BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2142
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          Date of Hearing:   April 7, 2014

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                AB 2142 (Chesbro) - As Introduced:  February 20, 2014
           
          SUBJECT  :   State forests:  sale of timber

           SUMMARY  :   Harmonizes state law with federal law by prohibiting  
          a saw mill from purchasing timber from a state forest if the saw  
          mill exported unprocessed timber into foreign commerce within  
          the previous 24 months.

           EXISTING LAW  :

          1)Pursuant to state law, prohibits timber from state forests  
            from being sold to any California division of a primary  
            manufacturer, or to any person for resale to a primary  
            manufacturer, who, within one year prior to the bid date and  
            one year after the termination of the contract, sells  
            unprocessed timber that is harvested from private timberlands  
            and is exported into foreign commerce from this state.

          2)Pursuant to federal law, prohibits any person from purchasing,  
            directly or indirectly, unprocessed timber originating from  
            public lands in a state if such person has, during the  
            preceding 24 month period, exported unprocessed timber  
            originating from private lands in that state.

           THIS BILL  :  Prohibits timber from state forests from being sold  
          to any California division of a primary manufacturer, or to any  
          person for resale to a primary manufacturer, who, within 24  
          months prior to the bid date, sells unprocessed timber that is  
          harvested from private timberlands and is exported into foreign  
          commerce from this state.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :  

           1)Background  .   In 1990, Congress passed the Forest Resources  
            Conservation and Shortage Relief Act of 1990 (1990 Act (Pub.L.  
            101-382)) that authorizes the states to prevent foreign export  
            of unprocessed timber from state-owned forests.  This federal  
            law effectively overturned a 1984 Supreme Court decision which  








                                                                  AB 2142
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            barred states from regulating export of timber from state  
            lands (So.-Cent. Timber Dev., Inc. v. Wunnicke, 467 U.S. 82  
            (1984)).

            In 1993, Congress passed the Forest Resources Conservation and  
            Shortage Relief Amendments Act of 1993 (1993 Act (Pub.L.  
            103-45)), which amended the 1990 Act by, among other things,  
            prohibiting "any person from purchasing, directly or  
            indirectly, unprocessed timber originating from public lands  
            in a state if?such person has, during the preceding 24-month  
            period, exported unprocessed timber originating from private  
            lands."

            Concurrently, the California Legislature was developing AB 790  
            (Sher, Chapter 964, Statutes of 1993), which established that  
            "timber from state forests shall not be sold to any California  
            division of a primary manufacturer, or to any person for  
            resale to a primary manufacturer, who?within one year prior to  
            the bid date and one year after the termination of the  
            contract, sells unprocessed timber, which is harvested from  
            private timberlands and is exported into foreign commerce from  
            this state." 

            A review of AB 790's Legislative history, including committee  
            analyses, indicates that the Legislature was aware of  
            Congress' 1990 Act but not the 1993 Act.  This likely explains  
            the disparity between AB 790's and the 1993 Act's provisions  
            on the period in which a primary manufacturer cannot export  
            unprocessed timber.

            The purpose of this bill is to harmonize state and federal law  
            by requiring a private timber company to show that it has not  
            exported raw logs in the 24 months prior to the purchase of  
            state forests timber.   

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file

           Opposition 
           
          None on file
           








                                                                 AB 2142
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          Analysis Prepared by  :    Mario DeBernardo / NAT. RES. / (916)  
          319-2092