HSB 640 (LSB 6317YC (2) 88)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON TRANSPORTATION BILL BY CHAIRPERSON BEST)

A BILL FOR

An Act relating to responsibilities of timber buyers and persons transporting timber, and providing penalties.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 456A.36, subsection 1, paragraphs b and c, Code 2020, are amended to read as follows:
   b.  “Timber” means trees, standing or felled, and logs which can be used for sawing or processing into lumber for building or structural purposes or for the manufacture of an article. However, “timber” does not include firewood, Christmas trees, or fruit or ornamental trees or wood products not used or to be used for building, structural, manufacturing, or processing purposes.
   c.  “Timber buyer” means a person engaged in the business of buying timber from the timber growers for sawing into lumber, for processing, or for resale, but does not include a person who occasionally purchases timber for sawing or processing for the person’s own use and not for resale. “Timber buyer” includes a person who contracts with a timber grower on a shared-profit basis to harvest timber from the timber grower’s land.
    Sec. 2.  Section 456A.36, subsection 2, paragraph a, subparagraph (2), Code 2020, is amended to read as follows:
   (2)  The principal amount of the bond shall be ten percent of the total amount paid to timber growers during the preceding year, plus ten percent of the total amount due or delinquent and unpaid to timber growers at the end of the preceding year, and ten percent of the market value of growers’ shares of timber harvested during the previous year. However, the total amount of the bond shall be not less than three twenty-five thousand dollars and not more than fifteen fifty thousand dollars.
    Sec. 3.  Section 456A.36, subsection 3, Code 2020, is amended to read as follows:
   3.  The following are violations of this section:
   a.  For a timber buyer person to fail to pay, as agreed, for timber purchased.
   b.  For a timber buyer person to cut or cause to be cut or appropriate timber not purchased.
   c.  For a timber buyer person to willfully make a false statement in connection with the bond or other information required to be given to the commission or a timber grower.
   d.  For a timber buyer person to fail to honestly account to the timber grower or the commission for timber purchased or cut if the buyer person is under a duty to do so.
   e.  For a timber buyer person to commit a fraudulent act in connection with the purchase or cutting of timber.
   f.  For a timber buyer person engaged in the business of transporting timber to transport timber without written proof of ownership or the written consent of the owner a completed timber transport certificate. The timber transport certificate shall be on a form approved by the department. A person shall not be convicted of a violation of this paragraph if the person produces before or at the person’s trial a copy of the timber transport certificate, written proof of the vendor’s ownership of the timber, or written consent of the owner of the timber.
   g.  For a person to purchase timber without obtaining, prior to taking possession of the timber, a copy of the timber transport certificate, written proof of the vendor’s ownership of the timber, or the written consent of the owner of the timber. The purchaser shall keep the copy of the timber transport certificate or written proof of ownership or consent on file for at least three months one year from the date the timber was released to the purchaser’s possession.
    Sec. 4.  Section 456A.36, subsection 5, Code 2020, is amended by striking the subsection and inserting in lieu thereof the following:
   5.  a.  A person who engages in business as a timber buyer without filing a bond or surety with the commission is guilty of a serious misdemeanor.
   b.  A person who engages in business as a timber buyer who refuses to permit inspection of premises, books, accounts, or records as provided in this section is guilty of a serious misdemeanor.
   c.  A person who violates any of the provisions of this section for which no other punishment is provided is guilty of a serious misdemeanor.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to responsibilities of timber buyers and persons engaged in the business of transporting timber.
   The bill amends the definition of “timber” to remove certain wood products from the exception to the definition. The bill amends the definition of “timber buyer” to remove the requirement that the person buys timber from a timber grower.
   Current law requires a timber buyer to file with the natural resource commission a surety bond that is not less than $3,000 and not more than $15,000. The bill requires the surety bond to be for not less than $25,000 and not more than $50,000.
   The bill changes instances of “timber buyer” to “person” in the provision of Code section 456A.36 that lists violations of the Code section. The bill requires a person engaged in the business of transporting timber to possess a completed timber transport certificate, which shall be on a form approved by the department of natural resources. The bill requires a person taking possession of timber by purchase to first obtain a copy of the timber transport certificate, or written proof of ownership or consent of the owner as provided in current law. The bill makes a violation of timber buying or transporting practices for which no other punishment is provided a serious misdemeanor. A serious misdemeanor is punishable by confinement for no more than one year and a fine of at least $315 but not more than $1,875.