Senate File 2250 - Introduced SENATE FILE 2250 BY COMMITTEE ON TRANSPORTATION (SUCCESSOR TO SSB 3107) A BILL FOR An Act relating to responsibilities of timber buyers and 1 persons transporting timber, and providing penalties. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 6317SV (1) 88 js/ns

S.F. 2250 Section 1. Section 456A.36, subsection 1, paragraphs b and 1 c, Code 2020, are amended to read as follows: 2 b. “Timber” means trees, standing or felled, and logs which 3 can be used for sawing or processing into lumber for building 4 or structural purposes or for the manufacture of an article. 5 However, “timber” does not include firewood, Christmas trees, 6 or fruit or ornamental trees or wood products not used or to 7 be used for building, structural, manufacturing, or processing 8 purposes . 9 c. “Timber buyer” means a person engaged in the business of 10 buying timber from the timber growers for sawing into lumber, 11 for processing, or for resale, but does not include a person 12 who occasionally purchases timber for sawing or processing 13 for the person’s own use and not for resale. “Timber buyer” 14 includes a person who contracts with a timber grower on a 15 shared-profit basis to harvest timber from the timber grower’s 16 land. 17 Sec. 2. Section 456A.36, subsection 2, paragraph a, 18 subparagraph (2), Code 2020, is amended to read as follows: 19 (2) The principal amount of the bond shall be ten percent of 20 the total amount paid to timber growers during the preceding 21 year, plus ten percent of the total amount due or delinquent 22 and unpaid to timber growers at the end of the preceding year, 23 and ten percent of the market value of growers’ shares of 24 timber harvested during the previous year. However, the total 25 amount of the bond shall be not less than three twenty-five 26 thousand dollars and not more than fifteen fifty thousand 27 dollars. 28 Sec. 3. Section 456A.36, subsection 3, Code 2020, is amended 29 to read as follows: 30 3. The following are violations of this section : 31 a. For a timber buyer person to fail to pay, as agreed, for 32 timber purchased. 33 b. For a timber buyer person to cut or cause to be cut or 34 appropriate timber not purchased. 35 -1- LSB 6317SV (1) 88 js/ns 1/ 3

S.F. 2250 c. For a timber buyer person to willfully make a false 1 statement in connection with the bond or other information 2 required to be given to the commission or a timber grower. 3 d. For a timber buyer person to fail to honestly account to 4 the timber grower or the commission for timber purchased or cut 5 if the buyer person is under a duty to do so. 6 e. For a timber buyer person to commit a fraudulent act in 7 connection with the purchase or cutting of timber. 8 f. For a timber buyer person engaged in the business of 9 transporting timber to transport timber without written proof 10 of ownership or the written consent of the owner a completed 11 timber transport certificate. The timber transport certificate 12 shall be on a form approved by the department. A person shall 13 not be convicted of a violation of this paragraph if the person 14 produces before or at the person’s trial a copy of the timber 15 transport certificate, written proof of the vendor’s ownership 16 of the timber, or written consent of the owner of the timber . 17 g. For a person to purchase timber without obtaining, 18 prior to taking possession of the timber, a copy of the timber 19 transport certificate, written proof of the vendor’s ownership 20 of the timber , or the written consent of the owner of the 21 timber. The purchaser shall keep the copy of the timber 22 transport certificate or written proof of ownership or consent 23 on file for at least three months one year from the date the 24 timber was released to the purchaser’s possession. 25 Sec. 4. Section 456A.36, subsection 5, Code 2020, is amended 26 by striking the subsection and inserting in lieu thereof the 27 following: 28 5. a. A person who engages in business as a timber buyer 29 without filing a bond or surety with the commission is guilty 30 of a serious misdemeanor. 31 b. A person who engages in business as a timber buyer who 32 refuses to permit inspection of premises, books, accounts, or 33 records as provided in this section is guilty of a serious 34 misdemeanor. 35 -2- LSB 6317SV (1) 88 js/ns 2/ 3

S.F. 2250 c. A person who violates any of the provisions of this 1 section for which no other punishment is provided is guilty of 2 a serious misdemeanor. 3 EXPLANATION 4 The inclusion of this explanation does not constitute agreement with 5 the explanation’s substance by the members of the general assembly. 6 This bill relates to responsibilities of timber buyers and 7 persons engaged in the business of transporting timber. 8 The bill amends the definition of “timber” to remove certain 9 wood products from the exception to the definition. The 10 bill amends the definition of “timber buyer” to remove the 11 requirement that the person buys timber from a timber grower. 12 Current law requires a timber buyer to file with the natural 13 resource commission a surety bond that is not less than $3,000 14 and not more than $15,000. The bill requires the surety bond 15 to be for not less than $25,000 and not more than $50,000. 16 The bill changes instances of “timber buyer” to “person” in 17 the provision of Code section 456A.36 that lists violations 18 of the Code section. The bill requires a person engaged in 19 the business of transporting timber to possess a completed 20 timber transport certificate, which shall be on a form approved 21 by the department of natural resources. The bill requires 22 a person taking possession of timber by purchase to first 23 obtain a copy of the timber transport certificate, or written 24 proof of ownership or consent of the owner as provided in 25 current law. The bill makes a violation of timber buying 26 or transporting practices for which no other punishment is 27 provided a serious misdemeanor. A serious misdemeanor is 28 punishable by confinement for no more than one year and a fine 29 of at least $315 but not more than $1,875. 30 -3- LSB 6317SV (1) 88 js/ns 3/ 3