1999 Legislation
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SENATE BILL NO. 1084 – State lands, leasing periods

SENATE BILL NO. 1084

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Daily Data Tracking History



S1084..........................................by RESOURCES AND ENVIRONMENT
STATE LANDS - LEASING - Amends existing law to provide that all state lands
may be leased for a period of up to 25 years to the federal government,
federal agencies, counties, cities, school districts or political
subdivisions when leased for public purposes; and to provide that such
leases for public purposes may be entered into by negotiation and shall
secure a rental amount based on the fair market value of the state land.

02/02    Senate intro - 1st rdg - to printing
02/03    Rpt prt - to Res/Env
02/16    Rpt out - rec d/p - to 2nd rdg
02/17    2nd rdg - to 3rd rdg
02/18    3rd rdg - PASSED - 32-2-1
         AYES--Andreason, Boatright, Bunderson, Burtenshaw, Cameron, Crow,
      Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
      Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry,
      Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner,
      Thorne, Twiggs, Wheeler
      NAYS--Stennett, Whitworth
      Absent and excused--Branch
    Floor Sponsor - Noh
    Title apvd - to House
02/19    House intro - 1st rdg - to Res/Con
03/04    Rpt out - rec d/p - to 2nd rdg
03/05    2nd rdg - to 3rd rdg
03/11    3rd rdg - PASSED - 66-0-4
      AYES -- Alltus, Barraclough(Barraclough), Barrett, Bell, Bieter,
      Black, Boe, Bruneel, Callister, Campbell, Chase, Clark, Crow, Cuddy,
      Deal, Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould,
      Hadley, Hammond, Hansen(23), Hansen(29), Hornbeck, Jaquet, Jones,
      Judd, Kempton, Kendell, Kunz, Lake, Limbaugh, Linford, Loertscher,
      Mader, Marley, McKague, Montgomery, Mortensen, Moyle, Pischner,
      Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali, Schaefer, Sellman,
      Smith, Smylie, Stevenson, Stoicheff, Stone, Taylor, Tilman, Tippets,
      Trail, Watson, Wheeler, Williams, Wood, Zimmermann
      NAYS -- None
      Absent and excused -- Henbest, Kellogg, Meyer, Mr Speaker
    Floor Sponsor - Wheeler
    Title apvd - to Senate
03/12    To enrol
03/15    Rpt enrol - Pres signed
03/16    Sp signed - to Governor
03/18    Governor signed
         Session Law Chapter 84
         Effective: 07/01/99

Bill Text


S1084


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999
                                                                        

                                      IN THE SENATE

                                   SENATE BILL NO. 1084

                          BY RESOURCES AND ENVIRONMENT COMMITTEE

 1                                        AN ACT
 2    RELATING TO LEASES OF STATE LANDS; AMENDING SECTION  58-307,  IDAHO  CODE,  TO
 3        PROVIDE  THAT  ALL STATE LANDS MAY BE LEASED FOR A PERIOD OF UP TO TWENTY-
 4        FIVE YEARS TO THE FEDERAL GOVERNMENT, FEDERAL AGENCIES, COUNTIES,  CITIES,
 5        SCHOOL DISTRICTS OR POLITICAL SUBDIVISIONS WHEN LEASED FOR PUBLIC PURPOSES
 6        AND  TO  PROVIDE  SUCH  LEASES  FOR PUBLIC PURPOSES MAY BE ENTERED INTO BY
 7        NEGOTIATION AND SHALL SECURE A RENTAL AMOUNT  BASED  ON  THE  FAIR  MARKET
 8        VALUE OF THE STATE LAND.

 9    Be It Enacted by the Legislature of the State of Idaho:

10        SECTION  1.  That  Section  58-307, Idaho Code, be, and the same is hereby
11    amended to read as follows:

12        58-307.  TERM OF  LEASE  --  APPLICATION  FOR  RENEWAL  --  ALLOWANCE  FOR
13    IMPROVEMENTS.  (1) No lease of state public school endowment lands, other than
14    those valuable for stone, coal, oil, gas or other minerals,  shall  be  for  a
15    longer  term  than ten (10) years .  ; provided, however, that
16    
17         (2)  Notwithstanding any other provisions of law, all    state
18    lands   other than public school endowment lands  may be leased for
19    a period of up to twenty-five (25) years    to  the  federal  government,
20      to  federal  agencies,  state  agencies,  counties  ,    or
21    cities  ,  school  districts or political subdivisions  when leased
22    for public purposes.  Such leases for public purposes may be entered into
23    by negotiation and shall secure a rental amount based on the fair market value
24    of the state land. 
25        ( 2  3 )  Notwithstanding any  other  provisions  of
26    law, only the state endowment lands, other than public school endowment lands,
27    described  below may be leased for a period of up to forty-nine (49) years for
28    commercial purposes, under such terms and conditions as  may  be  set  by  the
29    board,  provided  that the board consults with the county commissioners of the
30    county in which the lands are  located  before  leasing  the  lands  described
31    below,  and  the use for which the land is leased shall be consistent with the
32    local planning and zoning ordinances insofar as is reasonable and practicable.
33    The department shall hold a hearing, on each of the parcels  described  below,
34    in the community in which the parcel is located.
35        (a)  One  (1) parcel - E1/2, Section 5, T2N, R2E, Boise Meridian, contain-
36        ing three hundred twenty (320) acres, more or less, and located  south  of
37        the Boise Airport on Pleasant Valley Road.
38        (b)  One  (1)  parcel - SWSWNW, Section 27, T3N, R2E, Boise Meridian, con-
39        taining eight (8) acres, more or less, located northeasterly of the  Boise
40        Airport and north of the Boise Interagency Fire Center.
41        (c)  Four  (4)  parcels - E1/2SW, W1/2SE, NESE, Section 31; SW1/4, Section
42        32, T3N, R2E, Boise Meridian, all containing  three  hundred  sixty  (360)
43        acres, more or less, located south of the Boise Airport and west of Pleas-


                                          2

 1        ant Valley Road.
 2        (d)  Three  (3)  parcels - SWSW, Section 28; Pt. SESE, Section 29 (east of
 3        the Railroad R/W, now a bikepath); W1/2NW, Section 33, all in  T3N,  R18E,
 4        Boise  Meridian,  all containing one hundred twenty-five (125) acres, more
 5        or less, located two (2)  miles  northerly  of  Hailey,  Idaho,  excepting
 6        therefrom,  a  parcel of land, containing twenty (20) acres, more or less,
 7        at a location to be determined with access to the sheep  driveway  located
 8        on the county road.
 9        (e)  One (1) parcel - SWNE, Section 32, T3N, R2E, Boise Meridian, contain-
10        ing  forty (40) acres, more or less, located southerly and westerly of the
11        Boise Airport off Gowen Road; Public Building Endowment.
12        (f)  Two (2) parcels - Part NESWNE, Section 35, T3N, R2E, Boise  Meridian,
13        containing  three  and fifteen hundredths (3.15) acres, more or less; Part
14        NENESE, Section 35, T3N, R2E, Boise Meridian, containing  one  and  eight-
15        tenths  (1.8)  acres, more or less; both located northerly and easterly of
16        I-84 between the Broadway Interchange and the Gowen Road/State Highway  21
17        Interchange; Normal School Endowment.
18        (g)  One  (1)  parcel  -  Part Lot 1, Section 1, T2N, R2E, Boise Meridian,
19        containing five (5) acres, more or less, located near the Gowen Road/State
20        Highway 21 Exit from I-84; Penitentiary Endowment.
21        (h)  One (1) parcel - N1/2NW1/4SW1/4,  SW1/4NW1/4SW1/4,  Section  4,  T2N,
22        R2E,  Boise  Meridian,  excepting  that portion deeded to Ada County for a
23        public road, containing twenty-eight and seventy-nine  hundredths  (28.79)
24        acres,  more  or less, located south of Boise Airport and east of Pleasant
25        Valley Road; Normal School Endowment.
26        ( 3  4 )  Notwithstanding any  other  provisions  of
27    law,  only  the  state  public  school  endowment lands described below may be
28    leased for commercial purposes, for a term not to exceed ten (10)  years,  and
29    the  board may grant, upon payment of good and valuable consideration, a pref-
30    erential right to renew said lease not more than four (4) times, provided that
31    the board shall consult with the county commissioners of the county  in  which
32    the  lands  are  located before leasing the lands described below, and the use
33    for which the land is leased shall be consistent with the local  planning  and
34    zoning  ordinances  insofar  as  is reasonable and practicable. The department
35    shall hold a hearing, on each of the parcels described below, in the community
36    in which the parcel is located.
37        (a)  One (1) parcel - All, Section 16, T3N, R18E, Boise Meridian, contain-
38        ing six hundred forty (640) acres, more or less, and located in Ohio Gulch
39        some five (5) miles northerly of Hailey, Idaho.
40        (b)  One (1) parcel - E1/2NE, Section 16, T18N, R3E, Boise Meridian,  con-
41        taining  eighty (80) acres, more or less, and located northwesterly of the
42        intersection of Deinhard Lane and Sampson Trail in McCall, Idaho.
43        (c)  One (1) parcel - S1/2NW, NESW, Part NWSW, Part SWSW, Part SESW,  Sec-
44        tion  36,  T3N,  R2E, Boise Meridian, containing one hundred seventy-eight
45        and seventy-one hundredths (178.71) acres, more or less, located northerly
46        and easterly of I-84  between  the  Broadway  Interchange  and  the  Gowen
47        Road/State Highway 21 Interchange; Public School Endowment.
48        (d)  One  (1)  parcel  - NE1/4SW1/4, SE1/4NW1/4SW1/4, Section 4, T2N, R2E,
49        Boise Meridian, containing fifty (50) acres, more or less,  located  south
50        of  Boise  Airport  and east of Pleasant Valley Road; Public School Endow-
51        ment.
52        ( 4   5  )  The  term  "commercial  purposes"  means
53    industrial enterprises, retail sales outlets, business and professional office
54    buildings, hospitality enterprises, commercial recreational activities, multi-
55    family  residential developments and other similar businesses. For purposes of


                                          3

 1    this section, agricultural leases, grazing leases, oil and gas leases, mineral
 2    leases, geothermal leases and single family,  recreational  cottage  site  and
 3    homesite leases are not  considered leases for commercial purposes.
 4        (  5    6  )  The  board  may require that all fixed
 5    improvements constructed  upon land leased for commercial purposes be  removed
 6    or  become  the  property of the state upon termination of the lease, and that
 7    any heirs, encumbrances or  claims  of  third  parties  with  respect  to  any
 8    improvements  shall  be expressly subordinate and subject to the rights of the
 9    state under this section.
10        ( 6  7 )  Except for geothermal, oil  and  gas,  and
11    mineral  leases,  the lease year shall run from January 1 through December 31,
12    and all leases shall expire on December 31 of the year of expiration.
13        ( 7  8 )  The annual rental shall be due and payable
14    in advance of year one of the lease and by January 1 of each succeeding  year,
15    except  for  grazing  leases which shall be due and payable by the date set by
16    the state board of land commissioners in the lease, but in no case  shall  the
17    rental  for  grazing leases be due and payable earlier than January 1 or later
18    than May 1 of each succeeding year.
19        ( 8  9 )  All applications to lease or to  renew  an
20    existing lease which expires December thirty-first of any year, shall be filed
21    in  the office of the director of the department of lands by the thirtieth day
22    of April preceding the date of such expiration. Such applications will be con-
23    sidered by the state land board and be disposed of in the manner  provided  by
24    law; except that the board may reject conflicting applications for a lease for
25    commercial  purposes  if  the  lessee  exercises the preference right to renew
26    clause.
27        ( 9  10 ) Where conflicts appear upon  leases  which
28    do  not  contain a preferential right to renew clause, such applications shall
29    be considered as having been filed  simultaneously.  However,  nothing  herein
30    shall  be  construed  to  prevent  the  state board of land commissioners from
31    accepting and considering applications for new leases at any time.
32        (1 0  1 ) In case improvements  have  been  made  on
33    land  while  under  lease  which is expiring, and the former lessee is not the
34    successful bidder, but the land is leased  to  another,  the  amount  of  such
35    improvements  shall  be paid to the former lessee. The following shall be con-
36    sidered improvements: plowing done within one (1) year, provided no  crop  has
37    been  raised  on  the  plowed  land  after  such  plowing, fencing, buildings,
38    cisterns, wells, growing crops and any other asset which shall  be  considered
39    an improvement by the director.
40        (1  1    2  ) Commercial  leases  of the state lands
41    described in this section shall not be subject to the conflict auction  provi-
42    sions  of  section  58-310, Idaho Code. The board may, at its discretion, call
43    for proposals and sealed bids by public advertisement, and may  evaluate  said
44    proposals  and award the lease to the bidder whose proposal achieves the high-
45    est return over the term of the lease and who is capable of meeting such terms
46    and conditions as may be set by the board. In the alternative, the  board  may
47    call  for  lease applications by public advertisement and if more than one (1)
48    person files an application to hold an auction in the same manner as  provided
49    in section 58-310, Idaho Code. In either case, the board must obtain a reason-
50    able  rental,  based  upon fair market value of the state land, throughout the
51    duration of the lease. The board may reject any or all proposals  and  any  or
52    all  bids,  and  may reoffer the lease at a later date if the board determines
53    that the proposals or bids do not achieve the highest and best use of the land
54    at market rental.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE

                            RS08819C1

The purpose of this bill is to permit leasing of state endowment lands to federal,
state and local units of govemments under the same procedures used for leasing of other
state lands to such entities. Presently, state lands other than endowment lands may be
leased to federal, state and local govemments for a period of up to 25 years under Idaho
Code 58-307 by direct negotiations. Endowment lands were excluded from Idaho Code
58-307 because the Idaho Admissions Bill limited leases of such lands to a period of 10
years. In 1998, Congress removed the 10 year limitation from the Idaho Admissions Bill.
This bill would include state endowment lands under the provisions of Idaho Code 58-307 but require that all leases to govemmental units secure a rental amount based on the
fair market value of the state land.


                           FISCAL NOTE

No fiscal impact is expected from this legislation.

CONTACT: Senator Laird Noh
         (208) 332-1333
         


STATEMENT OF PURPOSE/FISCAL NOTE    S 1084