Citations Affected:
IC 14-8-2
;
IC 14-14-4
;
IC 25-36.5-1
;
IC 34-30-2-55.5.
Synopsis: Timber forestry reinvestment. Requires the director of the
department of natural resources to conduct a referendum to determine
whether to establish a board (to be known as the Indiana forestry
reinvestment board) for the purpose of imposing and collecting an
assessment on timber producers for the first purchase of trees and logs
and for the purpose of carrying out certain forest reinvestment
activities. Sets out requirements for the board and any assessment. (The
introduced version of this bill was prepared by the natural resources
study committee.)
Effective: July 1, 2001.
January 23, 2001, read first time and referred to Committee on Natural Resources.
A BILL FOR AN ACT to amend the Indiana Code concerning
natural and cultural resources.
1, 2001]: Sec. 91.7. "First purchase", for purposes of
IC 14-14-4
,
has the meaning set forth in
IC 14-14-4-4.
forth in
IC 14-38-1-2.
(j) (k) "Person", for purposes of
IC 14-24-12
, has the meaning set
forth in
IC 14-24-12-4.
programs directed toward increasing the knowledge of
growing and harvesting hardwood trees and educating the
general public about the sustainability of Indiana hardwood
forests.
(2) To provide methods and means, including public relations
and other promotion techniques, for the maintenance of
current markets and the development of new or larger
domestic and foreign markets for Indiana grown hardwoods.
(3) To provide cost share funds for private forest land
management.
(4) To provide for the purchase of forest development rights
from willing sellers and to hold those rights in a private
not-for-profit forest management land trust that actively
manipulates the forest by harvesting trees for the production
of products for society's benefit. However, the term does not
include a land trust that preserves lands for green space or
ecological preservation.
Sec. 7. As used in this chapter, "person" means an individual, a
partnership, a limited liability company, a public or private
corporation, a cooperative, a society, an association, or a fiduciary.
Sec. 8. As used in this chapter, "producer" means a person
engaged in the growing or selling of trees or the selling of cut logs
in Indiana.
Sec. 9. As used in this chapter, "sale" means a conveyance of
title or economic interest.
Sec. 10. (a) The director of the department of natural resources
shall, before January 1, 2002, conduct a referendum by mail-in
ballot of eligible producers to determine whether to:
(1) establish a board (to be known as the Indiana forestry
reinvestment board);
(2) to impose and collect an assessment on timber producers
for the first purchase of trees and logs; and
(3) to carry out certain forest reinvestment activities as
described in this chapter. If the board is established, the
director shall conduct a referendum by written ballot not less
than every ten (10) years to determine if the board and its
activities (including the imposition of an assessment on timber
producers and forest investment activities) as described in this
chapter should be continued. Eligible producers shall be
determined by the director.
(b) The director shall notify the producers of the referendum by
publishing a notice at least ninety (90) days before the referendum
as follows:
(1) In a statewide forestry publication.
(2) In the largest newspaper of general circulation in each
district.
(3) In any other reasonable manner determined by the
director.
(c) The notice of the referendum must set forth the period of
time for voting, voting places, manner of voting, and other
information that the director considers necessary.
(d) At the close of the referendum, the director shall appoint a
committee to tabulate the written ballots cast and to certify the
results of the referendum.
(e) The ballots constitute conclusive evidence as to the validity
of the referendum.
(f) If a majority of the voting eligible producers vote to establish
the board, the assessment, and the board's other activities, a vote
to elect members of the board must be conducted not more than
thirty (30) days after the referendum. The director shall use the
procedures under sections 16 through 20 of this chapter to conduct
the election for the initial members of the board. The initial
members of the board shall be elected by mail-in ballots.
(g) Upon the election of initial board members, the person who
receives the most votes from each district shall serve a three (3)
year term, the person who receives the second most votes from
each district shall serve a two (2) year term, and the person who
receives the third most votes from each district shall serve a one (1)
year term.
(h) The board shall determine when to begin to impose the
assessment under section 25 of this chapter but the assessment may
not be imposed until thirty (30) days after the board is established.
(i) If a majority of eligible producers vote to terminate the
board, the assessment, and the board's other activities, no
additional funds may be assessed under this chapter effective thirty
(30) days after the referendum to terminate the board. The board,
the assessment, and the board's other activities terminate after all
funds have been expended whereupon the board shall cease to
function.
(j) Upon receipt of a petition signed by at least five hundred
(500) producers requesting a referendum to determine whether the
Indiana forestry reinvestment program should be reinstated
following termination under subsection (i), the director shall call
for another referendum to be conducted within sixty (60) days
after receipt of the petition. Producers shall vote by a mail-in ballot
using the same procedures under this section as are used to
conduct a referendum. A referendum to reinstate the Indiana
forestry reinvestment program may not be held until at least six (6)
months after the termination of the program.
Sec. 11. (a) If it is determined in a referendum conducted under
section 10 of this chapter that a forestry reinvestment board should
be established, a board to be known as the Indiana forestry
reinvestment board is established in accordance with this chapter.
(b) The board consists of fifteen (15) members.
(c) Each member of the board must meet the following
qualifications:
(1) Reside in the district identified in section 15 of this chapter
from which the member was elected or appointed.
(2) Be a citizen of Indiana.
(3) Be at least twenty-one (21) years of age.
(4) Be a producer.
(d) Each member of the board is entitled to reimbursement for
traveling expenses and other expenses actually incurred in
connection with the member's duties, as provided in the state travel
policies and procedures established by the department of
administration and approved by the state budget agency. However,
board members are not entitled to any salary or per diem.
Sec. 12. (a) Except as provided in section 10 of this chapter for
the initial members of the board, the term of office of a board
member is three (3) years. A member's term of office expires on
December 31 of the final year of the member's term. However, a
member continues in office until a successor who meets the
qualifications under section 16(c) of this chapter is elected or
appointed.
(b) A board member may not hold office more than two (2)
consecutive full terms.
Sec. 13. (a) If a member of the board ceases to meet the
qualifications under section 11(c) of this chapter, the member's
term of office immediately terminates and the member's office
becomes vacant.
(b) When a board member's office becomes vacant before the
expiration of the member's term of office, the board shall fill the
vacancy by appointing a replacement member who meets the
qualifications under section 11(c) of this chapter. The appointee
shall serve for the remainder of the unexpired term.
Sec. 14. When necessary, the board may appoint individuals
who hold offices of significance to the forestry community or have
special expertise concerning the forestry industry to participate in
the work of the board, but these individuals may not participate in
votes taken by the board.
Sec. 15. Three (3) board members shall be elected from each of
the following districts:
DISTRICT 1. The counties of Lake, Newton, Jasper, Benton,
Porter, LaPorte, Starke, White, Pulaski, St. Joseph, Elkhart,
Marshall, Kosciusko, Fulton, Carroll, Cass, Miami, Wabash,
LaGrange, Steuben, Noble, Dekalb, Whitley, Allen,
Huntington, Wells, Adams, Warren, Tippecanoe, Clinton, and
Howard.
DISTRICT 2. The counties of Vermillion, Parke, Putnam,
Boone, Tipton, Grant, Hamilton, Madison, Hendricks,
Montgomery, Marion, Hancock, Morgan, Brown, Johnson,
Shelby, Bartholomew, Blackford, Jay, Delaware, Henry,
Randolph, Wayne.
DISTRICT 3. The counties of Vigo, Sullivan, Greene, Knox,
Daviess, Fountain, Martin, Owen, Clay, Monroe, Lawrence
and Orange.
DISTRICT 4. The counties of Rush, Fayette, Union, Decatur,
Jackson, Washington, Franklin, Jennings, Jefferson, Ripley,
Dearborn, Ohio, Clark, Floyd, Switzerland, and Scott.
DISTRICT 5. The counties of Posey, Gibson, Pike, Dubois,
Crawford, Harrison, Perry, Spencer, Warrick and
Vanderburgh.
Sec. 16. An election of a board member must be held in a district
in the year in which the term of the district's board member is to
expire. Between April 1 and April 15 of that year, the board shall
notify the producers of the district of the impending election by:
(1) publishing one (1) notice in a statewide forestry
publication;
(2) publishing a notice in the largest newspaper of general
circulation in each district; and
(3) making information available to the news media in the
district.
Sec. 17. (a) The ballot for the election of a district board
member must bear the name of each producer who:
(1) meets the qualifications set forth in section 11(c) of this
chapter; and
(2) files with the board before June 16 of the year of the
election in the district.
and referenda conducted under this chapter.
(6) Annually establish priorities and prepare and approve a
budget consistent with the estimated resources of the board
and the scope of this chapter.
(7) Provide for an independent audit and make the results of
the audit available to all interested persons.
(8) Annually:
(A) publish, at the same time as the results of the audit, an
activities and financial report;
(B) present the activities and financial report to the budget
agency and the budget committee; and
(C) make the activities and financial report available to all
interested persons.
(9) Procure and evaluate data and information necessary for
the proper implementation of this chapter.
(10) Formulate and execute assessment procedures and
methods of collection.
(11) Establish procedures that allow a producer to reinvest
the assessment back into the producer's forest land.
(12) Receive and investigate, or cause to be investigated,
complaints and violations of this chapter and take necessary
action within the board's authority.
(13) Take any other action necessary for the proper
implementation of this chapter.
Sec. 22. The board shall meet at the call of the chairperson but
at least quarterly.
Sec. 23. (a) The board shall pay all expenses incurred under this
chapter with money from the assessments remitted to the board
under this chapter by first purchasers.
(b) The board may invest all money it receives under this
chapter, including assessments, gifts, and grants, in any way
allowed by law for the investment of public funds.
(c) The board may expend money from assessments and from
investment income not needed for expenses for forestry
reinvestment purposes.
(d) The board may not use money received, collected, or accrued
under this chapter for any purpose other than the implementation
of this chapter.
Sec. 24. (a) Obligations incurred by the board and other
liabilities and claims against the board may be enforced only
against the assets of the board in the same manner as if it were a
corporation. Liabilities for the debts or actions of the board may
not arise against:
(1) the state;
(2) any political subdivision (as defined in
IC 34-6-2-110
); or
(3) any member, officer, employee, or agent of the board in an
individual capacity.
(b) The members and employees of the board are not
individually liable to any person for errors in judgment, mistakes,
or other acts either of commission or omission, as principal, agent,
or employee, except for their own individual acts that result in the
violation of any law.
(c) An employee of the board is not individually liable for the act
or omission of any member of the board.
(d) Any liability of the members of the board is several and not
joint. A member of the board may not be held liable for the actions
of any other member.
Sec. 25. (a) If it is determined in a referendum conducted under
section 10 of this chapter that an assessment on timber producers
should be imposed, the board shall impose an assessment of two
cents ($0.02) per board foot on all trees or logs grown and sold in
Indiana. The assessment may be imposed and collected on a
quantity of trees only once. The rate of the assessment imposed by
this section may be increased to a rate not to exceed five cents
($0.05) per board foot by the affirmative vote of ten (10) board
members.
(b) The first purchaser of a quantity of trees or logs shall deduct
the assessment on the trees or logs from the sum of money to be
paid to the producer based on the sale of the trees or logs. A first
purchaser shall accumulate assessments collected under this
subsection throughout each of the following quarterly periods:
(1) January, February, and March.
(2) April, May, and June.
(3) July, August, and September.
(4) October, November, and December.
(c) The first purchaser shall provide the producer a receipt for
each sale.
(d) At the end of each period, the first purchaser shall remit to
the board the following:
(1) All assessments collected during the quarterly period. A
first purchaser who remits all assessments collected during a
quarterly period within fifteen (15) days after the end of the
period is entitled to retain two percent (2%) of the total of the
assessments collected that quarter as a handling fee.
chapter within forty-five (45) days after the end of the quarterly
period, the board shall contact the first purchaser and allow the
first purchaser to present comments to the board concerning:
(1) the status and amount of the assessments due; and
(2) any reasons why the board should not bring legal action
against the first purchaser.
(b) After allowing a first purchaser the opportunity to present
comments, the board:
(1) shall adjust the amount of the assessments due if the first
purchaser's comments reveal that the board's figure is
inaccurate; and
(2) may assess a penalty against the first purchaser of not
more than ten percent (10%) of the amount of any
assessments not remitted within forty-five (45) days after the
end of the quarterly period.
(c) If a first purchaser fails to remit assessments after being
allowed to present comments under subsection (a) or to pay a
penalty assessed under subsection (b), the board may bring a civil
action against the first purchaser in the circuit or superior court of
the county where the person resides or where the first purchase
was conducted. The action shall be tried and a judgment rendered
as in any other proceeding for the collection of a debt. In an action
under this subsection, the board may obtain:
(1) a judgment in the amount of all unremitted assessments
and any unpaid penalty; and
(2) an award of the costs of bringing the action.
Sec. 29. (a) If a person fails to discharge a duty imposed by this
chapter other than remitted assessments, the board shall allow that
person an opportunity to present comments to the board
concerning any reasons why the board should not bring legal
action against the person. If it is necessary to obtain compliance
with this chapter, the board may bring an action against the person
in the circuit or superior court of the county where the person
resides or where the first purchase was conducted seeking an
injunction mandating compliance and any other appropriate legal
remedies.
(b) In an action under this section, the board may be granted
injunctive relief without establishing the absence of an adequate
remedy at law.
that has:
(1) been convicted of a felony;
(2) violated a provision of this chapter; or
(3) violated a provision of
IC 14-14-4
; or
(4) violated a rule adopted by the department under this chapter.