The committee considered 26LSO0213, a draft clarifying subleasing and non-owned-livestock fees on state trust grazing lands, and approved the measure with amendments that simplify accounting for lessees who host livestock owned by others.

Stacia Berry of the Office of State Lands and Investments told lawmakers there are roughly 4,073 grazing leases statewide and that the office recorded 441 subleases in the previous year, generating about $295,579 in claimed excess rental revenue. The bill and committee amendment respond to confusion in the field about when a formal sublease is required and how excess rental revenue should be shared.

Under the statute as amended, a lessee who runs livestock that are not owned by the lessee may either (a) enter a formal sublease for the parcel and remit half of the calculated excess rental as currently provided in statute, or (b) notify the office and pay a per-head monthly fee for non-owned livestock in lieu of a sublease. The committee also adopted language, proposed by the Office of State Lands, that exempts a lessee from sublease or the non-owned-livestock fee when the entities that hold the state grazing lease and the entity owning the livestock have common ownership of at least 80 percent.

Jim McGadden of the Wyoming Stockgrowers Association said the adopted approach aligns with a prior concept paper presented to the committee and reduces onerous accounting for lessees who manage animals owned by closely related entities. "This bill simplifies things greatly for the landowners and for the state land office," McGadden said in testimony.

Committee members asked how the monthly per-head fee would be collected and enforced; Stacia Berry said the office was prepared to implement the administrative process but noted some aspects would rely on self-reporting and voluntary notice to the office. The office also offered a clarifying amendment to the draft to ensure the common-ownership exemption evaluates ownership of entities rather than an informal tally of animal ownership.

After public comment and committee discussion the committee adopted the Office of State Lands' suggested language and approved the bill as amended. The roll-call vote on the amended draft was recorded as 10 yes with four members excused. The draft will move forward with the clarified subleasing rules, the per-head fee option and the 80% common-ownership exemption.

Ending note: The committee forwarded 26LSO0213 with the office’s amendment clarifying that sublease and non-owned-livestock fees do not apply where the entity holding the lease and the entity owning the livestock are at least 80% commonly owned; the office will publish implementing forms and guidance after the bill advances.