This update is being sent out to all of the current logging members of KFIA to keep you updated on important legislation that has a direct impact on logging that has been introduced in Frankfort.  KFIA is also working with worker’s compensation coverage for logging and attempts to reduce costs.

Activities in the 2008 Legislative Session continue to revolve around the budget and funding issues.  The budget proposed by the Division of Forestry would include closing the two nurseries in the state and would affect other services.  KFIA continues to urge members to let their legislators know the importance of keeping the nurseries to provide seedlings for planting in Kentucky.

Listed below are two important bills that affect the logging industry.  KFIA is working to make sure that if these bills move forward they will not have a bad affect on the wood industry and membership will be alerted.  Both bills have been introduced due to the increased concerns of timber theft especially raised in eastern Kentucky.

House Bill 489 – Introduced February 11 – Creates a new section of KRS Chapter 364 to require contracts for sale of timber and specify contents thereof; require notice to neighbors of timber cutting; require marking of cut timber prior to removal from property; specify duties of the Division of Forestry with regard to timber sales and theft; require a timber buyer to provide an accurate manifest of cut timber transported from the property; grant the Attorney General, Commonwealth's attorneys, and county attorneys jurisdiction in timber theft and timber damage cases; provide whistle blower protection to persons who report timber crimes; amend KRS 364.110 relating to defacing timber brand to add a provision relating to timber branded pursuant to this act; amend KRS 364.120 to update a section reference, amend KRS 364.990 relating to penalties to provide penalties for violation of new sections of this act; amend KRS 514.010 relating to definitions for theft offenses to specifically include timber and trees as property which may be the subject of theft; create a new section of KRS Chapter 532 to provide specific measures of restitution in timber theft cases including reimbursement of costs of investigation and prosecution; repeal KRS 364.130 and 371.100. 

This legislation would put a huge regulatory burden on both landowners and loggers and is opposed by KFIA.  The Association has met with the bill sponsor who has changed the bill to drop the marking requirements for logs but still contains written timber sale requirements, notification and a number of increased regulations that will have little affect on the timber theft issue.  The bill is assigned to the House Natural Resources Committee and it currently looks like it will not receive a hearing until adjustments are made to make it less regulatory.    

Senate Bill 171 – Introduced February 15 – An Act relating to crimes and punishments that amends KRS 514.010 relating to definitions for theft offenses to create a definition for "timber"; amend KRS 514.030 relating to theft by unlawful taking to penalize theft of timber (regardless of the value of the timber) as a Class D felony; amend KRS 514.110 relating to receiving stolen property, to penalize possession of stolen timber (regardless of the value of the timber) as a Class D felony; amend KRS 514.130 relating to seizure and forfeiture of property used in theft offenses to add "heavy equipment." 

KFIA has concerns with this bill and the current language that could cause problems and it is not clear that this will address the problem of not pursuing the cases through criminal prosecution.  The legislation is assigned to the Senate Judiciary Committee and will have a very difficult time getting a hearing.

KFIA will keep our logging membership updated on changes and any movement of House Bill 489 or Senate Bill 171.  Our major concerns with these bills are that they do not address the current problem with timber theft that revolves primarily around a lack of enforcement of current laws on the books.

Worker’s Compensation for Logging

The Association continues to look at methods to help reduce the rates for worker’s compensation for logging in Kentucky.  At the request of a state representative KFIA was been working with the Legislative Research Commission to look at the best options to get more loggers covered at a reasonable rate.  Concerns on a number of fronts continues to make this issue more and more important.  Recently a claim was made on the Forest Industry Self Insured Fund that was related to an uninsured logger and has forced the fund managers to look at methods for insured members of the fund to ensure that all of their suppliers have insurance to prevent future claims.

KFIA was involved recently with a meeting at the state legislature that involved a number of our members along with representatives of the Green River Logging Council, OSHA, workers claims enforcement, Insurance Carriers and legislative representatives to look at the workers comp for logging problem.  A number of issues were discussed and the decision was made that the addition of any legislation would not be advantageous at the current time.  The group did discuss the possibility of safety programs that are field checked and audited offering an opportunity for loggers to participate and result in those in the program receiving a reduced rate for work comp insurance.

This type of program has been successful in other states and has resulted in significant savings to those who participate.  Currently in Kentucky the recently certified logger program in western Kentucky that is funded by KFIA member, New Page Corporation would be an existing program that provides field checking and safety audits.  The meeting group is planning to get back together and look at the possibility to develop improved rates associated with the certified logger program or possibly other voluntary programs that can show improved safety on the job site. 

The Association is working to get some key people involved to see if a separate rate can be developed similar to the mechanized logging rate that was approved a couple of years ago.  Please contact the office if you have any questions and we will keep membership updated on any future progress.

We encourage our all of our logging members to contact the office if you have any questions on these bills or other legislative matters that affect your business.  The Association continues to work hard to protect the interests of our logging members and help keep you business profitable.