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LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
SENATE
SENATE
BILL
NO.
1413
BY
STATE
AFFAIRS
COMMITTEE
AN
ACT
1
RELATING
TO
ENDOWMENT
LAND
LEASES;
AMENDING
SECTION
58
-
307,
IDAHO
CODE,
TO
2
REVISE
A
PROVISION
REGARDING
THE
TERM
OF
COMMERCIAL
LEASES;
AND
DECLAR
-
3
ING
AN
EMERGENCY
AND
PROVIDING
AN
EFFECTIVE
DATE.
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
IM
-
8
PROVEMENTS.
(1)
No
lease
of
state
trust
lands
shall
be
for
a
longer
term
than
9
twenty
(20)
years.
10
(2)
Notwithstanding
any
other
provisions
of
law,
all
state
lands
may
1
1
be
leased
for
a
period
of
up
to
twenty
-
five
(25)
years
to
the
federal
gov
-
12
ernment,
to
federal
agencies,
state
agencies,
counties,
or
cities,
school
13
districts
or
political
subdivisions
when
leased
for
public
purposes.
Such
14
leases
for
public
purposes
may
be
entered
into
by
negotiation
and
shall
se
-
15
cure
a
rental
amount
based
on
the
fair
market
value
of
the
state
land.
16
(3)
Notwithstanding
any
other
provisions
of
law,
all
state
endowment
17
trust
lands
may
be
leased
for
a
period
of
up
to
thirty
-
five
(35)
years
for
18
residential
purposes
as
determined
by
the
state
board
of
land
commissioners
19
including,
but
not
limited
to,
single
family,
recreational
cottage
site
and
20
homesite
leases.
21
(4)
Notwithstanding
any
other
provision
of
law
to
the
contrary,
all
22
state
lands
may
be
leased
for
a
period
of
up
to
forty
(40)
years
for
grazing
23
leases.
24
(5)
Notwithstanding
any
other
provisions
of
law,
all
state
endowment
25
trust
lands
may
be
leased
for
a
period
of
up
to
forty
-
nine
(49)
ninety
-
nine
26
(99)
years
for
commercial
purposes
under
such
terms
and
conditions
as
may
27
be
set
by
the
board,
provided
that,
for
such
leases
in
excess
of
twenty
(20)
28
years,
the
board
consults
with
the
county
commissioners
of
the
county
in
29
which
the
lands
are
located
before
leasing
the
lands,
and
the
use
for
which
30
the
land
is
leased
shall
be
consistent
with
the
local
planning
and
zoning
31
ordinances
insofar
as
is
reasonable
and
practicable.
For
each
lease
in
ex
-
32
cess
of
twenty
(20)
years,
the
department
shall
hold
a
hearing
in
the
county
33
in
which
the
parcel
is
located.
Grazing
leases
shall
be
excluded
from
the
34
hearing
requirement.
35
(6)
The
term
"commercial
purposes"
means
fuel
cells,
low
impact
hy
-
36
dro,
wind,
geothermal
resources,
biomass,
cogeneration,
sun
or
landfill
37
gas
as
the
principal
source
of
power
with
a
facility
capable
of
generating
38
not
less
than
twenty
-
five
(25)
kilowatts
of
electricity,
industrial
enter
-
39
prises,
retail
sales
outlets,
business
and
professional
office
buildings,
40
hospitality
enterprises,
commercial
recreational
activities,
multifamily
41
residential
developments
and
other
similar
businesses.
For
purposes
of
42
2
this
section,
farming
leases,
grazing
leases,
conservation
leases
including
1
lands
enrolled
in
federal
conservation
programs
such
as
the
conservation
2
reserve
enhancement
program
(CREP),
noncommercial
recreation
leases,
oil
3
and
gas
leases,
mineral
leases,
communication
site
leases,
single
family,
4
recreational
cottage
site
and
homesite
leases,
and
leases
for
other
similar
5
uses,
are
not
considered
leases
for
commercial
purposes.
The
terms
fuel
6
cells,
low
impact
hydro,
wind,
geothermal
resources,
biomass,
cogeneration,
7
sun
or
landfill
gas
shall
have
the
same
definitions
as
provided
in
section
8
63
-
3622QQ,
Idaho
Code.
9
(7)
The
board
may
require
that
all
fixed
improvements
constructed
upon
10
land
leased
for
commercial
purposes
be
removed
or
become
the
property
of
the
1
1
state
upon
termination
of
the
lease,
and
that
any
heirs,
encumbrances
or
12
claims
of
third
parties
with
respect
to
any
improvements
shall
be
expressly
13
subordinate
and
subject
to
the
rights
of
the
state
under
this
section.
14
(8)
Except
for
oil
and
gas,
mineral
and
commercial
leases,
the
lease
15
year
shall
run
from
January
1
through
December
31,
and
all
leases
shall
ex
-
16
pire
on
December
31
of
the
year
of
expiration.
17
(9)
All
applications
to
lease
or
to
renew
an
existing
lease
which
ex
-
18
pires
December
31
of
any
year,
shall
be
filed
in
the
office
of
the
director
19
of
the
department
of
lands
by
the
thirtieth
day
of
April
preceding
the
date
20
of
such
expiration.
Such
applications
will
be
considered
by
the
state
land
21
board
and
be
disposed
of
in
the
manner
provided
by
law;
except
that
the
board
22
may
reject
conflicting
applications
for
a
lease
for
commercial
purposes
if
23
the
lessee
exercises
the
preference
right
to
renew
clause,
and
provided
such
24
right
is
specified
in
the
lease.
25
(10)
Where
conflicts
appear
upon
leases,
except
for
mineral
leases
26
which,
pursuant
to
chapter
7,
title
47,
Idaho
Code,
contain
a
preferential
27
right
to
renew
clause,
such
applications
shall
be
considered
as
having
been
28
filed
simultaneously.
However,
nothing
herein
shall
be
construed
to
prevent
29
the
state
board
of
land
commissioners
from
accepting
and
considering
appli
-
30
cations
for
new
leases
at
any
time.
31
(11)
In
case
improvements
have
been
made
on
land
while
under
lease
which
32
is
expiring,
and
the
former
lessee
is
not
the
successful
bidder,
but
the
land
33
is
leased
to
another,
the
amount
of
such
improvements
shall
be
paid
to
the
34
former
lessee.
The
following
shall
be
considered
improvements:
plowing
35
done
within
one
(1)
year,
provided
no
crop
has
been
raised
on
the
plowed
land
36
after
such
plowing,
fencing,
buildings,
cisterns,
wells,
growing
crops
and
37
any
other
asset
which
shall
be
considered
an
improvement
by
the
director.
38
(12)
Commercial
leases
of
the
state
lands
shall
not
be
subject
to
the
39
conflict
auction
provisions
of
section
58
-
310,
Idaho
Code.
The
board
may,
40
at
its
discretion,
consider
individual
applications
or
call
for
proposals
41
and
sealed
bids
by
public
advertisement,
and
may
evaluate
said
proposals
and
42
award
the
lease
to
the
bidder
whose
proposal
achieves
the
highest
return
over
43
the
term
of
the
lease
and
who
is
capable
of
meeting
such
terms
and
conditions
44
as
may
be
set
by
the
board;
in
the
alternative,
the
board
may
call
for
lease
45
applications
by
public
advertisement
and
if
more
than
one
(1)
person
files
46
an
application
to
hold
an
auction
in
the
same
manner
as
provided
in
section
47
58
-
310,
Idaho
Code.
In
all
cases,
the
board
must
obtain
a
reasonable
rental,
48
based
upon
fair
market
value
of
the
state
land,
throughout
the
duration
of
49
the
lease.
The
board
may
reject
any
or
all
proposals
and
any
or
all
bids,
and
50
3
may
reoffer
the
lease
at
a
later
date
if
the
board
determines
that
the
pro
-
1
posals
or
bids
do
not
achieve
the
highest
and
best
use
of
the
land
at
market
2
rental.
3
SECTION
2.
An
emergency
existing
therefor,
which
emergency
is
hereby
4
declared
to
exist,
this
act
shall
be
in
full
force
and
effect
on
and
after
5
July
1,
2026.
6