Land Banking Legislation
If it seems like the action on the land banking front has been fast and furious lately, there’s a reason for that. The Land Banking program was launched as a policy experiment and given a “sunset” date at which it would expire unless reauthorized by the 2007 Legislature. Showing results was important and so far the program is working just about as hoped.
The state is selling isolated parcels, buying and exchanging for others, consolidating state holdings, increasing recreational potential, and improving management and access. While there have been some significant problems along the way, in the end the progress was deemed sufficient to warrant reauthorization of the Land Banking program as well as additional legislation intended to make it work better.
Sen. John Cobb (R-Augusta) sponsored the two primary Land Banking reauthorization bills: SB 131, requested by the Land Board, which revised Land Banking laws, and SB 213, which revised appraisals and land banking procedures. Besides extending the program to 2011, they make some other beneficial changes to improve the process. SB 131 also requires bidders to post bonds 20 days prior to auction, gives lessees 10 days prior to auction to cancel the sale, and requires lessees to pay the costs of preparing the land parcel for sale within 10 days after receiving preliminary approval from the Land Board. Should someone other than the lessee buy the land, the funds are returned to the lessee and the purchaser must pay those costs. The bill passed the legislature by large margins. SB 213 requires that the estimated fair market value of land be determined by a Montana-licensed and Montana-certified appraiser, a proposal that met stiffer resistance but was ultimately signed into law.
The logic behind SB 8, to provide for an independent staff for the Land Board, is simple – the Land Board should have independent information on land banking proposals. Currently, the Department of Natural Resources and Conservation (DNRC), as the management agency for state lands, researches and presents the land banking proposals and issues before the Land Board. SB 8, sponsored by Sen. Jim Shockley (R-Victor) and supported by the Montana Environmental Information Center, requires the Land Board to contract with a qualified land appraiser and attorney to provide independent information and analysis on land sales, exchanges, or transfers, thus improving the Board’s decision-making capability. The cost of the independent staff is paid for from Trust revenues. The measure passed the Senate unanimously and had only five votes against it in the House.
Note: The governor vetoed SB 8, saying he thought the measure was unnecessary and that DNRC has indicated it would recommend the Land Board adopt rules for contracting with outside land appraisers. As we go to print, the legislature is being polled about overriding the veto.
One bill affecting land banking that failed to pass the legislature was HB 584, sponsored by Rep. Mike Jopek (D-Whitefish), which would have asked voters to amend the Constitution to require a unanimous vote by the Land Board for sale of state lands. It narrowly passed the House and died in the Senate on a tie vote on 3rd reading.
