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H0529.........................................by RESOURCES AND CONSERVATION TIMBER - SALE - Amends existing law to revise measuring methods for the sale of state-owned timber. 02/01 House intro - 1st rdg - to printing 02/02 Rpt prt - to Res/Con 02/16 Rpt out - rec d/p - to 2nd rdg 02/17 2nd rdg - to 3rd rdg 02/22 3rd rdg - PASSED - 64-0-6 AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer, Bell, Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford, Cannon, Chadderdon, Clark, Collins, Crow, Deal, Edmunson, Ellsworth, Field(18), Field(23), Garrett, Hart, Harwood, Henbest, Henderson, Jaquet, Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews, McKague, Miller, Mitchell, Nielsen, Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Rusche, Rydalch, Sali(Sali), Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smith(24), Smylie(Luker), Snodgrass, Stevenson, Trail, Wills, Wood, Mr. Speaker NAYS -- None Absent and excused -- Bedke, Denney, Eskridge, McGeachin, Moyle, Roberts Floor Sponsor - Andrus Title apvd - to Senate 02/23 Senate intro - 1st rdg - to Res/Env 03/13 Rpt out - rec d/p - to 2nd rdg 03/14 2nd rdg - to 3rd rdg 03/16 3rd rdg - PASSED - 28-7-0 AYES -- Andreason, Brandt, Broadsword, Bunderson, Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis, Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Keough, Little, Lodge, McGee, McKenzie, Pearce, Richardson, Schroeder, Stegner, Sweet, Williams NAYS -- Burkett, Kelly, Langhorst, Malepeai, Marley, Stennett, Werk Absent and excused -- None Floor Sponsor - Little Title apvd - to House 03/17 To enrol 03/20 Rpt enrol - Sp signed 03/21 Pres signed - To Governor 03/22 Governor signed Session Law Chapter 130 Effective: 07/01/06
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature Second Regular Session - 2006 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 529 BY RESOURCES AND CONSERVATION COMMITTEE 1 AN ACT 2 RELATING TO STATE-OWNED TIMBER; AMENDING SECTION 58-415, IDAHO CODE, TO REVISE 3 MEASURING METHODS FOR THE SALE OF STATE-OWNED TIMBER. 4 Be It Enacted by the Legislature of the State of Idaho: 5 SECTION 1. That Section 58-415, Idaho Code, be, and the same is hereby 6 amended to read as follows: 7 58-415. MEASURING METHOD USED IN SALE OF STATE-OWNED TIMBER. -- COST OF8 SCALING -- PAYMENT. In all cases ofFor sales of timber from state lands, the 9 state board of land commissioners shall cause the timber to be scaled10 measured, in lieu of measurement by cruisingselling by lump sum based on a 11 cruise, unless in the discretion of the state board of land commissioners it 12 shall be , in any particular instance,in the publicinterest of the state to 13 use the cruisinglump sum method. In addition to the purchase price, the state14 board of land commissioners shall, in all cases where the scaling method is15 used, require the purchaser to pay, in addition to the purchase price, and not16 as part thereof, the cost of scaling, as may be determined by the board in17 each case. The sum so collected shall in each case be remitted to the director18 of the department of lands to be by him placed in the land department's scal-19 ing trust account to be used for the purpose of paying the salaries and20 expenses of the scaling of state timber salesAcceptable methods of measuring 21 timber shall include, but are not limited to, weight, scaling, cubing, by the 22 lineal foot, or by the piece.
STATEMENT OF PURPOSE RS 15476 Currently a timber sale purchaser is required to pay for the cost of scaling, and those monies are deposited into the scaling trust account to fund scaling activities. Due to the change in the funding structure passed by the legislature in 2001, there is no longer a need for a separate scaling trust account. Scaling activities can be budgeted from the Earnings Reserve Account the same as all other endowment activities. The proposed changes will also clarify 1) that the preferred method of selling state sales is by measuring the actual forest products removed versus selling on a lump sum basis based on a cruise estimate, and 2) by providing some examples of measuring. FISCAL NOTE Currently, the endowments pay for measuring (scaling) forest products removed from state endowment lands by deducting the cost of scaling as a line-item in state timber sale appraisals. Timber purchasers are then billed an equal amount. The resulting income is credited to the State Scaling Operations Fund. Although this legislation will eliminate the charge for scaling, the values appraised for state timber will be raised by an equal amount. Therefore, there will be no fiscal impact to the endowments, which will now fund scaling directly from the Endowment Earnings Reserve Funds. The annual revenue to the State Scaling Operations Fund is around one million dollars. Income approximately equals expenses. This legislation proposes transferring the State Scaling Operations Fund to the Endowment Earnings Reserve Funds, approximately $1,220,000. Although the funds currently collected for the State Scaling Operations Fund come from the endowments, the earned interest, about $21,000 per year, accrues to the state's General Fund. Shifting the State Scaling Operations Fund activity to the Endowment Earnings Reserve Funds, and thereby changing the deposit of interest earnings, is consistent with the founding principles of the endowment statutes and the Idaho Constitution (1). Interest earnings accruing to the general fund will reduce by approximately $21,000 annually. (1) Moon v. State Board of Land Commissioners, 111 Idaho 389, 724 P.2d 125 (1986) CONTACT Name: George Bacon Agency: Lands, Dept of Phone: 334-0200 STATEMENT OF PURPOSE/FISCAL NOTE H 529