his timber without affecting his qualified bidder status.
24        (3)  In  the  event  qualified  bidders do not purchase timber offered for
25    sale exclusively to them, the board, if it finds after  consideration  of  the
26    reasons the timber was not sold, that it is in the best interests of the state
27    and  the  endowed  institutions, may offer the timber for sale to all bidders,
28    without regard to whether they are qualified bidders as  defined  herein.  The
29    purchase and disposition of such timber shall not be considered in determining
30    whether a person is a qualified bidder for subsequent timber sales.
31          (4)  Notwithstanding  the provisions of subsection (1) of this sec-
32    tion, the board may accept the bid of a person who is not a  qualified  bidder
33    if the board determines that:
34        (a)  The person:
35             (i)   Conducts business in the state;
36             (ii)  Has employees in the state;
37             (iii) Owns and operates substantial wood processing and manufacturing
38             facilities in the state;
39             (iv)  Pays  substantial sales, use, income, or real or personal prop-
40             erty taxes in the state;
41             (v)   Will process the state timber in a facility within one  hundred
42             (100) miles of the border of the state; and
43             (vi)  Is not barred or restricted from purchasing state timber in the


                                      2

 1             state where the timber will be processed as a result of the export of
 2             private timber.
 3        (b)  The  sale  to the person is in the best interest of the state and its
 4        endowed institutions. 

Statement of Purpose / Fiscal Impact

    





                            STATEMENT OF PURPOSE
                                  RS 08125
    
    The proposed legislation amends Section 58-1004, Idaho 
    Code, to allow the Board of Land Commissioners to consider any 
    bid for state timber which is in the State's best interest, as 
    opposed to limiting its considerations to the amount of state 
    timber that the bidder processes outside the State. The 
    amendment would permit sales to a person who is not a 
    qualified bidder if the Board determines that the bidder has 
    significant economic contacts in the State.
    
                                FISCAL NOTE
    
    This amendment will not have any impact on State 
    expenditures. This amendment may allow the State to realize 
    greater revenues from the sale of state timber by possibly 
    increasing the number of lawful bidders.CONTACT: Roy Lewis Eiguren Givens 
    Pursley & Huntley LLP 
    phone: (208) 388-1313 
    email: 
    rle@givenspursley.com
    
    
    
    H 758