§ 456A.36 — Timber buyers

Iowa § 456A.36

• Jurisdiction: Iowa
• Title XI: NATURAL RESOURCES
• Ch. 456A: REGULATION AND FUNDING — NATURAL RESOURCES DEPARTMENT

Text

1. As used in this section, unless the context otherwise requires:
a. “Employee” means a person in service or under contract for hire, expressed or implied,
oral or written, who is engaged in any phase of the enterprise or business.
b. “Timber” means trees, standing or felled, and logs which can be used for sawing or
processingintolumberforbuildingorstructuralpurposesorforthemanufactureofanarticle.
However,“timber” does not include firewood, Christmas trees, or fruit or ornamental trees.
c. “Timber buyer” means a person engaged in the business of buying timber for sawing
into lumber, for processing, or for resale, but does not include a person who occasionally
purchasestimberforsawingorprocessingfortheperson’sownuseandnotforresale.“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.
d. “Timber grower” means the owner, tenant, or operator of land in this state who has an
interest in, or is entitled to receive a part of the proceeds from, the sale of timber grown in
this state and includes a person exercising authority to sell timber.
13 REGULATION AND FUNDING — NATURAL RESOURCES DEPARTMENT, §456A.36
2. a. (1) Atimberbuyershallfilewiththecommissionasuretybondsignedbytheperson
as principal and a corporate surety authorized to engage in the business of executing surety
bonds within the state. In lieu of a corporate surety a timber buyer may, with the approval of
the commission, file a bond signed by the timber buyer as principal and accompanied by a
bank certificate of deposit in a form approved by the commission showing to the satisfaction
of the commission that funds equal to the amount of the required bond are on deposit in a
bank to be held by the bank for the period covered by the certificate. The funds shall be
made payable upon demand to the director, subject to the provisions of this section, for the
use and benefit of the people of the state and for the use and benefit of a timber grower from
whom the timber buyer purchased and who is not paid by the timber buyer or for the use
and benefit of a timber grower whose timber has been cut by the timber buyer or the timber
buyer’s agents, and who has not been paid.
(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 twenty-five thousand dollars and not
more than fifty thousand dollars.
(3) The bond or surety shall not be canceled or altered except upon at least sixty days’
notice in writing to the commission.
(4) Bondsshallbeintheformapprovedbythedirector,beconditionedtosecureanhonest
cutting and accounting for timber purchased by the timber buyer, secure payment to the
timber growers, and insure the timber growers against all fraudulent acts of the timber buyer
in the purchase and cutting of the timber of this state.
b. If a timber buyer fails to pay when due an amount due a timber grower for timber
purchased, or fails to pay legally determined damages for timber wrongfully cut by a timber
buyer or the buyer’s agent, or commits a violation of this section, an action on the bond for
forfeiture may be commenced. The action is not exclusive and is in addition to other legal
remedies available.
c. The timber grower, the owner of timber cut, or the director may bring action on the
bond for payment of the amount due from proceeds of the bond in the district court of the
county in which the place of business of the timber buyer is situated or in any other lawful
venue.
d. The attorney general, upon request of the commission, shall institute proceedings to
havethebondofthetimberbuyerforfeitedforviolationofanyoftheprovisionsofthissection
or for noncompliance with a commission rule. A timber buyer whose bond has been forfeited
shall not engage in the business of buying timber for one year after the forfeiture.
e. If the commission realizes more than the amount of liability from the security, after
deducting expenses incurred in converting the security into money, the commission shall pay
the excess to the timber buyer who furnished the security.
3. The following are violations of this section:
a. For a person to fail to pay, as agreed, for timber purchased.
b. For a person to cut or cause to be cut or appropriate timber not purchased.
c. For a 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 person to fail to honestly account to the timber grower or the commission for
timber purchased or cut if the person is under a duty to do so.
e. For a person to commit a fraudulent act in connection with the purchase or cutting of
timber.
f. For a person engaged in the business of transporting timber to transport timber without
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
§456A.36, REGULATION AND FUNDING — NATURAL RESOURCES DEPARTMENT 14
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 one year from the date the timber was released to the purchaser’s possession.
4. a. With the written consent of the timber buyer, the commission, its agents and other
employees may inspect the premises and records of the timber buyer.
b. If the timber buyer refuses admittance, or if prior to such refusal the director
demonstrates the necessity for a warrant, the director may make application under oath to
the district court of the county in which the premises or records are located for the issuance
of a search warrant.
c. In the application the director shall state that an inspection of the premises or record
designated in the application may result in evidence tending to reveal the existence of
violations of the provisions of this section or rule issued by the commission pursuant to
this section. The application shall describe the premises or records to be inspected, give
the date of the last inspection if known, give the date and time of the proposed inspection,
declare the need for such inspection, recite that notice of desire to make an inspection has
been given to affected persons and that admission was refused if that be the fact, and state
that the inspection has no purpose other than to carry out the purpose of the statute or rule
pursuant to which inspection is to be made.
d. The court may issue a search warrant, after examination of the applicant and any
witnesses, if the court is satisfied that there is probable cause to believe the existence of the
allegations contained in the application.
e. In making investigations, examinations, or surveys pursuant to the authority of this
subsection, the director must execute the warrant in a reasonable manner within ten days
after its date of issuance.
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.
6. The commission may promulgate rules as necessary to carry out the provisions of this
section.
7. The commission may, by application to a district court, obtain an injunction restraining
a person who engages in the business of timber buying in this state from engaging in the
business until that person complies with this section. Upon refusal or neglect to obey the
order of the court, the court may compel obedience by proceedings for contempt.

Legislative History

[C81, §107.36]