HOUSE BILL NO. 510

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Bill Status



H0510......................................................by STATE AFFAIRS
STATE MINERAL LANDS - Amends existing law to provide an exception for
reserving state mineral lands from sale when the surface estate is
identified by the State Board of Land Commissioners as having the potential
highest and best use for development purposes such as residential,
commercial or industrial purposes; to provide that a purchaser of lands may
acquire right, title or interest in the mineral deposits; to provide for
the sale of lands as a single estate when the state land is identified as
having the highest and best use for development purposes; to provide that
all applications to purchase those state lands that have not been
identified as having the potential highest and best use for development
purposes approved subsequent to the passage of this chapter shall be
subject to a reservation to the state of all mineral deposits in the land.
                                                                        
01/21    House intro - 1st rdg - to printing
01/22    Rpt prt - to St Aff
02/02    Rpt out - rec d/p - to 2nd rdg
02/03    2nd rdg - to 3rd rdg
02/04    3rd rdg - PASSED - 53-13-4
      AYES -- Andersen, Bedke, Bell, Black, Block, Boe, Bolz, Campbell,
      Cannon, Clark(Jorgenson), Cuddy, Deal, Denney, Douglas, Edmunson,
      Ellsworth, Eskridge, Field(18), Field(23), Gagner, Garrett, Henbest,
      Jaquet, Jones, Kellogg, Lake, Langford, Langhorst, Martinez,
      McGeachin, Meyer, Miller, Mitchell, Naccarato, Nielsen,
      Pasley-Stuart, Raybould, Ridinger, Ring, Roberts, Rydalch, Sayler,
      Shepherd, Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass,
      Stevenson, Trail, Wills, Mr. Speaker
      NAYS -- Barrett, Bayer, Bradford, Collins, Crow, Eberle, Harwood,
      Kulczyk, McKague, Moyle, Ringo, Schaefer, Wood
      Absent and excused -- Barraclough, Bauer, Robison, Sali
    Floor Sponsor - Jaquet
    Title apvd - to Senate
02/05    Senate intro - 1st rdg - to Res/Env
02/10    Rpt out - rec d/p - to 2nd rdg
02/11    2nd rdg - to 3rd rdg
02/13    3rd rdg - PASSED - 34-1-0
      AYES -- Andreason, Bailey, Brandt, Bunderson, Burkett, Burtenshaw,
      Calabretta, Cameron, Compton, Darrington, Davis(Davis), Gannon,
      Geddes, Goedde, Hill, Ingram, Kennedy, Keough, Little, Lodge,
      Malepeai, Marley, McKenzie, McWilliams, Noble, Noh, Pearce,
      Richardson, Sorensen, Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- Schroeder
      Absent and excused -- None
    Floor Sponsors - Little & Stennett
    Title apvd - to House
02/16    To enrol
02/17    Rpt enrol - Sp signed
02/18    Pres signed
02/19    To Governor - Governor signed
         Session Law Chapter 13
         Effective: 07/01/04

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 510
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO STATE LANDS; AMENDING SECTION 47-701, IDAHO CODE,  TO  PROVIDE  AN
  3        EXCEPTION FOR RESERVING MINERAL LANDS FROM SALE WHEN THE SURFACE ESTATE IS
  4        IDENTIFIED  BY  THE STATE BOARD OF LAND COMMISSIONERS AS HAVING THE POTEN-
  5        TIAL HIGHEST AND BEST USE FOR DEVELOPMENT PURPOSES, SUCH  AS  RESIDENTIAL,
  6        COMMERCIAL OR INDUSTRIAL PURPOSES AND TO PROVIDE THAT A PURCHASER OF LANDS
  7        MAY  ACQUIRE  RIGHT,  TITLE  OR INTEREST IN THE MINERAL DEPOSITS; AMENDING
  8        SECTION 47-711, IDAHO CODE, TO PROVIDE FOR THE SALE OF LANDS AS  A  SINGLE
  9        ESTATE  WHEN  THE  STATE LAND IS IDENTIFIED AS HAVING THE HIGHEST AND BEST
 10        USE FOR DEVELOPMENT PURPOSES SUCH AS RESIDENTIAL, COMMERCIAL OR INDUSTRIAL
 11        PURPOSES, TO PROVIDE  FOR  RESERVATION  OF  MINERAL  DEPOSITS  IN  CERTAIN
 12        INSTANCES  AND TO MAKE TECHNICAL CORRECTIONS; AND AMENDING SECTION 47-712,
 13        IDAHO CODE, TO PROVIDE THAT ALL APPLICATIONS TO PURCHASE THOSE STATE LANDS
 14        THAT HAVE NOT BEEN IDENTIFIED AS HAVING THE POTENTIAL HIGHEST AND BEST USE
 15        FOR DEVELOPMENT PURPOSES, SUCH AS RESIDENTIAL,  COMMERCIAL  OR  INDUSTRIAL
 16        PURPOSES  APPROVED SUBSEQUENT TO THE PASSAGE OF THIS CHAPTER SHALL BE SUB-
 17        JECT TO A RESERVATION TO THE STATE OF ALL MINERAL DEPOSITS IN THE  LAND.
                                                                        
 18    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 19        SECTION 1.  That Section 47-701, Idaho Code, be, and the  same  is  hereby
 20    amended to read as follows:
                                                                        
 21        47-701.  RESERVATION  OF  MINERAL  DEPOSITS TO STATE -- TERMS DEFINED. (1)
 22    The terms "mineral  lands,"  "mineral,"  "mineral  deposits,"  "deposit,"  and
 23    "mineral right," as used in this chapter, and amendments thereto shall be con-
 24    strued  to  mean and include all coal, oil, oil shale, gas, phosphate, sodium,
 25    asbestos, gold, silver, lead, zinc, copper,  antimony,  geothermal  resources,
 26    salable  minerals,  and  all other mineral lands, minerals or deposits of min-
 27    erals of whatsoever kind or character.
 28        (2)  Such deposits in lands belonging to the state are hereby reserved  to
 29    the state and are reserved from sale except upon a rental and royalty basis as
 30    herein provided, and except when the surface estate is identified by the state
 31    board  of  land commissioners as having the potential highest and best use for
 32    development purposes, such as residential, commercial or industrial  purposes.
 33    Except  for  the aforementioned purposes, the purchaser of any all other state
 34    land belonging to the state shall acquire no right, title or interest in or to
 35    such deposits, and the right of such purchaser shall be subject to the  reser-
 36    vation  of  all  mineral  deposits  and to the conditions and limitations pre-
 37    scribed by law providing for the state and persons authorized by it  to  pros-
 38    pect  for, mine, and remove such deposits and to occupy and use so much of the
 39    surface of said land as may be required for all purposes  reasonably  incident
 40    to the mining and removal of such deposits therefrom.
 41        (3)  An exchange of state land consummated by the board under authority of
 42    section 58-138, Idaho Code, shall not be considered a sale of state lands. The
 43    transfers  of  mineral  deposits  heretofore made in such exchanges are hereby
                                                                        
                                           2
                                                                        
  1    approved.
                                                                        
  2        SECTION 2.  That Section 47-711, Idaho Code, be, and the  same  is  hereby
  3    amended to read as follows:
                                                                        
  4        47-711.  SALE  OF  STATE LANDS CONTAINING MINERAL DEPOSITS. Lands in which
  5    minerals are contained and the surface of which has a value for other purposes
  6    may be sold as a single estate under the provisions of chapter 3, of title 58,
  7    of the Idaho Code, relating to the sale of state lands, provided that in  when
  8    the  state land is identified as having the potential highest and best use for
  9    development purposes, such as residential, commercial or industrial  purposes.
 10    In  the  sale of such the surface estate of all other state lands, there shall
 11    be reserved to the state all such mineral deposits and that the right  of  the
 12    purchaser shall be subject to the conditions and limitations prescribed by law
 13    providing  for the state or persons authorized by it to prospect for, mine and
 14    remove such deposits and to occupy and use so much of the surface of such land
 15    as may be required for all purposes reasonably  incident  to  the  mining  and
 16    removal of such deposits therefrom.
                                                                        
 17        SECTION  3.  That  Section  47-712, Idaho Code, be, and the same is hereby
 18    amended to read as follows:
                                                                        
 19        47-712.  APPLICATIONS TO PURCHASE -- CERTIFICATES OF PURCHASE. All  appli-
 20    cations  to purchase those state lands that have not been identified as having
 21    the potential highest and best use for development purposes, such as  residen-
 22    tial,  commercial or industrial purposes approved subsequent to the passage of
 23    this chapter shall be subject to a reservation to the  state  of  all  mineral
 24    deposits in said land. and of the right of tThe state or persons authorized by
 25    it  to prospect for, mine and remove the same as provided by law; and all cer-
 26    tificates of purchase issued by the state shall contain such reservation.

Statement of Purpose / Fiscal Impact


                     STATEMENT  OF  PURPOSE
                            RS 13481
The changes to IC 47-701 through this legislation will give the
State Board of Land Commissioners (Board) authority to include
minerals with the sale of State lands, when the surface estate is
identified as having the potential highest and best use for
development purposes, such as residential, commercial, or
industrial purposes.

Currently, mineral rights are reserved to the State when any State
lands are sold.  This mineral reservation can negatively affect the
valuation of a parcel where major improvements will be constructed
on the surface.  A mineral claimant could attempt to mine the
property pursuant to Idaho Code title 47, Chapter 7.  To maximize
income to the endowments, it would be better to sell such lands
without a mineral reservation, so that the development can proceed
without the risk of mineral development decreasing the value of the
property.


                         FISCAL  IMPACT
Revenue to the endowment funds will increase due to development of
high value commercial or industrial businesses that will generate
market rent on endowment land.

No additional general fund money will be needed.

CONTACT   
Name:     Jay Biladeau
Agency:   Department of Lands
Phone:    334-0237

Statement of Purpose/Fiscal Impact                       H 510