I move that House Bill 1341 be amended to read as follows:
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
"SECTION 1. IC
25-36.5-1-3
IS AMENDED TO READ AS
FOLLOWS: Sec. 3. (a) Every person registered as a timber buyer shall
file with the department an effective surety bond issued by a corporate
surety authorized to engage in the business of executing surety bonds
in Indiana.
(b) Instead of the bond required by subsection (a), the department
may accept security in cash or a certificate of deposit under terms
established by rule.
(c) The security required under subsection (a) or (b) shall be made
payable upon demand to the director, subject to this chapter, for the
use and benefit of the people of Indiana and for the use and benefit of
any timber grower from whom the applicant purchased and who is not
paid by the applicant or for the use and benefit of any timber grower
whose timber has been cut by the applicant or registrant or his agents,
and who has not been paid therefor.
(d) The security required under subsection (a) or (b) shall be in
the principal amount of two thousand dollars ($2,000) for an applicant
who paid timber growers five thousand dollars ($5,000) or less for
timber during the immediate preceding year, and an additional one
hundred dollars ($100) for each additional one thousand dollars
($1,000) or fraction thereof paid to timber growers for timber
purchased during the preceding year, but shall not be more than twenty
thousand dollars ($20,000). In the case of an applicant not previously
engaged in business as a timber buyer, the amount of such bond shall
be based on the estimated dollar amount to be paid by such timber
buyer to timber growers for timber purchased during the next
succeeding year, as set forth in the application.
(e) The security required under subsection (a) or (b) shall not be
cancelled or altered during the period for which the certificate to the
applicant was issued except upon at least sixty (60) days notice in
writing to the department.
(f) Security shall be in such form, contain such terms and
conditions as may be approved from time to time by the director, be
conditioned to secure an honest cutting and accounting for timber
purchased by the registrant, secure payment to the timber growers, and
insure the timber growers against all fraudulent acts of the registrant
in the purchase and cutting of the timber of this state.
(g) If a timber buyer fails to pay when due any amount due a
timber grower for timber purchased, or fails to pay legally determined
damages for timber wrongfully cut by a timber buyer or his agent, or
commits any violation of this chapter, an adjudicative proceeding on
the bond for forfeiture may be commenced, and notice of the
proceeding shall be provided, under IC
4-21.5-3-6
. A surety or person
in possession of the security provided under subsection (a) or (b) is
entitled to notification of the proceeding. If a final agency action is
entered by the department under this subsection against the timber
buyer, the surety or other person in possession of the security shall
deliver the amount of the security identified in the order. A proceeding
for forfeiture of a timber buyer's bond under IC
4-21.5
is the exclusive
remedy under law for the forfeiture of the bond.
(h) An owner of real estate seeking an injunction against a
person, corporation or other entity from cutting timber on their
real estate is relieved from having to post a bond."
Renumber all SECTIONS consecutively.
(Reference is to HB 1341 as printed February 21, 2001.)