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Bill to bar nonprofits from leasing state trust lands draws partisan and tribal pushback

House Natural Resources Committee · February 26, 2025
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Summary

Representative Brandon Lear's HB647 would disallow nonprofits from leasing state trust lands, aiming to prioritize agricultural lessees; conservation groups, tribes and nonprofit coalitions warned it would reduce access, harm conservation projects, and conflict with DNRC's revenue‑maximization trust duty.

Representative Brandon Lear proposed House Bill 6 47 to prohibit nonprofit organizations and corporations from leasing state trust lands, saying non‑profits compete unfairly with taxable ranchers and farmers for leases that generate trust revenue for public schools and other beneficiaries.

Supporters included county commissioners and ranchers who said nonprofits sometimes control large acreages without producing agricultural revenue. "Non profits don't pay any income tax into the state...so they don't have a fair playing field," the sponsor said.

Opponents included the Nature Conservancy, tribal representatives, the Montana Nonprofit Association, Montana Wildlife Federation, Trust for Public Lands, and community‑based nonprofits. They warned the bill would restrict conservation tools (community grass banks, conservation easements), impede tribal and conservation partnerships, and could violate the DNRC’s constitutional trust duty to maximize revenue from trust lands. Laurieann Burhop (Montana Nonprofit Association) noted nonprofits employ thousands across Montana and provide services that rely on access to leases. DNRC deputy administrator Ryan Weiss explained DNRC's trust‑duty process and said removing nonprofits would shrink the pool of potential lessees and could leave some parcels unleased.

Committee members asked about constitutional and fiscal implications and whether the bill would force lease cancellations or lead to litigation; DNRC said legal counsel would be prudent and that reclassification or non‑renewal could be complicated where improvements exist.