2008 Legislation
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HOUSE BILL NO. 500<br /> – State land, lease, comm’l purpose


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Bill Status

H0500.........................................by RESOURCES AND CONSERVATION
STATE LANDS - LEASES - Amends existing law relating to the lease of state
lands to revise the definition of the term "commercial purposes" to include
fuel cells, low impact hydro, wind, geothermal resources, biomass,
cogeneration, sun or landfill gas as the principal source of power for a
facility capable of generating not less than twenty-five kilowatts of
electricity; and to delete reference to geothermal leases.

02/08    House intro - 1st rdg - to printing
02/11    Rpt prt - to Res/Con
02/20    Rpt out - rec d/p - to 2nd rdg
02/21    2nd rdg - to 3rd rdg
02/22    3rd rdg - PASSED - 63-0-7
      AYES -- Anderson, Barrett, Bayer, Bell, Bilbao, Black, Block, Bock,
      Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon, Chavez, Chew,
      Clark, Collins, Crane, Durst, Eskridge, Hagedorn, Hart, Harwood,
      Henbest, Henderson, Jaquet, Killen, King, Labrador, Lake, LeFavour,
      Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer, Moyle,
      Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Ringo, Roberts,
      Ruchti, Rusche, Sayler, Schaefer, Shepherd(02), Shepherd(08),
      Shirley, Shively, Smith(30)(Stanek), Snodgrass, Thayn, Thomas, Trail,
      Vander Woude, Wills, Wood(35), Mr. Speaker
      NAYS -- None
      Absent and excused -- Andrus, Bedke, Kren, Raybould, Smith(24),
      Stevenson, Wood(27)
    Floor Sponsor - Anderson
    Title apvd - to Senate
02/25    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 - Stennett
    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 115
         Effective: 07/01/08

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008


                              IN THE HOUSE OF REPRESENTATIVES

                                     HOUSE BILL NO. 500


  1                                        AN ACT
  4        THERMAL LEASES.

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

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

  9    IMPROVEMENTS. (1) No lease of state public school endowment lands, other  than
 10    those  valuable  for  stone,  coal, oil, gas or other minerals, shall be for a
 11    longer term than ten (10) years.
 12        (2)  Notwithstanding any other provisions of law, all state lands  may  be
 13    leased for a period of up to twenty-five (25) years to the federal government,
 14    to  federal agencies, state agencies, counties, or cities, school districts or
 15    political subdivisions when leased for public purposes. Such leases for public
 16    purposes may be entered into by negotiation and shall secure a  rental  amount
 17    based on the fair market value of the state land.
 18        (3)  Notwithstanding  any  other  provisions  of  law, all state endowment
 19    lands may be leased for a period of up to forty-nine (49) years for commercial
 20    purposes, or for lands eligible for the federal conservation reserve  enhance-
 21    ment  program  (CREP),  under  such  terms and conditions as may be set by the
 22    board, provided that, for such leases in excess of ten (10) years,  the  board
 23    consults  with  the  county commissioners of the county in which the lands are
 24    located before leasing the lands, and the use for which  the  land  is  leased
 25    shall  be  consistent with the local planning and zoning ordinances insofar as
 26    is reasonable and practicable. For each lease in excess of ten (10) years, the
 27    department shall hold a hearing in the county in which the parcel is located.
 28        (4)  The term "commercial purposes" means  fuel cells, low  impact  hydro,
 29    wind,  or geothermal energy projects, resources, biomass, cogeneration, sun or
 30    landfill gas as the principal source of power with a facility capable of  gen-
 31    erating  not  less  than twenty-five (25) kilowatts of electricity, industrial
 32    enterprises, retail sales outlets, business and professional office buildings,
 33    hospitality enterprises, commercial recreational activities, multifamily resi-
 34    dential developments and other similar businesses. For purposes of  this  sec-
 35    tion, agricultural leases, grazing leases, oil and gas leases, mineral leases,
 36    geothermal leases, communication site leases, single family, recreational cot-
 37    tage site and homesite leases, and leases for other similar uses, are not con-
 38    sidered  leases  for  commercial  purposes.  The  terms fuel cells, low impact
 39    hydro, wind, geothermal resources, biomass, cogeneration, sun or landfill  gas
 40    shall have the same definitions as provided in section 63-3622QQ, Idaho Code.
 41        (5)  The  board  may  require that all fixed improvements constructed upon
 42    land leased for commercial purposes be removed or become the property  of  the
 43    state  upon  termination  of  the  lease,  and that any heirs, encumbrances or


  1    claims of third parties with respect to any improvements  shall  be  expressly
  2    subordinate and subject to the rights of the state under this section.
  3        (6)  Except  for  geothermal,  oil and gas, mineral and commercial leases,
  4    the lease year shall run from January 1 through December 31,  and  all  leases
  5    shall expire on December 31 of the year of expiration.
  6        (7)  All applications to lease or to renew an existing lease which expires
  7    December  31  of any year, shall be filed in the office of the director of the
  8    department of lands by the thirtieth day of April preceding the date  of  such
  9    expiration.  Such  applications will be considered by the state land board and
 10    be disposed of in the manner provided by law; except that the board may reject
 11    conflicting applications for a lease for commercial  purposes  if  the  lessee
 12    exercises  the  preference  right  to renew clause, and provided such right is
 13    specified in the lease.
 14        (8)  Where conflicts appear upon leases, except for mineral leases  which,
 15    pursuant  to  chapter 7, title 47, Idaho Code, contain a preferential right to
 16    renew clause, such applications shall  be  considered  as  having  been  filed
 17    simultaneously.  However,  nothing  herein  shall  be construed to prevent the
 18    state board of land commissioners from accepting and considering  applications
 19    for new leases at any time.
 20        (9)  In  case  improvements have been made on land while under lease which
 21    is expiring, and the former lessee is not the successful bidder, but the  land
 22    is  leased  to  another,  the amount of such improvements shall be paid to the
 23    former lessee. The following shall be considered  improvements:  plowing  done
 24    within one (1) year, provided no crop has been raised on the plowed land after
 25    such plowing, fencing, buildings, cisterns, wells, growing crops and any other
 26    asset which shall be considered an improvement by the director.
 27        (10) Commercial leases of the state lands shall not be subject to the con-
 28    flict  auction provisions of section 58-310, Idaho Code. The board may, at its
 29    discretion, consider individual applications or call for proposals and  sealed
 30    bids  by  public  advertisement, and may evaluate said proposals and award the
 31    lease to the bidder whose proposal achieves the highest return over  the  term
 32    of the lease and who is capable of meeting such terms and conditions as may be
 33    set  by  the  board; in the alternative, the board may call for lease applica-
 34    tions by public advertisement and if more than one (1) person files an  appli-
 35    cation  to  hold  an auction in the same manner as provided in section 58-310,
 36    Idaho Code. In all cases, the board must obtain  a  reasonable  rental,  based
 37    upon  fair  market  value  of  the  state land, throughout the duration of the
 38    lease. The board may reject any or all proposals and any or all bids, and  may
 39    reoffer  the  lease at a later date if the board determines that the proposals
 40    or bids do not achieve the highest and best use of the land at market rental.

Statement of Purpose / Fiscal Impact

                     STATEMENT OF PURPOSE
                          RS 17834C1
The proposed legislation amends Section 58-307, Idaho Code, to
further define the term "commercial purposes" as they apply to leases
on school endowment lands. It expands the identified renewable
resources allowed to include fuel cells, low impact hydro, sun or
landfill gas, as well as wind and geothermal resources.

Revision of Section 58-307, Idaho Code, will broaden the definition
of renewable energy projects to give consistency in Code, and
establish the same definitions as provided in Section 63-3622 QQ, 
Idaho Code.

                          FISCAL NOTE
There will be no negative fiscal impact from the passage of this

Name:   Representative Anderson
Phone:  332 1000
Representative Nonini
Speaker Denney
Representative Mike Moyle
Representative Scott Bedke
Representative Ken Roberts
Representative George Eskridge
Representative Frank Henderson
Representative Cliff Bayer

STATEMENT OF PURPOSE/FISCAL NOTE                          H 500