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H0406aa.......................................by RESOURCES AND CONSERVATION
STATE ENDOWMENT LANDS - Amends existing law to provide for the lease of
state endowment lands for residential purposes.
01/24 House intro - 1st rdg - to printing
01/25 Rpt prt - to Res/Con
02/11 Rpt out - to Gen Ord
Rpt out amen - to engros
02/12 Rpt engros - 1st rdg - to 2nd rdg as amen
02/13 2nd rdg - to 3rd rdg as amen
02/18 3rd rdg as amen - PASSED - 66-3-1
AYES -- Anderson, Andrus, Barrett, Bayer, Bell, Bilbao, Black, Block,
Bock, Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon, Chavez,
Chew, Clark, Collins, Crane, Eskridge, Hagedorn, Hart, Harwood,
Henbest(Burgoyne), Henderson, Jaquet, Killen, King, Kren, Labrador,
LeFavour, Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer,
Moyle, Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould,
Ringo(Cooke), Roberts, Ruchti, Sayler, Schaefer, Shepherd(02),
Shepherd(08), Shirley, Shively, Smith(24), Smith(30)(Stanek),
Snodgrass, Stevenson, Thayn, Thomas, Trail, Vander Woude, Wills,
Wood(27), Wood(35), Mr. Speaker
NAYS -- Durst, Lake, Rusche
Absent and excused -- Bedke
Floor Sponsor - King
Title apvd - to Senate
02/19 Senate intro - 1st rdg - to Res/Env
03/06 Rpt out - rec d/p - to 2nd rdg
03/07 2nd rdg - to 3rd rdg
03/10 3rd rdg - PASSED - 34-0-1
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(Sagness), McGee, McKague, Pearce, Richardson,
Schroeder, Siddoway, Stegner, Stennett, Werk
NAYS -- None
Absent and excused -- McKenzie
Floor Sponsor - Little
Title apvd - to House
03/11 To enrol - Rpt enrol - Sp signed
03/12 Pres signed - To Governor
03/14 Governor signed
Session Law Chapter 103
Effective: 07/01/08
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 406 BY RESOURCES AND CONSERVATION COMMITTEE 1 AN ACT 2 RELATING TO STATE ENDOWMENT LANDS; AMENDING SECTION 58-307, IDAHO CODE, TO 3 PROVIDE FOR THE LEASE OF STATE ENDOWMENT LANDS FOR RESIDENTIAL PURPOSES. 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 thirty (30) years for residential 19 purposes as determined by the state board of land commissioners including, but 20 not limited to, single family, recreational cottage site and homesite leases. 21 (4) Notwithstanding any other provisions of law, all state endowment 22 lands may be leased for a period of up to forty-nine (49) years for commercial 23 purposes, or for lands eligible for the federal conservation reserve enhance- 24 ment program (CREP), under such terms and conditions as may be set by the 25 board, provided that, for such leases in excess of ten (10) years, the board 26 consults with the county commissioners of the county in which the lands are 27 located before leasing the lands, and the use for which the land is leased 28 shall be consistent with the local planning and zoning ordinances insofar as 29 is reasonable and practicable. For each lease in excess of ten (10) years, the 30 department shall hold a hearing in the county in which the parcel is located. 31 (45) The term "commercial purposes" means wind or geothermal energy proj- 32 ects, industrial enterprises, retail sales outlets, business and professional 33 office buildings, hospitality enterprises, commercial recreational activities, 34 multifamily residential developments and other similar businesses. For pur- 35 poses of this section, agricultural leases, grazing leases, oil and gas 36 leases, mineral leases, geothermal leases, communication site leases, single 37 family, recreational cottage site and homesite leases, and leases for other 38 similar uses, are not considered leases for commercial purposes. 39 (56) The board may require that all fixed improvements constructed upon 40 land leased for commercial purposes be removed or become the property of the 41 state upon termination of the lease, and that any heirs, encumbrances or 42 claims of third parties with respect to any improvements shall be expressly 43 subordinate and subject to the rights of the state under this section. 2 1 (67) Except for geothermal, oil and gas, mineral and commercial leases, 2 the lease year shall run from January 1 through December 31, and all leases 3 shall expire on December 31 of the year of expiration. 4 (78) All applications to lease or to renew an existing lease which 5 expires December 31 of any year, shall be filed in the office of the director 6 of the department of lands by the thirtieth day of April preceding the date of 7 such expiration. Such applications will be considered by the state land board 8 and be disposed of in the manner provided by law; except that the board may 9 reject conflicting applications for a lease for commercial purposes if the 10 lessee exercises the preference right to renew clause, and provided such right 11 is specified in the lease. 12 (89) Where conflicts appear upon leases, except for mineral leases which, 13 pursuant to chapter 7, title 47, Idaho Code, contain a preferential right to 14 renew clause, such applications shall be considered as having been filed 15 simultaneously. However, nothing herein shall be construed to prevent the 16 state board of land commissioners from accepting and considering applications 17 for new leases at any time. 18 (910) In case improvements have been made on land while under lease which 19 is expiring, and the former lessee is not the successful bidder, but the land 20 is leased to another, the amount of such improvements shall be paid to the 21 former lessee. The following shall be considered improvements: plowing done 22 within one (1) year, provided no crop has been raised on the plowed land after 23 such plowing, fencing, buildings, cisterns, wells, growing crops and any other 24 asset which shall be considered an improvement by the director. 25 (101) Commercial leases of the state lands shall not be subject to the 26 conflict auction provisions of section 58-310, Idaho Code. The board may, at 27 its discretion, consider individual applications or call for proposals and 28 sealed bids by public advertisement, and may evaluate said proposals and award 29 the lease to the bidder whose proposal achieves the highest return over the 30 term of the lease and who is capable of meeting such terms and conditions as 31 may be set by the board; in the alternative, the board may call for lease 32 applications by public advertisement and if more than one (1) person files an 33 application to hold an auction in the same manner as provided in section 34 58-310, Idaho Code. In all cases, the board must obtain a reasonable rental, 35 based upon fair market value of the state land, throughout the duration of the 36 lease. The board may reject any or all proposals and any or all bids, and may 37 reoffer the lease at a later date if the board determines that the proposals 38 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 Second Regular Session - 2008Moved by King Seconded by Pence IN THE HOUSE OF REPRESENTATIVES HOUSE AMENDMENT TO H.B. NO. 406 1 AMENDMENT TO SECTION 1 2 On page 1 of the printed bill, in line 18, delete "thirty (30)" and 3 insert: "thirty-five (35)".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 406, As Amended BY RESOURCES AND CONSERVATION COMMITTEE 1 AN ACT 2 RELATING TO STATE ENDOWMENT LANDS; AMENDING SECTION 58-307, IDAHO CODE, TO 3 PROVIDE FOR THE LEASE OF STATE ENDOWMENT LANDS FOR RESIDENTIAL PURPOSES. 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 thirty-five (35) years for residen- 19 tial purposes as determined by the state board of land commissioners includ- 20 ing, but not limited to, single family, recreational cottage site and homesite 21 leases. 22 (4) Notwithstanding any other provisions of law, all state endowment 23 lands may be leased for a period of up to forty-nine (49) years for commercial 24 purposes, or for lands eligible for the federal conservation reserve enhance- 25 ment program (CREP), under such terms and conditions as may be set by the 26 board, provided that, for such leases in excess of ten (10) years, the board 27 consults with the county commissioners of the county in which the lands are 28 located before leasing the lands, and the use for which the land is leased 29 shall be consistent with the local planning and zoning ordinances insofar as 30 is reasonable and practicable. For each lease in excess of ten (10) years, the 31 department shall hold a hearing in the county in which the parcel is located. 32 (45) The term "commercial purposes" means wind or geothermal energy proj- 33 ects, industrial enterprises, retail sales outlets, business and professional 34 office buildings, hospitality enterprises, commercial recreational activities, 35 multifamily residential developments and other similar businesses. For pur- 36 poses of this section, agricultural leases, grazing leases, oil and gas 37 leases, mineral leases, geothermal leases, communication site leases, single 38 family, recreational cottage site and homesite leases, and leases for other 39 similar uses, are not considered leases for commercial purposes. 40 (56) The board may require that all fixed improvements constructed upon 41 land leased for commercial purposes be removed or become the property of the 42 state upon termination of the lease, and that any heirs, encumbrances or 43 claims of third parties with respect to any improvements shall be expressly 2 1 subordinate and subject to the rights of the state under this section. 2 (67) Except for geothermal, oil and gas, mineral and commercial leases, 3 the lease year shall run from January 1 through December 31, and all leases 4 shall expire on December 31 of the year of expiration. 5 (78) All applications to lease or to renew an existing lease which 6 expires December 31 of any year, shall be filed in the office of the director 7 of the department of lands by the thirtieth day of April preceding the date of 8 such expiration. Such applications will be considered by the state land board 9 and be disposed of in the manner provided by law; except that the board may 10 reject conflicting applications for a lease for commercial purposes if the 11 lessee exercises the preference right to renew clause, and provided such right 12 is specified in the lease. 13 (89) Where conflicts appear upon leases, except for mineral leases which, 14 pursuant to chapter 7, title 47, Idaho Code, contain a preferential right to 15 renew clause, such applications shall be considered as having been filed 16 simultaneously. However, nothing herein shall be construed to prevent the 17 state board of land commissioners from accepting and considering applications 18 for new leases at any time. 19 (910) In case improvements have been made on land while under lease which 20 is expiring, and the former lessee is not the successful bidder, but the land 21 is leased to another, the amount of such improvements shall be paid to the 22 former lessee. The following shall be considered improvements: plowing done 23 within one (1) year, provided no crop has been raised on the plowed land after 24 such plowing, fencing, buildings, cisterns, wells, growing crops and any other 25 asset which shall be considered an improvement by the director. 26 (101) Commercial leases of the state lands shall not be subject to the 27 conflict auction provisions of section 58-310, Idaho Code. The board may, at 28 its discretion, consider individual applications or call for proposals and 29 sealed bids by public advertisement, and may evaluate said proposals and award 30 the lease to the bidder whose proposal achieves the highest return over the 31 term of the lease and who is capable of meeting such terms and conditions as 32 may be set by the board; in the alternative, the board may call for lease 33 applications by public advertisement and if more than one (1) person files an 34 application to hold an auction in the same manner as provided in section 35 58-310, Idaho Code. In all cases, the board must obtain a reasonable rental, 36 based upon fair market value of the state land, throughout the duration of the 37 lease. The board may reject any or all proposals and any or all bids, and may 38 reoffer the lease at a later date if the board determines that the proposals 39 or bids do not achieve the highest and best use of the land at market rental.
STATEMENT OF PURPOSE
RS 17334
The lands around some Idaho lakes are leased by the Department
of Lands. Current law restricts residential leasing for cottage
sites to ten (10) years. This change will provide for leasing of
cottage sites on all state endowment lands for a period up to
thirty-five (35) years, as determined by the State Board of Land
Commissioners. Lenders such as Fannie Mae, prefer a thirty-five
(35) year land lease before they will award a thirty (30) year
mortgage. This longer term will allow residential leases to
coincide with a conventional thirty-five (35) year home mortgage.
Such a change anticipates creating increased interest in state
residential leases that could translate into higher bid rates on
newly developed cottage sites.
FISCAL IMPACT
There is no fiscal impact for this bill. In fact, there may
be an efficiency savings because some leases will only be processed
every thirty-five (35) years.
CONTACT:
Rep. Phylis King
Phone: 332-1227
STATEMENT OF PURPOSE / FISCAL IMPACT H 406
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