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H0130aaS......................................by RESOURCES AND CONSERVATION
STATE LANDS - Amends existing law to revise provisions relating to the
lease of state lands.
02/08 House intro - 1st rdg - to printing
02/09 Rpt prt - to 2nd rdg
02/12 2nd rdg - to 3rd rdg
02/15 3rd rdg - PASSED - 65-0-5
AYES -- Anderson, Andrus, Barrett, Bayer, Bell, Bilbao, Black, Block,
Bock, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew, Collins,
Crane, Durst, Edmunson, Eskridge, Hagedorn, Hart, Harwood, Henbest,
Henderson, Jaquet, Killen, King, Kren, Labrador, Lake, LeFavour,
Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer, Moyle,
Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ring, Ringo,
Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(2), Shepherd(8),
Shirley, Shively, Smith(30), Smith(24), Snodgrass, Stevenson, Thayn,
Trail, Vander Woude, Wood(27), Wood(35), Mr. Speaker
NAYS -- None
Absent and excused -- Bedke, Boe, Clark, Nielsen, Wills
Floor Sponsor - Raybould
Title apvd - to Senate
02/16 Senate intro - 1st rdg - to St Aff
02/27 Rpt out - to 14th Ord
03/07 Rpt out amen - to 1st rdg as amen
03/08 1st rdg - to 2nd rdg as amen
03/09 2nd rdg - to 3rd rdg as amen
03/12 3rd rdg as amen - PASSED - 35-0-0
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Gannon, Geddes,
Goedde, Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst,
Little, Lodge, Malepeai, McGee, McKague, McKenzie, Pearce,
Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
NAYS -- None
Absent and excused -- None
Floor Sponsor - McKenzie
Title apvd - to House
03/13 House concurred in Senate amens - to engros
03/14 Rpt engros - 1st rdg - to 2nd rdg as amen
03/15 2nd rdg - to 3rd rdg as amen
03/16 3rd rdg as amen - PASSED - 68-0-2
AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
Block, Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew,
Clark, Collins, Crane, Durst, Edmunson, Eskridge, Hagedorn, Hart,
Harwood, Henbest, Henderson, Jaquet, Killen, King, Kren, Labrador,
LeFavour, Loertscher, Luker, Marriott, Mathews, Mortimer, Moyle,
Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ring,
Ringo, Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(2),
Shepherd(8), Shirley, Shively, Smith(30), Smith(24), Snodgrass,
Stevenson, Thayn, Trail, Vander Woude, Wills, Wood(27), Wood(35), Mr.
Speaker
NAYS -- None
Absent and excused -- Lake, McGeachin
Floor Sponsor - Raybould
Title apvd - to enrol
03/19 Rpt enrol - Sp signed
03/20 Pres signed - To Governor
03/21 Governor signed
Session Law Chapter 138
Effective: 07/01/07
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 130
BY RESOURCES AND CONSERVATION COMMITTEE
1 AN ACT
2 RELATING TO STATE LANDS; AMENDING SECTION 58-307, IDAHO CODE, TO REVISE PROVI-
3 SIONS RELATING TO THE LEASE OF STATE LANDS.
4 Be It Enacted by the Legislature of the State of Idaho:
5 SECTION 1. That Section 58-307, Idaho Code, be, and the same is hereby
6 amended to read as follows:
7 58-307. TERM OF LEASE -- APPLICATION FOR RENEWAL -- ALLOWANCE FOR
8 IMPROVEMENTS. (1) No lease of state public school endowment lands, other than
9 those valuable for stone, coal, oil, gas or other minerals, shall be for a
10 longer term than ten (10) years.
11 (2) Notwithstanding any other provisions of law, all state lands may be
12 leased for a period of up to twenty-five (25) years to the federal government,
13 to federal agencies, state agencies, counties, or cities, school districts or
14 political subdivisions when leased for public purposes. Such leases for public
15 purposes may be entered into by negotiation and shall secure a rental amount
16 based on the fair market value of the state land.
17 (3) Notwithstanding any other provisions of law, all state endowment
18 lands may be leased for a period of up to forty-nine (49) years for commercial
19 purposes, or for lands eligible for the federal conservation reserve enhance-
20 ment program (CREP), under such terms and conditions as may be set by the
21 board, provided that, for such leases in excess of ten (10) years, the board
22 consults with the county commissioners of the county in which the lands are
23 located before leasing the lands, and the use for which the land is leased
24 shall be consistent with the local planning and zoning ordinances insofar as
25 is reasonable and practicable. For each lease in excess of ten (10) years, the
26 department shall hold a hearing in the county in which the parcel is located.
27 (4) The term "commercial purposes" means any commercial or industrial
28 enterprises, retail sales outlets, business and professional office buildings,
29 hospitality enterprises, commercial recreational activities, multifamily resi-
30 dential developments and other similar businesses as defined by the board. For
31 purposes of this section, agricultural leases, grazing leases, oil and gas
32 leases, mineral leases, geothermal leases, communication site leases, single
33 family, recreational cottage site and homesite leases, and leases for other
34 similar uses, are not considered leases for commercial purposes.
35 (5) The board may require that all fixed improvements constructed upon
36 land leased for commercial purposes be removed or become the property of the
37 state upon termination of the lease, and that any heirs, encumbrances or
38 claims of third parties with respect to any improvements shall be expressly
39 subordinate and subject to the rights of the state under this section.
40 (6) Except for geothermal, oil and gas, mineral and commercial leases,
41 the lease year shall run from January 1 through December 31, and all leases
42 shall expire on December 31 of the year of expiration.
43 (7) All applications to lease or to renew an existing lease which expires
2
1 December 31 of any year, shall be filed in the office of the director of the
2 department of lands by the thirtieth day of April preceding the date of such
3 expiration. Such applications will be considered by the state land board and
4 be disposed of in the manner provided by law; except that the board may reject
5 conflicting applications for a lease for commercial purposes if the lessee
6 exercises the preference right to renew clause, and provided such right is
7 specified in the lease.
8 (8) Where conflicts appear upon leases, except for mineral leases which,
9 pursuant to chapter 7, title 47, Idaho Code, contain a preferential right to
10 renew clause, such applications shall be considered as having been filed
11 simultaneously. However, nothing herein shall be construed to prevent the
12 state board of land commissioners from accepting and considering applications
13 for new leases at any time.
14 (9) In case improvements have been made on land while under lease which
15 is expiring, and the former lessee is not the successful bidder, but the land
16 is leased to another, the amount of such improvements shall be paid to the
17 former lessee. The following shall be considered improvements: plowing done
18 within one (1) year, provided no crop has been raised on the plowed land after
19 such plowing, fencing, buildings, cisterns, wells, growing crops and any other
20 asset which shall be considered an improvement by the director.
21 (10) Commercial leases of the state lands shall not be subject to the con-
22 flict auction provisions of section 58-310, Idaho Code. The board may, at its
23 discretion, consider individual applications or call for proposals and sealed
24 bids by public advertisement, and may evaluate said proposals and award the
25 lease to the bidder whose proposal achieves the highest return over the term
26 of the lease and who is capable of meeting such terms and conditions as may be
27 set by the board; in the alternative, the board may call for lease applica-
28 tions by public advertisement and if more than one (1) person files an appli-
29 cation to hold an auction in the same manner as provided in section 58-310,
30 Idaho Code. In either all cases, the board must obtain a reasonable rental,
31 based upon fair market value of the state land, throughout the duration of the
32 lease. The board may reject any or all proposals and any or all bids, and may
33 reoffer the lease at a later date if the board determines that the proposals
34 or bids do not achieve the highest and best use of the land at market rental.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
Moved by Stennett
Seconded by Stegner
IN THE SENATE
SENATE AMENDMENT TO H.B. NO. 130
1 AMENDMENTS TO SECTION 1
2 On page 1 of the printed bill, in line 27, delete "any commercial or" and
3 insert: "wind or geothermal energy projects,"; delete lines 28 through 30, and
4 insert: "enterprises, retail sales outlets, business and professional office
5 buildings, hospitality enterprises, commercial recreational activities, multi-
6 family residential developments and other similar businesses. For"; and in
7 line 32, delete "communication site leases," and insert: "communication site
8 leases,".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 130, As Amended in the Senate
BY RESOURCES AND CONSERVATION COMMITTEE
1 AN ACT
2 RELATING TO STATE LANDS; AMENDING SECTION 58-307, IDAHO CODE, TO REVISE PROVI-
3 SIONS RELATING TO THE LEASE OF STATE LANDS.
4 Be It Enacted by the Legislature of the State of Idaho:
5 SECTION 1. That Section 58-307, Idaho Code, be, and the same is hereby
6 amended to read as follows:
7 58-307. TERM OF LEASE -- APPLICATION FOR RENEWAL -- ALLOWANCE FOR
8 IMPROVEMENTS. (1) No lease of state public school endowment lands, other than
9 those valuable for stone, coal, oil, gas or other minerals, shall be for a
10 longer term than ten (10) years.
11 (2) Notwithstanding any other provisions of law, all state lands may be
12 leased for a period of up to twenty-five (25) years to the federal government,
13 to federal agencies, state agencies, counties, or cities, school districts or
14 political subdivisions when leased for public purposes. Such leases for public
15 purposes may be entered into by negotiation and shall secure a rental amount
16 based on the fair market value of the state land.
17 (3) Notwithstanding any other provisions of law, all state endowment
18 lands may be leased for a period of up to forty-nine (49) years for commercial
19 purposes, or for lands eligible for the federal conservation reserve enhance-
20 ment program (CREP), under such terms and conditions as may be set by the
21 board, provided that, for such leases in excess of ten (10) years, the board
22 consults with the county commissioners of the county in which the lands are
23 located before leasing the lands, and the use for which the land is leased
24 shall be consistent with the local planning and zoning ordinances insofar as
25 is reasonable and practicable. For each lease in excess of ten (10) years, the
26 department shall hold a hearing in the county in which the parcel is located.
27 (4) The term "commercial purposes" means wind or geothermal energy proj-
28 ects, industrial enterprises, retail sales outlets, business and professional
29 office buildings, hospitality enterprises, commercial recreational activities,
30 multifamily residential developments and other similar businesses. For pur-
31 poses of this section, agricultural leases, grazing leases, oil and gas
32 leases, mineral leases, geothermal leases, communication site leases, single
33 family, recreational cottage site and homesite leases, and leases for other
34 similar uses, are not considered leases for commercial purposes.
35 (5) The board may require that all fixed improvements constructed upon
36 land leased for commercial purposes be removed or become the property of the
37 state upon termination of the lease, and that any heirs, encumbrances or
38 claims of third parties with respect to any improvements shall be expressly
39 subordinate and subject to the rights of the state under this section.
40 (6) Except for geothermal, oil and gas, mineral and commercial leases,
41 the lease year shall run from January 1 through December 31, and all leases
42 shall expire on December 31 of the year of expiration.
43 (7) All applications to lease or to renew an existing lease which expires
2
1 December 31 of any year, shall be filed in the office of the director of the
2 department of lands by the thirtieth day of April preceding the date of such
3 expiration. Such applications will be considered by the state land board and
4 be disposed of in the manner provided by law; except that the board may reject
5 conflicting applications for a lease for commercial purposes if the lessee
6 exercises the preference right to renew clause, and provided such right is
7 specified in the lease.
8 (8) Where conflicts appear upon leases, except for mineral leases which,
9 pursuant to chapter 7, title 47, Idaho Code, contain a preferential right to
10 renew clause, such applications shall be considered as having been filed
11 simultaneously. However, nothing herein shall be construed to prevent the
12 state board of land commissioners from accepting and considering applications
13 for new leases at any time.
14 (9) In case improvements have been made on land while under lease which
15 is expiring, and the former lessee is not the successful bidder, but the land
16 is leased to another, the amount of such improvements shall be paid to the
17 former lessee. The following shall be considered improvements: plowing done
18 within one (1) year, provided no crop has been raised on the plowed land after
19 such plowing, fencing, buildings, cisterns, wells, growing crops and any other
20 asset which shall be considered an improvement by the director.
21 (10) Commercial leases of the state lands shall not be subject to the con-
22 flict auction provisions of section 58-310, Idaho Code. The board may, at its
23 discretion, consider individual applications or call for proposals and sealed
24 bids by public advertisement, and may evaluate said proposals and award the
25 lease to the bidder whose proposal achieves the highest return over the term
26 of the lease and who is capable of meeting such terms and conditions as may be
27 set by the board; in the alternative, the board may call for lease applica-
28 tions by public advertisement and if more than one (1) person files an appli-
29 cation to hold an auction in the same manner as provided in section 58-310,
30 Idaho Code. In either all cases, the board must obtain a reasonable rental,
31 based upon fair market value of the state land, throughout the duration of the
32 lease. The board may reject any or all proposals and any or all bids, and may
33 reoffer the lease at a later date if the board determines that the proposals
34 or bids do not achieve the highest and best use of the land at market rental.
STATEMENT OF PURPOSE
RS 16924
This proposed legislation amends the definition of "commercial
purposes" as any commercial or industrial enterprises as defined
by the state land board. In addition, subject to approval of the
state land board, it qualifies agricultural lands eligible for
the federal conservation reserve enhancement program (CREP), to
be eligible for leases in excess of ten years so that they may
qualify for the fifteen year requirement of CREP. Agricultural
leases, grazing leases, oil and gas leases, mineral leases,
geothermal leases, single family, recreational cottage site and
homesite leases, and leases for other similar uses, will remain
as leases not considered leases for commercial purposes.
Current Idaho Code allows the board to reject conflicting
applications for a lease for commercial purposes if the lessee
exercises the preference right to renew clause. This proposed
legislation would further require that such preference right be
specified in the lease.
The proposed legislation adds wording that would allow the board
the latitude to consider individual applications in addition to
the current procedure that a call for proposals and sealed bids
for a commercial lease may be made.
FISCAL IMPACT
No fiscal impact.
Contact
Name: Stan Boyd, Ridgeline Energy
Phone: (208) 344-2271
Dar Olberding
Phone: (208) 345-0706
Rep. Dell Raybould
Phone: (208) 332-1000
STATEMENT OF PURPOSE FISCAL NOTE H 130