Committee sends land-bank extension to amendment order after mixed testimony on state land purchases

Representative John Vander Waata introduced House Bill 129, a proposal to extend the period that land-sale proceeds may remain in the state's Land Bank from five years to ten years before automatic transfer to the permanent endowment fund.

Supporters, including Heather Eastman of Idaho Business for the Outdoors and Nick Fasiano of the Idaho Wildlife Federation, told the committee the extension gives the state Land Board and Idaho Department of Lands additional time to identify endowment land purchases amid volatile real-estate markets. Eastman, executive director of Idaho Business for the Outdoors, said more than 96% of endowment lands are accessible for recreation and argued the extension would help preserve opportunities for hunting, fishing and outdoor tourism. Eastman testified that "in just the last 10 years, $130,000,000 of land sale proceeds have already transferred out of the land bank" and asserted that without the extension "an additional $36,100,000 is scheduled to transfer out of that fund in just the next 2 years."

Nick Fasiano, executive director of the Idaho Wildlife Federation, said the change is "a fairly straightforward change" that should help secure public access and that the Land Board could still transfer monies into the permanent endowment fund at any time to address fiscal concerns.

Industry witnesses including Steve Thomas of IFG and Jack Herdy of the Idaho Outfitters and Guides Association supported the bill as a tool to preserve and expand endowment lands and public access. Steve Thomas said the current five-year rule can force premature deposits into the permanent endowment fund and that extending the period increases flexibility to secure productive lands for beneficiaries.

Opponents, led by Russ Hendricks of the Idaho Farm Bureau Federation, urged the committee to oppose the bill. Hendricks said the current system "is actually working just as the legislature had intended" and warned the extension would provide the state more opportunity to buy private land, reducing the private tax base. Hendricks cited Department of Lands statistics and a net increase of roughly 63,906 acres in state holdings over the last ten years, and argued the state should not further reduce private ownership.

Jonathan Oppenheimer of the Idaho Conservation League described the Land Board's acquisition process as public and said some Department of Lands records list about 43,000 acres acquired in recent years but agreed the state once held roughly 3.6 million acres at statehood and now holds about 2.5 million, reflecting a long-term sell-off.

Boundary County resident Tom Daniel testified that in his county roughly 61.4% of land is federal, 26.5% private and 13.2% state, and he opposed the bill because purchases reduce the local property-tax base.

Representative Vander Waata said the bill merely extends the timeframe and does not change which categories of land the board may purchase. He said his intent was to preserve option value in a tight market and that the legislature could revisit detailed parameters later.

Senator Taylor moved to send the bill to the Senate floor with a due-pass recommendation; the motion failed for lack of a second. Senator Guthrie later moved that House Bill 129 be sent to the fourteenth order for possible amendments; Senator Hart seconded. The committee called the roll: Chairman Burton Shaw (aye, with reservation), Senator Hart (aye), Senator Guthrie (aye), Senator Harris (no), Senator O'Konowitz (aye), Senator Cook (no), Senator Van Orden (aye), Senator Cole (aye, with reservation), and Senator Taylor (aye). The committee reported the motion carried (7 aye, 2 no) and the bill was sent to the amending order.