Ohio § 1503.05

§ 1503.05.

(A) The chief of the division of forestry may sell timber and other forest products from

the state forest, state forest nurseries, and federal lands in accordance with the

terms of an agreement under section 1503.271 of the Revised Code whenever the chief considers such a sale desirable.  With the approval of the attorney general and the director of natural resources,

the chief may sell portions of the state forest lands when such a sale is advantageous

to the state. (B) Except as otherwise provided in this section, a timber sale agreement shall not be

executed unless the person or governmental entity bidding on the sale executes and

files a surety bond conditioned on completion of the timber sale in accordance with

the terms of the agreement in an amount determined by the chief.  All bonds shall be given in a form prescribed by the chief and shall run to the

state as obligee. The chief shall not approve any bond until it is personally signed and acknowledged

by both principal and surety, or as to either by the attorney in fact thereof, with

a certified copy of the power of attorney attached.  The chief shall not approve the bond unless there is attached a certificate of the

superintendent of insurance that the company is authorized to transact a fidelity

and surety business in this state. In lieu of a bond, the bidder may deposit cash, negotiable certificates of deposit, or irrevocable letters of credit issued

by any bank organized or transacting business in this state having a par value equal

to or greater than the amount of the bond. The cash or securities shall be deposited on the same terms as bonds.  If one or more certificates of deposit are deposited in lieu of a bond, the chief

shall require the bank that issued any of the certificates to pledge securities of

the aggregate market value equal to the amount of the certificate or certificates

that is in excess of the amount insured by the federal deposit insurance corporation.  The securities to be pledged shall be those designated as eligible under section 135.18 of the Revised Code .  The securities shall be security for the repayment of the certificate or certificates

of deposit. Upon a deposit of cash, certificates of deposit, or irrevocable letters of credit

described in division (B) of this section, the chief shall hold them in trust for

the purposes for which they have been deposited.  If the bidder deposits cash, the cash shall be credited to the performance cash

bond refunds fund created in section 1501.16 of the Revised Code .  If the bidder deposits certificates of deposit or letters of credit, the chief is

responsible for the safekeeping of those certificates or letters.  A bidder making a deposit of cash, certificates of deposit, or letters of credit

may withdraw and receive, from the chief, all or any portion of the cash, certificates

of deposit, or letters of credit upon depositing with the chief other negotiable certificates

of deposit or irrevocable letters of credit that are equal in par value to the par

value of the cash, certificates of deposit, or letters of credit withdrawn. A bidder that deposits negotiable certificates of deposit may demand and receive from

the chief all interest or other income from any such certificate as it becomes due.  If certificates so deposited with and in the possession of the chief mature or are

called for payment by their issuer, the chief, at the request of the bidder who deposited

them, shall convert the proceeds into other negotiable certificates of deposit, or

cash as the bidder designates. When the chief finds that a person or agency has failed to comply with the conditions

of the person's or governmental agency's bond, the chief shall make a finding of that

fact and declare the bond, cash, certificates, or letters of credit forfeited.  The chief thereupon shall certify the total forfeiture to the attorney general,

who shall proceed to collect the amount of the bond, cash, certificates, or letters

of credit. In lieu of total forfeiture, the surety, at its option, may cause the timber sale

to be completed or pay to the chief the cost thereof. All money collected as a result of forfeitures of bonds, cash, certificates, and letters

of credit under this section shall be credited to the state forest fund created in

this section. (C) The chief may grant easements and leases on portions of the state forest lands and

state forest nurseries under terms that are advantageous to the state, and the chief

may grant mineral rights on a royalty basis on those lands and nurseries, with the

approval of the attorney general and the director. (D) All money received from the sale of state forest lands, or in payment for easements

or leases on or as rents from those lands or from state forest nurseries, shall be

paid into the state treasury to the credit of the state forest fund, which is hereby

created.  In addition, all money received from federal grants, payments, and reimbursements,

from the sale of reforestation tree stock, from the sale of forest products, other

than standing timber, and from the sale of minerals taken from the state forest lands

and state forest nurseries, together with royalties from mineral rights, shall be

paid into the state treasury to the credit of the state forest fund.  Any other revenues derived from the operation of the state forests and related facilities

or equipment also shall be paid into the state treasury to the credit of the state

forest fund, as shall contributions received for the issuance of Smokey Bear license

plates under section 4503.574 of the Revised Code and any other money required by law to be deposited in the fund.  Any revenue generated from agreements entered into under section 1503.271 of the Revised Code shall be deposited in the fund. The state forest fund shall not be expended for any purpose other than the administration,

operation, maintenance, development, or utilization of the state forests, forest nurseries,

and forest programs;  for facilities or equipment incident to them;  for the further

purchase of lands for state forest or forest nursery purposes;  for wildfire suppression

payments;  for fire prevention purposes in the case of contributions received pursuant

to section 4503.574 of the Revised Code ;  or for forest management projects associated with federal lands in the case of

revenues received pursuant to agreements entered into under section 1503.271 of the Revised Code . (E) All money received from the sale of standing timber taken from state forest lands

and state forest nurseries shall be deposited into the state treasury to the credit

of the forestry holding account redistribution fund, which is hereby created.  The money shall remain in the fund until they are redistributed in accordance with

this division. The redistribution shall occur at least once each year.  To begin the redistribution, the chief first shall determine the amount of all standing

timber sold from state forest lands and state forest nurseries, together with the

amount of the total sale proceeds, in each county, in each township within the county,

and in each school district within the county.  The chief next shall determine the amount of the direct costs that the division

of forestry incurred in association with the sale of that standing timber.  The amount of the direct costs shall be subtracted from the amount of the total

sale proceeds and shall be transferred from the forestry holding account redistribution

fund to the state forest fund. The remaining amount of the total sale proceeds equals the net value of the standing

timber that was sold.  The chief shall determine the net value of standing timber sold from state forest

lands and state forest nurseries in each county, in each township within the county,

and in each school district within the county and shall send to each county treasurer

a copy of the determination at the time that money is paid to the county treasurer

under this division. Thirty-five per cent of the net value of standing timber sold from state forest lands

and state forest nurseries located in a county shall be transferred from the forestry

holding account redistribution fund to the state forest fund.  The remaining sixty-five per cent of the net value shall be transferred from the

forestry holding account redistribution fund and paid to the county treasurer for

the use of the general fund of that county. The county auditor shall do all of the following: (1) Retain for the use of the general fund of the county one-fourth of the amount received

by the county under division (E) of this section; (2) Pay into the general fund of any township located within the county and containing

such lands and nurseries one-fourth of the amount received by the county from standing

timber sold from lands and nurseries located in the township; (3) Request the board of education of any school district located within the county and

containing such lands and nurseries to identify which fund or funds of the district

should receive the money available to the school district under division (E)(3) of

this section.  After receiving notice from the board, the county auditor shall pay into the fund

or funds so identified one-half of the amount received by the county from standing

timber sold from lands and nurseries located in the school district, distributed proportionately

as identified by the board. The division of forestry shall not supply logs, lumber, or other forest products or

minerals, taken from the state forest lands or state forest nurseries, to any other

agency or subdivision of the state unless payment is made therefor in the amount of

the actual prevailing value thereof.  This section is applicable to the money so received. (F) The chief may enter into a personal service contract for consulting services to assist

the chief with the sale of timber or other forest products and related inventory.  Compensation for consulting services shall be paid from the proceeds of the sale

of timber or other forest products and related inventory that are the subject of the

personal service contract.