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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 OF
8 SCALING -- PAYMENT. In all cases of For sales of timber from state lands, the
9 state board of land commissioners shall cause the timber to be scaled
10 measured, in lieu of measurement by cruising selling 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 public interest of the state to
13 use the cruising lump sum method. In addition to the purchase price, the state
14 board of land commissioners shall, in all cases where the scaling method is
15 used, require the purchaser to pay, in addition to the purchase price, and not
16 as part thereof, the cost of scaling, as may be determined by the board in
17 each case. The sum so collected shall in each case be remitted to the director
18 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 and
20 expenses of the scaling of state timber sales Acceptable 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