Opinion No. (2003)

Oklahoma Attorney General Reports·Decided March 26, 2003·Published

Opinion

Dear Treasurer Robert A. Butkin,

¶ 0 This office has received your request for an official Attorney General Opinion in which you ask, in effect, the following questions:

1. How should the State of Oklahoma distribute forestry payments to eligible counties pursuant to 16 U.S.C. § 500 and the Secure Rural Schools and Community Self-Determination Act of 2000?

2. If the counties in Oklahoma that are eligible for these funds opt for the "full payment amount" under the Secure Rural Schools and Community Self-Determination Act of 2000, is each county's share based on the United States forest acreage in that county or is it based on the average actually received in past years by that county?

Background
¶ 1 Presently, two counties in Oklahoma (County "A" and County "B") include land within a designated national forest. For many years the Oklahoma State Treasurer has received payments to the State of Oklahoma under 16 U.S.C. § 500. This money has historically been distributed to the two counties in proportion to the number of acres of national forest land within each county. Id. In 1997 the United States Department of Agriculture Forest Service ("Forest Service") acquired additional land in County "A" and added it to the national forest, resulting in an increase in the county's proportion of the acreage.1 In October 2000 Congress enacted the Secure Rural Schools and Community Self-Determination Act of 2000, Pub.L. 106-393,114 Stat. 1607 (codified at 16 U.S.C. 500 note) [hereinafter SRSCSDA]. In 2001 this Act was amended in the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2002, Pub.L. 107-76, 115 Stat. 704, at 739, sec. 751 (2001) (codified at 16 U.S.C. 500 note) [hereinafter amended SRSCSDA]. This law provides, in part, that counties with land in a national forest may elect between taking a proportionate share of annual "25-percent" revenues for the current fiscal year under 16 U.S.C. § 500, or taking a so-called "full payment amount" based on a historical average. Id. sec. 751(a), (b). You ask, in effect, if County "A" and County "B" each determine to take the "full payment amount" under the amendment, is the share each receives to be based on thepresent proportional acreage, or is the share each receives to be based on a historical average for the eligibility period (FY 1986-FY 1999)? Depending on interpretation of the SRSCSDA, the amounts to be paid to County "A" and County "B" could vary considerably, possibly to the detriment of one county or the other.

¶ 2 To fully respond to your request, analysis of three laws is required: (A) 16 U.S.C. § 500, (B) the SRSCSDA, and (C) 62 O.S.2001, § 326[62-326]. As part of the process we must determine: (i) the proper method for determining what annual amount of federal forest money is payable to the State, and (ii) how this amount is allocated by the State among counties with national forests within their boundaries.

Construing 16 U.S.C. § 500 And 62 O.S. 2001, § 326[62-326]
¶ 3 Title 16 U.S.C. § 500 provides, in pertinent part, as follows:

On and after May 23, 1908, twenty-five per centum of all moneys received during any fiscal year from each national forest shall be paid, at the end of such year, by the Secretary of the Treasury to the State or Territory in which such national forest is situated, to be expended as the State or Territorial legislature may prescribe for the benefit of the public schools and public roads of the county or counties in which such national forest is situated: Provided, That when any national forest is in more than one State or Territory or county the distributive share to each from the proceeds of such forest shall be proportional to its area therein. . . . The Secretary of Agriculture shall, from time to time as he goes through his process of developing the budget revenue estimates, make available to the States his current projections of revenues and payments estimated to be made under the Act of May 23, 1908, as amended, or any other special Acts making payments in lieu of taxes, for their use for local budget planning purposes.

Id. (emphasis added).

¶ 4 Thus, 25% of national forest revenue is to be paid each fiscal year by the United States, proportionately to each state or territory in which is located a national forest, to be expended as the state or territory may determine for road and school use. Trinity Indep. Sch. Dist. v. Walker County,287 S.W.2d 717, 722 (Tex.App. 1956). This is not a payment in lieu of taxes, but rather a payment by the federal government in recognition of the national interest in education and road building within counties where national forests, or parts thereof, are located. Id.

¶ 5 The question of beneficial use of funds received from national forest revenues by the federal government and granted to states for the purpose of providing schools and roads is left to the discretion of the state legislature. Goodin v. Bd. ofEduc., 601 P.2d 88, 90 (Okla. 1979); see King County v.Seattle Sch. Dist. No. 1, 263 U.S. 361, 364 (1923); GeorgiaPac. Corp. v. County of Mendocino, 357 F. Supp. 380, 389 (N.D. Cal. 1973).

¶ 6 The Oklahoma Legislature adopted 62 O.S. 2001, § 326[62-326], which provides:

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Opinion No. (2003), (Okla. Super. Ct. 2003).

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Trinity Independent School District v. Walker County
287 S.W.2d 717 (Court of Appeals of Texas, 1956)