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S1153..........................................by RESOURCES AND ENVIRONMENT STATE LAND BOARD - Amends existing law to clarify the State Land Board's authority to exchange state lands for other lands of equal or greater value independent of their highest and best use; and to provide that no exchanges shall be made involving leased lands except upon written agreement of the lessee or as provided in the lease. 02/11 Senate intro - 1st rdg - to printing 02/12 Rpt prt - to Res/Env
S1153|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE SENATE SENATE BILL NO. 1153 BY RESOURCES AND ENVIRONMENT COMMITTEE 1 AN ACT 2 RELATING TO THE AUTHORITY OF THE STATE BOARD OF LAND COMMISSIONERS; AMENDING 3 SECTION 58-138, IDAHO CODE, TO CLARIFY THE BOARD'S AUTHORITY TO EXCHANGE 4 STATE LANDS FOR OTHER LANDS OF EQUAL OR GREATER VALUE INDEPENDENT OF THEIR 5 HIGHEST AND BEST USE AND TO PROVIDE THAT NO EXCHANGES SHALL BE MADE 6 INVOLVING LEASED LANDS EXCEPT UPON WRITTEN AGREEMENT OF THE LESSEE OR AS 7 PROVIDED IN THE LEASE. 8 Be It Enacted by the Legislature of the State of Idaho: 9 SECTION 1. That Section 58-138, Idaho Code, be, and the same is hereby 10 amended to read as follows: 11 58-138. EXCHANGE OF STATE LAND. (1) The state board of land commissioners 12 may at its discretion, when in the state's best interest, exchange, and do all 13 things necessary to exchange fee simple title to include full surface and min- 14 eral rights, to any of the state lands now or hereafter held and owned by this 15 state forsimilarother lands of equal or 16 greater value , public or private, so as to consolidate 17 state lands or aid the state in the control and management or use of state 18 lands. 19 (2) Provided further the state board of land commissioners may, in its 20 discretion, hereafter grant and receive less than fee simple title, and grant 21 or allow such reservations, restrictions, easements or such other impairment 22 to title as may be in the state's best interest. 23 (3) No exchanges shall be made involving leased lands except upon the 24 written agreement of the lessee , or as provided in the lease . 25 (4) Subject to the approval of the state board of land commissioners, the 26 first lease on lands acquired through land exchange and in lieu selections 27 shall be offered to the present user, lessee, or permittee of the land, pro- 28 vided that the present user agrees in writing to enter into a contractual man- 29 agement program through which the resource values of the land may be enhanced 30 or improved for the purpose of increasing the income to the endowed institu- 31 tions.
STATEMENT OF PURPOSE
RS08961
This proposed bill amends Section 58-138, Idaho Code, to allow the Land Board to
exchange endowment lands for "... similar other lands of equal or greater value, public
or private...."
These changes would authorize the Land Board to exchange rangelands for
timberlands and vice versa - a judgment call not accorded the Land board under
existing law. The authority to enter into exchanges of dissimilar will allow the Board to
diversify its real estate portfolio and provide greater future revenues for the endowment
beneficiaries.
As a result of the original grants, the endowment lands are scattered across the state.
Many of the parcels are small and isotated, which makes it difficult to properly manage
them and increases the administrative costs. The quality of these lands varies from
poor to excellent.
As with any portfolio of trust (land) assets, it is prudent to continuously evaluate and
upgrade those holdings to ensure the best returns for the beneficiaries. Land
exchanges allow the state to acquire lands that are more compatible with existing state
ownership, and also provide for greater management control. The Board has been
involved in an active land exchange program since the early 1970's and they have, on
occasion, exchanged lands that were not simliar when such action was in the best
interest of the beneficiaries.
This proposed bill also amends Section 58-138 (3) as follows:
"(3) No exchanges shall be made involving leased lands except upon the written
agreement of the lessee. or as provided in the lease."
FISCAL IMPACT
No additional general fund money wlil be needed to implement this bill. Implementation
of this bill will result in reduced administrative costs and greater returns to the
endowment trust beneficiaries from resource management activities on lands acquired
through land exchange.
Prepared by:
Stan Hamilton, Director Department of Lands
(208) 334-0239
STATEMENT OF PURPOSE/FISCAL IMPACT S 1l53