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Committee closes loophole to preserve preferred renewal rights for state land lessees in good standing
Summary
House Bill 61 would clarify that a lessee who is not currently in violation of their state land lease retains the preferred right to renew, even if past violations were corrected; the Agriculture, State & Public Lands & Water Resources Committee advanced the bill after testimony from the state lands office and the Farm Bureau
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The Agriculture, State & Public Lands & Water Resources Committee advanced House Bill 61, a bill clarifying the preferred right to renew state land leases for lessees who are "not currently in violation" of lease provisions.
Representative Dalton Banks, sponsor of the bill, told the committee the change closes a procedural loophole in the State Office of State Lands and Investments. The bill alters statutory language to make clear that a lessee who had past violations but is not currently in violation at renewal time retains the preferred right to renew the lease.
Representative Banks explained that prior language produced contested cases when the term "has ever been in violation" was used; the amendment changes the standard to being "not currently in violation of the provisions of that lease." Banks said types of violations that have appeared in contested cases include subleasing without approval, grazing infractions and late payments, and the bill is intended to allow lessees who have corrected past problems to retain renewal preference.
Ben Bump, speaking for the Office of State Lands, told the committee the preference operates by allowing the current lessee to match competing bids up to a statutory cap; the office enforces a cap at 120% of market rate when considering competing bids. "What this preference is for is to match any competing bids at that lease renewal time," Bump said, and the office’s practice is to work with lessees to resolve issues and bring them into compliance so they qualify for preference.
Karen Clark, representing the Wyoming Farm Bureau Federation, testified in support and said the provision preserves long-term stability for lessees and benefits state lands management.
State lands staff told the committee conflicting applications are rare—about eight to 10 per year out of approximately 4,000 leases—and the office typically contacts lessees as soon as a potential violation is identified to bring them into compliance before renewal.
On a motion to advance, the committee recorded ayes from Senator Hyde, Senator McEwen, Senator Pearson and Chairman French; the clerk reported "four ayes" and left the roll open for an excused senator to vote later. The committee advanced the bill for further legislative consideration.

